Wheaton Precious Metals — Q424/FY24 results

Wheaton’s adjusted EPS for Q424 exceeded our prior expectations by 1.9%, largely due to better average realised prices for its precious metals. As a consequence, it recorded record revenue, record adjusted EPS and record cash flow for both Q4 and FY24 and raised its quarterly dividend by 6.5%, or 1c/share. It ended the year with US$134.4m more net cash on its balance after its contingent payment to Salobo was delayed into FY25. We have upgraded our forecasts for FY25 very slightly. However, after a quarter in which production outstripped sales by a material amount in Q4 (against the historical trend), there is also the potential for an accelerated ‘flush through’ effect of production into sales earlier than normal in the current year.