Wheaton Precious Metals NYSE: WPM reported a 62% increase in third-quarter revenue as higher precious metals prices and increased sales volumes helped drive record results for the first nine months of 2026.
The company maintained its annual production guidance of 860,000 to 940,000 gold equivalent ounces, or GEOs, after producing approximately 640,000 GEOs through September. Management said it expects a stronger fourth quarter, led by improved grades at the Salobo mine in Brazil.
Chief Executive Officer Haytham Hodaly said first gold at Koné in Côte d’Ivoire, the start of production at Kurmuk in Ethiopia and construction approvals at other projects supported the company’s goal of growing production by about 50% by 2030. That growth, he said, is embedded in the existing portfolio and does not depend on future transactions.
Higher Prices and Sales Lift Revenue
Third-quarter production rose 13% from a year earlier to 231,000 GEOs, primarily reflecting the addition of the BHP Antamina stream and contributions from newly operating assets, including Hemlo, Fenix, Platreef and Mineral Park. Sales volumes increased 19% to 192,000 GEOs.
Revenue reached $772 million, supported by a 36% increase in the average realized gold equivalent price. Gold accounted for 51% of revenue and silver for 46%, with palladium and cobalt contributing the remainder, Chief Financial Officer Vincent Lau said.
Net earnings rose 12% to $410 million, while adjusted net earnings increased 46% to the same amount. Operating cash flow was approximately $645 million for the quarter.
Wheaton repaid $372 million on its revolving credit facility and reduced net debt to about $1.5 billion at quarter-end from roughly $1.9 billion three months earlier. Lau said the company expects to return to a net cash position toward the end of 2027 or in early 2028.
Produced but not yet delivered inventory rose to an estimated 179,000 GEOs, equivalent to 2.6 months of payable production. Lau expects a modest further increase in the fourth quarter as production rises, followed by higher sales volumes in the first quarter of 2027 because of the timing between production and deliveries.
Salobo Expected to Drive Fourth-Quarter Production
Salobo produced 65,800 attributable ounces of gold in the third quarter, down approximately 2% from a year earlier as mine sequencing resulted in lower grades. Wes Carson, vice president of mining operations, said grades should improve significantly in the fourth quarter as mining returns to the bottom of the pit.
For 2027, Carson said Salobo grades are expected to be reasonably similar to 2026 overall, rather than to the anticipated fourth-quarter level.
Vale Base Metals plans to add a coarse particle flotation circuit at Salobo, increasing annual ore processing capacity by 6 million tons and targeting total throughput of 42 million tons a year by 2029. Under a revised agreement, Wheaton will make two $20 million payments tied to construction milestones; previously contemplated $8 million payments associated with a high-grade option were removed, Carson said.
Lau estimated Wheaton’s payback period on the $40 million commitment at roughly a year and a half. Hodaly said the flotation project would increase Salobo production by around 5%, with some of its contribution already included in the company’s forecasts.
At Antamina, attributable silver production increased approximately 60% to 2.7 million ounces. The newly acquired BHP stream doubled Wheaton’s share of silver production at the mine to 67.5%, effective April 1. Hodaly said underlying Antamina production is scheduled to be slightly lower, but not materially lower, in 2027 than in 2026.
Carson also said Wheaton expects a significant decrease in silver production at Peñasquito in the fourth quarter and into next year as mine sequencing changes. The anticipated decline is included in the company’s production plans.
Development Projects and Long-Term Outlook
Wheaton continues to forecast annual production of 1.2 million GEOs by 2030 and an average of approximately 1.2 million GEOs annually from 2031 through 2035. Hodaly cautioned that the figure can vary with the gold-to-silver price ratio, which the company typically reassesses around year-end.
Montage Gold achieved first gold pour at Koné in September, and Allied Gold has begun production at Kurmuk. Commercial production is expected at Kurmuk before year-end and at Koné’s oxide circuit in the fourth quarter, Carson said. Commercial production at Fenix and Platreef is also expected in the fourth quarter.
Hodaly estimated Wheaton’s attributable production from Koné at more than 50,000 ounces in 2027 and more than 60,000 ounces in 2028. At Kurmuk, he projected less than 10,000 ounces in 2027 and roughly 50% more in 2028.
Elsewhere, Hudbay and Mitsubishi approved construction of Copper World in Arizona, with first production targeted for the second half of 2029. KGL Resources approved a final investment decision for Australia’s Jervois project, where first concentrate production is targeted for the first half of 2028.
Deal Pipeline and Capital Allocation
Wheaton had approximately $3 billion in total liquidity as of Sept. 30, according to Hodaly. Neil Burns, vice president of corporate development, said the company had narrowed its pipeline from about 20 opportunities to just over a dozen after reviewing whether they met its investment criteria. Most are development projects and gold streams, with potential transaction values generally ranging from $300 million to $600 million.
Hodaly said management has capacity to increase the dividend and will discuss it with the board early in 2027. He added that redeploying capital into accretive transactions remains the company’s priority for maintaining long-term growth.
About Wheaton Precious Metals (NYSE:WPM)
Wheaton Precious Metals is a precious metals streaming company that provides mining companies with upfront financing in exchange for the right to purchase a portion of the metals produced by their mines. Its streams cover gold and silver, as well as smaller amounts of palladium and cobalt.
Rather than operating mines itself, Wheaton works with mining companies around the world. Under its agreements, it typically makes an initial payment and additional payments for metals delivered, giving it exposure to mine production without directly managing mining operations.
The company was founded as Silver Wheaton in 2004 and adopted the Wheaton Precious Metals name in 2017.
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