Wheaton Precious Metals NYSE: WPM reported a record first quarter of 2026, with management citing stronger-than-expected contributions from Salobo and Penasquito, higher commodity prices and continued progress on a series of growth transactions.
President and Chief Executive Officer Haytham Hodaly, speaking on his first quarterly conference call in the role, said the company delivered “record quarterly revenue, earnings, and cash flow” while continuing to expand its streaming and royalty portfolio. Hodaly highlighted the recently completed Antamina silver stream with BHP as the largest transaction in Wheaton’s history and the largest precious metal streaming transaction ever completed.
“Antamina is one of the world's premier base metal operations with a long track record of strong performance, significant exploration potential, and a demonstrated ability to replace reserves and extend mine life,” Hodaly said.
Production Rises as Salobo and Penasquito Outperform
Vice President of Mining Operations Wes Carson said Wheaton produced 212,000 gold equivalent ounces, or GEOs, in the quarter, up 22% from the prior year. The increase was driven primarily by stronger performance at Salobo and Penasquito.
Salobo generated 69,000 ounces of attributable gold production, down about 3% year over year due to lower grades, partly offset by higher throughput and recoveries. Carson said Vale Base Metals continues to advance coarse particle flotation as a key near-term growth initiative at Salobo, supporting a planned expansion of Salobo III from 12 million tonnes per year to 18 million tonnes per year and targeting total throughput of 42 million tonnes per year by 2029.
During the question-and-answer session, Carson said Wheaton does not expect changes to its 2026 Salobo outlook as a result of the longer-term upgrades. Hodaly added that Wheaton does not have additional capital requirements tied to the Salobo expansion work.
Antamina produced 1.6 million ounces of attributable silver in the first quarter, up approximately 48% from the prior year due to higher grades and improved recoveries. Carson said attributable production is expected to increase significantly beginning in the second quarter, reflecting the addition of the BHP stream, which became effective April 1.
Penasquito produced 2.6 million ounces of attributable silver, a 46% year-over-year increase, supported by higher grades and improved recoveries. Management said production from Penasquito is expected to be lower in the second quarter because of reduced grades and lower throughput related to plant maintenance.
Blackwater produced 129,000 ounces of attributable silver and 5,000 ounces of attributable gold. Carson said Blackwater experienced a seven-day unplanned mill shutdown during the quarter due to a ball mill gearbox failure.
Record Revenue, Earnings and Cash Flow
Chief Financial Officer Vincent Lau said sales volumes totaled 182,000 GEOs, down 3% from the prior year because of an increase in produced but not yet delivered, or PBND, ounces. The PBND balance stood at approximately 184,000 GEOs at quarter-end, representing 2.8 months of payable production.
Lau said Wheaton expects PBND levels to remain between 2.5 months and 3.5 months for the rest of 2026, with the upper end reflecting possible impacts from ramp-up activity at new mines.
Revenue rose 92% year over year to a record $901 million, driven primarily by a 98% increase in the average realized gold equivalent price. Gold accounted for 51% of revenue, silver accounted for 47%, and the remainder came from palladium and cobalt.
Net earnings increased 129% to a record $582 million, while adjusted net earnings rose 132% to a record $583 million. Operating cash flow climbed 112% from the prior year to a record $766 million.
Wheaton ended the quarter with $2.2 billion in cash. Lau said the company also monetized part of its long-term investment portfolio, generating $323 million in proceeds and a $150 million gain, and used the capital to help fund the Antamina BHP stream.
Antamina Financing Moves Wheaton Into Net Debt Position
Following quarter-end, Wheaton funded a $4.3 billion upfront payment to BHP for 33.75% of the silver produced at Antamina. Lau said the payment was funded through cash on hand, a draw on the company’s previously undrawn $2 billion revolving credit facility and a new $1.5 billion term loan.
After the payment, Wheaton moved into a pro forma net debt position of $2.1 billion. Lau said that level represented a leverage ratio of about 0.7 times based on annualized first-quarter 2026 EBITDA.
In response to an analyst question, Lau said the debt service cost on the bank loan and revolving credit facility would be about a 5% interest rate. He also said the second quarter will include several large cash outflows, including the Antamina payment, two dividends and an approximately $150 million global minimum tax payment, with more material debt repayment expected after the second quarter.
New Deals Add Australia Stream and British Columbia Royalty
Vice President of Corporate Development Neil Burns said Wheaton entered into a definitive agreement with KGL Resources for a portion of gold and silver production from the Jervois project in Australia. The deal represents Wheaton’s first streaming transaction in Australia.
Under the agreement, Wheaton will purchase 75% of payable gold and silver until 45,000 ounces of gold and 4.3 million ounces of silver have been delivered. The stream then drops to 37.5% until an additional 15,000 ounces of gold and 1.7 million ounces of silver have been delivered, and then to 25% for the remaining life of mine. Wheaton will make ongoing payments equal to 20% of the spot price for delivered gold and silver ounces.
Burns said the Jervois project is fully permitted and positioned to begin construction imminently. He also described the asset as underexplored, with multiple deposits and targets along a 12-kilometer strike length.
Wheaton also entered into a definitive agreement with Spanish Mountain Gold to acquire a 1.5% net smelter return royalty on the Spanish Mountain project in British Columbia for $55 million in staged payments. Hodaly said in the Q&A session that Wheaton still prefers streams over royalties, but the Spanish Mountain royalty includes a right of first refusal on future stream financing.
Guidance Maintained, Deal Pipeline Remains Active
Wheaton maintained its 2026 production guidance of 860,000 to 940,000 GEOs. Carson said production is expected to be weighted to the second half of the year, with about 45% in the first half and 55% in the second half. Drivers include mine sequencing at Salobo and Penasquito, the start of the Antamina BHP contract in the second quarter and ramp-up activity at newly operating assets.
Management reiterated its expectation that annual attributable production will grow by approximately 50% to 1.2 million GEOs by 2030, with production from 2031 through 2035 forecast to average about 1.2 million GEOs annually.
In discussing the transaction pipeline, Burns said Wheaton continues to see a robust set of opportunities, with the mix around 70% gold opportunities and 20% to 30% silver. He said many potential deals are in the $200 million to $500 million range, with a few possibly approaching $1 billion.
Hodaly said the Antamina transaction was unusual in scale and that he does not expect another $4 billion deal “around the corner.” However, he said BHP’s use of streaming could help validate the model for other diversified miners considering ways to unlock value or reduce leverage.
Hodaly closed the call by saying Wheaton’s strategy remains focused on disciplined growth through “high quality, low risk, long life, accretive precious metal streams” while using strong cash flow to pursue new opportunities and repay debt.
About Wheaton Precious Metals NYSE: WPM
Wheaton Precious Metals Corp. is a Canada-based precious metals streaming company that acquires and manages long-term purchase agreements for metals produced by mining companies. Rather than operating mines, Wheaton provides upfront and ongoing financing to miners in exchange for the right to purchase a portion of the metals produced — typically silver and gold, and occasionally other precious metals — at predetermined prices. This streaming business model offers investors exposure to metal production with reduced operating and capital-cost risk compared with traditional mining companies.
The company's activities center on structuring and maintaining a diversified portfolio of streaming agreements across multiple jurisdictions.
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