On August 6, Wheaton Precious Metals (NYSE:WPM) reported second-quarter net earnings of $543 million on $929 million of revenue, both records. Through the first half, net earnings rose 106% to $1.1 billion. During the quarter, the company also made net upfront cash payments of $4.5 billion relative to mineral stream interests, and it now carries $2.0 billion of total debt against $100 million of cash on hand. Here is what that trade looks like up close.
Margins Outrun The Metals
Start with what the streaming model does when prices climb. Wheaton sold 14% more gold equivalent ounces than a year ago, but the average realized gold equivalent price jumped 61% in Q2, and that higher price explains most of the revenue surge. Costs per ounce rose from $406 to $568, yet the cash operating margin per ounce still grew 65% to $3,875, faster than gold itself appreciated. Operating cash flow hit $650 million in the quarter and $1.4 billion for the half.
The second argument is that plenty of growth hasn’t arrived yet. Only about 3% of this year’s production comes from assets still in construction or ramp-up, and the company forecasts a rise of roughly 50% to 1,200,000 gold equivalent ounces by 2030. Some of that ramp has dates attached. Ivanhoe now expects commercial production at Platreef in the fourth quarter of 2026, and Montage Gold is targeting first gold at Koné in late Q4. Effective April 1, Wheaton expanded its share of silver production from Antamina from 33.75% to 67.5% through the newly acquired BHP Antamina PMPA.
The Bill Comes Due
Growth on this scale wasn’t free. Wheaton had no bank debt at the end of 2025. On April 1, it drew $1.5 billion on a new two-year term loan to help pay for Antamina, and finance costs that were negligible a year ago now take a real bite. Net debt stands at $1.9 billion. Taxes are heavier too. Wheaton paid $109 million of global minimum tax on June 24, and another Cdn$346 million is due around March 31, 2027.
Operations also gave investors a few reasons for caution. Gold ounces produced slipped 2.6% year over year, so the 6% rise in gold equivalent production leaned heavily on the Antamina purchase. Gold output at Salobo fell 11% on lower grades. At Constancia, it fell 35% after mining at the higher-grade Pampacancha pit finished in the fourth quarter of 2025. Hemlo Mining said on July 20 that its second-quarter output fell below the first quarter’s, and Rio2 said on May 15 that Fenix missed planned tonnes and grade in Q1. And because the revenue jump came mainly from price, the same leverage works in reverse if metals slip.
Smart Money Thins Out
The count of hedge funds holding Wheaton stands at 32 in the most recent quarter, down from 37 in the prior one, which suggests institutions are trimming rather than adding. At 27.10 times forward earnings, as of September 18, the stock is priced for the growth the company has laid out, so the multiple already assumes much of the pipeline delivers.
Two Stories, One Ticker
Wheaton’s latest results show a business that turns higher metal prices into cash very efficiently, and one that just borrowed heavily to own more of those metals. The open question is whether the newly bought and newly built ounces show up on time. The bull case needs Platreef, Kurmuk and Koné to reach production on schedule, while the bear case finds support if grades at Salobo and Hemlo stay soft and the debt stays put.
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