Wheaton Precious Metals Raises Dividend after Revenue Rises

Wheaton Precious Metals (WPM), a multinational precious metals streaming company, increased its dividend after posting strong second-quarter results.

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Revenue came in at $330.4 million in the second quarter, an increase of 33.2% from $248 million in the prior-year quarter. Operating cash flow increased by 43%, from $151.8 million to $216.4 million.

Wheaton reported a 32% increase in gold-equivalent production to 194,140 oz. year-over-year. (See Wheaton Precious Metals stock charts on TipRanks)

Meanwhile, the company posted net earnings of $166.1 million ($0.37 per share) in Q2 2021, compared to $105.8 million ($0.24 per share) in Q2 2020.

On an adjusted basis, Wheaton earned $161.6 million ($0.36 per share) in the second quarter of 2021, compared to $97.4 million ($0.22 per share) a year ago.

Wheaton president and CEO Randy Smallwood said, “We continue to remain extremely active on the corporate development front, closing the previously announced precious metals stream on Capstone’s Santo Domingo project and subsequent to the quarter, entering into an agreement on a new precious metals stream on Rio2’s Fenix Gold project in Chile.

“In addition, we remain committed to sustainability and are proud to have published our annual sustainability report in the second quarter, highlighting our focus on delivering value to all of our stakeholders.”

Smallwood also said that Wheaton remains on track to achieve 2021 guidance of 720,000 to 780,000 gold-equivalent oz.

Thanks to a solid performance in the second quarter, the company has increased its dividend by 50% over Q2 2020, to $0.15. It’s the fourth increase in a row.

On August 10, RBC Capital analyst Josh Wolfson maintained a Buy rating on WPN with a price target of $50. This implies 13.3% upside potential.

Overall, consensus on the Street is that WPM is a Moderate Buy based on five Buys and two Holds. The average Wheaton Precious Metals price target of C$65.34 implies 18.7% upside potential to current levels.