Wheaton Precious Metals reported second-quarter results on August 6 that marked record profitability for the precious metals streaming company. Net earnings reached $543 million on $929 million in revenue, with first-half earnings climbing 106% to $1.1 billion. The company generated $650 million in operating cash flow during the quarter and $1.4 billion for the half-year period.
The earnings surge was driven primarily by a significant increase in metal prices rather than volume growth. The company sold 14% more gold equivalent ounces compared to the prior year, but the average realized gold equivalent price jumped 61% in the quarter. This price appreciation translated into improved margins, with cash operating margin per ounce growing 65% to $3,875 despite per-ounce costs rising from $406 to $568.
Wheaton made substantial capital commitments during the period, including net upfront cash payments of $4.5 billion related to mineral stream interests. The company drew $1.5 billion on a new two-year term loan in April to help fund the acquisition of an expanded silver production stake at Antamina, increasing its share from 33.75% to 67.5%. The company now carries $2.0 billion in total debt against $100 million in cash on hand, compared to having no bank debt at the end of 2025.
The company projects significant production growth ahead, with forecasts indicating roughly 50% growth to 1,200,000 gold equivalent ounces by 2030. Near-term catalysts include expected commercial production at Platreef in the fourth quarter of 2026 and first gold from Koné in late Q4. However, several operational challenges emerged, including a 2.6% year-over-year decline in gold ounces produced, with gold output falling 11% at Salobo due to lower grades and declining 35% at Constancia following completion of higher-grade pit mining. Hedge fund ownership of the stock declined to 32 holders from 37 in the prior quarter, suggesting institutional investors are trimming positions rather than adding to them.
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