Wheaton Precious Metals shares drop after reporting third quarter results
Wheaton Precious Metals’ (TSX: WPM NYSE: WPM) shares dropped 4.4% on Thursday, after the company announced its Q3 results. Headquartered in Vancouver, Canada, Wheaton is the world’s largest precious metals streaming company.
Adjusted net earnings were $35 million, a steep 49% drop from $67 million in net earnings last year. Revenue fell 8.5% in the same quarter of 2017.
The company reported silver production was down 24.9%, to 5.7 million ounces produced in Q3 2018 compared to 7.5 million ounces produced in Q3 2017.
Adjusted net earnings were $35 million, a steep 49% drop from $67 million in net earnings in the third quarter of 2017. Revenue fell 8.5% from the same quarter last year
“In the third quarter of 2018 Wheaton completed the acquisition of a precious metals stream with Sibanye-Stillwater and received first production of both gold and palladium from the Stillwater and East Boulder mines, which are already exceeding our expectations,” said Randy Smallwood, Weaton’s president and CEO during a conference call on Thursday.
“With this latest Stream and another strong quarter from Salobo, we had record gold production and sales volume for the first nine months of 2018 and operating cash flow of almost $370 million,” Smallwood said. "And with three quarters now behind us, Wheaton is currently on track to exceed production guidance for the year."
In the 2018 third quarter, Wheaton generated close to $110 million in operating cash flow, and completed the acquisition of a gold and palladium stream on the Stillwater and East Boulder mines.
Through the first nine months of 2018, Wheaton reported record gold production and sales volumes, producing 101,552 ounces, a 6.7% rise over 95,216 ounces produced in Q3 2017.