With gold prices hovering near all-time highs, the share prices of mining companies such as Wheaton Precious Metals (TSX: WPM) have delivered solid returns in 2025. Valued at a market cap of almost $60 billion, Wheaton Precious Metals stock is up close to 60% in the past year. Moreover, the TSX stock has returned over 600% since August 2015.
As past returns should be taken with a pinch of salt, let’s see if you should invest in this gold mining stock at the current valuation.
Image source: Getty Images
The bull case of investing in WPM stock
Wheaton Precious Metals is a Vancouver-based precious metals streaming company that generates revenue through streaming agreements rather than operating mines directly. It purchases metal streams from mining operators by making upfront payments and ongoing delivery payments, then sells gold, silver, palladium, platinum, and cobalt across global markets, including North America, Europe, Africa, and South America.
Wheaton targets 40% production growth to 870,000 gold equivalent ounces by 2029, driven by existing operations and new development projects. The company actively evaluates streaming and royalty opportunities, maintaining a robust pipeline of double-digit opportunities, including development-stage projects, secondary royalty sales, balance sheet repair situations, and asset rationalizations by senior mining companies.
Wheaton Precious Metals reported exceptional second-quarter results, achieving record revenue, adjusted net earnings, and operating cash flow.
It generated record quarterly revenue of $503 million, a 68% increase from the prior year, driven by strong commodity prices and 28% higher sales volumes.
Net earnings surged 139% to $292 million, while operating cash flow increased 77% to $450 million. These gains outpaced commodity price increases, highlighting the leverage inherent in Wheaton’s streaming model, where 85% of revenue comes from fixed per-ounce payments.
Production reached 159,000 gold equivalent ounces, up 9% year over year, led by strong performances at Salobo and Antamina. Key growth catalysts materialized as Blackwater achieved commercial production and Goose delivered its first gold pour. The company remains well-positioned to achieve 2025 guidance of 600,000-670,000 gold equivalent ounces.
Management revealed an active pipeline of 12-15 opportunities totalling billions in potential transactions, with two-thirds representing development-stage projects. The competitive environment hasn’t restricted deal terms but has intensified competition. Wheaton maintains its disciplined approach, focusing only on accretive opportunities that enhance shareholder value.
With over $1 billion in cash and a $2 billion undrawn credit facility, Wheaton possesses industry-leading liquidity to fund commitments and pursue additional acquisitions. The company’s 40% production growth target by 2029 provides flexibility to be selective while capitalizing on the strengthening precious metals market.
Silver’s recent outperformance particularly benefits Wheaton, given its substantial silver exposure that differentiates it from streaming peers and positions WPM stock to capitalize on continued precious metals momentum.
What is the target price for the TSX stock?
Analysts tracking Wheaton Precious Metals stock forecast adjusted earnings to grow from $1.4 per share in 2024 to $2.58 per share in 2029. A widening earnings base should help it increase annual dividends per share from $0.62 in 2024 to $1.27 in 2029.
Today, WPM stock trades at a forward price-to-earnings multiple of 37 times, which is higher than its 10-year average of 34 times. As gold prices stabilize, WPM stock might trade at a lower multiple going forward. So, if it’s valued at 30 times earnings, WPM stock should trade around $80 in early 2029, below the current price of $94.
