Markets are being rattled by geopolitical tensions, shifting interest rate expectations, and currency volatility. Thus, gold is once again stepping into the spotlight. If you’re looking for a way to play the upside without diving into the operational headaches of mining, Wheaton Precious Metals (TSX:WPM) might be the ticket.
The streaming model means the gold stock doesn’t run mines. Instead, it provides upfront capital to miners in exchange for the right to buy future production at fixed, low costs. That approach has shielded Wheaton from many of the cost overruns and labour issues plaguing the mining industry. All while giving it full exposure to rising gold and silver prices.
Source: Getty Images
What happened
Over the past year, that exposure has paid off handsomely. The gold stock surged nearly 65% from its 52-week low, riding both the rally in precious metals and a wave of record financial results. In the second quarter of 2025 alone, Wheaton posted revenue of $503 million. That’s up 68% from last year, while net earnings jumped a staggering 139% to $292 million.
Adjusted earnings hit an all-time high at $286 million, while operating cash flow reached $415 million. These results weren’t just about higher prices. The gold stock also saw a 28% increase in gold equivalent ounces sold, thanks in part to new production from the Blackwater mine and a ramp-up at its Salobo asset.
What’s especially striking is how profitable the model is right now. Average cash costs were just $470 per gold equivalent ounce in Q2, translating into a cash operating margin of $2,717 per ounce sold. That’s a 37% year-over-year increase, outpacing even the gains in gold prices. And with a rock-solid balance sheet of $1 billion in cash, no debt, and an undrawn $2 billion credit facility, Wheaton has the flexibility to keep expanding its portfolio without stretching itself thin.
Looking ahead
The gold stock’s growth story isn’t just about the here and now. Management expects attributable production to rise from as much as 670,000 gold equivalent ounces this year to about 870,000 by 2029, plus a further jump to more than 950,000 in the early 2030s. Key drivers will be new and expanding streams, including Blackwater’s Phase 2, B2Gold’s Goose project, Ivanhoe’s Platreef, and Rio2’s Fenix project. Many of these mines are in the lowest half of cost curves, making them more resilient in down cycles and more lucrative when prices climb.
There are risks, of course. The business still depends on the operational performance of its mining partners. Any delays, cost blowouts, or production misses at those sites could affect Wheaton’s revenue. Metal prices are also beyond its control. A sustained drop in gold or silver would weigh on margins, though the low fixed costs mean profitability would still be high compared with that of traditional miners. And while Wheaton has diversified geographically, it’s still tied to a relatively small number of key assets. So production disruptions at a major mine like Salobo would be felt.
Still, the upside case is compelling. Gold hovers near record highs, central banks continue to buy, and investors increasingly seek safe-haven assets. Thus Wheaton offers a way to tap into the trend with less operational risk. The gold stock’s steady dividend, now $0.165 per quarter, adds a small income component, and the payout ratio leaves room for increases if cash flows keep rising.
Bottom line
If the global uncertainty that’s been driving gold higher persists, Wheaton could be one of the biggest beneficiaries. Its model turns volatility into opportunity, its pipeline is loaded with growth projects, and its balance sheet gives it the firepower to pounce on new deals. For long-term investors who want gold exposure without the digging, blasting, and permitting headaches, this is a name worth watching closely.
