Here’s the short version: Wheaton Precious Metals (TSX: WPM) just delivered the best year in its history, and the stock is on sale. If you’re a long-term investor, the ongoing pullback gives you access to an undervalued blue-chip stock with upside potential.
Wheaton Precious Metals generated record revenue, earnings, and operating cash flow in 2025. Its board just approved an 18% dividend increase, and management is guiding for 50% production growth over the next five years.
Yet the mining stock is down roughly 30% from its highs. Let’s talk about why that’s an opportunity.
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Wheaton Precious Metals is built differently
Most people hear “mining stock” and picture high costs, volatile earnings, and broken promises. However, Wheaton is a streaming company. That means it pays miners cash upfront in exchange for the right to buy their precious metals at a fixed price, usually well below market value.
When gold and silver go up, Wheaton’s margins expand dramatically. Over 80% of Wheaton’s production comes from mines in the lowest half of the global cost curve. That’s a structural advantage most traditional miners can’t match.
In the fourth quarter of 2025, it reported record revenue of US$865 million. Its gross profits more than doubled year over year to US$664 million.
The Antamina deal is a game-changer
Right before the new year, Wheaton closed the largest precious metal streaming transaction ever completed. It doubled its exposure to the Antamina mine in Peru through a new partnership with BHP, one of the world’s largest miners. The deal cost US$4.3 billion, and Wheaton took on debt to fund the purchase.
Wheaton expects to generate more than US$10 billion in operating cash flow through the end of 2028 at current metal prices. Management projects a return to a net cash position within roughly one year, even after paying dividends and meeting all capital commitments.
Antamina is expected to account for about 18% of total production by 2030. The mine sits on an exploration land package covering more than 1,000 square kilometres.
Over the past decade, more than 95% of silver reserves have been replaced through exploration and resource conversion.
WPM stock is tied to commodity prices
Gold and silver have seen some turbulence in recent months. Both precious metals sold off sharply in recent weeks as investors liquidated assets amid geopolitical uncertainty and a stronger U.S. dollar.
Central banks are expected to hold rates steady amid rising oil prices and a potential uptick in inflation. Short-term dips like this have historically been buying windows for Wheaton shareholders. Notably, WPM stock is down 30% from all-time highs, but has returned over 700% to shareholders in the past decade.
Wheaton’s production is expected to grow regardless of where spot prices sit today.
- Six additional assets are expected to come online over the next five years.
- Each one of these assets is fully permitted, funded, and either in construction or “nearly there”, according to company disclosures.
- Production is forecast to hit 860,000 to 940,000 gold equivalent ounces (GEOs) in 2026, up from 690,000 in 2025.
- By 2030, the target is over 1.2 million GEOs annually.
For investors willing to look past the near-term noise, Wheaton offers something rare: a world-class business, a growing dividend, and a stock that’s significantly cheaper than it was not long ago.
