Wheaton Precious Metals Corp (NYSE: WPM) stock surged over 2.5% on 15th November, 2019 (as of 11:01 am GMT-5; Source: Google finance) after the company in the third quarter of FY 19 has reported 20% increase in the revenue to $224 million, on sales volume of 94,800 ounces of gold, 4.5 million ounces of silver and 4,900 ounces of palladium. WPM has delivered the adjusted net earnings and cash flow from operations in the third quarter of 2019 of $73 million ($0.16 per share) and $142 million ($0.32 per share), compared with adjusted net earnings of $35 million ($0.08 per share) and cash flow from operations of $108 million ($0.24 per share) for the same period in 2018, which is an increase of 107% and 31%, respectively.
At the end of September 2019, the Company had generated approximately $152 million of cash on hand and $1 billion outstanding under the Company’s $2 billion revolving term loan The Company uses excess cash to pay down the Revolving Facility. During the third quarter September 30, 2019, the Company had repaid $82 million under the Revolving Facility. WPM had generated $142 million in operating cash flow in the third quarter of 2019.
Additionally, the company has declared the fourth quarterly cash dividend for 2019 of US$0.09 will be paid to holders of record of WPM common shares as of the close of business on December 4, 2019 and will be distributed on or about December 16, 2019.
For FY 19, the company expects attributable gold production to increase to approximately 390,000 ounces, up from 385,000 ounces previously forecast, on the back of continued outperformance primarily from the Salobo mine, the estimated attributable silver production to be approximately 21 million ounces to reflect production interruptions at the Peñasquito mine. The company forecast palladium production in 2019 to remain unchanged at approximately 22,000 ounces. For the five-year period ending in 2023, the Company projects that average annual gold equivalent production will amount to 750,000 ounces.
Meanwhile, on August 1, 2019, the U.S. District Court for the District of Arizona had issued a ruling in the lawsuits challenging the U.S. Forest Service’s issuance of the Final Record of Decision (“FROD”) for the Rosemont project in Arizona. Hudbay, therefore suspended most of its early works activities at Rosemont and has deferred the previously announced process to identify a joint venture partner for Rosemont. WPM has not made any upfront payments to date relative to Rosemont nor included any production from Rosemont in its five-year guidance.