Wheaton Precious Metals Corp (NYSE:WPM) stock rose 3.16% (As on August 11, 11:23:10 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 23.  Average cash costs in the second quarter of 2023 were $422 per GEO as compared to $452 in the second quarter of 2022. This resulted in a cash operating margin of $1,487 per GEO sold, an increase of 8% as compared with the second quarter of 2022, a result of the higher realized price per ounce. Operating cash flow in the second quarter of 2023 amounted to $202 million, with the $4 million decrease due primarily to the lower sales volumes, partially offset by higher amounts of interest received in the second quarter of 2023 coupled with the timing of the payout of the Company’s performance share units (“PSUs”), with the PSUs being paid out in the second quarter of 2022 while in 2023, they were paid out in the first quarter. At June 30, 2023, the company had approximately $829 million of cash on hand. The Company has extended its existing undrawn $2 billion revolving term loan (the “Revolving Facility”) with its maturity date now June 22, 2028.

Further, during the second quarter of 2023, the Company made total upfront cash payments of $89 million relative to the mineral stream interests consisting of a $31 million payment relative to the Goose Project precious metals purchase agreement (“PMPA”), a $35 million payment relative to the Blackwater Silver PMPA, a $10 million payment relative to the expansion of the Blackwater Gold PMPA and a $12 million payment relative to the Cangrejos PMPA. With the existing cash on hand coupled with the fully undrawn $2 billion revolving credit facility, the Company is well positioned to fund all outstanding commitments and known contingencies as well as providing flexibility to acquire additional accretive mineral stream interests.

WPM in the second quarter of FY 23 has reported the adjusted earnings per share of 31 cents, beating the analysts’ estimates for the adjusted earnings per share of 27 cents. The company had reported the adjusted revenue of $264.97 million in the second quarter of FY 23, beating the analysts’ estimates for revenue of $250.73 billion. This is primarily due to relative changes in the GEOs  produced but not yet delivered partially offset by a 4% increase in realized commodity prices.