What’s Happening With WPM Stock?

If you’re interested in gold and silver stocks but prefer to avoid the complications of mining companies exceeding budgets or encountering barren sites—Wheaton Precious Metals stock (NYSE: WPM) could be just the stock for you. Wheaton is not your ordinary mining company. They don’t extract the gold and silver themselves. Instead, they operate on a model known as “streaming.” Essentially, they provide financing to mining companies and, in exchange, receive the rights to purchase gold, silver, or other metals at significantly reduced prices for decades. It’s akin to having exclusive access to the metals market without any mess!

Why is WPM stock rising?

The year 2025 has begun with strong momentum. The company exceeded expectations in Q1—revenues surged nearly 60% compared to the previous year. And they don’t plan to slow down. WPM anticipates increasing metal production by 40% over the next 5 years. This is due to new projects coming online and some existing ones resuming operations. The company’s profit margins are exceptionally robust—current operating margins hover around 60%. Additionally, the company boasts a solid cash reserve of $1.1 billion, giving its balance sheet a healthy appearance.

Gold and silver prices are soaring—and this is advantageous for WPM. Unlike conventional miners, they don’t worry about fluctuating fuel prices or labor strikes at mines. They have long-term agreements with reputable miners, ensuring solid future production. For investors seeking potential gains with less volatility, the High Quality portfolio has consistently outperformed the S&P 500, providing over 91% returns since its inception.

What could go wrong?

Even though WPM employs a streaming model, its cash flows remain linked to gold and silver prices. A prolonged decrease in precious metals could reduce its royalty income. WPM’s performance hinges on that of the miners. Any operational issues or geopolitical/regulatory disruptions at partner mines could affect expected deliveries or lead to renegotiation of favorable terms.

It is currently trading close to its all-time highs, so the potential for further upside in the short term may be limited. See Buy or Fear WPM Stock.

So what’s next?

WPM presents a smart, lower-risk method to invest in gold and silver without owning a conventional mining company. The company remains fundamentally robust: high margins, low debt, appealing cash flow, and diversified income streams. Supported by a billion-dollar cash reserve and consistent dividends, WPM is a noteworthy choice for investors optimistic about precious metals. Check out our analysis of Wheaton Precious Metals revenue for additional insights into the company’s business model and primary revenue sources. While WPM is a strong stock, if you are looking for even lower volatility while still enjoying the upside, consider the High Quality portfolio, which has outperformed the S&P 500, delivering returns exceeding 91% since inception.