Wheaton Precious Metals rallies 10% in 3 months: Is the momentum just beginning?

Wheaton Precious Metals has surged over 10% in the past quarter, driven by gold sector optimism and key upgrades. But can this rally continue as analysts raise targets and gold prices climb?

Wheaton Precious Metals has delivered a robust performance over the past three months, notching an impressive gain of around 10%. This surge stands out in a gold mining sector that has seen renewed interest as global uncertainty, inflation concerns, and a search for safe havens push gold prices and mining shares upward. The main question now for many: Is this momentum for Wheaton Precious Metals simply a short-term spike, or the beginning of a more sustained run?

Looking at the numbers, Wheaton Precious Metals shares have charted a steady uptrend since late September, gaining approximately 10% over the 90-day period. Analysts note that the stock touched a notable low near 138 CAD before climbing to fresh highs around 165 CAD by mid-December. What drove these gains? Sector-wide enthusiasm for gold, sparked by rising bullion prices and a shift in central bank policies, gave the stocks in this space added tailwind. Still, Wheaton’s ascent isn’t just about gold’s macro story — several specific headlines have fueled optimism in recent weeks.

Turning to the most recent news, mid-December proved especially eventful for Wheaton Precious Metals. On December 10, investment bank RBC Capital Markets upgraded their outlook on Wheaton, raising their price target to US$130 per share — a move that sent the stock higher in active trading that day. Just days later, on December 18, Berenberg maintained its buy rating and also raised its price target, adding to a chorus of bullish analyst commentary that’s surrounded the company over the past month.

Investors responded positively to these signals. Momentum accelerated notably after these brokerage updates, with Wheaton Precious Metals shares outperforming some of its major gold sector peers. Such analyst activity suggests growing institutional confidence in Wheaton’s business model and longer-term prospects.

But that wasn’t the only driver behind the rally. On November 27, Wheaton Precious Metals announced the completion of a US$300 million gold streaming agreement on the Hemlo mine. These streaming deals — in which Wheaton secures rights to future precious metal output from mining projects — remain at the heart of its business. Unlike a traditional miner, Wheaton Precious Metals generates value by investing upfront in exchange for a share of future production at agreed (and often discounted) prices, effectively de-risking its income streams and opening leverage to rising commodity prices. This strategy has proven resilient across cycles and continues to deliver high margins and robust cash generation.

The Q3 earnings presentation on November 7 also set a positive tone, with solid free cash flow and a reaffirmed quarterly dividend, reinforcing Wheaton’s image as a dependable player in the gold streaming segment. Notably, the company maintains an exceptionally strong capital position, with analysts highlighting its net cash status and minimal debt.

Digging deeper into the corporate story, Wheaton Precious Metals has grown to become one of the world’s leading precious metals streaming corporations, with a portfolio spanning roughly 35 active streaming deals and five royalty agreements. Its focus extends across gold, silver, palladium, platinum, and even cobalt, with a reach into significant Goldmine projects globally — from Salobo in Brazil to Antamina in Peru and Blackwater in Canada. This diversified exposure to both operating mines and development projects offers resilience against operational hiccups and regulatory risk in any single geography.

Strategically, Wheaton’s business model prioritizes capital efficiency and risk management. By forgoing direct mine operations, the company avoids many of the cost overruns, regulatory setbacks, and technical challenges that traditional miners often face. This approach also positions Wheaton Precious Metals to react quickly to industry trends and strike deals when timing is most advantageous.

While the recent rally and analyst upgrades have clearly helped sentiment, some observers urge caution. The stock trades at a relatively rich forward price-to-earnings multiple (over 40x estimated 2025 earnings), reflecting high expectations for sustained margin expansion and growth in its streaming pipeline. Gold price volatility, changes in project timelines, or regulatory shifts in key jurisdictions remain ever-present risks. That said, Wheaton’s long-term contracts and diversified portfolio mitigate some of these headwinds, and its capital-light model is praised for providing both flexibility and upside leverage to rising commodity prices.

Looking ahead, the coming quarter could bring further catalysts, with earnings releases and additional streaming deals on the radar. For investors tracking the gold sector, Wheaton Precious Metals sits at an intriguing crossroads: it combines the security of strong cash flows and capital discipline with the growth potential of a spiking gold market. Many industry followers suggest keeping a close watch on its stock chart and upcoming headlines — the story here is far from over.