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Wheaton Precious Metals (TSX: WPM)

Last close As at 21/11/2024

CAD88.66

▲ 0.60 (0.68%)

Market capitalisation

CAD40,223m

Wheaton Precious Metals is the world’s pre-eminent ostensibly precious metals streaming company, with over 30 high-quality precious metals streams and early deposit agreements over mines in Mexico, Canada, Brazil, Chile, the US, Argentina, Peru, Sweden, Greece, Portugal and Colombia.

Using a capital asset pricing-type model, whereby we discount cash flows at a nominal 9% per year, our ‘terminal’ valuation of Wheaton in FY27 is US$57.01/share at relatively conservative precious metals’ prices and assuming zero long-term growth in real cash flows per share thereafter (which is unlikely). If we instead assume 7.4% pa long-term growth in cash flows (ie the compound average annual gold price growth rate since 1967), our valuation increases manyfold to US$136.28/share. Q324 results are scheduled for 7 November.

Latest Insights

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Metals & Mining | Update

Wheaton Precious Metals — Record quarterly cash flow

Metals & Mining | Update

Wheaton Precious Metals — Salobo tasting sweet

Metals & Mining | Update

Wheaton Precious Metals — Continuing where Q1 left off

Metals & Mining | Update

Wheaton Precious Metals — A strong start to FY24
Wheaton-Precious-Metals_resized
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Equity Analyst

Lord Ashbourne

Lord Ashbourne

Director of Content, Mining

Key Management

  • Emma Murray

    Director of investor relations

  • Gary D. Brown

    CFO

  • Patrick Drouin

    SVP, Investor Relations

  • Randy V. J. Smallwood

    CEO

Balance Sheet

Forecast net cash (US$m)

718.5

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (4.1) 4.8 39.9
Relative (4.9) (3.5) 13.1
52 week high/low C$94.7/C$52.9

Financials

Wheaton Precious Metals’ (WPM’s) Q324 results, announced 7 November, showed a less than 1% variance for the quarter relative to our forecasts at the earnings level. Notably, however, three mines (Constancia, Stillwater and Voisey’s Bay) outperformed our expectations in terms of production but underperformed in terms of sales. This arguably sets up the potential for a rebound in Q4 when Wheaton’s streaming partners traditionally flush through sales ahead of the end of the financial year. Note that, at current metals prices, our EPS forecast for FY25 would be US$1.68 per share compared to the base case of US$1.23 per share.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2022A 1065.1 735.2 505.4 112.0 56.9 39.0
2023A 1016.0 719.7 533.4 118.0 54.0 39.8
2024E 1308.6 1002.4 773.6 145.0 44.0 28.1
2025E 1320.2 957.6 651.0 123.0 51.9 30.1

Research

Update

Metals & Mining

Wheaton Precious Metals — Salobo tasting sweet

Update

Metals & Mining

Wheaton Precious Metals — Continuing where Q1 left off

Metals & Mining

Update

Wheaton Precious Metals — Record quarterly cash flow

Update

Metals & Mining

Wheaton Precious Metals — A strong start to FY24

Update

Metals & Mining

Wheaton Precious Metals — Celebrating the Ides of March

Update

Metals & Mining

Wheaton Precious Metals — Putting WPM onto GMT
Wheaton-Precious-Metals_resized

Update

Metals & Mining

Wheaton Precious Metals — Putting net cash to work
Wheaton-Precious-Metals_resized

Update

Metals & Mining

Wheaton Precious Metals — Teeing up to hit long-term targets
Wheaton-Precious-Metals_resized

Update

Metals & Mining

Wheaton Precious Metals — Honing Q323 numbers

Update

Metals & Mining

Wheaton Precious Metals — Peerless
Wheaton-Precious-Metals_resized

Update

Metals & Mining

Wheaton Precious Metals — Honing Q223 forecasts
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Further insights

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Thematics

thematic

Metals & Mining

Macro Outlook – Price weakness on the cards

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