Wheaton Precious Metals - Edison Group

Overview
Price performance
Financials
Research
Sector insights
Thematics

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

11.11.24

Wheaton Precious Metals — Record quarterly cash flow

Metals & Mining |
Update

30.10.24

Wheaton Precious Metals — Salobo tasting sweet

Metals & Mining |
Update

09.08.24

Wheaton Precious Metals — Continuing where Q1 left off

Metals & Mining |
Update

13.05.24

Wheaton Precious Metals — A strong start to FY24

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Sector

Metals & Mining

Equity Analyst

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

Update

Metals & Mining

09.05.23

Wheaton Precious Metals — Q123 in line; looking to H2

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Update

Metals & Mining

20.04.23

Wheaton Precious Metals — Refining forecasts

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Metals & Mining

14.03.23

Wheaton Precious Metals — Setting the scene for FY24 and beyond

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Update

Metals & Mining

03.03.23

Wheaton Precious Metals — Adjusting for ‘major maintenance’ at Salobo in Q4

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Metals & Mining

08.11.22

Wheaton Precious Metals — Results closely in line with prior expectations

Update

24.10.22

Wheaton Precious Metals — Honing Q322 forecasts

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Metals & Mining

16.08.22

Wheaton Precious Metals — Guidance changes already anticipated

Update

Metals & Mining

27.07.22

Wheaton Precious Metals — Incorporating Salobo Q222 operating results

Outlook

Metals & Mining

23.06.22

Wheaton Precious Metals — Starting as it means to go on

Update

Metals & Mining

05.05.22

Wheaton Precious Metals — Fine tuning forecasts ahead of Q1 results

Update

Metals & Mining

17.03.22

Wheaton Precious Metals — Russia-free exposure to precious metals

Update

Metals & Mining

24.02.22

Wheaton Precious Metals — Refining forecasts ahead of results

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Metals & Mining

16.12.21

Wheaton Precious Metals — Bagging elephants in British Columbia

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Metals & Mining

08.11.21

Wheaton Precious Metals — Imperturbable

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Metals & Mining

08.10.21

Wheaton Precious Metals — Honing Q321 forecasts

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Metals & Mining

18.08.21

Wheaton Precious Metals — Solid Q221 results set up H221

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Metals & Mining

04.08.21

Wheaton Precious Metals — Honing forecasts

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Metals & Mining

21.05.21

Wheaton Precious Metals — ROICs alive

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Metals & Mining

10.05.21

Wheaton Precious Metals — A solid start

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Metals & Mining

31.03.21

Wheaton Precious Metals — Q121 results preview

Update

Metals & Mining

17.02.21

Wheaton Precious Metals — Looking to the long term

Update

Metals & Mining

12.11.20

Wheaton Precious Metals — Continuing to beat expectations

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Metals & Mining

02.11.20

Wheaton Precious Metals — Streaming explained

Update

Metals & Mining

12.10.20

Wheaton Precious Metals — Q320 earnings expectation refinements

Flash note

Metals & Mining

22.09.20

Wheaton Precious Metals — London calling

Update

Metals & Mining

18.08.20

Wheaton Precious Metals — Barely missing a beat

Update

Metals & Mining

12.05.20

Wheaton Precious Metals — Forging ahead

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Metals & Mining

30.04.20

Wheaton Precious Metals — Refining numbers

Update

Metals & Mining

03.04.20

Wheaton Precious Metals — Swings and roundabouts

Outlook

Metals & Mining

23.03.20

Wheaton Precious Metals — In the right place at the right time

edison tv

Metals & Mining

29.11.19

Executive interview – Wheaton Precious Metals

Update

Metals & Mining

18.11.19

Wheaton Precious Metals — Q3 results and update

Update

Metals & Mining

16.08.19

Wheaton Precious Metals — Metals price moves de-risk valuation

Update

Metals & Mining

14.05.19

Wheaton Precious Metals — Starting as it means to continue

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Metals & Mining

25.03.19

Wheaton Precious Metals — Exceeding guidance and expectations

research

Metals & Mining

18.12.18

Wheaton Precious Metals — CRAziness averted

Update

Metals & Mining

26.11.18

Silver Wheaton — Good operations offset by prices & finance costs

Update

Metals & Mining

21.08.18

Wheaton Precious Metals — Q218 results in line with expectations

Update

Metals & Mining

24.07.18

Wheaton Precious Metals — Palladium ex machina

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Metals & Mining

21.06.18

Wheaton Precious Metals — Kobold ex machina

Update

Metals & Mining

18.05.18

Wheaton Precious Metals — Serene start

Update

Metals & Mining

27.03.18

Wheaton Precious Metals — A fine finish

Update

Metals & Mining

15.02.18

Silver Wheaton — Majestic

Outlook

Metals & Mining

30.08.17

Wheaton Precious Metals — Still shining

Update

Metals & Mining

18.05.17

Wheaton Precious Metals — Formerly Silver Wheaton (SLW)

Update

Metals & Mining

29.03.17

Severfield — Better revenue, margin and cash progress

Update

Metals & Mining

29.03.17

Silver Wheaton — What a difference a quarter makes

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Metals & Mining

06.12.16

Silver Wheaton — Update 6 December 2016

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Metals & Mining

02.11.16

Silver Wheaton — Update 2 November 2016

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Metals & Mining

30.08.16

Silver Wheaton — Update 30 August 2016

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Metals & Mining

25.05.16

Silver Wheaton — Update 25 May 2016

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Metals & Mining

18.04.16

Silver Wheaton — Update 18 April 2016

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Metals & Mining

24.03.16

Silver Wheaton — Update 24 March 2016

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Metals & Mining

15.02.16

Silver Wheaton — Update 14 February 2016

Update

Metals & Mining

11.11.15

Silver Wheaton — Update 11 November 2015