Abacus Health Products — Strong 2019 growth

Abacus Health Products — Strong 2019 growth

Abacus reported revenue of US$15.5m in 2019, up 81.8% year-on-year. CBD CLINIC sales were US$11.7m, up 39.6% compared to 2018, and CBDMEDIC sales were US$3.7m. CBDMEDIC sales for Q419 were US$1.5m, up 28.8% compared to Q319. Given the company’s strong growth and topical product line, in March, CBD industry leader Charlotte’s Web agreed to acquire the company in an all-share deal where Abacus shareholders will receive 0.85 of a common share of Charlotte’s Web for each Abacus share held (C$5.58 per share based on current prices).

Analyst avatar placeholder

Written by

Abacus Health Products

Strong 2019 growth

Financial update

Pharma & biotech

30 April 2020

Price

C$4.75

Market cap

C$103m

US$0.72/C$

Net cash (US$m) at 31 December 2019

22.2

Shares in issue

21.6m

Free float

60.4%

Code

ABCS

Primary exchange

CSE

Secondary exchange

OTCQX: ABAHF

Share price performance

%

1m

3m

12m

Abs

8.9

(7.8)

(64.8)

Rel (local)

(9.2)

6.1

(61.6)

52-week high/low

C$14.00

C$2.75

Business description

Abacus Health Products is a consumer healthcare company that is combining cannabidiol with active ingredients that have known efficacy to provide relief from those suffering from pain, itch and acne, among other indications. It is marketing two separate product lines, CBD CLINIC, which is sold to registered health practitioners, and CBDMEDIC, which is marketed directly to consumers, mainly through retail pharmacies.

Next events

Shareholder vote for Charlotte’s Web acquisition

June 2020

Analysts

Maxim Jacobs

+1 646 653 7027

Wiktoria O’Hare

+1 646 653 7028

Abacus Health Products is a research client of Edison Investment Research Limited

Abacus reported revenue of US$15.5m in 2019, up 81.8% year-on-year. CBD CLINIC sales were US$11.7m, up 39.6% compared to 2018, and CBDMEDIC sales were US$3.7m. CBDMEDIC sales for Q419 were US$1.5m, up 28.8% compared to Q319. Given the company’s strong growth and topical product line, in March, CBD industry leader Charlotte’s Web agreed to acquire the company in an all-share deal where Abacus shareholders will receive 0.85 of a common share of Charlotte’s Web for each Abacus share held (C$5.58 per share based on current prices).

Year end

Revenue (US$m)

PBT*
(US$m)

EPS*
(US$)

DPS
(US$)

P/E
(x)

Yield
(%)

12/18

8.5

0.6

0.04

0.0

N/A

N/A

12/19

15.5

(17.7)

(0.90)

0.0

N/A

N/A

12/20e

29.2

(6.5)

(0.29)

0.0

N/A

N/A

12/21e

78.3

22.1

0.75

0.0

6.3

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Acquisition by Charlotte’s Web expected to close Q2

In March, CBD industry leader Charlotte’s Web agreed to acquire Abacus. The transaction is expected to close in Q2, if passed following an Abacus shareholder vote at a special meeting (scheduled for 4 June 2020) and regulatory approvals.

CBDMEDIC continues to grow briskly

CBDMEDIC full-year sales were US$3.7m. CBDMEDIC sales for Q419 were US$1.5m, up 28.8% compared to Q319. Purchase orders received in Q4 increased the number of retail locations carrying CBDMEDIC products to over 8,000. The nationwide footprint of the retail pharmacy chains that have contracted with Abacus totals 34,500 stores, so the number of locations that offer CBDMEDIC should continue to climb as it is more fully deployed.

CBD CLINIC sales up 39.6% in 2019

CBD CLINIC, which is marketed to healthcare practitioners, continued to grow strongly in 2019 with sales up 39.6% for the year to US$11.7m, although Q419 sales were flat year-on-year and from Q319. CBD CLINIC increased its penetration over the quarter and is now sold in over 16,500 health-related practitioner offices, up by 2,500 over the quarter. However, as many of these healthcare practitioners may have closed offices in response to the coronavirus pandemic, CBD CLINIC sales will likely be soft over the coming quarters.

Valuation: 14.9% discount to acquisition price

Due to the pending acquisition by Charlotte’s Web, we are suspending our valuation for Abacus. As part of the transaction, Abacus shareholders will receive 0.85 of a common share of Charlotte’s Web for each Abacus share held (worth C$5.58 per share based on current share prices) indicating a 14.9% discount at current trading levels.

Full year results

Abacus reported a very strong 2019 as sales increased by 81.8% compared to 2018, to US$15.5m, thanks to expanding footprints for both CBD CLINIC and CBDMEDIC. CBD CLINIC (up 39.6% for the year to US$11.7m) is increasing its penetration and is now sold in over 16,500 health-related practitioner offices, up from around 14,000 the previous quarter. According to the Bureau of Labor Statistics, there are over 500,000 licensed chiropractors, acupuncturists, massage therapists and physical therapists practising in the United States so there is plenty of room for the brand to grow in these target markets past the current 16,500. Over the coming quarters, however, as many of these healthcare practitioners may have closed offices in response to the coronavirus pandemic, CBD CLINIC sales will likely be soft.

CBDMEDIC (US$3.7m in 2019 sales, up considerably compared to the US$0.1m in 2018) has expanded to the top three pharmacy chains (which based on store counts are CVS, Walgreens and Rite-Aid according to IQVIA), with a total of 8,000 locations having ordered CBDMEDIC products as of the end of the year. In order to help with its consumer health footprint, in February, Abacus agreed to purchase Harmony Hemp, which sells topical analgesics, beauty, health and wellness products, for US$5.5m in cash and stock, payable over 24 months. Importantly, Harmony Hemp products can be found in approximately 4,000 major grocery chains and drugstores, increasing the total reach of Abacus products to 12,000 locations. The company is currently targeting 20,000 locations by the end of the year. It is unclear what impact the coronavirus pandemic may have on this rollout, but the company has noted that foot traffic has actually increased in certain types of locations such as grocery stores and convenience stores (a new category of location that the company will be targeting) so the economic headwinds for CBDMEDIC may not be as severe as in other parts of the economy.

With regards to the ingestible line, the company plans a limited launch in Q320 (a slight delay from the previous Q220 expectation) with an initial focus on online sales with limited retail location penetration. A full launch will depend on FDA clarification on its view of CBD in food and supplements (which may include dose limitations) as many retailers will likely want to wait until the guidance is released prior to placing CBD-containing supplements on shelves. The exact timing of guidance is unknown.

Despite strong sales growth in 2019, Abacus reported an operating loss of US$17.4m, due in part to increased marketing and advertising costs (US$12m, up from US$1.2m in 2018).

Acquisition by Charlotte’s Web

Charlotte’s Web entered into a definitive agreement to acquire Abacus in a share deal whereby Abacus shareholders will receive 0.85 of a common share of Charlotte's Web for each Abacus share held. At current market pricing, this translates into an effective purchase price of C$5.58 per share. As stated on its conference call in March, Charlotte’s Web views this acquisition as a game-changer for the company as it would greatly increase its portfolio of topical products from two to 50. Combined, the companies will be in 15,000 unique retail locations (not counting the 16,500 health-related practitioner offices where CBD CLINIC products are sold) and have a current market share of approximately 35% of the food/drug/mass retail (F/D/M) channel (around 17% ahead of the nearest competitor), in addition to an advantaged cost position through a vertically integrated supply chain.

The transaction is expected to close in Q2, if passed following an Abacus shareholder vote at a special meeting (currently scheduled for 4 June 2020) and regulatory approvals. Abacus is confident that the shareholders will approve the transaction in the special meeting vote as the share deal allows for continued equity participation in the CBD market but with a more attractive risk profile in turbulent times due to the greater size and strength of the combined company.

Valuation

Given the pending acquisition by Charlotte’s Web, we are suspending our valuation for Abacus. As part of the transaction, Abacus shareholders will receive 0.85 of a common share of Charlotte’s Web for each Abacus share held (C$5.58 per share based on current share prices) indicating a 14.9% discount at current trading levels.

Financials

We have decreased our sales estimates for 2020 to US$29.2m from US$39.7m as we have significantly reduced our CBD CLINIC sales expectations due to coronavirus. We have also decreased our SG&A estimates for 2020 to US$23.8m from US$30.6m as the company indicated that it will be more conservative on spending due to the coronavirus. Our 2020 operating loss estimate is now US$5.9m, compared to a US$6.3m loss previously. This reduction is mainly due to lower SG&A estimates though this was offset by lower sales estimates. We are also introducing 2021 estimates, which include US$78.3m in sales, assuming a recovery in CBD CLINIC sales, continued expansion of the CBDMEDIC footprint and ingestible sales. We expect 2021 to be profitable with US$22.8m in operating profits.

The company reported US$22.2m in net cash on its balance sheet at the end of 2019. We believe the current cash level will be enough to fund operations through sustainable profitability, although this cushion is likely to be unnecessary due to the anticipated Charlotte’s Web acquisition.

Exhibit 1: Financial summary

US$'000s

2018

2019

2020e

2021e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

8,537

15,523

29,166

78,260

Cost of Sales

(3,484)

(7,056)

(10,208)

(23,478)

Gross Profit

5,053

8,468

18,958

54,782

Research and development

(119)

(580)

(812)

(821)

Selling, general & administrative

(3,958)

(25,074)

(23,820)

(30,966)

EBITDA

 

 

965

(17,649)

(6,137)

22,532

Operating Profit (before amort. and except.)

 

 

970

(17,418)

(5,906)

22,764

Intangible Amortisation

0

0

0

0

Exceptionals/Other

0

174

0

0

Operating Profit

970

(17,243)

(5,906)

22,764

Net Interest

(410)

(289)

(611)

(617)

Other (change in fair value of warrants)

(1,020)

(3,470)

0

0

Profit Before Tax (norm)

 

 

561

(17,706)

(6,517)

22,147

Profit Before Tax (IFRS)

 

 

(459)

(21,003)

(6,517)

22,147

Tax

0

0

0

(4,651)

Deferred tax

81

4,356

0

0

Profit After Tax (norm)

561

(17,706)

(6,517)

17,496

Profit After Tax (IFRS)

(378)

(16,647)

(6,517)

17,496

Average Number of Shares Outstanding (m)

13.0

19.6

22.5

23.4

EPS - normalised (c)

 

 

0.04

(0.90)

(0.29)

0.75

EPS - IFRS ($)

 

 

(0.03)

(0.85)

(0.29)

0.75

Dividend per share (c)

0.0

0.0

0.0

0.0

Gross Margin (%)

N/A

N/A

N/A

N/A

EBITDA Margin (%)

N/A

N/A

N/A

N/A

Operating Margin (before GW and except.) (%)

N/A

N/A

N/A

N/A

BALANCE SHEET

Fixed Assets

 

 

158

7,720

8,139

8,624

Intangible Assets

0

0

0

0

Tangible Assets

57

417

836

1,321

Other

102

7,303

7,303

7,303

Current Assets

 

 

6,504

29,443

23,265

41,119

Stocks

1,004

1,498

3,540

3,540

Debtors

913

3,693

3,693

3,693

Cash

3,814

22,192

13,971

31,825

Other

773

2,061

2,061

2,061

Current Liabilities

 

 

(4,600)

(4,371)

(4,371)

(4,371)

Creditors

(4,600)

(4,371)

(4,371)

(4,371)

Short term borrowings

0

0

0

0

Long Term Liabilities

 

 

(2,198)

(247)

(247)

(247)

Long term borrowings

(2,198)

0

0

0

Other long term liabilities

0

(247)

(247)

(247)

Net Assets

 

 

(135)

32,546

26,786

45,125

CASH FLOW

Operating Cash Flow

 

 

829

(20,315)

(6,198)

19,942

Net Interest

0

0

0

0

Tax

0

0

0

0

Capex

(63)

(434)

(651)

(716)

Acquisitions/disposals

0

0

(1,372)

(1,372)

Financing

(170)

39,550

0

0

Dividends

0

0

0

0

Other

(22)

22

0

0

Net Cash Flow

575

18,823

(8,220)

17,854

Opening net debt/(cash)

 

 

(345)

(1,367)

(22,191)

(13,971)

HP finance leases initiated

0

0

0

0

Exchange rate movements

0

0

0

0

Other

448

2,001

0

0

Closing net debt/(cash)

 

 

(1,367)

(22,191)

(13,971)

(31,825)

Source: company reports, Edison Investment Research


General disclaimer and copyright

This report has been commissioned by Abacus Health Products and prepared and issued by Edison, in consideration of a fee payable by Abacus Health Products. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2020 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Abacus Health Products and prepared and issued by Edison, in consideration of a fee payable by Abacus Health Products. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2020 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Research: Metals & Mining

Wheaton Precious Metals — Refining numbers

Ahead of Wheaton’s Q120 results, which are scheduled to be released on Wednesday 6 May, after the bell, we have refined our forecasts. They now take account of four factors: 1) the anticipated outlook for gold production from Salobo during the period 2020-25, as disclosed in Wheaton’s release of a technical report on 30 March, 2) the timing of mine closures as a result of anti-coronavirus measures, in particular, in Peru and Mexico, 3) updated precious metals forecasts and 4) the possible effects of the recent rise in Wheaton’s share price on general and administrative expenses.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free