Wheaton Precious Metals (TSX: WPM)

Last close As at 27/03/2024

CAD62.79

2.16 (3.56%)

Market capitalisation

CAD27,470m

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 model-type method, whereby we discount cash flows at a nominal 9% per year, our ‘terminal’ valuation of WPM in FY26 was calculated to be US$61.41 per share (in November), assuming zero subsequent long-term growth in real cash flows thereafter (which we think is unlikely), or US$50.28 currently. Alternatively, assuming no purchases of additional streams, we calculated a value per share for WPM of US$61.19 in FY26, based on a 30.4x average historical multiple of contemporary earnings.

Latest Insights

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Metals & Mining | Update

Wheaton Precious Metals — Celebrating the Ides of March

Metals & Mining | Update

Wheaton Precious Metals — Putting WPM onto GMT

Metals & Mining | Update

Wheaton Precious Metals — Putting net cash to work

Metals & Mining | Update

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

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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)

256.2

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 14.6 (8.3) (6.2)
Relative 11.5 (12.7) (16.5)
52 week high/low C$69.7/C$52.9

Financials

Wheaton’s (WPM’s) Q4/FY23 results were released after the market close on 14 March, within the context of known metals sales and almost known production. Even so, net earnings were US$2.9m (or 1.8%) better than our prior forecast for the quarter, largely as a result of achieved metals prices that were higher than average market prices. Otherwise, the quarter was characterised by accelerated levels of investment into underlying mineral streams and the announcement of a new, progressive dividend policy.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2022A 1065.1 735.2 505.4 112.0 41.2 28.2
2023A 1016.0 719.7 533.4 118.0 39.1 28.8
2024E 1190.8 873.8 636.9 118.0 39.1 23.4
2025E 1538.5 1135.0 748.3 142.0 32.5 18.4

Research

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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

Update

Metals & Mining

Wheaton Precious Metals — Q123 in line; looking to H2

Wheaton-Precious-Metals_resized

Update

Metals & Mining

Wheaton Precious Metals — Refining forecasts

Further insights

insight

Cobalt

Analyst of the week

Andy Murphy

Andy Murphy

Director, Financials & Industrials

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Thematics

thematic

Metals & Mining

Macro Outlook – Price weakness on the cards

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