Wheaton Precious Metals

CN: WPM

Market CapC$23137m

Last Close C$51.35

Wheaton Precious Metals is the pre-eminent ostensibly precious metals streaming company, with 32 high-quality precious metals streaming and early deposit agreements relating to assets in Mexico, Peru, Canada, Brazil, Chile, United States, Argentina, Sweden, Greece, Portugal and Colombia.

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Investment summary

Notwithstanding a quarter in which COVID-19 related constraints continued to disrupt the industry and in which the palladium price showed notable weakness, Wheaton’s Q3 financial and operational results were broadly in line with our prior expectations and have caused us to revise our earnings estimate for FY21 by no more than 0.5%. Revenue, earnings and cash flow for the first nine months of 2021 remained at record levels, as a result of which the company declared a relatively generous dividend of US$0.15/share, representing a 25% increase cf the prior year period.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 861.3 548.3 242.7 54.0 76.1 33.4
2020A 1096.2 763.8 503.2 112.0 36.7 23.5
2021E 1234.6 880.6 608.8 135.0 30.4 20.5
2022E 1408.0 1008.6 690.3 149.0 27.6 18.3
Industry outlook

Under normal circumstances, we believe that WPM could easily justify a valuation of US$61.99 (or C$78.32) per share, in FY23. If precious metals return to favour however, we believe that a valuation as high as US$84.06 (C$106.22) is achievable. In the meantime, it remains cheaper than the average valuations of its peers on at least 72% of common valuation measures. This follows the settlement between WPM and the CRA in December 2018 which exempted WPM’s international subsidiaries from Canadian tax.

Last updated on 02/12/2021
Content on Wheaton Precious Metals
Wheaton Precious Metals – Imperturbable
Metals & mining | Update | 8 November 2021
Wheaton Precious Metals – Honing Q321 forecasts
Metals & mining | Update | 8 October 2021
Wheaton Precious Metals – Solid Q221 results set up H221
Metals & mining | Update | 18 August 2021
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net cash (US$m) 508.6
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 4.5 (9.0) (4.1)
Relative* 6.5 (8.9) (19.8)
52-week high/low C$59.2/C$45.1
*% relative to local index
Key management
Randy V. J. Smallwood CEO
Gary D. Brown CFO
Emma Murray Director, Investor Relations
Patrick Drouin SVP, Investor Relations