Wheaton Precious Metals

CN: WPM

Market CapC$19,301m

Last Close C$42.73

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.

More Wheaton Precious Metals content >

Investment summary

Wheaton’s Q222 results exceeded our forecasts, while updated guidance for FY22 merely brought anticipated production into line with our pre-existing expectations. Recently, WPM has concluded five new streaming deals to put it on a rising production profile to FY31. Note that WPM has no exposure to assets in the former Soviet Union.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2020A 1096.2 763.8 503.2 112.0 28.8 18.4
2021A 1201.7 852.7 592.1 132.0 24.4 17.1
2022E 1135.2 790.2 538.4 120.0 26.9 17.8
2023E 1417.9 1004.4 686.0 152.0 21.2 14.4
Industry outlook

Wheaton’s shares are trading on near-term financial ratios that are cheaper than those of its peers on 69% of common valuation measures which otherwise imply a WPM share price in 2022 of US$44.40, or C$56.89 or £36.82 (based on Edison forecasts). Using a CAPM-type methodology, we calculate a terminal value for WPM of US$57.33 (C$73.29) per share in FY26. Alternatively, if precious metals return to favour, then we believe that a near-term valuation of US$58.50 (C$74.79 or £48.41) per share is possible now. This follows the settlement between WPM and the CRA in December 2018 which exempted WPM’s international subsidiaries from Canadian tax.

Last updated on 28/09/2022
Content on Wheaton Precious Metals
Wheaton Precious Metals – Guidance changes already anticipated
Metals & mining | research Update | 16 August 2022
Wheaton Precious Metals – Incorporating Salobo Q222 operating results
Metals & mining | research Update | 27 July 2022
Wheaton Precious Metals – Starting as it means to go on
Metals & mining | research Outlook | 23 June 2022
View more
Register to receive research on Wheaton Precious Metals as it is published
Sector
Metals & mining
Access more Metals & mining content
Share price graph
Balance sheet
Forecast net cash (US$m) 518.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 3.6 (12.4) (11.8)
Relative* 10.4 (9.7) (4.5)
52-week high/low C$64.7/C$39.1
*% relative to local index
Key management
Randy V. J. Smallwood CEO
Gary D. Brown CFO
Jacy Zerb Director, Investor Relations
Patrick Drouin SVP, Investor Relations