Wheaton Precious Metals

CN: WPM

Market CapC$24852.6m

Last Close C$55.22

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

Wheaton Precious Metals (WPM) reported record revenue in Q121, resulting in its repaying all outstanding debt and approving a third successive increase in its quarterly dividend to 14c/share. Ounces produced but not yet delivered fell to more normal levels and all of its partners’ mines have now returned to normal (or near normal) operating conditions. Since its Q1 results, it has also published a sustainability report for 2020 highlighting its strong ESG credentials.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2019A 861.3 548.3 242.7 54.0 82.7 36.3
2020A 1096.2 763.8 503.2 112.0 39.9 25.5
2021E 1405.4 1002.4 705.3 157.0 28.4 19.6
2022E 1631.5 1239.7 933.5 207.0 21.6 16.2
Industry outlook

Under normal circumstances, we believe that WPM could easily justify a valuation of US$62.54 (or C$76.20) per share, in FY23. With precious metals returning to favour however, we believe that a valuation as high as US$84.81 (C$107.16) is achievable. In the meantime, it remains cheaper than the average valuations of its peers in at least 72% of cases. This follows the settlement reached between WPM and the CRA in December 2018 whereby income from WPM’s international subsidiaries will remain exempt from Canadian tax.

Last updated on 23/07/2021
Content on Wheaton Precious Metals
Wheaton Precious Metals – ROICs alive
Metals & mining | Update | 21 May 2021
Wheaton Precious Metals – A solid start
Metals & mining | Update | 10 May 2021
Wheaton Precious Metals – Q121 results preview
Metals & mining | Update | 31 March 2021
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net cash (US$m) 560.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 1.3 3.0 (21.2)
Relative* 1.8 (2.5) (36.6)
52-week high/low C$75.1/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