Wheaton Precious Metals

CN: WPM

C$26362.8m market cap

C$58.81 last close

Wheaton Precious Metals is the pre-eminent ostensibly precious metals streaming company, with 29 high-quality precious metals streaming and early deposit agreements relating to assets in Mexico, Peru, Canada, Brazil, Chile, Argentina, Sweden, Greece, Portugal and the US.

Investment summary

Production and sales of gold at WPM both reached record levels in FY19, in the case of the former breaching 400koz for the first time ever. As a result, the minimum quarterly dividend for FY20 was raised from 9c/share to 10c/share. This follows the settlement reached between WPM and the Canada Revenue Agency in December 2018 whereby income generated by WPM’s international subsidiaries will remain exempt from Canadian tax.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 794.0 496.6 203.1 48.0 90.1 37.0
2019A 861.3 548.3 242.7 56.0 77.2 35.2
2020E 974.3 662.9 392.2 86.0 50.3 26.7
2021E 1175.7 827.7 503.7 112.0 38.6 23.3
Industry outlook

The six of WPM’s partners’ mines that had been on furlough in Mexico and Peru (accounting for c 36% of WPM’s gold equivalent output) are now in the process of returning to production. At the moment, Edison’s forecasts assume that these mines will be closed for the entirety of Q2. In the meantime, WPM is trading on financial ratios that are cheaper than its royalty/streaming peers on 58% of common financial ratios and the miners themselves on at least 23% of the same measures, despite being associated with materially less risk.

Last updated on 02/07/2020
Share price graph
Balance sheet
Forecast net debt (US$m) 268.9
Forecast gearing ratio (%) 5
Price performance
%
1m
3m
12m
Actual 4.3 45.9 87.8
Relative* 2.8 22.3 98.0
52-week high/low C$65.0/C$30.6
*% 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

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