Wheaton Precious Metals

CN: WPM

C$23407m market cap

C$52.01 last close

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, the US, Argentina, Sweden, Greece, Portugal and Colombia.

Investment summary

Wheaton Precious Metals (WPM) generated record operating cash flow and revenue in FY20, resulting in a 30% increase in its quarterly dividend to 13c/share. While production remained solid in Q4, sales lagged owing to the coronavirus. However, this effect should prove only temporary. In the meantime, the finalisation of new streaming agreements with Caldas and Capstone proves that WPM is still able to conclude new business in a COVID-19 context. Q121 results are scheduled for 6 May.

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 76.8 33.7
2020A 1096.2 763.8 503.2 112.0 37.0 23.7
2021E 1312.0 921.8 680.0 147.0 28.2 19.8
2022E 1637.3 1238.1 924.6 200.0 20.7 15.1
Industry outlook

Under normal circumstances, we believe that WPM could easily justify a valuation of US$62.07 (or C$78.03) per share, in FY23. If precious metals return to favour however, we believe that a valuation as high as US$84.17 (C$106.36) is achievable. In the meantime, it remains cheaper than the average valuations of its peers in a majority 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 05/05/2021
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Share price graph
Balance sheet
Forecast net cash (US$m) 486.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 3.9 2.0 (11.0)
Relative* 2.8 (4.1) (31.6)
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

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