Wheaton Precious Metals


CA$15646.3m market cap

CA$35.06 last close

Wheaton Precious Metals is the pre-eminent ostensibly precious metals streaming company, with c 30 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

We upgraded our FY19 forecasts to reflect the improving precious metals price environment in the wake of WPM’s Q219 results. This follows the settlement reached between WPM and the Canada Revenue Agency in December according to which foreign income on earnings generated by WPM’s international subsidiaries will remain exempt from tax in Canada in the future.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 843.2 564.7 277.4 63.0 42.2 20.8
2018A 794.0 496.6 203.1 48.0 55.3 22.7
2019E 890.3 570.5 252.9 57.0 46.6 20.5
2020E 1197.6 866.8 534.8 120.0 22.1 13.7
Industry outlook

Assuming no purchases of additional streams, we forecast a value for WPM of US$34.11/share (C$45.37/share) in FY20. Concerns that operations at Salobo could be affected by Vale’s iron ore tailings dams’ tribulations appear without foundation. In relative terms, WPM is trading on financial ratios that are cheaper than its royalty/streaming peers on 91% of common financial measures and the miners themselves on at least 41% of the same measures, despite being associated with materially less operating and cost risk. Third quarter results are scheduled for 14 November.

Last updated on 14/11/2019
Share price graph
Balance sheet
Forecast net debt (US$m) 821.2
Forecast gearing ratio (%) 16
Price performance
Actual 1.3 (0.5) 64.6
Relative* (2.0) (5.9) 46.8
52-week high/low C$40.8/C$20.3
*% relative to local index
Key management
Randy V. J. Smallwood CEO
Gary D. Brown CFO
Emma Murray Director of Investor Relations
Patrick Drouin Director of Investor Relations

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