Wheaton Precious Metals (TSX: WPM)

Last close As at 20/05/2024

CAD77.59

0.00 (0.00%)

Market capitalisation

CAD34,484m

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.

Using a capital asset pricing model-type method, whereby we discount cash flows at a nominal 9% per year, our ‘terminal’ valuation of WPM in FY26 is US$52.96/share, assuming zero subsequent long-term growth in real cash flows. If we instead assume 7.4% pa long-term growth in cash flows, however, (ie the compound average annual gold price growth rate since 1967) our valuation of WPM increases manyfold to US$174.25/share. Alternatively, assuming no purchases of additional streams (which we think unlikely), we calculate a value per share for WPM of US$49.28 in FY26, based on an historical multiple of 30.8x contemporary earnings. Q1 results are scheduled for 9 May.

Latest Insights

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Metals & Mining | Update

Wheaton Precious Metals — A strong start to FY24

Metals & Mining | Update

Wheaton Precious Metals — Celebrating the Ides of March

Metals & Mining | Update

Wheaton Precious Metals — Putting WPM onto GMT

Metals & Mining | Update

Wheaton Precious Metals — Putting net cash to work

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Equity Analyst

Lord Ashbourne

Lord Ashbourne

Director of Content, Mining

Key Management

  • Emma Murray

    Director of investor relations

  • Gary D. Brown

    CFO

  • Patrick Drouin

    SVP, Investor Relations

  • Randy V. J. Smallwood

    CEO

Balance Sheet

Forecast net cash (US$m)

297.1

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 7.4 27.0 13.7
Relative 4.2 21.0 3.2
52 week high/low C$76.3/C$52.9

Financials

Wheaton’s (WPM’s) Q124 results exceeded both our and the market’s forecasts. It produced more (with the single exception of gold, which recorded a small negative variance in production) and sold more at higher prices than our prior expectations for the period. This led to a positive 5.6% (US$15.8m) variance in sales that was minimally counteracted by a US$0.8m negative variance in costs (including G&A costs) to result in a US$15.3m (10.3%) positive variance in pre-tax profits that, to all intents and purposes, fell straight through to the bottom line.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2022A 1065.1 735.2 505.4 112.0 48.6 33.3
2023A 1016.0 719.7 533.4 118.0 46.2 34.0
2024E 1251.8 951.1 712.1 132.0 41.3 25.7
2025E 1427.1 1050.3 711.0 135.0 40.3 23.5

Research

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Update

Metals & Mining

Wheaton Precious Metals — Putting net cash to work

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Update

Metals & Mining

Wheaton Precious Metals — Teeing up to hit long-term targets

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Update

Metals & Mining

Wheaton Precious Metals — Honing Q323 numbers

Update

Metals & Mining

Wheaton Precious Metals — Peerless

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Update

Metals & Mining

Wheaton Precious Metals — Honing Q223 forecasts

Update

Metals & Mining

Wheaton Precious Metals — Q123 in line; looking to H2

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Update

Metals & Mining

Wheaton Precious Metals — Refining forecasts

Further insights

insight

Cobalt

Analyst of the week

Andrew Keen

MD - Head of Content, Energy & Resources, Industrials

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Thematics

thematic

Metals & Mining

Macro Outlook – Price weakness on the cards

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