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Currency in CAD
Last close As at 09/06/2023
CAD60.50
▲ 0.36 (0.60%)
Market capitalisation
CAD27,397m
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.
Assuming no purchases of additional streams in the foreseeable future (which we think unlikely), we calculate a value per share for WPM of US$54.06, or C$73.03 or £42.89 in FY26, based on a 30.4x historical multiple of contemporary earnings. In the meantime, Wheaton Precious Metals’ shares are trading on near-term financial ratios that are lower than those of its peers on 69% of common valuation measures, which otherwise imply a share price of US$56.92, or C$76.90 or £42.13 (based on Edison forecasts).
Metals & Mining
Metals & Mining
Metals & Mining
Director, Energy & Resources
Emma Murray
Director of investor relations
Gary D. Brown
CFO
Patrick Drouin
SVP, Investor Relations
Randy V. J. Smallwood
CEO
Forecast net cash (US$m)
834.1
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | (12.8) | 13.3 | 15.4 |
| Relative | (10.0) | 15.6 | 20.3 |
| 52 week high/low | C$69.7/C$39.1 |
Wheaton Precious Metals’ (WPM) net earnings for Q123 were US$2.6m (or 2.5%) better than our prior estimate, meaning that our forecasts for FY23 have changed little. FY23 seems likely to be a year of investment and steady output for the company; we estimate 612.7koz AuE production in FY23 compared to WPM’s guidance of 600–660koz. However, we expect growth in production to increase thereafter and to exceed 850koz AuE by FY27 (after WPM’s acquisition of a stream from Lumina’s Cangrejos project announced on 16 May).
| Y/E Dec | Revenue (US$m) | EBITDA (US$m) | PBT (US$m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 1201.7 | 852.7 | 592.1 | 131.0 | 34.2 | 23.7 |
| 2022A | 1065.1 | 735.2 | 497.7 | 112.0 | 40.0 | 27.0 |
| 2023E | 1119.4 | 799.2 | 569.4 | 132.0 | 33.9 | 24.0 |
| 2024E | 1358.4 | 971.4 | 631.3 | 139.0 | 32.2 | 20.8 |
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