Wheaton Precious Metals

Wheaton Precious Metals (TSX: WPM)

Currency in CAD

Last close As at 20/09/2023

CAD60.13

▲ 1.27 (2.16%)

Market capitalisation

CAD26,662m

Overview
Price performance
Financials
Research
Sector insights
Thematics

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$56.71 or C$76.23 or £44.72 in FY26, based on a 30.4x historical multiple of contemporary earnings. In the meantime, WPM’s shares are trading on near-term financial ratios that are lower than those of its peers on at least 63% of common valuation measures, which otherwise imply a share price today of US$50.40, or C$67.75 or £39.53 (based on Edison forecasts).

Latest Insights

Metals & Mining |
Update

15.08.23

Wheaton Precious Metals — Peerless

Metals & Mining |
Update

21.07.23

Wheaton Precious Metals — Honing Q223 forecasts

Metals & Mining |
Update

09.05.23

Wheaton Precious Metals — Q123 in line; looking to H2

Metals & Mining |
Update

20.04.23

Wheaton Precious Metals — Refining forecasts

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Sector

Metals & Mining

Equity Analyst

Lord Ashbourne

Director, Energy & Resources

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)

338.6

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	8.2	5.7	41.7
Relative	6.1	3.3	35.8
52 week high/low	C$69.7/C$39.9

Financials

Wheaton Precious Metals’ (WPM’s) production of gold equivalent ounces (GEOs) was 4.6% higher than our prior forecasts in Q223, while sales of GEOs were 6.9% higher, driving a positive variance in revenue of 6.6%, or US$16.4m, following stronger than expected production results at Salobo, in particular. WPM reaffirmed FY23 production guidance of 600–660koz GEOs. However, we expect growth in production thereafter, such that it exceeds 850koz GEOs by FY27.