Wheaton Precious Metals (TSX: WPM)

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).

Wheaton-Precious-Metals_resized

Equity Analyst

Lord Ashbourne

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)

834.1

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 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

Financials

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

Further insights

Cobalt

Analyst of the week

Thematics

Metals & Mining

Critical minerals: The investment vacuum

samuel-scrimshaw-kp_87tExCwI-unsplash

Metals & Mining

Lithium’s adolescence

Metals & Mining

Lepidico: Offer closes, oversubscribed

Consumer

IPO apocalypse

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free