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.
WPM recently announced the addition of three additional streams, which we calculate will add an initial c 26.3koz of GEOs to WPM’s production profile from FY25, rising to c 35.4koz GEOs when all three are in production from FY27. Assuming no purchases of additional streams, we calculate a valuation of US$61.19 or C$84.00 or £49.26 in FY26, based on a 30.4x historical multiple of contemporary earnings.
Metals & Mining |
Update
Metals & Mining |
Update
Metals & Mining |
Update
Metals & Mining |
Update
Emma Murray
Director of investor relations
Gary D. Brown
CFO
Patrick Drouin
SVP, Investor Relations
Randy V. J. Smallwood
CEO
Forecast net cash (US$m)
550.5
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 6.6 | 14.7 | 23.8 |
Relative | 3.7 | 14.9 | 23.0 |
52 week high/low | C$69.7/C$52.3 |
Wheaton Precious Metals’ (WPM’s) production during Q323 amounted to 154,800oz gold equivalent ounces (GEOs) compared to our prior estimate of 151,919oz, as a consequence of which our FY23 production forecast remains within the company’s 600–660koz GEO guidance range. However, we expect growth in production thereafter, such that it exceeds 850koz GEOs by FY27. Profits for Q323 were 3.6% (US$4.2m) higher than our prior forecasts for Q323 on post tax level, driven by very strong production performances at Salobo and Constancia in particular.
Y/E Dec | Revenue (US$m) | EBITDA (US$m) | PBT (US$m) | EPS (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 1201.7 | 852.7 | 592.1 | 132.0 | 36.4 | 25.4 |
2022A | 1065.1 | 735.2 | 497.7 | 112.0 | 42.9 | 28.9 |
2023E | 955.3 | 667.6 | 461.4 | 110.0 | 43.7 | 30.2 |
2024E | 1385.8 | 1008.6 | 657.9 | 145.0 | 33.1 | 21.6 |