Wheaton Precious Metals (TSX: WPM)

Last close As at 20/06/2024

CAD73.75

1.31 (1.81%)

Market capitalisation

CAD33,433m

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-type model, whereby we discount cash flows at a nominal 9% per year, our ‘terminal’ valuation of WPM in FY27 is US$57.89/share, assuming zero long-term growth in real cash flows (per share) thereafter. 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$138.94/share (in FY24). Alternatively, we calculate a value per share for WPM of US$54.75 in FY27, based on an historical multiple of 30.8x contemporary earnings.

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 (5.0) 21.1 29.7
Relative (1.1) 23.8 18.7
52 week high/low C$78.9/C$52.9

Financials

Wheaton’s production and sales in FY23 were both higher than our prior expectations after a strong Q4 driven by Salobo. FY24 got off to a similarly good start in Q1 and production guidance for the full year is 550–620koz GEO. However, we expect significant growth in output thereafter to almost 900koz GEO by FY29. The company has also adopted a progressive dividend policy.

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 48.3 33.1
2023A 1016.0 719.7 533.4 118.0 45.8 33.8
2024E 1251.8 951.1 712.1 132.0 41.0 25.5
2025E 1427.1 1050.3 711.0 135.0 40.1 23.3

Outlook

Metals & Mining

Wheaton Precious Metals — Starting as it means to go on

Update

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Wheaton Precious Metals — Refining forecasts ahead of results

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Wheaton Precious Metals — Imperturbable

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Wheaton Precious Metals — Honing Q321 forecasts

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Wheaton Precious Metals — Solid Q221 results set up H221

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Wheaton Precious Metals — Honing forecasts

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Wheaton Precious Metals — ROICs alive

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Wheaton Precious Metals — A solid start

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Wheaton Precious Metals — Q121 results preview

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Wheaton Precious Metals — Looking to the long term

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Wheaton Precious Metals — Continuing to beat expectations

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Wheaton Precious Metals — Streaming explained

Flash note

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Wheaton Precious Metals — London calling

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Wheaton Precious Metals — Barely missing a beat

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Wheaton Precious Metals — Forging ahead

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Wheaton Precious Metals — Refining numbers

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Wheaton Precious Metals — Swings and roundabouts

Outlook

Metals & Mining

Wheaton Precious Metals — In the right place at the right time

edison tv

Metals & Mining

Executive interview – Wheaton Precious Metals

Update

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Wheaton Precious Metals — Q3 results and update

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Wheaton Precious Metals — Starting as it means to continue

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Wheaton Precious Metals — Exceeding guidance and expectations

research

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Wheaton Precious Metals — CRAziness averted

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Wheaton Precious Metals — Palladium ex machina

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Wheaton Precious Metals — Kobold ex machina

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Wheaton Precious Metals — Serene start

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Wheaton Precious Metals — A fine finish

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Silver Wheaton — Majestic

Outlook

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Wheaton Precious Metals — Still shining

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Wheaton Precious Metals — Formerly Silver Wheaton (SLW)

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Severfield — Better revenue, margin and cash progress

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Silver Wheaton — What a difference a quarter makes

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Silver Wheaton — Update 6 December 2016

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Silver Wheaton — Update 2 November 2016

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Silver Wheaton — Update 30 August 2016

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Silver Wheaton — Update 25 May 2016

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Silver Wheaton — Update 18 April 2016

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Silver Wheaton — Update 24 March 2016

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Silver Wheaton — Update 14 February 2016

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Metals & Mining

Silver Wheaton — Update 11 November 2015