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$57.71 or C$79.16 or £47.56 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 52% of common valuation measures, which otherwise imply a share price today of US$45.89, or C$62.94 or £37.54 (based on Edison forecasts). Q3 results are scheduled for 9 November.
Metals & Mining |
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Metals & Mining |
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Metals & Mining |
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Metals & Mining |
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Emma Murray
Director of investor relations
Gary D. Brown
CFO
Patrick Drouin
SVP, Investor Relations
Randy V. J. Smallwood
CEO
Forecast net cash (US$m)
550.5
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 10.5 | 12.4 | 30.1 |
Relative | 2.9 | 13.3 | 31.1 |
52 week high/low | C$69.7/C$52.3 |
On 15 November, Wheaton Precious Metals acquired three streams from Ivanhoe’s Platreef project in South Africa, BMC Minerals’ Kudz Ze Kayah project in the Yukon and Dalradian’s Curraghinalt project in Northern Ireland. In summary, the streams allow for varying purchases of precious metals by Wheaton at varying prices and we calculate that the trio will add an initial c 26.3koz of gold equivalent ounces (GEOs) to WPM’s production profile from FY25, rising to c 35.4koz GEOs when all three are in production from FY27 (Edison assumption).
Y/E Dec | Revenue (US$m) | EBITDA (US$m) | PBT (US$m) | EPS (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 1201.7 | 852.7 | 592.1 | 132.0 | 37.0 | 25.8 |
2022A | 1065.1 | 735.2 | 497.7 | 112.0 | 43.6 | 29.5 |
2023E | 955.3 | 667.6 | 461.4 | 110.0 | 44.4 | 30.7 |
2024E | 1385.8 | 1008.6 | 657.9 | 145.0 | 33.7 | 21.9 |