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Currency in CAD
Last close As at 30/03/2023
CAD65.28
▲ −0.15 (−0.23%)
Market capitalisation
CAD27,953m
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.
Wheaton’s shares are trading on near-term financial ratios that are lower than those of its peers on 63% of common valuation measures which otherwise imply a share price in 2022 of US$34.11, or C$46.13 or £30.20 (based on Edison forecasts). Alternatively, if precious metals return to favour, then we believe that a near-term valuation of US$43.63 (C$59.02 or £38.63) per share is possible. In addition, Wheaton has US$492.5m (US$1.09/share) in net cash on its balance sheet as at end-Q322. Updated valuations are expected in March following the release of FY22 results.
Metals & Mining
Director, Energy & Resources
Gary D. Brown
CFO
Jacy Zerb
Director, Investor Relations
Patrick Drouin
SVP, Investor Relations
Randy V. J. Smallwood
CEO
Forecast net cash (US$m)
200.9
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | 14.8 | 21.5 | 9.8 |
| Relative | 17.1 | 19.4 | 22.3 |
| 52 week high/low | C$65.4/C$39.1 |
Wheaton Precious Metals (WPM) released its Q422/FY22 financial results in the context of known production and sales volumes. As a result, financial results were very close to our prior expectations for both Q422 and FY22. The main (positive) variances were in depletion (US$3.3m) and ‘other’ income (US$1.9m), to result in net earnings that were US$5.0m better than our prior forecasts for both periods (equating to a positive percentage variance of 5.1% for the quarter and 1.0% for the full year).
| Y/E Dec | Revenue (US$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 | 36.4 | 25.2 |
| 2022A | 1065.1 | 735.2 | 497.7 | 112.0 | 42.5 | 28.7 |
| 2023E | 1084.2 | 756.0 | 505.3 | 115.0 | 41.4 | 27.4 |
| 2024E | 1357.8 | 971.6 | 630.4 | 139.0 | 34.3 | 22.2 |
