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Research: Metals & Mining
Wheaton Precious Metals’ (WPM’s) Q4 results were slightly above our (top of the range) prior expectations in almost all areas of its business. San Dimas, Penasquito, Antamina and Blackwater all outperformed in terms of production and/or sales, while Salobo effectively matched what were otherwise our extremely bullish estimates based on its copper output (see our previous note). The average realised price for silver was also 7.5% (or
| Year end | Revenue ($m) | PBT ($m) | EPS ($) | DPS ($) | P/E (x) | Yield (%) |
|---|---|---|---|---|---|---|
| 12/24 | 1,284.6 | 752.5 | 1.41 | 0.62 | 103.5 | 0.4 |
| 12/25e | 2,314.6 | 1,605.8 | 3.02 | 0.66 | 48.3 | 0.5 |
| 12/26e | 4,211.1 | 3,009.6 | 5.61 | 0.78 | 26.1 | 0.5 |
| 12/27e | 3,221.0 | 1,809.0 | 3.43 | 0.82 | 42.6 | 0.6 |
Using a capital asset pricing model-type method, whereby we discount cash flows at
a nominal 9% per year, we calculate a terminal valuation for WPM of
Exhibit 1, below, analyses WPM’s Q425/FY25 results relative to our prior expectations:
Our forecasts for FY26 remain little changed in the light of WPM’s Q425 results and are re-presented below:
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Research: Investment Companies
Finsbury Growth & Income Trust (FGT) is celebrating its 100-year anniversary. For the last 25 years the trust has been managed by Nick Train, who delivered 20 years of steady outperformance by investing primarily in UK quality growth companies, with a bias towards the consumer sectors. The last five years have seen a reversal in the trust’s fortunes as investors have favoured cyclical/value stocks, which are not featured in FGT’s portfolio, and a few long-term holdings have faced operational challenges. In late 2025, the board announced the introduction of a continuation vote, to gauge shareholder support for FGT given the steep drop-off in relative performance in recent years. It was held at the January 2026 AGM, and there was an overwhelming vote in favour of the trust continuing. Train and deputy manager Madeline Wright (since 2019) have maintained their strategy of buying high-quality companies with durable business models, high returns on equity and low capital intensity/high free cash flow generation. FGT’s board has scrutinised the managers and their process and fully supports them and their investment approach.