Wheaton Precious Metals — Honing Q223 forecasts

Wheaton Precious Metals (TSX: WPM)

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Research: Metals & Mining

Wheaton Precious Metals — Honing Q223 forecasts

Ahead of Wheaton Precious Metals’ (WPM’s) Q223 results, scheduled for 10 August, we have honed our forecasts to reflect, principally (1) Newmont’s suspension of mining at Penasquito since 8 June, (2) updated metals prices, (3) estimated production from Salobo in the light of Vale’s Q223 production and sales report (released on 18 July) and (4) the closure of the Minto mine on 13 May. As a result, we have reduced our Q223 basic EPS forecast by 5 US cents per share to 28 cents per share and our FY23 adjusted basic EPS by 8 cents per share (or 6.1%) to 124 cents per share.

Lord Ashbourne

Written by

Lord Ashbourne

Director of Content, Mining

Wheaton-Precious-Metals_resized

Metals & Mining

Wheaton Precious Metals

Honing Q223 forecasts

Q223 results preview

Metals and mining

21 July 2023

Price

C$59.13

Market cap

C$26,774m

C$1.3220/US$, US$1.3097/£

Cash (US$m) at end-March
(excluding US$1.8m in lease liabilities)

799.7

Shares in issue

452.8m

Free float

100.0%

Code

WPM

Primary exchange

TSX

Secondary exchanges

LSE, NYSE

Share price performance

%

1m

3m

12m

Abs

1.8

(12.9)

39.2

Rel (local)

(1.6)

(12.1)

29.5

52-week high/low

C$69.72

C$39.11

Business description

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.

Next events

Q223 results

10 August 2023

Constancia site visit

September/October 2023

Q323 results

9 November 2023

Q423/FY23 results

March 2024

Analyst

Lord Ashbourne

+44 (0)20 3077 5700

Wheaton Precious Metals is a research client of Edison Investment Research Limited

Ahead of Wheaton Precious Metals’ (WPM’s) Q223 results, scheduled for 10 August, we have honed our forecasts to reflect, principally (1) Newmont’s suspension of mining at Penasquito since 8 June, (2) updated metals prices, (3) estimated production from Salobo in the light of Vale’s Q223 production and sales report (released on 18 July) and (4) the closure of the Minto mine on 13 May. As a result, we have reduced our Q223 basic EPS forecast by 5 US cents per share to 28 cents per share and our FY23 adjusted basic EPS by 8 cents per share (or 6.1%) to 124 cents per share.

Year end

Revenue
(US$m)

PBT*
(US$m)

EPS*
(c)

DPS
(c)

P/E
(x)

Yield
(%)

12/21

1,201.7

592.1

132

57

33.9

1.3

12/22

1,065.1

497.7

112

60

39.9

1.3

12/23e

1,061.5

531.5

124

60

36.1

1.3

12/24e

1,423.8

669.8

148

65

30.3

1.4

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles and exceptional items.

Forecast FY23 production still well within guidance

As a result of the changes to our assumptions, we forecast that WPM will produce 613koz of gold equivalent ounces (GEOs) in FY23. This is almost unchanged since our forecast at the time of our previous note as a result of increasing our assumption of gold production from Constancia in H223 to reflect the resumption of full mining activities in the Pampacancha pit in February (as per Hudbay’s Q123 earnings release). It remains well within WPM’s guidance for the full year of 600–660koz GEOs.

Penasquito assumed offline until the end of August

The largest single effect on our estimates for FY23 adjusted EPS arose as a consequence of changes to our forecasts regarding Penasquito (8 cents/share), followed by metals prices (4 cents/share), partially offset by changes to our assumptions regarding output at Constancia in H223 (3 cents/share). Salobo and other incidental changes accounted for the remaining 1c of EPS changes.

Valuation: Heading over C$70/share by 2026

Using a capital asset pricing model (CAPM)-type method, whereby we discount cash flows at a nominal 9% per year, our ‘terminal’ valuation of WPM in FY26 is little changed at US$54.92 (C$72.61) per share, assuming zero subsequent longterm growth in real cash flows. Alternatively, assuming no purchases of additional streams (which we think unlikely), we calculate a value per share for WPM of US$56.77 or C$75.05 or £43.35 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 69% of common valuation measures if Edison forecasts are used or 52% if consensus forecasts are used. Stated alternatively, if WPM were to trade at the average multiples of its peers, we calculate that its share price should be US$53.58, or C$70.83 currently.

Updated Q223 and FY23 guidance and forecasts

Since our last note on WPM (see Q123 in line; looking to H2, published on 9 May 2023), we have honed our Q223 and FY23 forecasts to reflect a number of developments, including the following:

Metals prices, as per the table below:

Exhibit 1: Metals price assumption changes

Metal

Q223
(previous)

Q223
(current)

Change
(%)

Remainder of year (previous)

Remainder of year (current)

Change
(%)

Silver (US$/oz)

25.62

24.19

-5.6

25.90

24.79

-4.3

Gold (US$/oz)

2,002

1,976

-1.3

2,000

1,955

-2.3

Palladium (US$/oz)

1,470

1,445

-1.7

1,452

1,265

-12.9

Cobalt (US$/lb)

15.84

14.79

-6.6

15.84

15.16

-4.3

Simple average

-3.8

-6.0

Source: Edison Investment Research, Bloomberg

Production and sales from Penasquito in order to reflect Newmont’s announcement of a suspension of operations at the mine on 8 June and its Q223 results announcement of 20 July. In the latter, it disclosed silver production and sales from Penasquito in Q223 of 6,323koz and 5,999koz, respectively, which (pro rata to its 25% silver stream interest) implies production and sales attributable to Wheaton in Q223 of 1,580koz and 1,499koz, respectively. In the absence of any immediate, official progress in resolving the dispute between Newmont and the unions at Penasquito, we have also assumed that production and sales will continue to be affected by the suspension for two of the three months of Q3 until the end of August.

Production from Salobo, in Q2, to reflect Vale’s quarterly production report, released on Tuesday 18 July, showing copper production increasing quarter-on-quarter by 30.2% to 42.7kt (cf 32.8kt). Historically, copper production at Salobo has correlated closely with gold attributable to WPM in any particular quarter. In this case, however, 13.2kt of the mine’s production was derived from Salobo III (ie production from Salobo I and II was actually down 1% q-o-q). As this project is in the process of ramping up, we believe that there will be a natural lag in associated gold production, with the result that we anticipate only around one quarter of the increase in copper production to be reflected in gold production (ie implying an increase of 7.5% to 46,973oz rather than a 30.2% increase to 56,860oz). Note that Salobo III’s contribution of 30.9% of total copper production (cf an expected 33.3% pro-rata to throughput) suggests a very solid ramp up since Q422, notwithstanding the fact that production at Salobo I and II was adversely affected by planned maintenance activities and additional work on the crushers (which will continue into H223).

Production and sales attributable to WPM from the Minto mine to reflect the latter’s announcement of the cessation of operations on 13 May after failing to raise funds and the subsequent resignation of its directors on 16 May. For these purposes, we have assumed no further production from the mine attributable to WPM from either 13 May or at any time in the future. Hence, we have reduced Q223 production by 1,000oz gold and future production by 2,000oz per quarter until end-FY25. As a consequence, we have also included a small c US$15m (Edison estimate) impairment in WPM’s assets taken through its income statement in Q223, partially offset by a c US$5m profit from the disposal of a 33% interest in WPM’s Goose stream back to B2Gold during the quarter (see WPM’s Q123 results announcement, released on 4 May 2023).

Production and sales of cobalt attributable to WPM from Voisey’s Bay to reflect the continued mining of lower-grade material at the bottom of the Ovoid pit prior to the transition and ramp-up to full production of the Voisey’s Bay underground project as well as maintenance activities scheduled for Q223.

We have left our gold production and sales figures for Constancia unchanged for Q323, reflecting the resumption of full mining activities in the Pampacancha pit in February (as per Hudbay’s Q1 earnings release). However, after a period of higher stripping in Q2, we have increased our expectations for Q323 and Q423 back to full capacity (cf Q124 previously), which has increased our gold production forecasts in those quarters by 4,433oz apiece.

As a consequence of the above changes, our quarterly forecasts for WPM for Q223 (both including and excluding exceptional items) and for the remainder of the year are now as follows:

Exhibit 2: WPM FY23 forecast, by quarter*

US$000s
(unless otherwise stated)

Q123

Q223e
(prior)

Q223e

Q223e (inc excepts)

Q323e
(prior)

Q323e

Q423e
(prior)

Q423e

FY23e

FY23e
(prior)

Silver production (koz)

4,927

4,723

4,635

4,635

4,723

4,358

4,723

5,851

19,771

19,097

Gold production (oz)

73,037

85,746

76,449

76,449

87,149

88,406

97,005

97,884

335,776

342,937

Palladium production (koz)

3,705

3,514

3,514

3,514

3,871

3,871

3,871

3,871

14,961

14,961

Cobalt production (klb)

124

201

124

124

204

204

204

204

655

732

Silver sales (koz)

3,749

4,153

4,185

4,185

4,723

3,756

4,723

5,589

17,278

17,349

Gold sales (oz)

62,605

79,977

71,306

71,306

87,128

82,439

96,984

97,863

314,213

326,694

Palladium sales (oz)

2,946

3.161

3,161

3,161

3,856

3,483

3,856

3,856

13,445

13,818

Cobalt sales (klb)

323

201

124

124

204

204

204

204

854

931

Avg realised Ag price (US$/oz)

22.85

25.62

24.19

24.19

25.90

24.57

25.90

24.79

24.18

25.17

Avg realised Au price (US$/oz)

1,904

2,002

1,976

1,976

2,000

1,951

2,000

1,955

1,949

1,982

Avg realised Pd price (US$/oz)

1,607

1,470

1,445

1,445

1,452

1,264

1,452

1,265

1,382

1,489

Avg realised Co price (US$/lb)

15.04

15.84

14.79

14.79

15.84

15.16

15.84

15.16

15.06

15.56

Avg Ag cash cost (US$/oz)

5.07

5.11

5.21

5.21

5.13

5.53

5.14

5.30

5.28

5.11

Avg Au cash cost (US$/oz)

496

462

456

456

461

441

4.57

439

455

467

Avg Pd cash cost (US$/oz)

294

265

260

260

261

228

261

228

250

269

Avg Co cash cost (US$/lb)

3.30

2.85

2.66

2.66

2.85

2.73

2.85

2.73

2.93

3.01

Sales

214,465

274,359

248,534

248,534

305,417

260,622

325,128

337,829

1,061,450

1,119,368

Cost of sales

Cost of sales, excluding depletion

51,964

59,623

55,487

55,487

65,976

58,481

70,137

74,032

239,964

247,701

Depletion

45,000

53,874

49,026

49,026

60,184

52,909

64,948

67,699

214,634

224,006

Total cost of sales

96,964

113,497

104,512

104,512

126,160

111,390

135,085

141,731

454,598

471,707

Earnings from operations

117,501

160,862

144,022

144,022

179,256

149,232

190,043

196,098

606,852

647,661

Expenses and other income

– General and administrative**

18,874

18,837

15,280

15,280

17,396

18,042

17,396

17,396

69,592

72,503

– Foreign exchange (gain)/loss

0

0

– Net interest paid/(received)

1,378

1,454

1,454

1,454

1,454

1,454

1,454

1,454

5,741

5,741

– Other (income)/expense

(7,387)

(7,968)

(7,968)

2,062

(7,567)

(7,192)

(8,101)

(7,150)

(29,697)

(31,023)

Total expenses and other income

12,865

12,324

8,766

18,796

11,283

12,304

10,749

11,700

45,635

47,221

Earnings before income taxes

104,636

148,538

135,256

125,226

167,973

136,928

179,294

184,398

561,217

600,440

Income tax expense/(recovery)

205

250

250

250

250

250

250

250

955

955

Marginal tax rate (%)

0.2

0.2

0.2

0.2

0.1

0.2

0.1

0.1

0.2

0.2

Net earnings

104,431

148,288

135,006

124,976

167,723

136,678

179,044

184,148

560,262

599,485

Average no. shares in issue (000s)

452,370

452,838

452,838

452,838

452,838

452,838

452,838

452,838

452,721

452,721

Basic EPS (US$)

0.231

0.327

0.298

0.276

0.370

0.302

0.395

0.407

1.24

1.32

Diluted EPS (US$)

0.230

0.326

0.297

0.275

0.369

0.301

0.394

0.405

1.23

1.32

DPS (US$)

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.60

0.60

Source: WPM accounts, Edison Investment Research. Note: *Excluding impairments, impairment reversals and exceptional items (except where indicated). **Forecasts now include stock-based compensation costs. Totals may not add up owing to rounding.

Our updated adjusted basic EPS forecast of US$1.24 per share for FY23 is 6.9% above the current consensus forecast of US$1.16 per share (source: Refinitiv, 20 July 2023), notwithstanding the fact that we suspect that the largely unchanged earnings forecasts for WPM since the time of our last note suggest that the market may not yet have fully discounted the potential effects of the Penasquito stoppage much beyond the end of June.

Exhibit 3: WPM FY23 consensus EPS forecasts (US$/share), by quarter

Q123

Q223e

Q323e

Q423e

Sum Q1–Q423e

FY23e

Edison forecasts

0.231

0.298

0.302

0.407

1.238

1.24

Mean consensus

0.231

0.27

0.32

0.33

1.151

1.16

High consensus

0.231

0.33

0.39

0.40

1.351

1.32

Low consensus

0.231

0.21

0.27

0.27

0.981

1.05

Source: Refinitiv, Edison Investment Research. Note: As at 20 July 2023.

In the longer term:

In November 2022, Aris Mining released the results of the Marmato Lower Mine expansion pre-feasibility study, including the development of a new underground mine and a 4,000tpd ore processing facility to add to the existing Marmato Upper Mine. On 12 July 2023, Aris Mining announced that it had received approval from Colombia’s Corporación Autónoma Regional de Caldas for its Environmental Management Plan, which permits the development of the Marmato Lower Mine. Tender bids for key long lead procurement items such as mills, crushers, feeders, thickeners, the oxygen plant, gold room and filters are currently in the market. Orders are expected to be placed in Q323, with the new 4,000tpd mill scheduled for mechanical completion in Q325. As a consequence, we have synchronised our Marmato Lower Mine forecasts to fit this schedule, while leaving our Upper Mine forecasts unchanged.

We have included a contribution to WPM’s production and sales from Lumina’s Cangrejos project, as per the former’s announcement of a precious metals purchase agreement on 16 May. Under the terms of the stream, WPM will pay Lumina a total upfront cash consideration of US$300m in tranches, in return for 6.6% of the payable gold from the project until 700,000oz gold have been delivered, whereupon the stream will be reduced to 4.4% of the payable gold production for the life of the mine. Attributable production from the mine is forecast to average over 24,000oz gold pa for the first 10 years of production and over 24,500oz gold pa for the life of mine. WPM will make ongoing payments for the gold ounces delivered equal to 18% of the spot price of gold until the uncredited deposit is reduced to nil and 22% of the spot price of gold thereafter. For the purposes of our modelling, we have assumed that first production from the Cangrejos mine will occur in FY29.

We have adjusted our longer-term production profiles for Neves-Corvo and Zinkgruvan to align with Lundin’s 202325 guidance and FY22 reserve estimates. For these purposes, we have assumed that by-product silver production attributable to WPM from Zinkgruvan is proportional to its zinc production, while for Neves-Corvo that it is proportional to its copper production guidance.

Valuation

Absolute

WPM is a multi-asset company that has shown a willingness and desire to buy streams in the past to maintain production and maximise shareholder returns (most recently over Lumina’s Cangrejos mine in south-west Ecuador). As a result, rather than our customary method of discounting maximum potential dividends over the life of operations back to FY23, in the case of WPM (as with Newmont and Endeavour), we discount forecast cash flows back over four years from the start of FY23 and then apply an ex-growth terminal multiple to forecast cash flows in that year (ie FY26) based on an appropriate discount rate.

Our estimate of WPM’s ‘terminal’ pre-financing cash flow in FY26 is up by a relatively small 3.5% owing, principally, to changes to our assumptions regarding production at Neves-Corvo and Zinkgruvan, at US$2.65 per share (cf US$2.56/share previously), as shown below:

Exhibit 4: WPM cash flow per share and related valuation (US$/share), FY23–26

Source: Edison Investment Research. Note: Valuation line assumes cash flow per share growth rate of 4% pa post-FY26 in nominal terms, which equals the average US rate of CPI inflation since 1972 (ie 0% pa growth in real terms).

Assuming 4% growth in nominal cash flows beyond FY26 (ie 0% growth in real cash flows) and applying a discount rate of 9% (being the expected long-term required nominal equity return), our ‘terminal’ valuation of the company at end-FY26 is US$54.92 per share (cf US$52.99/share previously), or C$72.61 per share. However, it should be noted that this valuation is inherently conservative in that it assumes zero growth in (real) cash flows beyond FY26. This is inconsistent with the gold price, which has risen at a compound average annual growth rate of 7.4% per year from 1967 to 2022 and at a simple average annual growth rate of 9.6% per year (cf a compound average inflation rate over the same period of 4%).

Exhibit 5: Gold price annual performance, 1968–2022

Source: Edison Investment Research (underlying data: US Bureau of Labor Statistics, Bloomberg, kitco.com, South African Chamber of Mines)

It is also inconsistent with WPM’s longer-term historical performance, wherein operational cash flows have increased at a compound average annual growth rate of 21% pa for the 17 years between FY05 and FY22, while its operational cash flows per share have increased at compound average annual growth rate of 14.1% pa.

Historical

Excluding FY04 (part-year), WPM’s shares have historically traded on an average P/E multiple of 30.4x current year basic underlying EPS, excluding impairments (cf 36.1x Edison or 38.7x Refinitiv consensus FY23e – see Exhibit 7).

Exhibit 6: WPM’s average historical current year P/E multiples, 2005–22

Source: average share price data Bloomberg, Edison Investment Research calculations

Applying this 30.4x multiple to our (ostensibly unchanged) EPS forecast of US$1.87 in FY26 (cf US$1.78 previously) implies a potential value per share for WPM of US$56.77 or C$75.05 in that year.

Relative

From a relative perspective, it is notable that WPM is cheaper than its peers on at least 69% (25 out of 36) of the valuation measures observed in Exhibit 7 if Edison estimates are used or 52% (19 out of 36) of the same valuation measures if consensus forecasts are used.

Exhibit 7: WPM comparative valuation versus a sample of operating and royalty/streaming companies

P/E (x)

Yield (%)

P/CF (x)

Year 1

Year 2

Year 3

Year 1

Year 2

Year 3

Year 1

Year 2

Year 3

Royalty companies

Franco-Nevada

40.5

37.3

38.8

0.9

0.9

0.9

28.3

26.8

27.7

Royal Gold

32.3

28.4

27.3

1.1

1.1

1.1

18.3

16.4

15.9

Sandstorm Gold

56.2

51.6

42.2

1.1

1.1

1.1

14.4

14.1

12.4

Osisko

31.9

31.8

27.7

1.1

1.1

1.1

18.9

18.3

17.6

Average

40.2

37.3

34.0

1.1

1.1

1.1

20.0

18.9

18.4

WPM (Edison forecasts)

36.1

30.3

24.9

1.3

1.4

1.7

25.6

19.6

17.0

WPM (consensus)

38.7

33.6

32.8

1.3

1.1

1.3

27.6

23.0

22.4

Implied WPM share price (US$)*

49.79

55.05

61.06

57.14

60.86

71.95

34.85

43.20

48.28

Source: Refinitiv, Edison Investment Research. Note: Peers priced on 20 July 2023. *Derived using Edison forecasts and average consensus multiples.

Stated alternatively, were WPM to trade at the average multiples of its peers, we calculate that its share price should be US$53.58, or C$70.83 currently.

Exhibit 8: Financial summary

US$000s

2020

2021

2022

2023e

2024e

2025e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

1,096,224

1,201,665

1,065,053

1,061,450

1,423,817

1,615,991

Cost of Sales

(266,763)

(287,947)

(267,621)

(239,964)

(320,265)

(356,701)

Gross Profit

829,461

913,718

797,432

821,486

1,103,552

1,259,290

EBITDA

 

 

763,763

852,733

735,245

751,894

1,033,960

1,189,699

Operating profit (before amort. and excepts.)

 

 

519,874

597,940

503,293

537,260

668,478

813,409

Exceptionals

4,469

162,806

164,214

(16,989)

0

0

Other

387

190

7,680

29,697

0

0

Operating Profit

524,730

760,936

675,187

549,968

668,478

813,409

Net Interest

(16,715)

(5,817)

(5,586)

(5,741)

1,275

836

Profit Before Tax (norm)

 

 

503,159

592,123

497,707

531,520

669,753

814,245

Profit Before Tax (FRS 3)

 

 

508,015

755,119

669,601

544,227

669,753

814,245

Tax

(211)

(234)

(475)

(955)

(1,000)

(1,000)

Profit After Tax (norm)

503,335

592,079

504,912

560,262

668,753

813,245

Profit After Tax (FRS 3)

507,804

754,885

669,126

543,272

668,753

813,245

Average Number of Shares Outstanding (m)

448.7

450.1

451.6

452.7

452.8

452.8

EPS - normalised (c)

 

 

112

132

112

124

148

180

EPS - normalised and fully diluted (c)

 

 

112

131

112

123

147

179

EPS - (IFRS) (c)

 

 

113

168

148

120

148

180

Dividend per share (c)

42

57

60

60

65

76

Gross Margin (%)

75.7

76.0

74.9

77.4

77.5

77.9

EBITDA Margin (%)

69.7

71.0

69.0

70.8

72.6

73.6

Operating Margin (before GW and except.) (%)

47.4

49.8

47.3

50.6

46.9

50.3

BALANCE SHEET

Fixed Assets

 

 

5,755,441

6,046,427

6,039,813

6,328,739

6,950,245

6,602,755

Intangible Assets

5,521,632

5,940,538

5,753,111

6,042,037

6,663,543

6,316,053

Tangible Assets

33,931

44,412

30,607

30,607

30,607

30,607

Investments

199,878

61,477

256,095

256,095

256,095

256,095

Current Assets

 

 

201,831

249,724

720,093

718,731

477,684

1,294,823

Stocks

3,265

12,102

13,817

2,498

3,350

3,802

Debtors

5,883

11,577

10,187

5,816

7,802

8,855

Cash

192,683

226,045

696,089

710,418

466,532

1,282,165

Current Liabilities

 

 

(31,169)

(29,691)

(30,717)

(29,652)

(33,502)

(35,249)

Creditors

(30,396)

(28,878)

(29,899)

(28,834)

(32,684)

(34,431)

Short term borrowings

(773)

(813)

(818)

(818)

(818)

(818)

Long Term Liabilities

 

 

(211,532)

(16,343)

(11,514)

(11,514)

(11,514)

(11,514)

Long term borrowings

(197,864)

(2,060)

(1,152)

(1,152)

(1,152)

(1,152)

Other long term liabilities

(13,668)

(14,283)

(10,362)

(10,362)

(10,362)

(10,362)

Net Assets

 

 

5,714,571

6,250,117

6,717,675

7,006,304

7,382,913

7,850,814

CASH FLOW

Operating Cash Flow

 

 

784,843

851,686

749,429

796,217

1,034,972

1,189,940

Net Interest

(16,715)

(5,817)

(5,586)

(5,741)

1,275

836

Tax

(2,686)

(503)

34

(955)

(1,000)

(1,000)

Capex

149,648

(404,437)

(44,750)

(503,560)

(986,988)

(28,800)

Acquisitions/disposals

0

0

0

0

0

0

Financing

22,396

7,992

10,171

0

0

0

Dividends

(167,212)

(218,052)

(237,097)

(271,633)

(292,145)

(345,343)

Net Cash Flow

770,274

230,869

472,201

14,329

(243,885)

815,633

Opening net debt/(cash)

 

 

774,766

5,954

(223,172)

(694,119)

(708,448)

(464,562)

Other

(1,462)

(1,743)

(1,254)

(0)

0

(0)

Closing net debt/(cash)

 

 

5,954

(223,172)

(694,119)

(708,448)

(464,562)

(1,280,195)

Source: Company sources, Edison Investment Research


General disclaimer and copyright

This report has been commissioned by Wheaton Precious Metals and prepared and issued by Edison, in consideration of a fee payable by Wheaton Precious Metals. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2023 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by Wheaton Precious Metals and prepared and issued by Edison, in consideration of a fee payable by Wheaton Precious Metals. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2023 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

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