Wheaton Precious Metals — Incorporating Salobo Q222 operating results

Wheaton Precious Metals (TSX: WPM)

Currency in CAD

Last close As at 02/02/2023

CAD59.59

−1.29 (−2.12%)

Market capitalisation

CAD27,516m

Research: Metals & Mining

Wheaton Precious Metals — Incorporating Salobo Q222 operating results

Wheaton Precious Metals’ (WPM’s) Q222 results are scheduled for release after the market close in North America on 11 August. This note reduces our forecasts for Q2–Q422 and FY23–24 in light of details about Salobo’s operational performance contained in Vale’s Q2 production and sales update, released on 19 July, and of recent changes in precious metals prices. It also analyses WPM’s sale of its Keno Hill stream for a consideration of US$135m (which we calculate will provide the buyer with an internal rate of return of 3.06%).

Lord Ashbourne

Written by

Lord Ashbourne

Director, Energy & Resources

Metals & Mining

Wheaton Precious Metals

Incorporating Salobo Q222 operating results

Q222 results preview

Metals and mining

27 July 2022

Price

C$41.82

Market cap

C$18,873m

C$1.2884/US$, US$1.2029/£

Net cash (US$m) at end-March excluding US$2.7m in lease liabilities

376.2

Shares in issue

451.3m

Free float

100.0%

Code

WPM

Primary exchange

TSX

Secondary exchanges

LSE, NYSE

Share price performance

%

1m

3m

12m

Abs

(15.1)

(28.1)

(24.4)

Rel (local)

(14.47)

(21.6)

(19.6)

52-week high/low

C$64.70

C$40.84

Business description

Wheaton Precious Metals (WPM) 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.

<Insert the business description here, up to a maximum of seven lines. To paste text here, use 'PASTE UNFORMATTED TEXT' on the Edison Toolbar>

Next events

Q222 results

11 August 2022

Q322 results

3 November 2022

Q422 results

March 2023

Q123 results

May 2023

Analyst

Lord Ashbourne

+44 (0)20 3077 5724

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

Wheaton Precious Metals’ (WPM’s) Q222 results are scheduled for release after the market close in North America on 11 August. This note reduces our forecasts for Q2–Q422 and FY23–24 in light of details about Salobo’s operational performance contained in Vale’s Q2 production and sales update, released on 19 July, and of recent changes in precious metals prices. It also analyses WPM’s sale of its Keno Hill stream for a consideration of US$135m (which we calculate will provide the buyer with an internal rate of return of 3.06%).

Year end

Revenue (US$m)

PBT*
(US$m)

EPS*
(c)

DPS
(c)

P/E
(x)

Yield
(%)

12/20

1,096.2

503.2

112

42

29.0

1.3

12/21

1,201.7

592.1

132

57

24.6

1.7

12/22e

1,086.0

526.3

116

60

27.9

1.8

12/23e

1,413.5

687.7

152

63

21.3

1.9

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

Vale Q2 production and sales update

On 19 July, Vale announced that, although mine movement had continued to improve throughout Q2 at Salobo, concentrate production was adversely affected by plant performance owing to delays in ramp-up after planned and unplanned maintenance. Moreover, it stated that it expected further maintenance work to continue into H222. As a consequence, copper production at Vale declined by 12.7% in Q2 relative to Q1 and the company reduced its guidance for group-wide production for the full year by 19.0% (albeit not all attributable to Salobo).

Valuation: Precious metal prices already discounted

Adopting a CAPM-type method to value WPM and applying a nominal discount rate of 9.0% to cash flows implies a ‘terminal’ valuation for Wheaton at end-FY26 of US$58.42 (C$75.27) per share, assuming zero subsequent long-term growth in real cash flows. Stated alternatively, we calculate that WPM’s current share price of C$41.82 discounts a long-term compound annual average growth rate in nominal cash flows per share of just 2.4% pa, which is lower than the equivalent average rate of US inflation over the past 30 years. Otherwise, after the recent falls in precious metals prices and assuming no material purchases of additional streams in the foreseeable future (which we think unlikely), we forecast a value per share for WPM of US$35.08, or C$44.19 or £29.16 in FY22, based on a 30.1x historical multiple of earnings (ie all of the recent precious metal price declines appear to be already discounted in WPM’s share price) and US$59.75, or C$76.98 or £49.67 in FY26. In the meantime, WPM’s shares are trading on near-term financial ratios that are cheaper than those of its peers on 69% of common valuation measures, regardless of whether Edison or consensus forecasts are used. If WPM’s shares were instead to trade at the average level of its peers, then we calculate that its FY22 share price should be US$41.02, or C$52.86 or £34.10 (based on Edison forecasts). Alternatively, if precious metals return to favour, then we believe that a near-term US$58.65 (C$75.56 or £48.75) per share valuation is possible.

FY22 guidance and forecasts

Ahead of Wheaton’s Q222 results, which are scheduled for release on 11 August, we have revised our short-term financial forecasts to reflect the following developments:

On 19 July, Vale announced that, although mine movement had continued to improve throughout Q2 at Salobo, concentrate production was adversely affected by plant performance owing to delays in ramp-up after planned and unplanned maintenance. Moreover, it stated that it expected further maintenance work to continue into H222. As a consequence, copper production at Vale declined by 12.7% in Q2 relative to Q1 and Vale reduced its guidance for group-wide production for the full year by 19.0% (albeit not all attributable to Salobo). Gold sales at Vale similarly reduced by 15.5% in Q222 relative to Q122, albeit again not all attributable to Salobo. As a result, rather than assuming a recovery in output and sales at Salobo in Q2 relative to Q1, we are now assuming that production attributable to Wheaton will have fallen by 12.8%, from 44.9koz Au to 39.2koz Au, and that sales will have fallen 14.5% to 36.4koz. Moreover, while we are continuing to assume that production will recover to 53.8koz, we assume that this will now only be achieved in Q4 (cf Q3 previously).

A summary of the changes in our metals prices assumed for both Q222 and the remainder of the year is as follows:

Exhibit 1: Edison FY22 metals price forecasts

Metal (units)

Q222 price forecast

Remainder of FY22 price forecast

Previous forecast

Current forecast

Change
(%)

Previous forecast

Current forecast

Change
(%)

Gold (US$/oz)

1,875

1,873

-0.1

1,835

1,717

-6.4

Silver (US$/oz)

22.67

22.63

-0.2

21.30

18.64

-12.5

Palladium (US$/oz)

2,090

2,091

0.0

1,887

2,014

+6.7

Cobalt (US$/lb)

35.03

34.92

-0.3

32.65

22.68

-30.5

Simple average

-0.2

-10.7

Source: Edison Investment Research

In addition, we have reduced our medium-term nominal gold prices for FY23 and FY24 by 7.6% and 3.9%, to US$1,749/oz and US$1,818/oz, respectively.

In the light of these changes, Edison has updated its quarterly estimates for WPM for Q2–Q422 as follows:

Exhibit 2: WPM FY22 forecast, by quarter*

US$000s
(unless otherwise stated)

Q122

Q222e

(prior)

Q222e

Q322e

(prior)

Q322e

Q422e

(prior)

Q422e

FY22e

(current)

FY22e

(prior)

Silver production (koz)

6,206

5,901

5,901

5,781

5,531

5,781

5,531

23,168

23,668

Gold production (oz)

79,087

93,386

78,728

86,641

79,312

90,264

90,264

327,391

349,377

Palladium production (koz)

4,488

4,750

4,750

4,750

4,750

4,750

4,750

18,738

18,738

Cobalt production (klb)

234

347

347

347

347

347

347

1,274

1,274

Silver sales (koz)

5,553

5,901

5,223

5,781

4,867

5,781

5,391

21,033

23,015

Gold sales (oz)

77,901

93,354

73,030

86,609

73,572

90,232

90,232

314,735

348,095

Palladium sales (oz)

4,075

4,731

3,860

4,731

3,860

4,731

4,731

16,527

18,268

Cobalt sales (klb)

511

347

297

347

297

347

347

1,452

1,551

Avg realised Ag price (US$/oz)

24.19

22.67

22.63

21.30

18.73

21.30

18.64

21.12

22.35

Avg realised Au price (US$/oz)

1,870

1,875

1,873

1,835

1,722

1,835

1,717

1,792

1,853

Avg realised Pd price (US$/oz)

2,339

2,090

2,091

1,887

2,000

1,887

2,014

2,109

2,041

Avg realised Co price (US$/lb)

34.61

35.03

34.92

32.65

23.58

32.65

22.68

29.58

33.84

Avg Ag cash cost (US$/oz)

5.10

5.16

5.17

5.09

4.94

5.10

4.97

5.04

5.11

Avg Au cash cost (US$/oz)

477

448

454

450

450

448

446

456

455

Avg Pd cash cost (US$/oz)

394

376

376

340

360

340

363

373

361

Avg Co cash cost (US$/lb)

5.76

6.31

6.29

5.88

4.24

5.88

4.08

5.16

5.93

Sales

307,244

330,781

273,426

302,293

232,562

308,941

272,800

1,086,032

1,249,259

Cost of sales

Cost of sales, excluding depletion

69,994

76,272

63,473

72,004

59,776

73,531

70,123

263,365

291,801

Depletion

57,402

64,880

54,092

61,532

52,414

65,488

63,641

227,549

249,303

Total cost of sales

127,396

141,152

117,565

133,536

112,190

139,020

133,764

490,914

541,103

Earnings from operations

179,848

189,629

155,861

168,757

120,372

169,921

139,037

595,118

708,156

Expenses and other income

– General and administrative**

20,118

12,325

11,335

16,965

15,319

16,965

16,965

63,738

66,374

– Foreign exchange (gain)/loss

0

0

– Net interest paid/(received)

1,422

1,220

1,220

1,216

1,220

1,200

1,210

5,072

5,058

– Other (income)/expense

229

229

229

Total expenses and other income

21,769

13,545

12,555

18,182

16,539

18,165

18,176

69,039

71,661

Earnings before income taxes

158,079

176,084

143,306

150,576

103,833

151,756

120,861

526,079

636,495

Income tax expense/(recovery)

72

250

250

250

250

250

250

822

822

Marginal tax rate (%)

0.0

0.1

0.2

0.2

0.2

0.2

0.2

0.2

0.1

Net earnings

158,007

175,834

143,056

150,326

103,583

151,506

120,611

525,257

635,673

Average no. shares in issue (000s)

450,915

451,500

451,500

451,500

451,500

451,500

451,500

451,354

451,354

Basic EPS (US$)

0.350

0.389

0.317

0.333

0.229

0.336

0.267

1.16

1.41

Diluted EPS (US$)

0.350

0.379

0.308

0.324

0.223

0.326

0.260

1.13

1.37

DPS (US$)

0.15

0.15

0.15

0.16

0.15

0.15

0.15

0.60

0.61

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

Our basic EPS forecast of US$1.16/share for FY22 compares with a consensus forecast of US$1.37/share (source: Refinitiv, 26 July 2022), although we suspect that the consensus figure does not yet fully reflect the recent declines in precious metals prices (or, alternatively, that it assumes a swift rebound to the status quo ante). In this context, it is worth noting that Edison’s gold and silver price forecasts for the remainder of the year are now US$1,717/oz and US$18.64/oz, respectively, which are those prevailing at the time of writing (cf US$1,835/oz and US$21.30/oz previously).

Exhibit 3: WPM Edison cf consensus EPS forecasts (US$/share), Q222–FY24e

Q122

Q222e

Q322e

Q422e

Sum Q1–Q422e

FY22e

FY23e

FY24e

Edison forecasts

0.350

0.317

0.229

0.267

1.163

1.164

1.52

1.54

Mean consensus

0.35

0.33

0.34

0.35

1.37

1.37

1.41

1.41

High consensus

0.35

0.38

0.39

0.43

1.55

1.53

1.74

2.02

Low consensus

0.35

0.29

0.27

0.28

1.19

1.20

1.15

1.08

Source: Refinitiv, Edison Investment Research. Note: As at 26 July 2022.

Keno Hill stream sale

On 5 July, Wheaton announced that it had entered into a definitive agreement with Hecla Mining to terminate its silver stream over Alexco Resource’s Keno Hill Silver District for US$135m in Hecla shares, upon the occasion of the takeover of Alexco by Hecla (subject to shareholder, regulatory and other approvals, but otherwise ‘friendly’ in nature). As a consequence, subsequent to the closing of the transaction, Wheaton will own c 5.6% of Hecla's outstanding share capital, albeit the exact number will only be calculated immediately before the closing date.

While in effect selling a silver stream runs contrary to Wheaton’s normal business plan of acquiring precious metals streams, it demonstrates WPM’s ability to remain flexible in matters of value and to strategically identify opportunities both inside and outside its portfolio that create value for its shareholders.

Wheaton originally paid an upfront consideration of US$50m on its purchase of the Keno Hill stream in October 2008. Although the terms of the agreement were subsequently amended and the value of the stream was also subsequently impaired, in 2015 Wheaton estimated a fair value less a cost to sell (FVLCS) of the stream of US$33.4m. In its FY21 annual report, it estimated a total carrying value for its Canadian silver interests (of which the Keno Hill stream may be considered a subset) of US$28.1m. Both these estimates suggest that, upon closing (presumably in Q3), Wheaton will recognise a profit in excess of US$100m on the sale of its stream. For now, we are declining to include this in our forecasts in Exhibit 2 and Exhibit 9 on account of its ‘exceptional’ nature.

Analysed with respect to future cash flows, Edison estimates that Wheaton has sold for a consideration of US$135m a stream that had an NPV10 of US$109.7m (at output rates that Alexco was not yet achieving). Stated alternatively, we calculate that Hecla’s internal rate of return on its purchase will be 3.06% (absenting any practical mining considerations from the purchase of the stream), which is very similar to the 2.809% yield to maturity currently available from the US 10-year Treasury bond in US dollar terms (source: Bloomberg, 26 July 2022).

In this case, the sale also positions Wheaton to continue to have one of the strongest balance sheets in the industry (see the ‘Financials’ section, below). Note that, for the purposes of our forecasts, we have removed any production contribution from Keno Hill to Wheaton from 1 July 2022.

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. As a result, rather than our customary method of discounting maximum potential dividends over the life of operations back to FY22, in the case of WPM (as with other major gold producers, such as Newmont and Endeavour), we discount forecast cash flows back over five years from the start of FY22 and then apply an ex-growth terminal multiple to forecast cash flows in that year (ie FY26) based on an appropriate discount rate.

In this case, our estimate of WPM’s ‘terminal’ pre-financing cash flow in FY26 has reduced slightly from US$2.90/share to US$2.81/share (not least as a result of the exclusion of Keno Hill production and sales), as shown below:

Exhibit 4: WPM cash flow per share and related valuation (US$/share), FY22–26

Source: Edison Investment Research. Note: Valuation assumes ex-growth cash flow per share growth rate of 4.0% pa post-FY26 in nominal terms, which equals the average US rate of CPI inflation since 1972 (ie 0% per annum 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 9.0% (being the expected long-term required nominal equity return), our terminal valuation of the company at end-FY26 is US$58.42/share (cf US$59.98/share previously), or C$75.27/share, which, when discounted back to FY22 in combination with intervening cash flows, results in a valuation at the start of FY22 of US$42.15/share, or C$54.30/share. However, this valuation is inherently conservative in that it is based on the assumption of 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 7.6% per annum since 1968 and at a simple average annual growth rate of 9.7% per annum:

Exhibit 5: Gold price annual performance, 1968–2021

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 23.2% pa for the 16 years between FY05 and FY21, while its operational cash flows per share have increased at compound average annual growth rate of 15.8% pa.

Stated alternatively, we can say that WPM’s current share price of C$41.82 discounts a long-term compound annual average growth rate in cash flows per share of 2.4%, which is no more than the compound average annual increase in US consumer prices from 1991 to the end of 2021.

Historical

Excluding FY04 (part-year), WPM’s shares have historically traded on an average P/E multiple of 30.1x current year basic underlying EPS, excluding impairments (cf 27.9x Edison or 23.7x Refinitiv consensus FY22e – see Exhibit 7).

Exhibit 6: WPM’s historical current year P/E multiples, 2005–21

Source: Edison Investment Research

Applying this 30.1x multiple to our EPS forecast of US$1.98 in FY26 (cf US$2.06 previously) implies a potential value per share for WPM in that year of US$59.75 or C$76.98. However, the graph above suggests that the investing environment post-2017 has been able to support an enhanced WPM multiple relative to earlier years. We would ascribe this observation to macro-economic uncertainty and loose monetary policy combining to create a supportive environment for precious metals prices. As such, we believe that a multiple of 38.6x (the average of FY18–21) may still be supported in the event of a return to favour of precious metals and precious metals stocks. In this case, applying a 38.6x earnings multiple to our updated EPS forecast of US$1.52 in FY23 (cf US$1.72 previously) implies a potential value per share for WPM in that year of US$58.65 or C$75.56. Even at such share price levels however, a multiple of 38.6x would still put WPM’s shares on little more than a comparable multiple relative to that of Franco-Nevada (see Exhibit 7, below).

Relative

From a relative perspective, it is notable that WPM is cheaper than its peers on 69% (25 out of 36) of the valuation measures observed in Exhibit 7 regardless of whether Edison or 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

32.7

33.4

32.9

1.0

1.1

1.1

23.6

23.0

23.4

Royal Gold

27.3

23.3

24.4

1.4

1.4

1.5

15.2

13.4

14.0

Sandstorm Gold

32.6

32.9

34.7

0.0

0.0

0.0

11.4

11.6

11.1

Osisko

31.4

23.0

20.2

1.7

1.7

1.7

14.4

11.7

11.1

Average

31.0

28.1

28.0

1.0

1.0

1.1

16.1

14.9

14.9

WPM (Edison forecasts)

27.9

21.3

21.1

1.8

1.9

2.1

18.8

14.5

14.1

WPM (consensus)

23.7

23.1

23.1

1.8

2.1

2.5

16.5

15.5

15.0

Implied WPM share price (US$)*

36.09

42.81

43.08

59.09

60.93

65.08

27.89

33.36

34.35

Source: Refinitiv, Edison Investment Research. Note: Peers priced on 26 July 2022. *Derived using Edison forecasts and average consensus multiples.

In this context, it is worth noting that Edison forecasts imply that WPM’s EPS, DPS and cash flow will increase in FY23 and FY24 (relative to FY22), not least under the influence of the company’s increasing production profile. By contrast, consensus forecasts appear to indicate that the market expects WPM’s EPS and cash flow to be broadly unchanged in FY23 and FY24 relative to FY22, implying that it is either not expecting any production/sales increase, or that the degree of any production/sales increase will be offset by an approximately equal and opposite move in precious metals prices.

Financials: US$373.5m (US$0.83/share) in net cash

At 31 March, WPM had US$376.2m in cash on its balance sheet and no debt outstanding under its US$2bn revolving credit facility. As such (including a modest US$2.7m in leases), it had US$373.5m (US$0.83/share) in net cash overall after generating US$210.5m in operating cash flow during the quarter and consuming US$66.1m in investing activities.

Exhibit 8: WPM cash, net cash and operating cash flow, by quarter, Q420–Q122

(US$m)

Q420

Q121

Q221

Q321

Q421

Q122

Cash/(debt)

192.7

191.2

235.4

372.5

226.0

376.2

Net cash/(debt)

6.0

187.7

232.1

369.4

223.2

373.5

Operating cash flow

208.0

232.2

216.3

201.3

195.3

210.5

Source: Wheaton Precious Metals

In FY22 we estimate that WPM will generate US$780.0m from operating activities (cf US$913.7m previously), before consuming US$382.9m in investing activities (excluding any effect from its sale of the Keno Hill stream) in the form of instalments relating to the acquisitions of the Santo Domingo, Blackwater, Goose, Curipamba and Marathon streams and paying out a forecast dividend of US$270.8m to leave it with net cash of US$484.5m as at end-FY22.

In FY23, we now forecast that it will generate US$1,008.6m from operating activities (cf US$1,102.5m previously), before consuming US$1,099.4m in investing activities, including significant instalments relating to Salobo III, Rosemont, Kutcho and, potentially, Fenix. On this basis, we estimate that WPM will end FY23 with net cash of US$108.3m on its balance sheet, before resuming its upward trend once again.

Exhibit 9: Financial summary

US$'000s

2016

2017

2018

2019

2020

2021

2022e

2023e

2024e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

891,557

843,215

794,012

861,332

1,096,224

1,201,665

1,086,032

1,413,494

1,450,382

Cost of Sales

(254,434)

(243,801)

(245,794)

(258,559)

(266,763)

(287,947)

(263,365)

(346,726)

(343,766)

Gross Profit

637,123

599,414

548,218

602,773

829,461

913,718

822,667

1,066,768

1,106,616

EBITDA

 

602,684

564,741

496,568

548,266

763,763

852,733

758,929

1,003,030

1,042,878

Operating Profit (before amort. and except.)

293,982

302,361

244,281

291,440

519,874

597,940

531,380

686,819

694,639

Exceptionals

(71,000)

(228,680)

245,715

(156,608)

4,469

162,806

540

0

0

Other

(4,982)

8,129

(5,826)

217

387

190

(229)

0

0

Operating Profit

218,000

81,810

484,170

135,049

524,730

760,936

531,691

686,819

694,639

Net Interest

(24,193)

(24,993)

(41,187)

(48,730)

(16,715)

(5,817)

(5,072)

872

195

Profit Before Tax (norm)

 

269,789

277,368

203,094

242,710

503,159

592,123

526,308

687,691

694,834

Profit Before Tax (FRS 3)

 

193,807

56,817

442,983

86,319

508,015

755,119

526,619

687,691

694,834

Tax

1,330

886

(15,868)

(181)

(211)

(234)

(822)

(1,000)

(1,000)

Profit After Tax (norm)

266,137

286,383

181,400

242,746

503,335

592,079

525,257

686,691

693,834

Profit After Tax (FRS 3)

195,137

57,703

427,115

86,138

507,804

754,885

525,797

686,691

693,834

Average Number of Shares Outstanding (m)

430.5

442.0

443.4

446.0

448.7

450.1

451.4

451.5

451.5

EPS - normalised (c)

 

62

63

48

54

112

132

116

152

154

EPS - normalised and fully diluted (c) 

62

63

48

54

112

131

113

148

150

EPS - (IFRS) (c)

 

45

13

96

19

113

168

116

152

154

Dividend per share (c)

21

33

36

36

42

57

60

63

69

Gross Margin (%)

71.5

71.1

69.0

70.0

75.7

76.0

75.7

75.5

76.3

EBITDA Margin (%)

67.6

67.0

62.5

63.7

69.7

71.0

69.9

71.0

71.9

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

33.0

35.9

30.8

33.8

47.4

49.8

48.9

48.6

47.9

BALANCE SHEET

Fixed Assets

 

6,025,227

5,579,898

6,390,342

6,123,255

5,755,441

6,046,427

6,066,732

6,849,886

6,903,205

Intangible Assets

5,948,443

5,454,106

6,196,187

5,768,883

5,521,632

5,940,538

5,960,843

6,743,997

6,797,316

Tangible Assets

12,163

30,060

29,402

44,615

33,931

44,412

44,412

44,412

44,412

Investments

64,621

95,732

164,753

309,757

199,878

61,477

61,477

61,477

61,477

Current Assets

 

128,092

103,415

79,704

154,752

201,831

249,724

495,904

122,236

452,482

Stocks

1,481

1,700

1,541

43,628

3,265

12,102

2,555

3,326

3,413

Debtors

2,316

3,194

2,396

7,138

5,883

11,577

5,951

7,745

7,947

Cash

124,295

98,521

75,767

103,986

192,683

226,045

487,398

111,165

441,122

Current Liabilities

 

(19,057)

(12,143)

(28,841)

(64,700)

(31,169)

(29,691)

(41,732)

(49,954)

(49,662)

Creditors

(19,057)

(12,143)

(28,841)

(63,976)

(30,396)

(28,878)

(40,919)

(49,141)

(48,849)

Short term borrowings

0

0

0

(724)

(773)

(813)

(813)

(813)

(813)

Long Term Liabilities

 

(1,194,274)

(771,506)

(1,269,289)

(887,387)

(211,532)

(16,343)

(16,343)

(16,343)

(16,343)

Long term borrowings

(1,193,000)

(770,000)

(1,264,000)

(878,028)

(197,864)

(2,060)

(2,060)

(2,060)

(2,060)

Other long term liabilities

(1,274)

(1,506)

(5,289)

(9,359)

(13,668)

(14,283)

(14,283)

(14,283)

(14,283)

Net Assets

 

4,939,988

4,899,664

5,171,916

5,325,920

5,714,571

6,250,117

6,504,562

6,905,825

7,289,682

CASH FLOW

Operating Cash Flow

 

608,503

564,187

518,680

548,301

784,843

851,686

785,913

1,008,687

1,042,297

Net Interest

(24,193)

(24,993)

(41,187)

(41,242)

(16,715)

(5,817)

(5,072)

872

195

Tax

28

(326)

0

(5,380)

(2,686)

(503)

(822)

(1,000)

(1,000)

Capex

(805,472)

(19,633)

(861,406)

10,571

149,648

(404,437)

(247,854)

(1,099,366)

(401,558)

Financing

595,140

1,236

1,279

37,198

22,396

7,992

0

0

0

Dividends

(78,708)

(121,934)

(132,915)

(129,986)

(167,212)

(218,052)

(270,812)

(285,427)

(309,978)

Net Cash Flow

295,298

398,537

(515,549)

419,462

770,274

230,869

261,353

(376,233)

329,957

Opening net debt/(cash)

 

1,362,703

1,068,705

671,479

1,188,233

774,766

5,954

(223,172)

(484,525)

(108,292)

Other

(1,300)

(1,311)

(1,205)

(5,995)

(1,462)

(1,743)

0

0

0

Closing net debt/(cash)

 

1,068,705

671,479

1,188,233

774,766

5,954

(223,172)

(484,525)

(108,292)

(438,249)

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 2022 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.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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 2022 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.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on Wheaton Precious Metals

View All

Latest from the Metals & Mining sector

View All Metals & Mining content
samuel-scrimshaw-kp_87tExCwI-unsplash

Metals & Mining

Lithium’s adolescence

Research: TMT

Mirriad Advertising — Pulling out of China, progress in the US

Mirriad’s decision to exit the Chinese market, following weaker than expected trading and restructuring of the Tencent contract, is a clear setback and we adjust our estimates accordingly. Nevertheless, the opportunity in North America dwarves all other markets, and here the company reports good progress. We look to see evidence of new partners being signed up and the progression of existing ones towards revenue generation to demonstrate that the company is still well placed to monetise its IP and platform.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free