Updated FY20 forecasts by quarter
In this note, we have refined our forecasts for Wheaton Precious Metals (WPM) for FY20 for four factors:
■
The anticipated outlook for gold production from Salobo during the period 2020–25, as disclosed in Wheaton’s technical report on Sedar released on 30 March.
■
The timing of mine closures as a result of anti-COVID-19 measures, in particular in Peru and Mexico.
■
Updated precious metals forecasts.
■
The possible effects of the recent rise in Wheaton’s share price on general and administrative expenses.
Each of these is considered in turn, below.
Long-term Salobo production guidance
On 30 March, WPM released a technical document on Sedar outlining its expectations for production from Salobo in the five years from FY20 to FY25. It is the first technical document to be released since the development of Salobo III was sanctioned in October 2018.
The expansion of Salobo III involves a 50% increase in processing capacity, from 24Mtpa to 36Mtpa, from H122. As a result, our new expectations for gold production from Salobo are shown in Exhibit 1 (with WPM’s 75% share also shown), relative to our prior expectations.
Exhibit 1: Long-term Salobo gold production guidance (koz)
|
2020 |
2021 |
2022 |
2023 |
2024 |
Total |
Updated Salobo production guidance (koz) |
352 |
316 |
325 |
367 |
292 |
1,652 |
WPM 75% share (koz) |
264 |
237 |
244 |
275 |
219 |
1,239 |
Previous Edison estimate of WPM share (koz) |
246 |
223 |
211 |
264 |
317 |
1,261 |
Change (%) |
+7.2 |
+6.3 |
+15.4 |
+4.2 |
-30.9 |
-1.8 |
Source: Wheaton Precious Metals, Edison Investment Research
Whereas Edison had previously simply increased its forecast gold output in FY23 and FY24 pro rata with the increase in milling capacity, the new production numbers have now refined these estimates with the added benefit of greater accuracy (and therefore less associated risk). From Exhibit 1, it can be seen that, while the total output of gold over the five-year period is little changed compared with our prior estimate (-1.8%), in general production is now anticipated to be higher in earlier years and lower in later ones.
Mexican and Peruvian mine closure timings
In our last note on WPM (Swings and roundabouts, published on 3 April), we said, ‘We expect the mine closures in late March to have little effect on our Q1 forecasts as any closures will provide mines with the opportunity to sell metal out of inventory and should therefore lead to a drawdown in ounces produced but not yet sold.’ While that is, in general, true (for example, the order closing Mexico’s mines was finalised on 31 March and was effective on 30 March), Constancia was ramped down and closed over three days by its operator (Hudbay Minerals) from 20 March, after Peru closed its borders on 16 March and implemented a night-time curfew from 18 March. Note that the state of emergency in Peru has since been extended to 10 May, although, self-evidently, it is possible that it could be extended once again as it already has been on at least two occasions previously. Nevertheless, to reflect the increased period during which Constancia is likely to have been non-producing (and also unlikely to deliver metal), we have reduced our gold and silver production forecasts attributable to WPM from Constancia by 11.1% each in Q120.
Updated precious metals prices
In common with its traditional practice, Edison has also updated its forecasts for precious metals for the remainder of the year to those prevailing at the time of writing, as shown below:
Exhibit 2: Updated FY20 precious metals prices (US$/oz)
|
Q120 |
Q220 |
Q320 |
Q420 |
Previous |
|
|
|
|
Silver |
16.89 |
14.17 |
14.17 |
14.17 |
Gold |
1,581 |
1,591 |
1,591 |
1,591 |
Palladium |
2,296 |
2,296 |
2,296 |
2,296 |
|
|
|
|
|
Current |
|
|
|
|
Silver |
16.89 |
15.05 |
15.02 |
15.02 |
Gold |
1,581 |
1,696 |
1,704 |
1,704 |
Palladium |
2,296 |
1,988 |
1,923 |
1,923 |
|
|
|
|
|
Change (%) |
|
|
|
|
Silver |
u/c |
+6.2 |
+6.0 |
+6.0 |
Gold |
u/c |
+6.6 |
+7.1 |
+7.1 |
Palladium |
u/c |
-13.4 |
-16.2 |
-16.2 |
Source: Edison Investment Research.
Note that, while the effect of these changes is, generally, to increase prices over the course of the remainder of the year, they remain unchanged for Q1 specifically.
While it has historically been Edison’s policy to forecast WPM’s results exclusive of stock-based general and administrative expenses, it is very clear from history that a rising share price has an effect on total G&A expenses in the form of both equity settled stock-based compensation expenses and performance share unit (PSU) accruals related to the anticipated fair value of the PSUs issued. As a result, in FY19 (during a period of a steadily rising WPM share price in both Canadian dollar and US dollar terms) total G&A expenses amounted to US$54.7m, compared with US$31.6m (excluding stock-based compensation expenses and PSUs) and guidance of US$36–38m for non-stock G&A expenses. Exhibit 3 demonstrates the potential magnitude of this effect, by quarter:
Exhibit 3: Historical WPM share price changes vs total quarterly G&A expenses
|
Q418 |
Q119 |
Q219 |
Q319 |
Q419 |
Q120 |
Current |
WPM share price at period end (C$) |
26.65 |
31.81 |
31.67 |
34.74 |
38.64 |
38.73 |
55.73 |
Change (%) |
|
+19.4 |
-0.4 |
+9.7 |
+11.2 |
+0.2 |
+43.9 |
WPM share price at period end (US$) |
19.56 |
23.80 |
24.19 |
26.24 |
29.77 |
27.30 |
39.64 |
Change (%) |
|
+21.7 |
+1.6 |
+8.5 |
+13.5 |
-8.3 |
+45.2 |
Total quarterly G&A expense (US$000s) |
21,142 |
16,535 |
12,249 |
14,028 |
11,695 |
|
|
Pro rata mid-range non-stock G&A guidance (US$000s) |
8,750 |
9,250 |
9,250 |
9,250 |
9,250 |
9,750 |
|
Premium of actual vs mid-range guidance (%) |
+141.6 |
+78.8 |
+32.4 |
+51.7 |
+26.4 |
|
|
Source: Edison Investment Research, Wheaton Precious Metals
WPM’s non-stock G&A guidance for FY20 is US$38–40m. However, in the light of WPM’s ostensibly flat share price in Q120 in Canadian dollar terms (potentially analogous to Q219) and its strongly higher share price to date in Q220, we believe that it is likely that stock-based compensation expenses will add to the total in at least these quarters.
While a precise estimate is hard to make without knowing the exact details of the PSUs and other stock-based compensation schemes, in order to allow for this effect, for the moment, Edison has assumed that total G&A in Q1–Q420 will equal the quarterly average in FY19 – ie US$13.627m per quarter – compared to non-stock G&A guidance of US$38–40m for the 12-month period (or an average of US$9.75m per quarter).
In the light of the four factors considered above, our updated forecasts for WPM for FY20 are as shown in Exhibit 4, below. As before, our forecasts assume that Yauliyacu, Constancia, Penasquito, San Dimas and Los Filos all remain closed for the entirety of Q220. Clearly, there exists risk associated with both the potential lifting of existing lockdowns in this respect (upside) or the imposition of new lockdown restrictions (downside). Apart from precious metals prices, the principal remaining risk to our forecasts relates to the extent to which sales differ from production and therefore, by extension, the extent to which inventory (in the form of ounces produced but not yet delivered to Wheaton) either increases or decreases during the course of the year.
Exhibit 4: Wheaton Precious Metals FY20 forecast, by quarter*
US$000s
(unless otherwise stated) |
FY19 |
Q120e |
Q220e |
Q320e |
Q420e |
FY20e (current) |
FY20e (previous) |
Silver production (koz) |
22,562 |
5,851 |
2,578 |
5,926 |
5,926 |
20,282 |
20,357 |
Gold production (oz) |
406,675 |
96,410 |
86,688 |
101,563 |
101,563 |
386,223 |
373,544 |
Palladium production (koz) |
21,993 |
5,938 |
5,938 |
5,938 |
5,938 |
23,750 |
23,750 |
|
|
|
|
|
|
|
|
Silver sales (koz) |
17,703 |
5,851 |
2,578 |
5,926 |
5,926 |
20,282 |
20,357 |
Gold sales (oz) |
389,086 |
96,373 |
86,651 |
101,526 |
101,526 |
386,078 |
373,399 |
Palladium sales (oz) |
20,681 |
5,914 |
5,914 |
5,914 |
5,914 |
23,655 |
23,655 |
|
|
|
|
|
|
|
|
Avg realised Ag price (US$/oz) |
16.29 |
16.89 |
15.05 |
15.02 |
15.02 |
15.56 |
14.96 |
Avg realised Au price (US$/oz) |
1,391 |
1,581 |
1,696 |
1,704 |
1,704 |
1,671 |
1,588 |
Avg realised Pd price (US$/oz) |
1,542 |
2,296 |
1,988 |
1,923 |
1,923 |
2,032 |
2,296 |
|
|
|
|
|
|
|
|
Avg Ag cash cost (US$/oz) |
5.02 |
5.15 |
5.14 |
5.10 |
5.10 |
5.12 |
5.09 |
Avg Au cash cost (US$/oz) |
421 |
425 |
403 |
425 |
425 |
420 |
420 |
Avg Pd cash cost (US$/oz) |
273 |
413 |
358 |
346 |
346 |
366 |
413 |
|
|
|
|
|
|
|
|
Sales |
861,332 |
264,771 |
197,480 |
273,386 |
273,386 |
1,009,023 |
951,998 |
Cost of sales |
|
|
|
|
|
|
|
Cost of sales, excluding depletion |
258,559 |
73,550 |
50,327 |
75,452 |
75,452 |
274,782 |
270,365 |
Depletion |
256,826 |
70,808 |
55,376 |
73,330 |
73,330 |
272,844 |
268,537 |
Total cost of sales |
515,385 |
144,358 |
105,703 |
148,783 |
148,783 |
547,626 |
538,902 |
Earnings from operations |
345,947 |
120,412 |
91,777 |
124,604 |
124,604 |
461,397 |
413,097 |
Expenses and other income |
|
|
|
|
|
|
|
– General and administrative** |
54,507 |
13,627 |
13,627 |
13,627 |
13,627 |
54,507 |
39,000 |
– Foreign exchange (gain)/loss |
0 |
|
|
|
|
0 |
0 |
– Net interest paid/(received) |
48,730 |
7,830 |
7,830 |
7,830 |
7,830 |
31,320 |
31,320 |
– Other (income)/expense |
(217) |
|
|
|
|
0 |
0 |
Total expenses and other income |
103,020 |
21,457 |
21,457 |
21,457 |
21,457 |
85,827 |
70,320 |
Earnings before income taxes |
242,927 |
98,955 |
70,321 |
103,147 |
103,147 |
375,570 |
342,777 |
Income tax expense/(recovery) |
(9,066) |
250 |
250 |
250 |
250 |
1,000 |
1,000 |
Marginal tax rate (%) |
(3.7) |
0.3 |
0.4 |
0.2 |
0.2 |
0.3 |
0.3 |
Net earnings |
251,993 |
98,705 |
70,071 |
102,897 |
102,897 |
374,570 |
341,777 |
Ave. no. shares in issue (000s) |
446,021 |
447,500 |
447,800 |
447,800 |
447,800 |
447,725 |
446,802 |
Basic EPS (US$) |
0.56 |
0.22 |
0.16 |
0.23 |
0.23 |
0.84 |
0.76 |
Diluted EPS (US$) |
0.56 |
0.22 |
0.16 |
0.23 |
0.23 |
0.84 |
0.76 |
DPS (US$) |
0.36 |
0.10 |
0.11 |
0.10 |
0.12 |
0.43 |
0.43 |
Source: Wheaton Precious Metals, Edison Investment Research. Note: *Excluding impairments and exceptional items. **Forecasts exclude stock-based compensation costs. Totals may not add up owing to rounding.
If desired, comparisons between current and past forecasts for individual quarters may be made by comparing the figures in Exhibit 4 with those of Exhibit 1 in our last note, Swings and roundabouts, published on 3 April 2020.
Our updated production forecasts of 20.3Moz silver and 386.2koz gold compare to WPM’s prior production guidance (now withdrawn) of 22.0–23.5Moz silver and 390–410koz gold and our prior forecasts of 20.4Moz silver and 373.5koz gold. Our production forecast for palladium remains unchanged. At annual average prices for the year, our updated production forecasts now equate to 605.1koz of gold equivalent production (cf 599.7koz previously). At WPM’s nominal prices of US$18.00/oz silver, US$1,500/oz gold and US$2,000/oz palladium, they equate to 661.3koz (cf 649.5koz previously and a prior guidance range of 685–725koz).
Our updated basic EPS forecast of US$0.84/share for FY20 is 2.3% below the consensus forecast of US$0.86/share (source: Refinitiv, 28 April 2020) within a range of US$0.76–0.98 per share. On a quarterly basis, our forecasts compare to consensus as follows:
Exhibit 5: WPM FY20 and FY21 consensus EPS forecasts cf Edison (US$/share)
|
Q1 |
Q2 |
Q3 |
Q4 |
Sum Q1–Q4 |
FY20 |
FY21 |
Current Edison |
0.22 |
0.16 |
0.23 |
0.23 |
0.84 |
0.84 |
1.12 |
Previous Edison |
0.23 |
0.14 |
0.20 |
0.20 |
0.76 |
0.76 |
1.14 |
Mean consensus |
0.22 |
0.19 |
0.21 |
0.22 |
0.84 |
0.86 |
0.99 |
High |
0.24 |
0.25 |
0.25 |
0.25 |
0.99 |
0.98 |
1.28 |
Low |
0.20 |
0.14 |
0.17 |
0.17 |
0.68 |
0.76 |
0.77 |
Source: Refinitiv, Edison Investment Research. Note: At 28 April 2020.
Our US$1.12 basic EPS forecast for FY21 (vs US$1.14/share previously, see also Exhibit 6) remains, to all intents and purposes, essentially unchanged and compares with a consensus of US$0.99 (source: Refinitiv, 28 April 2020), within a range of US$0.77–1.28. This estimate is predicated on unchanged average gold and silver prices during the year of US$1,509/oz and US$24.76/oz, respectively, which, in the latter case, is 64.8% above the current spot price. One of the central assumptions behind our silver price forecast is that it will, at some point, revert to the long-term correlation that it has exhibited with gold since 1971. If both metals remain at current levels, however (US$15.02/oz Ag and US$1,704/oz Au at the time of writing), we forecast that WPM will instead earn US$0.88 per share in FY21.
Exhibit 6: Financial summary
|
|
US$'000s |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020e |
2021e |
Dec |
|
|
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
PROFIT & LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
849,560 |
706,472 |
620,176 |
648,687 |
891,557 |
843,215 |
794,012 |
861,332 |
1,009,023 |
1,175,686 |
Cost of Sales |
|
|
(117,489) |
(139,352) |
(151,097) |
(190,214) |
(254,434) |
(243,801) |
(245,794) |
(258,559) |
(274,782) |
(293,905) |
Gross Profit |
|
|
732,071 |
567,120 |
469,079 |
458,473 |
637,123 |
599,414 |
548,218 |
602,773 |
734,241 |
881,782 |
EBITDA |
|
|
701,232 |
531,812 |
431,219 |
426,236 |
602,684 |
564,741 |
496,568 |
548,266 |
679,734 |
827,275 |
Operating Profit (before amort. and except.) |
600,003 |
387,659 |
271,039 |
227,655 |
293,982 |
302,361 |
244,281 |
291,440 |
406,890 |
514,129 |
Intangible Amortisation |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Exceptionals |
|
|
0 |
0 |
(68,151) |
(384,922) |
(71,000) |
(228,680) |
245,715 |
(165,855) |
0 |
0 |
Other |
|
|
788 |
(11,202) |
(1,830) |
(4,076) |
(4,982) |
8,129 |
(5,826) |
217 |
0 |
0 |
Operating Profit |
|
|
600,791 |
376,457 |
201,058 |
(161,343) |
218,000 |
81,810 |
484,170 |
125,802 |
406,890 |
514,129 |
Net Interest |
|
|
0 |
(6,083) |
(2,277) |
(4,090) |
(24,193) |
(24,993) |
(41,187) |
(48,730) |
(31,320) |
(10,555) |
Profit Before Tax (norm) |
|
|
600,003 |
381,576 |
268,762 |
223,565 |
269,789 |
277,368 |
203,094 |
242,710 |
375,570 |
503,573 |
Profit Before Tax (FRS 3) |
|
|
600,791 |
370,374 |
198,781 |
(165,433) |
193,807 |
56,817 |
442,983 |
77,072 |
375,570 |
503,573 |
Tax |
|
|
(14,755) |
5,121 |
1,045 |
3,391 |
1,330 |
886 |
(15,868) |
9,066 |
(1,000) |
(1,000) |
Profit After Tax (norm) |
|
|
586,036 |
375,495 |
267,977 |
222,880 |
266,137 |
286,383 |
181,400 |
251,993 |
374,570 |
502,574 |
Profit After Tax (FRS 3) |
|
|
586,036 |
375,495 |
199,826 |
(162,042) |
195,137 |
57,703 |
427,115 |
86,138 |
374,570 |
502,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Number of Shares Outstanding (m) |
|
353.9 |
355.6 |
359.4 |
395.8 |
430.5 |
442.0 |
443.4 |
446.0 |
447.7 |
447.8 |
EPS - normalised (c) |
|
|
166 |
106 |
75 |
53 |
62 |
63 |
48 |
56.5 |
83.7 |
112.2 |
EPS - normalised and fully diluted (c) |
|
|
165 |
105 |
74 |
53 |
62 |
63 |
48 |
56 |
83 |
112 |
EPS - (IFRS) (c) |
|
|
166 |
106 |
56 |
(-41) |
45 |
13 |
96 |
19 |
84 |
112 |
Dividend per share (c) |
|
|
35 |
45 |
26 |
20 |
21 |
33 |
36 |
36 |
43 |
53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin (%) |
|
|
86.2 |
80.3 |
75.6 |
70.7 |
71.5 |
71.1 |
69.0 |
70.0 |
72.8 |
75.0 |
EBITDA Margin (%) |
|
|
82.5 |
75.3 |
69.5 |
65.7 |
67.6 |
67.0 |
62.5 |
63.7 |
67.4 |
70.4 |
Operating Margin (before GW and except.) (%) |
|
70.6 |
54.9 |
43.7 |
35.1 |
33.0 |
35.9 |
30.8 |
33.8 |
40.3 |
43.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET |
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Assets |
|
|
2,403,958 |
4,288,557 |
4,309,270 |
5,526,335 |
6,025,227 |
5,579,898 |
6,390,342 |
6,123,255 |
5,852,411 |
5,541,265 |
Intangible Assets |
|
|
2,281,234 |
4,242,086 |
4,270,971 |
5,494,244 |
5,948,443 |
5,454,106 |
6,196,187 |
5,768,883 |
5,498,039 |
5,186,893 |
Tangible Assets |
|
|
1,347 |
5,670 |
5,427 |
12,315 |
12,163 |
30,060 |
29,402 |
44,615 |
44,615 |
44,615 |
Investments |
|
|
121,377 |
40,801 |
32,872 |
19,776 |
64,621 |
95,732 |
164,753 |
309,757 |
309,757 |
309,757 |
Current Assets |
|
|
785,379 |
101,287 |
338,493 |
105,876 |
128,092 |
103,415 |
79,704 |
154,752 |
622,222 |
1,200,868 |
Stocks |
|
|
966 |
845 |
26,263 |
1,455 |
1,481 |
1,700 |
1,541 |
43,628 |
1,812 |
2,111 |
Debtors |
|
|
6,197 |
4,619 |
4,132 |
1,124 |
2,316 |
3,194 |
2,396 |
7,138 |
2,764 |
3,221 |
Cash |
|
|
778,216 |
95,823 |
308,098 |
103,297 |
124,295 |
98,521 |
75,767 |
103,986 |
617,646 |
1,195,536 |
Other |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Current Liabilities |
|
|
(49,458) |
(21,134) |
(16,171) |
(12,568) |
(19,057) |
(12,143) |
(28,841) |
(64,700) |
(80,008) |
(81,894) |
Creditors |
|
|
(20,898) |
(21,134) |
(16,171) |
(12,568) |
(19,057) |
(12,143) |
(28,841) |
(63,976) |
(79,284) |
(81,170) |
Short term borrowings |
|
|
(28,560) |
0 |
0 |
0 |
0 |
0 |
0 |
(724) |
(724) |
(724) |
Long Term Liabilities |
|
|
(32,805) |
(1,002,164) |
(1,002,856) |
(1,468,908) |
(1,194,274) |
(771,506) |
(1,269,289) |
(887,387) |
(887,387) |
(887,387) |
Long term borrowings |
|
|
(21,500) |
(998,136) |
(998,518) |
(1,466,000) |
(1,193,000) |
(770,000) |
(1,264,000) |
(878,028) |
(878,028) |
(878,028) |
Other long term liabilities |
|
|
(11,305) |
(4,028) |
(4,338) |
(2,908) |
(1,274) |
(1,506) |
(5,289) |
(9,359) |
(9,359) |
(9,359) |
Net Assets |
|
|
3,107,074 |
3,366,546 |
3,628,736 |
4,150,735 |
4,939,988 |
4,899,664 |
5,171,916 |
5,325,920 |
5,507,238 |
5,772,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow |
|
|
720,209 |
540,597 |
434,582 |
435,783 |
608,503 |
564,187 |
518,680 |
548,301 |
741,232 |
828,405 |
Net Interest |
|
|
0 |
(6,083) |
(2,277) |
(4,090) |
(24,193) |
(24,993) |
(41,187) |
(41,242) |
(31,320) |
(10,555) |
Tax |
|
|
(725) |
(154) |
(204) |
(208) |
28 |
(326) |
0 |
(5,380) |
(1,000) |
(1,000) |
Capex |
|
|
(641,976) |
(2,050,681) |
(146,249) |
(1,791,275) |
(805,472) |
(19,633) |
(861,406) |
10,571 |
(2,000) |
(2,000) |
Acquisitions/disposals |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Financing |
|
|
12,919 |
58,004 |
6,819 |
761,824 |
595,140 |
1,236 |
1,279 |
37,198 |
0 |
0 |
Dividends |
|
|
(123,852) |
(160,013) |
(79,775) |
(68,593) |
(78,708) |
(121,934) |
(132,915) |
(129,986) |
(193,252) |
(236,960) |
Net Cash Flow |
|
|
(33,425) |
(1,618,330) |
212,896 |
(666,559) |
295,298 |
398,537 |
(515,549) |
419,462 |
513,660 |
577,890 |
Opening net debt/(cash) |
|
|
(761,581) |
(728,156) |
902,313 |
690,420 |
1,362,703 |
1,068,705 |
671,479 |
1,188,233 |
774,766 |
261,106 |
HP finance leases initiated |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Other |
|
|
0 |
(12,139) |
(1,003) |
(5,724) |
(1,300) |
(1,311) |
(1,205) |
(5,995) |
0 |
0 |
Closing net debt/(cash) |
|
|
(728,156) |
902,313 |
690,420 |
1,362,703 |
1,068,705 |
671,479 |
1,188,233 |
774,766 |
261,106 |
(316,784) |
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 £49,500 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 2020 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 1,185 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 |
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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 £49,500 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 2020 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 1,185 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 |
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