Wheaton Precious Metals (TSX: WPM)

Last close As at 16/07/2024

CAD84.96

3.61 (4.44%)

Market capitalisation

CAD38,532m

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.

Using a capital asset pricing-type model, whereby we discount cash flows at a nominal 9% per year, our ‘terminal’ valuation of Wheaton in FY27 is US$57.89/share, assuming zero long-term growth in real cash flows (per share) thereafter. If we instead assume 7.4% pa long-term growth in cash flows, however (ie the compound average annual gold price growth rate since 1967), our valuation increases manyfold to US$138.94/share (in FY24). Alternatively, we calculate a value per share for Wheaton of US$54.75 in FY27, based on an historical multiple of 30.8x contemporary earnings. Q224 results are scheduled for 8 August.

Latest Insights

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Metals & Mining | Update

Wheaton Precious Metals — A strong start to FY24

Metals & Mining | Update

Wheaton Precious Metals — Celebrating the Ides of March

Metals & Mining | Update

Wheaton Precious Metals — Putting WPM onto GMT

Metals & Mining | Update

Wheaton Precious Metals — Putting net cash to work

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Equity Analyst

Lord Ashbourne

Lord Ashbourne

Director of Content, Mining

Key Management

  • Emma Murray

    Director of investor relations

  • Gary D. Brown

    CFO

  • Patrick Drouin

    SVP, Investor Relations

  • Randy V. J. Smallwood

    CEO

Balance Sheet

Forecast net cash (US$m)

297.1

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 16.9 20.0 43.7
Relative 10.0 12.9 26.6
52 week high/low C$85.0/C$52.9

Financials

Wheaton’s production and sales in FY23 were both higher than our prior expectations after a strong Q4 driven by Salobo. FY24 got off to a similarly good start in Q1 and production guidance for the full year is 550–620koz GEO. However, we expect significant growth in output thereafter to almost 900koz GEO by FY29. The company has also adopted a progressive dividend policy.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2022A 1065.1 735.2 505.4 112.0 55.4 38.0
2023A 1016.0 719.7 533.4 118.0 52.6 38.8
2024E 1251.8 951.1 712.1 132.0 47.0 29.3
2025E 1427.1 1050.3 711.0 135.0 46.0 26.8

Research

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Update

Metals & Mining

Wheaton Precious Metals — Putting net cash to work

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Update

Metals & Mining

Wheaton Precious Metals — Teeing up to hit long-term targets

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Update

Metals & Mining

Wheaton Precious Metals — Honing Q323 numbers

Update

Metals & Mining

Wheaton Precious Metals — Peerless

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Update

Metals & Mining

Wheaton Precious Metals — Honing Q223 forecasts

Update

Metals & Mining

Wheaton Precious Metals — Q123 in line; looking to H2

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Update

Metals & Mining

Wheaton Precious Metals — Refining forecasts

Further insights

insight

Cobalt

Thematics

thematic

Metals & Mining

Macro Outlook – Price weakness on the cards

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