Wheaton Precious Metals - Edison Group

Overview
Price performance
Financials
Research
Sector insights
Thematics

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 model-type method, where we discount cash flows at a nominal 9% per year, our ‘terminal’ valuation of WPM in FY26 is US$52.96/share, assuming zero subsequent long-term growth in real cash flows. If we instead assume 7.4% pa long-term growth in cash flows, however, (ie the compound average annual growth rate in the price of gold from 1967 to 2023), our valuation of WPM increases manyfold to US$174.25/share. Alternatively, assuming no purchases of additional streams (which we think unlikely), we calculate a value per share for WPM of US$49.28 in FY26, based on an historical multiple of 30.8x contemporary earnings.

Latest Insights

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Metals & Mining |
Update

18.03.24

Wheaton Precious Metals — Celebrating the Ides of March

Metals & Mining |
Update

11.03.24

Wheaton Precious Metals — Putting WPM onto GMT

Metals & Mining |
Update

20.11.23

Wheaton Precious Metals — Putting net cash to work

Metals & Mining |
Update

14.11.23

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

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Sector

Metals & Mining

Equity Analyst

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)

256.2

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	20.3	16.5	8.6
Relative	20.6	12.3	1.5
52 week high/low	C$73.4/C$52.9

Financials

WPM’s production and sales in FY23 were both higher than our prior expectations after a strong Q4 driven by Salobo. Guidance for FY24 is for production of 550–620koz GEO. However, we expect significant growth in output thereafter to almost 900koz GEO by FY29. Henceforward, the company has also adopted a progressive dividend policy.

Y/E Dec	Revenue (US$m)	EBITDA (US$m)	PBT (US$m)	EPS (fd) (c)	P/E (x)	P/CF (x)
2022A	1065.1	735.2	505.4	112.0	46.9	32.2
2023A	1016.0	719.7	533.4	118.0	44.5	32.8
2024E	1190.8	873.8	636.9	118.0	44.5	26.7
2025E	1538.5	1135.0	748.3	142.0	37.0	21.0

Research

Update

Metals & Mining

14.03.23

Wheaton Precious Metals — Setting the scene for FY24 and beyond

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Update

Metals & Mining

03.03.23

Wheaton Precious Metals — Adjusting for ‘major maintenance’ at Salobo in Q4

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Metals & Mining

Update

Wheaton Precious Metals — Refining forecasts

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Update

Metals & Mining

08.11.22

Wheaton Precious Metals — Results closely in line with prior expectations

Update

24.10.22

Wheaton Precious Metals — Honing Q322 forecasts

Update

Metals & Mining

16.08.22

Wheaton Precious Metals — Guidance changes already anticipated

Update

Metals & Mining

27.07.22

Wheaton Precious Metals — Incorporating Salobo Q222 operating results

Outlook

Metals & Mining

23.06.22

Wheaton Precious Metals — Starting as it means to go on

Update

Metals & Mining

05.05.22

Wheaton Precious Metals — Fine tuning forecasts ahead of Q1 results

Update

Metals & Mining

17.03.22

Wheaton Precious Metals — Russia-free exposure to precious metals

Update

Metals & Mining

24.02.22

Wheaton Precious Metals — Refining forecasts ahead of results

Update

Metals & Mining

16.12.21

Wheaton Precious Metals — Bagging elephants in British Columbia

Update

Metals & Mining

08.11.21

Wheaton Precious Metals — Imperturbable

Update

Metals & Mining

08.10.21

Wheaton Precious Metals — Honing Q321 forecasts

Update

Metals & Mining

18.08.21

Wheaton Precious Metals — Solid Q221 results set up H221

Update

Metals & Mining

04.08.21

Wheaton Precious Metals — Honing forecasts

Update

Metals & Mining

21.05.21

Wheaton Precious Metals — ROICs alive

Update

Metals & Mining

10.05.21

Wheaton Precious Metals — A solid start

Update

Metals & Mining

31.03.21

Wheaton Precious Metals — Q121 results preview

Update

Metals & Mining

17.02.21

Wheaton Precious Metals — Looking to the long term

Update

Metals & Mining

12.11.20

Wheaton Precious Metals — Continuing to beat expectations

Update

Metals & Mining

02.11.20

Wheaton Precious Metals — Streaming explained

Update

Metals & Mining

12.10.20

Wheaton Precious Metals — Q320 earnings expectation refinements

Flash note

Metals & Mining

22.09.20

Wheaton Precious Metals — London calling

Update

Metals & Mining

18.08.20

Wheaton Precious Metals — Barely missing a beat

Update

Metals & Mining

12.05.20

Wheaton Precious Metals — Forging ahead

Update

Metals & Mining

30.04.20

Wheaton Precious Metals — Refining numbers

Update

Metals & Mining

03.04.20

Wheaton Precious Metals — Swings and roundabouts

Outlook

Metals & Mining

23.03.20

Wheaton Precious Metals — In the right place at the right time

edison tv

Metals & Mining

29.11.19

Executive interview – Wheaton Precious Metals

Update

Metals & Mining

18.11.19

Wheaton Precious Metals — Q3 results and update

Update

Metals & Mining

16.08.19

Wheaton Precious Metals — Metals price moves de-risk valuation

Update

Metals & Mining

14.05.19

Wheaton Precious Metals — Starting as it means to continue

Update

Metals & Mining

25.03.19

Wheaton Precious Metals — Exceeding guidance and expectations

research

Metals & Mining

18.12.18

Wheaton Precious Metals — CRAziness averted

Update

Metals & Mining

26.11.18

Silver Wheaton — Good operations offset by prices & finance costs

Update

Metals & Mining

21.08.18

Wheaton Precious Metals — Q218 results in line with expectations

Update

Metals & Mining

24.07.18

Wheaton Precious Metals — Palladium ex machina

Update

Metals & Mining

21.06.18

Wheaton Precious Metals — Kobold ex machina

Update

Metals & Mining

18.05.18

Wheaton Precious Metals — Serene start

Update

Metals & Mining

27.03.18

Wheaton Precious Metals — A fine finish

Update

Metals & Mining

15.02.18

Silver Wheaton — Majestic

Outlook

Metals & Mining

30.08.17

Wheaton Precious Metals — Still shining

Update

Metals & Mining

18.05.17

Wheaton Precious Metals — Formerly Silver Wheaton (SLW)

Update

Metals & Mining

29.03.17

Severfield — Better revenue, margin and cash progress

Update

Metals & Mining

29.03.17

Silver Wheaton — What a difference a quarter makes

Update

Metals & Mining

06.12.16

Silver Wheaton — Update 6 December 2016

Update

Metals & Mining

02.11.16

Silver Wheaton — Update 2 November 2016

Update

Metals & Mining

30.08.16

Silver Wheaton — Update 30 August 2016

Update

Metals & Mining

25.05.16

Silver Wheaton — Update 25 May 2016

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Metals & Mining

18.04.16

Silver Wheaton — Update 18 April 2016

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Metals & Mining

24.03.16

Silver Wheaton — Update 24 March 2016

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Metals & Mining

15.02.16

Silver Wheaton — Update 14 February 2016

Update

Metals & Mining

11.11.15

Silver Wheaton — Update 11 November 2015

Further insights

insight

17.07.18

Cobalt

Analyst of the week

Andy Murphy

Director, Financials & Industrials

amurphy@edisongroup.com

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