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Wheaton Precious Metals (WPM)

Business description

Wheaton Precious Metals is the pre-eminent pure precious metals streaming company, with c 30 high quality, precious metals streaming and early deposit agreements relating to assets in Mexico, Peru, Canada, Brazil, Chile, Argentina, Sweden, Greece, Portugal, the US and Guyana.

Stock data

Market cap.C$12767.6m
Last closeC$28.81
High / Low (52 weeks)C$29.3 / C$23.4
Stock market listingUS, CN
Forecast net debt (US$m)756.3
Forecast gearing ratio (%)15
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual3.410.79.2
Relative *1.53.61.0

* % Relative to local index

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Company news

Investment summary

On 11 June, Wheaton Precious Metals (WPM) announced that it had entered into an agreement with Vale to acquire 42.4% of cobalt production from Voisey’s Bay from FY21 for an upfront cash consideration of US$390m. We estimate that this acquisition will increase WPM’s silver-equivalent production by 3.1Moz and 4.7Moz and its basic EPS by 4.7c and 9.3c in FY21 and FY24, respectively.

Last updated on 21/06/2018

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2016A 891.6 602.7 269.8 62.0 36.1 15.8
2017A 843.2 564.7 277.4 63.0 35.5 17.5
2018E 826.5 548.9 281.1 63.0 35.5 17.7
2019E 961.9 658.4 385.0 87.0 25.7 15.0

Last updated on 21/06/2018

Latest research

Kobold ex machina

Update | Mining | 21/06/2018

Serene start

Update | Mining | 18/05/2018

A fine finish

Update | Mining | 27/03/2018

Majestic

Update | Mining | 15/02/2018

Never knowingly undersold

Update | Mining | 10/11/2017

Still shining

Outlook | Mining | 30/08/2017

Formerly Silver Wheaton (SLW)

Update | Mining | 18/05/2017

What a difference a quarter makes

Update | Mining | 29/03/2017

Q3 in perspective and Q4 preview

Update | Mining | 06/12/2016

Q3 results scheduled for 9 November

Update | Mining | 02/11/2016

Going for gold

Update | Mining | 30/08/2016

Forecasts weighted to H2

Update | Mining | 25/05/2016

Latest video

Analyst Interview - Silver Wheaton

Industry outlook

Guidance for FY18 is for production of 22.5Moz Ag and 355koz Au – primarily as a result of adjustments to the San Dimas stream after it is taken over by First Majestic, at which point WPM will also become a majority gold-streaming business. Otherwise, assuming no material purchases of additional streams (which is unlikely), we forecast a value for WPM of US$35.13/sh (or C$45.93) in FY20. In the meantime, it is trading on near-term financial ratios that are cheaper than its royalty/streaming ‘peers’ in 95% of instances and the miners themselves in at least 36% of the same measures, despite being associated with materially less operating and cost risk. Q118 results are scheduled for 10 May.

Last updated on 27/04/2018

Key management

Randy V. J. Smallwood , CEO
Gary D. Brown , CFO
Patrick Drouin , Director of Investor Relations
Rory Quinn , IR

Company address

Suite 3150
666 Burrard Street
Vancouver
BC
V6C 2X8
Canada
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