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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$11563.6m
Last closeC$26.07
High / Low (52 weeks)C$29.7 / C$23.4
Stock market listingUS, CN
Forecast net debt (US$m)1270.9
Forecast gearing ratio (%)25
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual(10)(6.8)8.1
Relative *(8.7)(8.2)0.1

* % Relative to local index

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Company news

Investment summary

WPM's silver streams outperformed our expectations in Q118 while its gold streams were closely in line, such that adjusted net earnings were within 10% of our prior expectations. Since then, WPM has acquired a cobalt stream from Vale's Voisey's Bay mine and a gold/palladium stream from Sibanye's Stillwater mine for upfront cash payments of US$390m and US$500m, respectively, which we estimate will increase basic EPS by an aggregate 10.3c per share once both are operational after FY21. After the Stillwater transaction, we estimate WPM has capacity for up to US$0.78bn in additional deals as at end-Q318.

Last updated on 27/07/2018

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 31.9 14.0
2017A 843.2 564.7 277.4 63.0 31.4 15.5
2018E 810.8 530.9 252.3 57.0 34.7 16.2
2019E 1004.7 693.4 377.5 85.3 23.2 12.6

Last updated on 24/07/2018

Latest research

Palladium ex machina

Update | Mining | 24/07/2018

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

Latest video

Analyst Interview - Silver Wheaton

Industry outlook

Assuming no material purchases of additional streams, we forecast a value for WPM of US$34.68/share (C$45.71/share) in FY21. In the meantime, it is trading on near-term financial ratios that are cheaper than its royalty/streaming peers on 91% of typical valuation measures and the miners themselves on at least 35% of the same measures, despite being associated with materially less risk.

Last updated on 27/07/2018

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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