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Wheaton Precious Metals (TSX: WPM)

Last close As at 15/04/2024

CAD70.59

▲ −0.75 (−1.05%)

Market capitalisation

CAD31,988m

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

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

Metals & Mining | Update

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

256.2

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 17.4 9.1 3.8
Relative 18.0 5.7 (1.8)
52 week high/low C$72.0/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 46.3 31.7
2023A 1016.0 719.7 533.4 118.0 43.9 32.3
2024E 1190.8 873.8 636.9 118.0 43.9 26.3
2025E 1538.5 1135.0 748.3 142.0 36.5 20.7

Research

Update

Metals & Mining

Wheaton Precious Metals — Putting WPM onto GMT
Wheaton-Precious-Metals_resized

Update

Metals & Mining

Wheaton Precious Metals — Putting net cash to work

Metals & Mining

Update

Wheaton Precious Metals — Celebrating the Ides of March
Wheaton-Precious-Metals_resized

Update

Metals & Mining

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

Update

Metals & Mining

Wheaton Precious Metals — Honing Q323 numbers

Update

Metals & Mining

Wheaton Precious Metals — Peerless
Wheaton-Precious-Metals_resized

Update

Metals & Mining

Wheaton Precious Metals — Honing Q223 forecasts

Update

Metals & Mining

Wheaton Precious Metals — Q123 in line; looking to H2
Wheaton-Precious-Metals_resized

Update

Metals & Mining

Wheaton Precious Metals — Refining forecasts

Update

Metals & Mining

Wheaton Precious Metals — Setting the scene for FY24 and beyond
Wheaton-Precious-Metals_resized

Update

Metals & Mining

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

insight

Cobalt

Analyst of the week

Andy Murphy

Andy Murphy

Director, Financials & Industrials

amurphy@edisongroup.com
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Thematics

thematic

Metals & Mining

Macro Outlook – Price weakness on the cards

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