The Company in a Nutshell
- In addition to its active mines, WPM has several projects under development.
- 71% of its mines are among the first quarter for lower cost productions.
- The company also uses a growth-by-acquisition strategy.
- We do not cover Wheaton Precious Metals at the moment.
Date Reviewed | N/A |
Company Name | Wheaton Precious Metals Corp |
Symbol | WPM.TO |
Sector | Materials |
Industry | Gold |
Beta | 0.705 |
PRO Rating | 3 |
Dividend Safety | 3 |
Business Model
Wheaton Precious Metals Corp. is a Canada-based precious metals streaming company. The Company is primarily engaged in the sale of precious metals, including gold, silver, palladium, and cobalt. It has streaming agreements for about 19 operating mines and 13 development stage projects. Its operating assets include Salobo mine (Salobo), Antamina, Penasquito, Constancia, Sudbury, Stillwater, San Dimas, Voisey’s Bay, Other Gold, and Other Silver. Its development assets include Blackwater Project, Marmato Mine, Copper World Complex, Goose Project, and Curipamba Project, and others. The Salobo is the copper deposit located in Brazil. Salobo is an integrated operation of open pit mining, mineral processing beneficiation, concentrate loading and transportation. The Antamina mine is a copper mine. The Antamina mine is located in the Andes Mountain range of Peru at an average elevation of 4,200 meters. The Penasquito is a gold mine and silver mine as well as the producers of zinc and lead.
Current price | 84.36 |
ROE | 7.85 % |
ROIC | 8.05 % |
Shareholder Yield | 0.00 % |
5-Yr Total Return | 145.90 % |
1-Yr Total Return | 43.55 % |
Next Earnings Date | 11-07-24 |
Latest Quarter Information
What the CEO said:
Wheaton once again delivered strong results in the second quarter, generating $234 million in operating cash flow, resulting in record cash flows of over $450 million for the first half of the year. With year-to-date gold equivalent production of approximately 305,000 ounces, we are well on track to achieve our 2024 production guidance of 550,000 to 620,000 gold equivalent ounces. In addition, we were ranked among the top 10 companies on Corporate Knights' annual list of the Best 50 Corporate Citizens in Canada and published our annual sustainability and climate change reports.
What we say:
09-19-2024, WPM's Q2 revenues (61% gold, 37% silver, 1% palladium, and 1% cobalt) grew by 13% Y/Y due to a 18% increase in the average realized gold equivalent price but a 4% decrease in the number of GEOs sold. Q2 GEO production was 147,100 ounces and average cash costs were $436 per GEO vs. $452 in 2Q'23. WPM generated an operating cash flow of $234M, had a cash balance of $540M, zero debt, and an undrawn $2B RCF at Q2-end. Wheaton maintained its estimated attributable annual production for 2024 at 550,000-620,000 GEOs and 325,000 to 370,000 ounces of gold. WPM had streaming and royalty agreements on 18 operating mines and 27 development projects at Q2-end.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 5.90 % |
5-Yr EPS Growth | 5.15 % |
5-Yr Div Growth | 11.65 % |
Potential Risks
Debt/Equity | 0.00 |
Financial Debt to EBITDA (TTM) | 0.00 |
Current Ratio (Quarterly) | 21.75 |
Credit Score | 100 |
Dividend Growth Perspective
Dividend ($) | 0.8374 |
Dividend Yield Fwd | 1.00 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 1.35 % |
Payout Ratio (%) | 50.55 |
Cash Payout Ratio (%) | -140.50 |
DGR 1-Yr | 5.20 |
DGR 3-Yr | 12.90 |
DGR 5-Yr | 11.65 |
DGR Streak | |
Chowder Score | 12.65 |
Next DVD PMT | 09-04-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 38 B |
PE Ratio | 48.80 |
Fwd PE | 44.85 |
Price to Book Ratio | 3.90 |
DDM Valuation | N/A |
Average 5-Yr PE | 100.01 |
Value Score | 17 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.