Report

Wheaton Precious Metals - Forging ahead

After an exceptional Q419, WPM’s operational performance moderated in Q120, but was nevertheless robust within the broader macro-environment with underlying net earnings during the quarter within 2.6% of our prior forecasts. They would have exceeded our forecasts (by 6.0%) had it not been for a rare (albeit non-cash) tax charge relating to a reversal of deferred income tax assets. In the wake of Q120 results, we have reduced our precious metals price expectations for the balance of FY20 fractionally and our production expectations by 5koz AuE (ie <1%). However, these changes are more than balanced by a lower anticipated interest charge for the remainder of the year, such that our adjusted EPS forecast for FY20 has increased by 1.9c, from 84c to 85.9c. Note that, on its current trajectory, there is a real possibility that WPM could become net debt free in a year’s time, which could presage a change in its dividend policy.
Underlying
Wheaton Precious Metals Corp

Wheaton Precious Metals is engaged in the silver mining business.

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts
Alison Turner

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