Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International 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.

Equity Bottom-Up

Wheaton Precious Metals / Equity Bottom-Up

Underlying net earnings in Q222 were 4.4% above our forecasts. In general terms, Wheaton Precious Metals (WPM) produced 162,569 gold equivalent ounces (GEOs) during the quarter, which was 4.0% below our prior forecast, but sold 170,371 GEOs (which was 11.6% above) as a result of a 27,412 GEO draw down in the number of ounces produced but not yet delivered. Although WPM reduced its output guidance for FY22 as a consequence of lower production at Salobo and Stillwater and the sale of its Keno Hill stream, this was only to levels that Edison had already broadly anticipated in its last note (681.5koz GEOs cf updated guidance of 640–680koz GEOs). Given intervening precious metals price movements, this has actually resulted in us modestly increasing our financial forecasts for FY22.

Underlying net earnings in Q222 were 4.4% above our forecasts. In general terms, Wheaton Precious Metals (WPM) produced 162,569 gold equivalent ounces (GEOs) during the quarter, which was 4.0% below our prior forecast, but sold 170,371 GEOs (which was 11.6% above) as a result of a 27,412 GEO draw down in the number of ounces produced but not yet delivered. Although WPM reduced its output guidance for FY22 as a consequence of lower production at Salobo and Stillwater and the sale of its Keno Hill stream, this was only to levels that Edison had already broadly anticipated in its last note (681.5koz GEOs cf updated guidance of 640–680koz GEOs). Given intervening precious metals price movements, this has actually resulted in us modestly increasing our financial forecasts for FY22.

Wheaton Precious Metals - Guidance changes already anticipated

Wheaton Precious Metals’ (WPM’s) Q222 results are scheduled for release after the market close in North America on 11 August. This note reduces our forecasts for Q2–Q422 and FY23–24 in light of details about Salobo’s operational performance contained in Vale’s Q2 production and sales update, released on 19 July, and of recent changes in precious metals prices. It also analyses WPM’s sale of its Keno Hill stream for a consideration of US$135m (which we calculate will provide the buyer with an internal rate of return of 3.06%).

Wheaton Precious Metals’ (WPM’s) Q222 results are scheduled for release after the market close in North America on 11 August. This note reduces our forecasts for Q2–Q422 and FY23–24 in light of details about Salobo’s operational performance contained in Vale’s Q2 production and sales update, released on 19 July, and of recent changes in precious metals prices. It also analyses WPM’s sale of its Keno Hill stream for a consideration of US$135m (which we calculate will provide the buyer with an internal rate of return of 3.06%).

Wheaton Precious Metals - Incorporating Salobo Q222 operating results

Wheaton Precious Metals  / Equity Bottom-Up

Wheaton Precious Metals (WPM) has an exceptional business model that provides it with all of the characteristics investors look for in precious metal mining companies (eg exploration blue-sky, production upside and operational gearing) with few of the commonly attendant risks (eg cost, capex, tax and regulatory regimes). Q122 results at the start of this year were closely in line with our prior forecasts, while recent mineral stream acquisitions have given it a rising production profile.

Wheaton Precious Metals (WPM) has an exceptional business model that provides it with all of the characteristics investors look for in precious metal mining companies (eg exploration blue-sky, production upside and operational gearing) with few of the commonly attendant risks (eg cost, capex, tax and regulatory regimes). Q122 results at the start of this year were closely in line with our prior forecasts, while recent mineral stream acquisitions have given it a rising production profile.

Wheaton Precious Metals - Starting as it means to go on

Wheaton Precious Metals’ (WPM) Q122 results are scheduled for release on Thursday 5 May, after the market close in Toronto (approximately 22.30 London time). Ahead of their release, we have honed our estimates to reflect production and sales of silver from Penasquito (announced by Newmont on 22 April), likely gold production from Salobo, based on its copper output (announced by Vale on 19 April) and production of silver at Antamina (announced by Glencore on 28 April). We have also adjusted our forecasts for the remainder of the year for recent moves in metals prices.

Wheaton Precious Metals’ (WPM) Q122 results are scheduled for release on Thursday 5 May, after the market close in Toronto (approximately 22.30 London time). Ahead of their release, we have honed our estimates to reflect production and sales of silver from Penasquito (announced by Newmont on 22 April), likely gold production from Salobo, based on its copper output (announced by Vale on 19 April) and production of silver at Antamina (announced by Glencore on 28 April). We have also adjusted our forecasts for the remainder of the year for recent moves in metals prices.

Wheaton Precious Metals - Fine tuning forecasts ahead of Q1 results

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>Broad global MSCI equity indexes (ACWI, ACWI ex-US, EAFE, and EM) remain bearish, as do indexes in Japan, Hong Kong, China, Europe, and Germany.</li>
<li>Until we see these indexes break above downtrends and key resistance levels, we cannot be bullish.</li>
<li>Remain overweight Energy and Materials with the secular commodity bull market intact. Defensive Sectors are also hitting 1-2-year RS highs; we recommend overweights to Health Care, Utilities, and Consumer Staples.</li>
</ul>


Broad global MSCI equity indexes (ACWI, ACWI ex-US, EAFE, and EM) remain bearish, as do indexes in Japan, Hong Kong, China, Europe, and Germany.
Until we see these indexes break above downtrends and key resistance levels, we cannot be bullish.
Remain overweight Energy and Materials with the secular commodity bull market intact. Defensive Sectors are also hitting 1-2-year RS highs; we recommend overweights to Health Care, Utilities, and Consumer Staples.


Opportunities Within Energy and Materials

United States

Wheaton Precious Metals Corp. operates as a precious metals streaming company. The Company purchases silver and gold production from mines that it does not owns and operates. Wheaton Precious Metals serves customers worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Wheaton Precious Metals (WPM US)

Wheaton Precious Metals - Guidance changes already anticipated

Underlying net earnings in Q222 were 4.4% above our forecasts. In general terms, Wheaton Precious Metals (WPM) produced 162,569 gold equivalent...

Edison Investment Research

Wheaton Precious Metals - Incorporating Salobo Q222 operating results

Wheaton Precious Metals’ (WPM’s) Q222 results are scheduled for release after the market close in North America on 11 August. This note reduces our...

Edison Investment Research

Wheaton Precious Metals - Starting as it means to go on

Wheaton Precious Metals (WPM) has an exceptional business model that provides it with all of the characteristics investors look for in precious...

Edison Investment Research

Wheaton Precious Metals - Fine tuning forecasts ahead of Q1 results

Wheaton Precious Metals’ (WPM) Q122 results are scheduled for release on Thursday 5 May, after the market close in Toronto (approximately 22.30...

Edison Investment Research

Opportunities Within Energy and Materials

Global indexes remain below our key lines in the sand of $54 on $ACWX, $75.25 on $EFA, and the 200-day MA on $ACWI. As long as prices are below...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)