Wheaton/Hudbay 02:50 PM EDT, 05/13/2022 (MT Newswires) -- Scotiabank on Friday reiterated its sector-outperform rating on the shares of Wheaton Precious Metals (WPM.TO) with a US$65.00 price target after a US appeals court blocked approvals for the Hudbay Minerals' (HBM.TO) Rosemont copper project in Arizona, leaving the miner to focus on the nearby Copper World property.
"Slightly Negative. We do not see a clear path to Rosemont's near-term standalone development following a negative ruling from the U.S. Ninth Circuit Court of Appeals," analyst Trevor Turnbull noted. " ... In 2010, Wheaton acquired a precious metals stream for 100% of Rosemont's payable gold and silver production for upfront payments of $230 million and delivery payments of $3.90/oz of silver and $450/oz of gold.
The agreement covered all prospective exploration targets within the Rosemont Project area. Wheaton has reiterated that Copper World is covered by the agreement. However, ... the upfront payments have yet been made as they are contingent on development milestones. With the potential changes to the development, we expect Wheaton and Hudbay will revisit and refine the terms of the streaming agreement once new technical reports and proposals for construction are available."