Wheaton Precious Metals Corp T.WPM

Alternate Symbol(s): WPM

Metals & Mining Gold

Wheaton Precious Metals Corp. is a Canada-based precious metals streaming company. The Company, through strategic streaming agreements, partners with mining companies to secure a portion of their future precious metal production. It has entered into approximately 38 long-term agreements (30 of which are precious metal purchase agreements (PMPAs), three of which are early deposit PMPAs, and five of which are royalty agreements), with 32 different mining companies, related to precious metals and cobalt relating to 18 mining assets which are operating, 23 which are at various stages of development and four which have been placed into care and maintenance or have been closed, located in 16 countries. Its portfolio includes operating mines, and development projects & other. Its mineral stream interests (gold) include Salobo, Sudbury, Constancia, San Dimas, Stillwater and others. The Company's mineral stream interests (silver) include Penasquito, Antamina, Constancia and others.

TSX:WPM - Post by User

Wheaton Precious Metals Corp

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon Nov 21, 2024 9:44am

22 Views

Post# 36323557

TD

Have a US$75.00 target. Just opened a position this morning. GLTA

BEST IDEAS 2025: INDUSTRY-LEADING GROWTH AND LIQUIDITY

THE TD COWEN INSIGHT

WPM is the best positioned amongst the precious metal royalty companies to take advantage of the elevated gold price and strong deal environment, in our view.

The company has the best gold equivalent ounce growth profile amongst its peer group and a proven management team armed with the highest amount of available liquidity in the sector to deploy towards future growth.

Summary Of Our Thesis

WPM is our top pick amongst the precious metal royalty companies for several reasons:

Primed for acquisition growth with sector-leading liquidity and cash flows. At the end of Q3/24, WPM had the highest available liquidity in the sector at ~$2.7bln, and we forecast that WPM will generate more than $1bln of cash flows from operations in 2025.

Best in class 'organic' growth outlook. We estimate WPM's gold equivalent ounces sales (GEO) growth (2028/24) of ~47%, well above the peer group average of 20% for other royalties companies. WPM's asset portfolio delivers sizable GEO growth over the medium term, which in turn allows management to be potentially more selective and patient when evaluating new opportunities, in our view.

Management has a strong track record of acquisition success. Over the past 5 years, WPM has committed more than $2.9bln on 11 streaming transactions (~50% of total committed capital by its peers under our coverage). On those transactions, we calculate WPM achieved a weighted average pre-tax IRR of 5.6% (vs. the peer group mean of 4.8%). In our view, WPM has methodically layered streams on development staged assets into its portfolio, some of which are now on the cusp of delivering first GEO contributions in 2025.

What Is Underappreciated Or Misunderstood?

We believe WPM's role as a leader and innovator in the royalty sector is often underappreciated.

Innovative deal makers. We believe WPM is an innovator in its approach to security, structure and mechanisms in its stream agreements (examples include completion test payments, expansion payment structures, parental guarantees).
Strong partnerships have garnered 'repeat customers'. WPM's heightened focus on working partnerships has established it as the streamer of choice with some of its counterparties, in our view. WPM has benefited from several 'repeat customers', including Vale, Capstone, and Glencore.
A leader in ESG. WPM is a leader in terms of the integration of ESG assessments into its valuation approach and deal execution process, in our view. The company is also actively engaged in a broad spectrum of ESG programs in partnership with its counterparties.