Wheaton Precious Metals and the Fall in Silver Price – Stocks

Sadly a lackluster market has paid little attention to the streaming company’s quarterly report, whose operational results leave little room for criticism and where the pipeline has large stocks.

Gold and silver are not immune to negative sentiment in the markets, and the stocks associated with them are also suffering. Therefore, investors paid, in our view erroneously, little attention to Wheaton Precious Metals (WPM) quarterly report. By the end of 2021, the group had purchase contracts that ended with 23 operational mines; it also lists 13 ongoing development projects. Revenues from gold represented 47.4% in the 1st quarter, those from silver, 43.7%, of its turnover (CA), the rest was from palladium and cobalt.

Gold and silver are not immune to negative sentiment in the markets, and the stocks associated with them are also suffering. Therefore, investors paid, in our view erroneously, little attention to Wheaton Precious Metals (WPM) quarterly report. By the end of 2021, the group had purchase contracts that ended with 23 operational mines; it also lists 13 ongoing development projects. Revenues from gold reached 47.4% in the 1st quarter, those from silver, 43.7%, of its turnover (CA), the rest being from palladium and cobalt. WPM produced between January and March 171,400 troy ounces of gold equivalent, i.e. 10% less than a year earlier. This figure revolves around 79,000 ounces of gold (+0.7%), 6.2 million ounces of silver (-8.3%), 4,500 ounces of palladium and 234 million pounds of cobalt. Here, 166,000 ounces of gold equivalent were sold (-3.6% a year), for a turnover of 307.2 million dollars (-5.2%). Fixed net income was $ 158 million, or $ 0.35 per share. Both numbers are consistent with forecasts; WPM has further confirmed its production forecast of 700,000-760,000 equivalent ounces of gold for this year (2020: 750,000). The Salobo copper mine (Brazil), managed by Vale, produced 4% less gold in the quarter; the heavy rain caused landslides there. In Antamina (Peru), grades were geared downwards and in Sudbury (Canada), the blockage of a shaft forced the management to temporarily close part of the mine. In Constancia (Peru), on the other hand, grades rose and more minerals were processed. He estimates that the share of gold in the group’s turnover will gradually increase to 53%, while silver will decrease to 38%. WPM concluded several streaming contracts in the 1st quarter, specifically within the framework of the Goose (gold) projects, in the Canadian province of Nunavut (operator: Sabina Gold & Silver), and Curipamba (gold and silver), in Ecuador (Adventus Mining). The contract with Aris Gold has been changed: WPM can now claim 10.5% of the gold proceeds and 100% of the silver proceeds from the Marmato project; in return, its investment will increase from 110 to 175 million dollars. The Marathon (Ontario) project will produce, in addition to gold, a small amount of platinum. a line of credit of 2 billion. It allows an at-the-market (ATM) program to issue, if necessary, $ 300 million of new shares. Its operating cash flow has reached $ 210.5 million and its stake in other mining companies is worth more than $ 90 million. The quarterly dividend is set, per share, at 30% of average operating cash flow for the past four quarters, with a minimum of $ 0.15 starting this year. However, there was not much to complain about the results of WPM’s operations in the first quarter, and forecasts were maintained. We remain fans of its streaming model. WPM has many new projects in the pipeline and is financially sound. The pullback provides a (additional) purchase window.Hint: BuyRisk: MediumRating: 1BPrice: $ 42.79Ticker: WPM USISIN Code: CA8283361076Market: NYSECCapit. market: 20 billion USDC/B 2021: 33C/B expected 2022: 29Perf. course for 12 months: -3%Perf. share price since 01/01: +2% Dividend yield: 1.6%

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