Wheaton Precious Metals (NYSE: WPM) is one of the world's largest metals streaming companies, with a primary focus on the gold and silver mining sectors. The leader in this sector is Franco-Nevada Corporation (FNV), which has a market capitalization of $24.24 billion.
However, Wheaton Precious Metals is gaining momentum and now has a market capitalization of $24.41 billion, which is comparable to Franco-Nevada's.
Company situation
Wheaton Precious Metals currently has streaming deals with 18 operating tenements and has a further 27 projects under development. These proceeds are derived from upfront payments and further payments upon delivery of the metal.
Since its inception in 2004 as Silver Wheaton Corp., the company has grown rapidly.
Pamm行情走势 图源——Biape
It should be noted that competition is intensifying in this space, with around 20 streaming companies already available. As a result, Wheaton may need to supplement its organic growth with acquisitions of a number of smaller streaming companies that have entered into high-quality deals that could have an immediate positive impact on Wheaton's financials.
In addition, it is worth mentioning that although Wheaton Precious Metals has a market capitalization of $24.03 billion, the company as a whole has only 41 employees spread across two offices. In stark contrast, Agnico Eagle Mines Limited, which has a market capitalization of $32.441 billion and 15,875 employees.
It was not easy for Wheaton to achieve so much with such a lean team.
Financial Condition and First Quarter 2024 Results
Today, we're going to take a quick look back at Wheaton Precious Metals' recently announced first-quarter financial results. As an investor in this company, here's a summary of some metrics that I think are important.
Starting with President and CEO Randy Smallwood, he spoke highly of the company's performance at the start of the year:
"Wheaton delivered a strong quarter, generating more than $219 million in operating cash flow, underscoring the effectiveness of our business model in capitalizing on rising commodity prices while maintaining strong cash operating margins."
Looking ahead, they expect to achieve 40% production growth by 2028 and complete eight acquisitions in 2023, demonstrating their aggressive strategy in finding new opportunities and closing deals. They forecast annual production of more than 800,000 gold equivalent ounces ("GEOs") by 2028. At today's gold price of US$2,350 per ounce, 800,000 ounces of production would generate a turnover of about US$1.88 billion, which is a pretty good result.
As an investor, I am pleased to see that the Company has declared a quarterly dividend of $0.155 per common share in accordance with guidelines. Considering their current cash position of $306 million, debt-free, and a revolving credit facility of $2 billion, I believe we can expect a future of growth and profitability.
I would also like to point out that the company's reported average cash cost in the first quarter of 2024 has decreased to $430 per GEO from $475 in the first quarter of 2023, which is another step in the right direction. Finally, let's look at their earnings per share of $0.362 for the first quarter of 2024 and $0.246 for the first quarter of 2023, again showing positive improvement.
Wheaton Precious Metals has a market cap of $24.24 billion, a price-to-earnings ratio (TTM) of 46.07 and earnings per share (TTM) of 1.18. To put it forward, it has a price-to-earnings ratio (FWD) of 42.94 and earnings per share (FWD) of 1.25. It is important to note that these numbers change daily, and Wheaton Precious Metals pays dividends on a regular basis if entering the investment is considered, which increases its attractiveness to potential investors.
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The average traded share on any given day is 2,307,660, providing enough liquidity for most speculators to easily open and close positions on this stock. Xiaobian believes that we can choose a more credible brokerage for investment, such as Charles Schwab, a world-renowned investment brokerage, you can get a bank account with the same name when you open an account, deposit digital currency (USDT) to the multi-asset wallet BiyaPay, and then withdraw fiat currency to Schwab to invest in U.S. stocks.
The U.S. stock market is changing rapidly, and we can search for its symbol WPM on the platform to understand the stock price changes in real time, and choose to buy or sell at the right time according to our investment strategy.
The 52-week trading range ranged from a low of $38.37 to a high of $54.47, so we need to be prepared for considerable volatility. It should also be noted that they buy metals at a fixed delivery price, so any increase in the price of metals will immediately boost turnover and profits.
A quick look at SA Quants shows that Wheaton is ranked 112/283 in the industry and 24/44 in the industry, which is basically in the midstream level, so be careful at this point.
As this bull market in precious metals unfolds, volatility will be the norm given the many factors that affect the price of gold and silver. Therefore, we should be prepared for large fluctuations in the share price of this company.
Over the past 52-week period, the low-to-high has risen by about 42%, so the share price could halve or double in a year.
快速了解 Wheaton Precious Metals 的股价走势
Wheaton Precious Metals' share price chart shows a double top pattern that could trigger a major rally if WPM can break above the current resistance level.
According to Bob Kirtley's (Stockcharts) technical analysis, Wheaton Precious Metals' progress chart shows that while the Relative Strength Index (RSI) remains high, it has not reached the overbought level of 70.
Both the Moving Average Convergence Divergence (MACD) and the Stochastic Oscillator (STO) are at high levels, suggesting that stock prices are likely to remain sideways in the near term.
同时，还对比了 Wheaton Precious Metals 与 Franco-Nevada Corp 和 Sandstorm Gold Ltd 的图表，以便更直观地观察其表现。
Wheaton Precious Metals 与同类股票的对比（Google Finance）
The chart shows the year-to-date performance of three similar stocks in the gold and silver space. They show a downward trend until March 2024, followed by a market reversal and recovery. This reversal is mainly attributed to the rise in the prices of basic commodities such as gold and silver.
For example, the price of gold in March was $2,000 per ounce, and today the price has risen to $2,331 per ounce, an increase of 16%. During the same period, the price of silver rose from $22 to $28 an ounce, an increase of 27%.
The three stocks mentioned above rose slightly less than physical gold and silver, which was a surprise to me, as I had expected them to outperform physical metals. As readers know, patience is an aspect that is hard for me to grasp, and maybe these stocks are only slightly behind at the moment and could see even bigger gains in the future.
conclusion
Wheaton Precious Metals has established itself as the preferred streaming company in the precious metals space and expects to benefit significantly from increased profits and capital appreciation in the near to medium term.
The company's main source of earnings is, of course, fundamental commodities such as gold and silver, which are currently performing well. Through relentless trading efforts, the once-small silver streaming company has become a leader in this segment.
The precious metals market is highly volatile and the underlying stocks can experience wild swings, so be prepared for an intense and exciting experience.
文章来源：seeking alpha
编辑:BiyaPay 财经