Wheaton Precious Metals - Barely missing a beat

Although below the levels of Q1 – unsurprisingly, given the emergence of the worst manifestations of the coronavirus during the quarter – Wheaton’s Q2 results were nevertheless materially above our expectations, as all six of its partners’ disrupted operations returned to production, to a greater or lesser extent, during the period. As a result, EPS that was almost identical to Q120 (which was largely unaffected by COVID-19). In conjunction with the strength of precious metals since our last note, this has caused us to upgrade our EPS forecasts for both FY20 and FY21 by 40% and 58%, respectively.