Wheaton Precious Metals - Guidance changes already anticipated

Underlying net earnings in Q222 were 4.4% above our forecasts. In general terms, Wheaton Precious Metals (WPM) produced 162,569 gold equivalent ounces (GEOs) during the quarter, which was 4.0% below our prior forecast, but sold 170,371 GEOs (which was 11.6% above) as a result of a 27,412 GEO draw down in the number of ounces produced but not yet delivered. Although WPM reduced its output guidance for FY22 as a consequence of lower production at Salobo and Stillwater and the sale of its Keno Hill stream, this was only to levels that Edison had already broadly anticipated in its last note (681.5koz GEOs cf updated guidance of 640–680koz GEOs). Given intervening precious metals price movements, this has actually resulted in us modestly increasing our financial forecasts for FY22.