Wheaton Precious Metals - Q320 earnings expectation refinements

Ahead of Wheaton’s (WPM’s) Q320 results, which are scheduled to be released on 9 November, we have refined our quarterly forecasts for the remainder of the year to take into account both updated precious metals prices and also the apparent delays in hitherto furloughed mines returning to pre-coronavirus levels of production. As a result, we have reduced our silver and gold production forecasts for Q320 by 11.0% and 5.1%, respectively, and our EPS forecast by 2.6c per share (or 7.5%), although this follows a 40% uplift in our forecasts after the Q220 results were announced in August. As a result, our FY20 forecast still remains close to the middle of the range of analysts’ expectations (see Exhibit 2). Our FY21 and longer-term forecasts remain, to all intents and purposes, intact however, as does our valuation.