Wheaton Precious Metals Is Ready To Reap Years Of Investment: Analyst

Core Viewpoint - Wheaton Precious Metals Corp. is expected to experience significant growth in gold equivalent ounces production due to earlier streaming investments, with key projects like Blackwater, Copper World, and Salobo driving this expansion through the end of the decade [1]. Group 1: Analyst Upgrades and Price Forecasts - RBC Capital Markets analyst Josh Wolfson upgraded Wheaton Precious Metals to Outperform from Sector Perform and increased the price forecast to $130 from $115 [2]. - The upgrade follows RBC's revised precious metals assumptions, indicating a more favorable environment for royalty and streaming companies after a sector-wide valuation reset [3]. Group 2: Growth Projections - Wolfson anticipates that Wheaton's existing stream deals will lead to clear production growth starting in 2026, with consistent annual increases projected from 2027 through 2031 without the need for additional investment [5]. - The estimated production for 2025 is 655,000 gold equivalent ounces, with a projected growth of over 45% by 2030, marking the strongest growth profile among large-cap royalty peers [5]. Group 3: Revenue and Asset Contributions - Wheaton's revenue mix is expected to benefit from rising silver prices, with approximately 37% of revenue linked to silver [6]. - Salobo is identified as the cornerstone asset, contributing around 38% of net asset value and EBITDA, with steady performance anticipated in 2026 [7]. Group 4: Project Pipeline - A diverse pipeline of projects is highlighted, including Blackwater, Copper World, El Domo, Fenix, Kone, Kurmuk, Platreef, Santo Domingo, and Spring Valley, as they progress through development and ramp-up phases [8]. Group 5: Valuation Metrics - Wolfson's price target of $130 is based on a 2.4x risk-weighted net asset value using a long-term gold price of $3,000 per ounce, alongside 24x projected sustainable free cash flow for 2025–2027 [9]. - Potential upside to $170 is noted at a $5,000 per ounce long-term gold price, with a downside to $85 at $2,500 per ounce [9].