Wheaton Precious Metals Stock To Retain Strength In 2022

-28.33%
Downside
56.41
Market
40.43
Trefis
WPM: Wheaton Precious Metals logo
WPM
Wheaton Precious Metals

The shares of Wheaton Precious Metals (NYSE: WPM) continued to trend upward as the strength in commodity prices and macroeconomic doldrums reigned in 2021. Wheaton Precious Metals is a precious metals streaming company and has long-term purchase agreements with 21 different mining operators. In 2021, the company reported 663.4 thousand gold equivalent ounces of sales at an average price of $1,811/ounce. With gold futures retaining strength from the recent move by Russia to peg its currency to gold, Trefis believes that WPM stock is unlikely to observe a significant downside in the near-term. Trefis highlights the historical trends in Wheaton Precious Metals’ revenues across key operating segments in an interactive dashboard analysis.

How did Wheaton Precious Metals perform in 2021?

In 2021, Wheaton Precious Metals reported a 10% (y-o-y) growth in total revenues, largely assisted by the strength in silver prices and higher production. The coronavirus pandemic lifted the prices of precious metals in the past two years as the prolonged downturn led to expectations of slow macroeconomic recovery. Per annual filings, gold, silver, palladium, and cobalt sales account for 47%, 48%, 4%, and 1% of total revenues, respectively.  Geographically, North America, Europe, and South America contribute 41%, 7%, and 52% of total revenues, respectively. In 2021, the company generated $845 million of cash from operations, invested $520 million in mineral stream interests, paid $218 million in dividends, and repaid $195 million of long-term debt.

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Stock Has Moved In-Line With Broader Markets

WPM stock declined from levels of around $33 in February 2020 (pre-crisis peak) to levels of around $24 in March 2020 (as the markets bottomed out), implying WPM stock lost just 27% from its approximate pre-crisis peak. It observed a strong rally post the broader market sell-off and has reached $48 at present. In comparison, the S&P 500 Index first fell 34% as lockdowns were imposed in many countries and has also doubled in value. (related: Is Freeport-McMoRan Stock A Buy?)

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 Returns Apr 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 WPM Return 1% 12% 149%
 S&P 500 Return 0% -5% 102%
 Trefis Multi-Strategy Portfolio 0% -8% 262%

[1] Month-to-date and year-to-date as of 4/7/2022
[2] Cumulative total returns since the end of 2016

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