Wheaton (WPM) Meets '21 Production Forecast, Issues Guidance
Wheaton Precious Metals Corp. WPM declared that its 2021 gold equivalent ounces production met the guidance. The company also provided a long-term production forecast reflecting its constant focus on diversification of asset base by acquiring additional streams.
Wheaton’s GEOs production came in at 750,220 in 2021, surpassing the midpoint of its guidance range of 735,000-765,000. Stronger-than-anticipated production from the Peñasquito, Antamina, Constancia and Voisey's Bay mines contributed to this result. These mines exceeded the company’s attributable production forecast for 2021 due to higher recoveries at Peñasquito, higher grades at Antamina and Constancia as well as higher production at Voisey's Bay. These were partly offset by weaker production from Salobo and Sudbury mines, owing to lower throughput and grades. In 2021, Wheaton produced 342,546 ounces of gold, 25,801 ounces of silver and 49,324 ounces of other metals, each within its respective guidance.
For the current year, GEO production will remain the same compared with 2021 levels as higher attributable production from Constancia, Salobo, Sudbury and Keno Hill mines are expected to be offset by lower production from Antamina, Voisey’s Bay and 777. The Constancia mine will continue to benefit from higher grades on mining of the Pampacancha deposit, while Salobo will gain from the start-up of the Salobo III mine expansion in the latter part of 2022. Resumption of mining operations at the Totten mine and continued ramp-up of operations will contribute to higher production for Sudbury and Keno Hill mines, respectively.
Wheaton is focused on adding more production capacity from high-quality accretive metals. Its business model focuses on reducing risk while leveraging higher commodity prices. The company remains active on the corporate development front and focused on growing a high-quality portfolio of assets. Wheaton added five additional streams in 2021, which will contribute to its organic growth over the next five years.
Average estimated production over the next five years period is expected to increase to 850,000 GEOs, backed by continued production growth from Salobo, Stillwater, Constancia, Voisey's Bay and Marmato as well as incremental production ounces from Blackwater, Fenix, Marathon, Toroparu, Rosemont and Santo Domingo toward the later end of the forecasted time frame. The average production forecast for the next ten years is estimated at 900,000 GEOs, considering additional incremental production from the Kutcho project and the Victor mine in Sudbury.
Price Performance
Wheaton’s shares have declined 0.6% in the past year against the industry’s growth of 3.3%
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Wheaton currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Commercial Metals Company CMC, Haynes International, Inc. HAYN and AdvanSix Inc. ASIX. While CMC and HAYN sport a Zacks Rank #1 (Strong Buy), ASIX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals has an expected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC’s current-year earnings has been revised 40% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average being 13.13%. CMC has gained 73% over a year.
Haynes has an expected earnings growth rate of 395.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal 2022 earnings has been revised 128% upward in the past 60 days.
Haynes’ bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 116.8%. HAYN has rallied 67% over a year.
AdvanSix has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for current-year earnings has moved 5.3% north in the past 60 days.
AdvanSix’s bottom line beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 47%. ASIX has soared 83% over a year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Commercial Metals Company (CMC) : Free Stock Analysis Report
Haynes International, Inc. (HAYN) : Free Stock Analysis Report
AdvanSix (ASIX) : Free Stock Analysis Report
Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
