Underlying net earnings for Wheaton Precious Metals (WPM) in Q222 were 4.4% above Edison Group’s forecasts. 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. Given intervening precious metals price movements, this has actually resulted in Edison modestly increasing its financial forecasts for FY22. If precious metals return to favour, then Edison believes that a near-term C$74.79 per share valuation is possible with current valuation and share price at C$56.89 and C$42.99 respectively.
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