Wheaton Precious Metals Corp (LSE: WPM)

Wheaton Precious Metals Corp (LSE: WPM) is an FTSE listed, headquartered in Canada, operates as a precious metals streaming company. It enters into strategic agreements with mining firms to obtain rights to a share of their future precious metal output. This report covers the key recommendation rationale and conclusion for the stock.

Key Recommendation Rationale – Sell at GBX 7,120.00

• Resistance near Current levels: WPM’s stock price has breached Resistance (R1) which was stated in the previous report on 16 April 2025 therefore, there can be a possibility of a decline from resistance levels. Considering the market conditions and the price action, it is prudent to exit the stock.
• Decline in Palladium and Silver Production Volumes: While gold production remained relatively stable, the company reported a 13.7% drop in silver production and a notable 40.4% decline in palladium output during Q1 FY25 compared to Q1 FY24. This reduction may reflect operational challenges at specific mines or changing ore compositions, potentially limiting diversification benefits in the near term.
• Slight Increase in Cash Costs Per GEO - The average cash cost per gold equivalent ounce rose from $433 to $446 year-over-year in Q1 FY25. Though modest, this upward shift in production costs, if sustained or exacerbated, could put pressure on margins, especially in the event of softening commodity prices or unexpected disruptions.

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

WPM Daily Technical Chart, Source - Refinitiv 

Conclusion

WPM is expected to trade at a discount, considering the Decline in Palladium and Silver Production Volumes and fears of global slowdown. For conducting the valuation, the following peers have been considered Endeavour Mining PLC (LSE: EDV), Serabi Gold PLC (LSE: SRB) and others.

Given its current trading levels, Slight Increase in Cash Costs Per GEO, recent rally in the share price, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current Market Price of GBX 7,120.00 as of 23 July 2025 at 10:40 AM GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 23 July 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.