08:18 AM EDT, 08/27/2021 (MT Newswires) -- RBC Capital Markets said Friday that Wheaton Precious Metals Corp. (WPM.TO) is well-positioned to pursue acquisitions and pay down debt given its strong operating margins and limited outstanding capital commitments.
RBC gave WPM an outperform rating and a price target of $50.00, reflecting its view about the company's low-cost, long-duration portfolio as a key differentiator and more attractive valuation.
RBC noted that WPM's offshore tax dispute with the CRA was settled in December 2018, and the company's quarterly dividend is linked to 30% of operating cash flows.
On the ESG side, RBC said WPM has a minimal direct environmental footprint and integrates the International Council on Mining and Metals' 10 Principles of Sustainable Development into its business planning and relationships with operating partners.
ESG sensitivity under WPM's portfolio is related to Barrick Gold Corp. (ABX.TO)'s Pascua-Lama mine in Chile and Argentina, where Barrick is facing legal challenges related to local river contamination and an inadequate evaluation of Andean glacier
impact. Construction was previously halted.
RBC also flagged Hudbay Minerals Inc. (HBM.TO)'s Rosemont mine in Nevada that is also under WPM's portfolio, as Hudbay's ability to advance project construction has been challenged by environmental and water consideration which has impacted permitting.
RBC said 20% of WPM's board is represented by women and 0% at the management level. WPM aims to have women comprise 30% of its board by 2024.
Price: 54.96, Change: -0.03, Percent Change: