Impacts Of OECD's Global Minimum Tax: Analyst Downgrades Wheaton Precious Metals

RBC Capital Markets analyst Josh Wolfson downgraded Wheaton Precious Metals Corp WPM to Sector Perform from Outperform at a decreased price target of $45 (prior $50).
The analyst is bearish on the approaching introduction of OECD's global minimum tax, expected on Jan 1, 2024.
Wolfson expects the OECD's global minimum tax rate to materially impact offshore mine streaming by large Canadian companies, which have been enjoying zero tax benefits.
Nevertheless, the analyst is upbeat on WPM's five-year guidance for average output of 810kGEO for 2023–2027, including 600–660kGEO in 2023.
Wolfson believes the growth, over the five years, will be aided by Salobo III, Voisey's Bay underground, and enhanced Antamina output.
Consequently, the analyst raised the estimate for adjusted EPS to $1.09 (vs $1.03 earlier) for 2023, $0.96 (vs $0.80 previously) for 2024 and $1.01 (vs $0.87 earlier) for 2025.
However, Wolfson notes uncertainty related to the upside at Marmato's lower expansion and development of Copper World, Blackwater, Toroparu, Santo Domingo and Marathon assets. Thus, he estimates five-year average production at 11% below the company's guidance.
Price Action: WPM shares are trading lower by 3.10% at $46.31 on the last check Tuesday.

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