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

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• 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.