Wheaton Precious Metals' shares have lost nearly 10% over the past month, and are down nearly 25% year-to-date. The mining company's valuation has not been helped by declines in gold and silver prices, which are losing in an environment of a strong dollar and rising yields:
- Wheaton Precious Metals' revenue fell 8% year-on-year to about $303 million in the second quarter of the year. The decline in revenue was mostly driven by lower production at the Stilwater and Salobo gold mines;
- The company lowered its production forecasts for the full year 2022, now expecting to produce an order of 640 to 680,000 ounces of gold versus 700 to 760,000 previously;
- At the end of Q2, the company had a cash position of $449 million in USD and equivalents. The company has no debt;
- Silver sales account for more than 40% of the company's revenues versus 52% of revenues from gold sales, making quotations sensitive to price quotations for both metals;
- Silver bullion prices have fallen nearly 20% since the beginning of the year. Markets are expecting further rate hikes, which could make precious metal listings fall even further;
- Analyst firm Trefis expects bullion prices to rise once global macroeconomic and political stability is achieved.
Wheaton Precious Metals (WPM.US) stock chart, H4 interval. The stock price has negated the temporary gains of February and March and is moving in a strong downtrend. The recent 'higher low' printed by the price may herald a bullish attack on key resistance near the 200-session average, which coincides with the 23.6 Fibonacci retracement and runs around $35. Source: xStation5
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