Loading ...Wheaton Precious Metals +5% as Cameco tax ruling seen as a positive
Wheaton Precious Metals (WPM +4.6%) surges in early trading as Cameco’s (CCJ +16.5%) favorable tax ruling is seen creating enhanced opportunity for WPM’s tax settlement.
Scotiabank analyst Trevor Turnbull says WPM has a very strong fact set and foresees a greater opportunity for a settlement in light of the CCJ outcome.
Turnbull notes the Canada Revenue Agency disputed aspects of CCJ’s foreign subsidiary, whereas it has not made any issue of WPM’s Cayman Island structure and subsidiary.
WPM’s appeal of the CRA reassessment is scheduled to begin in mid-September 2019, with a ruling likely to take up to a year following the trial.
Source: Bloomberg First Word