Wheaton Precious Metals Corp (TSE:WPM, NYSE:WPM) shares surged on Thursday in light of Cameco Corporation's (TSE:CCO, NYSE:CCJ) favourable tax ruling, which could create enhanced opportunity for the silver streaming company's tax settlement, according to Scotiabank analyst Trevor Turnbull.
Shares of Wheaton Precious Metals were up 4.8% at C$22.74 in Toronto and up 4.7% at US$17.45 in New York.
Shares of uranium titan Cameco Corporation jumped today after the Tax Court of Canada ruled in the company's favor in a dispute with the Canada Revenue Agency (CRA) over the 2003, 2005 and 2006 tax years.
Shares of Cameco rocketed up 16.7% at C$14.93 in Toronto and up 16.6% at US$11.46 in New York.
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, according to a report from Bloomberg's First Word.
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.
It's reported that 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.