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Wheaton Precious Metals shares boosted on back of Cameco tax ruling

A favourable tax ruling for uranium produce Cameco is creating an opportunity for Wheaton Precious Metals, according to a Scotiabank analyst

silver and gold
Wheaton Precious Metals operates as a silver and gold streaming company in Canada and internationally.

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.

READ: Cameco shares pop after favorable Canada tax ruling

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.

Quick facts: Wheaton Precious Metals

Price: 41.65 CAD

TSX:WPM
Market: TSX
Market Cap: $18.63 billion
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