Wheaton Precious Metals stands tall as one of the world's leading precious metals streaming giants, holding third in British Columbia, Canada. Wheaton engages in formal contracts to buy a portion or the entire output from top-tier mining ventures. They've forged streaming agreements with 24 active mines through collaborations with 17 distinct mining entities, fostering eight up-and-coming projects.
Wheaton aspires to be the globe's top choice for precious metals investors, ensuring a secure, high-caliber investment pathway for its stakeholders. Through streaming, the company capitalizes on silver, gold, palladium, and cobalt yields from mines they don't directly own or run.
Think of precious metals streaming entities as a niche within the broader mining realm. These firms resemble conventional mining outfits but are often perceived as a safer bet. Instead of direct mining, streaming firms operate on a model akin to a lease. They front an initial sum to secure a predefined chunk of a mine's forthcoming profits.
In this setup, streaming entities consistently compensate the mining company, typically at rates much lower than the prevailing market value for the metal. Interestingly, the stock value of these streaming companies tends to lag behind the surge in actual gold and silver market prices.
Wheaton aims to provide stakeholders and partners unmatched value, offering them a safer, diverse gateway to precious metals investments. Their approach seeks to enhance shareholder returns by securing new metal streams, boosting potential dividends, and intensifying exploration of mining activities within their existing contracts. Wheaton's edge lies in forecasting operational costs, which brings benefits to you and trims down the usual risks associated with conventional mining ventures.
Precious metals such as gold and silver have historically been associated with affluence but also present remarkable investment trading prospects. Although not the biggest in the streaming domain, Wheaton boasts a Market Cap of $20.099 billion as of 2021, having its footprint on the New York Stock Exchange.
Between July 2020 and 2021, the stock displayed considerable fluctuations, ranging from $34.85 per share to a peak of $57.89, with an average daily trading volume of 2,054,300. It's essential to consider the global COVID-19 crisis, which is speculated to influence some of this instability.
In the last quarter of 2020, Wheaton reported earnings of $286.21 million, marking an over 28% rise from the prior year. The initial quarter of 2021 saw their gold output at 178,801 gold equivalent ounces (GEOs), slightly down from 186,027 GEOs the previous year. On March 11, 2021, a dividend increase of 30% was declared by Wheaton's directors, positioning it at $0.13 per common share.
Financial experts forecast Wheaton's Q2 2021 revenue to touch $331.99 million, potentially indicating a 32.6% average earnings jump from 2021's corresponding quarter. Projections for their 2021 annual revenue suggest a surge of over 23%, hitting around $1.35 billion. Skilled market observers closely scrutinize stock earnings, and the prevailing consensus from Wall Street sets a target for Wheaton's shares at a promising $60.45 each.
On a scale from 1.00 (advising to sell) to 5.00 (suggesting a buy) for stock ratings, Wheaton Precious Metals has been rated a solid 5.00 by 15 out of 18 analysts, translating to a hearty "buy" recommendation.
For a business to secure a robust future, it needs what's commonly called a formidable "moat." This moat refers to a company's capacity to uphold its competitive edge over rivals in the long run, shielding its revenue and market presence. Central to crafting such a moat is an innovative business strategy. Though Wheaton Precious Metals' approach isn't the only one in the mining realm, it boasts distinct aspects that set it apart.
Wheaton possesses invaluable assets, like a trusted brand name and exclusive mining agreements. These not only place them ahead of many competitors but also allow them to offer you streaming solutions at more affordable rates than most of their market peers.
Armed with a geological engineering degree from the University of British Columbia, Smallwood further sharpened his expertise with a mine engineering certificate from the British Columbia Institute of Technology. His leadership roles extend beyond academia; he's been a pivotal figure on Defiance Silver Corp, Ventana Gold, and Castle Peak Resources boards. Notably, Smallwood chairs the World Gold Council. His accolades include the Distinguished Alumni Award from the British Columbia Institute of Technology and, in 2019, the prestigious BC CEO of the Year Award in the enterprise sector by Business in Vancouver.
Before transitioning to Westcoast Energy and later Duke Energy Gas Transmission, Bernardi offered his legal expertise at the Blake, Cassels & Graydon law firm. In 2005, his leadership journey led him to become the Director of Union Gas. His achievements were crowned in 2015 when he clinched the Western Canada General Counsel Award for Deal Making. Academically, Bernardi boasts a Bachelor of Commerce from the University of British Columbia and a Law degree from the University of Toronto.
Brown held the esteemed role of Chief Financial Officer at TIR Systems Ltd. and has professional experiences with Westcoast Energy Inc. and Creo Inc. He proudly carries the titles of a Chartered Professional Accountant and a Chartered Financial Analyst. Additionally, Brown pursued and obtained his Master's in Accounting from the renowned University of Waterloo.
Holtby currently leads as the President and CEO of Holtby Capital Corporation. Previously, he held the prestigious roles of President, CEO, and director at WIC Western International Communications Ltd. He's been at the helm of Canadian Satellite Communications Inc. as its Chairman and presided over Allarcom Pay Television Limited.
Wheaton Precious Metals proudly maintains streaming contracts with 24 active mines, partnering with 17 distinct mining firms and engaging in eight upcoming projects. Presently, they hold streaming purchase agreements spanning silver, gold, palladium, and cobalt from these operational mines:
Coleman, Copper Cliff, Creighton, Garson, Totten, and Voisey's Bay
In addition, Wheaton is also expanding its streaming interests, focusing on developmental projects in silver, gold, palladium, and cobalt with the following mines:
In 1900, an ounce of gold was priced at $20.68. Fast forward to 2021, its value soared to $1,769.64. This signifies an impressive 84 times growth in your original investment. Let's juxtapose this with the stock trajectory of Wheaton Precious Metals: They launched at $3.25 per share on July 1, 2005, and by July 20, 2021, each share stood at $43.31. This means a potential 13 times uplift in your initial investment.
Numerous precious metals find their place on renowned stock exchanges, including the New York Mercantile Commodity Exchange (COMEX) and the London Metal Exchange (LME). These metals also witness trading directly through their producers, with prices often influenced by the producers or related trade bodies. It's noteworthy that certain rare metals, due to their exclusivity, may not be available for public trading, requiring direct dealings with the producing entity.
An essential point to grasp is that a streaming company's share price doesn't mirror the actual value of the precious metals. Instead, it reflects the financial market's anticipation of its future performance, much like other stocks.
Wheaton prioritizes fostering a work culture grounded in diversity, safety, and respect. Every staff member and executive enjoys equal treatment, regardless of gender, age, color, beliefs, sexual orientation, marital status, or ethnic background. We're steadfast in our dedication to building a workspace that values diversity, as it enhances our operational efficiency. Career prospects and advancements at Wheaton are rooted in individual capability and contribution, from recruitment and training to promotions, remuneration, and exit processes.
Despite mining frequently posing ecological challenges, Wheaton seeks to minimize its environmental impact by aspiring to achieve carbon neutrality. We consistently share our greenhouse gas emissions and climate change data through the Carbon Disclosure Project. Moreover, our sustainability documentation aligns with the Task Force on Climate-related Financial Disclosures (TCFD) guidelines.
Wheaton recognizes the significant role mining and energy play in influencing the climate. Hence, it remains a focal point of our attention. We understand that evaluating climate-linked threats is pivotal to our mining streaming endeavors. This is why we conduct rigorous assessments for potential risks in our mining agreements. Through diligent strategies, we counteract the environmental repercussions of climate-centric business shifts, making essential policy adjustments when deemed fit. Our approach entails leveraging various techniques to pinpoint immediate and distant climate threats before forging new contracts.
Managing waste is a persistent environmental issue in mining, both locally and globally. After extracting precious metals from raw ore, the residual waste, known as tailings, demands meticulous disposal. This is crucial given their long-standing risks to water sources and land through potential toxicity. Wheaton adopts a robust stance on waste management, conducting studies to ensure that any probable design flaws or pitfalls at tailing sites are promptly identified and tackled by both internal and third-party specialists.
Being positively affiliated with the Canadian Mining Association and showcasing an impressive daily trade of over two million shares on the NYSE, along with a robust market valuation of over $20 billion, it's clear that Wheaton Precious Metals stands as a legitimate entity. It's natural for Wheaton's share prices to ebb and flow, just as any other company that isn't tethered to a governmental body, like utility firms. Wheaton might be your ticket to a fruitful investment journey for those ready to navigate the inherent risks of stock purchases.
There are roughly 15 precious metals streaming firms in the mining sector, yet Wheaton Precious Metals emerges as one of the frontrunners when considering its financial health and industry accolades. Forecasts from independent experts suggest Wheaton might surpass its 2021 projections soon.
Though Wheaton Precious Metals presents itself as a dependable investment opportunity, remember that the profitability and revenues of any firm can swing dramatically yearly and even quarterly. It's always crucial for you to do thorough research before diving into any stock investment.
Michael "Mike" Goldstein, CFP®, ChFC®, is the Founder and CEO of SecureGold Financial Advisors. With over 20 years in the financial industry, Mike specializes in Gold IRAs and precious metal investments. Inspired by his family's history and the financial wisdom of his grandfather, Mike is passionate about helping individuals secure their retirement through stable and guaranteed assets. A Certified Financial Planner™ and Chartered Financial Consultant®, he's a trusted voice in the financial community.