#4 - Wheaton Precious Metals (NYSE:WPM)
Wheaton Precious Metals Corp. (NYSE: WPM) is on this list because of its business model. Wheaton doesn’t have a mining operation. Instead, it finances the mining operations of other companies in exchange for the right to buy some of the mined gold at a pre-determined (and discounted) price per ounce. This provides cost predictability for shareholders. And it’s also reflected in the company’s profit margin of over 60%.
Another benefit of investing in Wheaton is the company’s access to high-quality assets. As of March 2023, the company had 20 active mining projects with 12 additional projects in development. In the company’s March 2023 presentation to shareholders, it announced that 93% of its production “comes from assets that fall in the lowest half of the cost curve.” The company also expects 30 years of mine life based on its proven and probable reserves.
Wheaton has approximately $1 billion in operating cash flows generated at current spot prices. That’s significant for many reasons, including its dividend. Specifically, 30% of the average of the previous four quarters’ operating cash flows is paid to shareholders in the form of a dividend.
About Wheaton Precious Metals
Wheaton Precious Metals Corp. primarily sells precious metals in North America, Europe, and South America. It produces and sells gold, silver, palladium, and cobalt deposits. The company was formerly known as Silver Wheaton Corp. and changed its name to Wheaton Precious Metals Corp. in May 2017. Wheaton Precious Metals Corp.
Read More - Current Price
- $63.40
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 9 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $71.67 (13.0% Upside)
