Yahoo Finance·2026-01-04 18:28Core Viewpoint - Wheaton Precious Metals has an ideal business model in the precious metals industry, holding a growing portfolio of streaming contracts that allow it to purchase metals at low rates and benefit from higher market prices [1]. Company Overview - Wheaton Precious Metals provides mining companies with capital through streaming contracts, paying a fixed up-front fee for the right to buy a portion of the gold or silver produced at a fixed rate [4]. - The company has streams tied to 23 operating mines and 25 additional projects, expecting to produce 600,000 to 670,000 gold equivalent ounces (GEOs) in 2025, with growth projected to 870,000 GEOs by 2029 and an average of 950,000 GEOs annually from 2030 to 2034 [5]. Financial Metrics - Wheaton Precious Metals can purchase gold and silver at an average cost of $473 and $5.75 per ounce, respectively, through 2029 [5]. - The company's streams generate significant cash flow, which is reinvested into new streams and used to pay a sustainable and progressive dividend [5]. Comparison with Competitors - Franco-Nevada is preferred over Wheaton Precious Metals due to its larger and more diversified portfolio, consisting of 434 assets, including 120 producing and 38 in advanced stages [6]. - Franco-Nevada's diversification across various metals and energy sectors makes it a lower-risk investment in precious metals compared to Wheaton Precious Metals [7].