Wheaton Precious Metals (TSX: WPM) (NYSE: WPM) reviewed 10-03-2020
Market Cap: $22 B (USD)
Share Price: $48.97 (USD)
Shares outstanding: 447,207,000
Cash and cash equivalents: $131.76 M (USD)
Debt: $640.5 M (USD)
Credit facility: Details unknown
Current operations: Streaming royalties
Insider holdings: Low
Institutional: 711 hold 65%
Website: wheatonpm.com
Investor Presentations: https://www.wheatonpm.com/Investors/presentations/default.aspx
President & CEO: Randy Smallwood
Royalty streamer with 14 primary streams, globally distributed, representing approx. 20 mines. Additional projects in development
Gold is about 55%, silver about 45% of revenue. To a much lesser extent, palladium, and cobalt
Streaming agreements include many highly respected mining companies including First Majestic, Barrick, Glencore, Eldorado Gold, HudBay, Vale, & Sibanye. Visit website to view the Guidebook for details on individual streams
2019 cash-flow was $500 M with $160 M paid in dividends
Dividend is 0.40 cents with a current yield of 0.80%
Bottom line:
- Cash costs for Au have averaged $395-420 past four years. Silver averaged about $4.50-5.00
- Given the rise in price for both metals this year, a dividend increase may be expected
- Like all royalty streaming companies, the debt to cash ratio is high, but these are non-operating companies that are cash machines
- Co-founder/CEO Randy Smallwood is highly respected in the industry
I personally own WPM with a portfolio weighting of +2.42%, which is to be expanded. My only royalty company investment