Bill Cara

Cara Community GSM 50: Wheaton Prec. Metals

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