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Welcome to our Wheaton Precious Metals Review. Bear Lake Gold, an independent firm that evaluates precious metal companies, has created this review to answer many of the common questions potential investors have when considering investing in precious metals through this company. We have conducted extensive research on Wheaton Precious Metals, including speaking with the owner, staff members, managerial team, and clients who have done business with the company.
Our goal is to provide accurate, updated, and impartial information about Wheaton Precious Metals so you can make an informed decision about investing with them. This review will cover critical aspects of the company, including its management team, products, services, and customer ratings from third-party websites. We will also provide our own assessment of the company's suitability, morality, and ethics as a business partner, as well as its competitiveness in the precious metals industry. Please assess our unbiased opinion based on the responses we received during our research process. By the end of this review, you will better understand Wheaton Precious Metals and be able to compare them to other companies in the sector.
In this review, we aim to provide an impartial assessment of Wheaton Precious Metals based on our research and the responses we received from various sources. We will examine the company's management team, products and services, pros and cons, and customer ratings. Also, we will talk about three key questions: Is Wheaton Precious Metals a legitimate company? Is it ethical and moral to do business with them? And how do they compare to other precious metal companies in terms of competitiveness? By the end of this review, you should have a good understanding of Wheaton Precious Metals and whether it is a suitable investment option for you.
As you will see in this review, the impartial standpoint we have formed about this company has its foundations firmly rooted in the responses we got from the people mentioned above when we asked them about Wheaton Precious Metals.
Hence, read on to see our impartial opinion about how suitable, moral, and ethical it is to do business with this company and compare the pros and cons of working with them to working with other companies in the sector. You will also find out how competitive this company is in the precious metal industry.
The details we will provide in this review document will help you understand the core aspects of the company, like its management team, what the company sells, its services, pros and cons, and how various customers have rated them on third-party rating websites.
Fundamentally, we want to use the details in this review document to answer these three investment questions:
After extensive research and interviewing various people associated with the company, we came to the following conclusions.
Please read this document till the end to find out why we made these conclusions about this precious metals company.
Nevertheless, there is still one more question that we need to answer, as stated above, "Which companies would we recommend as the best precious metals & gold IRA investment companies?"
Our principal aim entails giving you information about the precious metals companies we evaluate and providing recommendations for our readers based on extensive research on the best gold IRA companies to invest in for their gold IRAs.
We have carefully evaluated many precious metal firms in the industry and handpicked three companies that we rated the best for your gold IRA investments. These companies are Augusta Precious Metals, Goldco, and American Hartford Gold.
We have also provided the details we found about these companies that have made us rate them as the top three gold IRA companies in the industry in three separate review documents. We are giving out these review documents to our readers free of charge. Just click the relevant buttons below, enter your details, and these documents will be yours in no time. The documents are straightforward, easy to understand, and very detailed. We promise that they will be worth your reading time.
Best Overall Precious Metal Provider
Best Gold IRA Based On Price
Best Gold IRA Based On Price
Wheaton Precious Metals Corp is a renowned streaming precious metals company founded by Peter Derek Barnes in 2004. The company is located in Vancouver, Canada. It sells precious metals and is also involved in precious metals mining and cobalt production. Wheaton Precious Metals Corp is a streaming company that functions in the various segments below.
The precious metal streams that Wheaton Precious Metals focuses on include;
The instabilities in the global economy are pushing many people into gold and silver investment. Many people are starting to save their money by investing in precious metals to shield the value of their money from the effects of economic instability and inflation.
Precious metal investments are not affected by inflation, and their value is intrinsic, with no credit risks.
Primarily, precious metals streaming companies are subsidiary parts of the mining sector. Streaming firms are like traditional mining agencies. However, by comparison, they are considered less precarious investments. The truth is that a streaming company is not directly engaged with direct precious metals mining.
Streaming companies function by entering into a contract that allows them to fund precious metals mining companies so that they can have the rights to some percentages of the future earnings of the mining operations of these companies.
Therefore, in summary, streaming companies finance precious metals mining firms in return for a percentage of these mining firms' income in the future. Hence, there is an agreement or contract between precious metals mining and streaming firms. Based on the contract, the streaming companies can take all the output from the mines or a percentage of the entire production.
Wheaton, as a streaming company in the precious metals mining industry, takes care of some of the costs of some mining firms' operations upfront and then caters to the rest when it receives the commodities from the mining operations.
While precious metals dealers are only sellers of precious metals, precious metals streaming companies are more than just sellers. They are also part of the precious metals mining industry.
For instance, one of the world's most prominent precious metals streaming firms is Wheaton Precious Metals Corp, while Goldco is one of the world's leading precious metals dealers.
Outwardly, these two types of companies may look similar, but they have an inherent difference. The similarity is that both streaming and royalty companies fund gold and silver mining companies to get future payoffs from these firms.
However, streaming and royalty companies differ in their mode of receiving payouts from mining companies. While streaming companies receive payouts in actual physical metals, royalty firms receive theirs from mining companies in a monetary form.
Streaming companies convert the precious metals they get as payoffs to cash or actual money by selling them. They can either sell to dealers or directly to individuals.
The main objective of Wheaton Precious Metals is to stand out as a significant precious metals investment platform globally. When we asked a company staff member how the company intends to achieve this, he said, "Wheaton will become the leading precious metals investment company by offering superior investment mediums with low risk to its stakeholders and investors." According to the person we spoke to, streaming allows the company to leverage and control gold, silver, palladium, and cobalt production via mining, either operated or owned directly.
We deduced while we spoke to the staff team member that Wheaton's objective is to give value to its partners, stakeholders, and investors by providing branched-out opportunities and exposures with low risk to allow them to grow their precious metals investments. From what we also found out about Wheaton's business model, the company wants to increase the investments of its partners and investors by buying new precious metal streams, improving its dividend yield, and expanding the exploration of mining operations via current contracts with mining firms.
We found out that Wheaton could provide all these for its investors and reduce conventional mining firms’ risk by forecasting future operations costs.
We were curious to know how the company works, so we asked another staff team member about the company's business model.
From her response, we learned that the company intends to keep its outlook as a solid long-term investment platform. It plans to maintain a strong competitive edge over other similar companies in the industry. According to the staff, Wheaton Precious Metals wants to keep showing up as a solid long-term business, superior to others in the market, so that it can secure its market share and earnings.
The desire to remain superior to other competitors in the industry has driven Wheaton Precious Metals to develop its business model. The truth is that the company's business model is similar to what some other companies in the mining industry have. Still, it has a lot of factors that have given the company a competitive edge in the industry.
Wheaton has various vague and insubstantial assets that are considered brand recognition and mining agreements. These assets give the company a competitive edge over other gold and silver companies in the industry.
The business has a market capitalization and agreements that allow it to provide good streaming service and not spend so much as the other popular precious metals companies in the industry.
One of the critical questions we asked the staff we spoke to was, "what is Wheaton doing at the moment?" In response, she said, "The Company has entered into agreements to purchase all or a portion of the precious metals or cobalt production from high-quality mines for an upfront payment and an additional payment upon delivery of the metal. Wheaton currently has streaming agreements for 21 operating mines and 13 development-stage projects."
"The Company's production profile is driven by a portfolio of low-cost, long-life assets, including a gold stream on Vale's Salobo mine and a silver stream on Newmont's Peñasquito mine." He added.
Wheaton Engaged Independent Directors
Gold, silver, and other precious metals have been considered a sign of wealth for decades. Precious metals streams also provide investors with unique opportunities for gold and silver trading investments. Wheaton is not the largest precious metals streaming firm today. However, despite being new in the industry (19 years), the company grew to have a Market Capitalization of $20,099 billion in 2021. In addition, the company trades on New York Stock Exchange (NYSE).
In March 2021, an ex-dividend date showed that the volatility amount in the trading was fair. According to the records, the share price rose from $34.85 to $57.89, with an average of 2,054,300 shares traded every day. It is pertinent to mention that the pandemic was the primary reason for the volatility. The pandemic affected the stock market as a whole.
In the final quarter of 2020, Wheaton generated about $286.21 million, about a 28% increase from the profit in 2019. At the beginning of 2021, the company's gold production declined. It had 178,801 Gold Equivalent Ounces (GEOs) that year. In 2020, its gold production was 186,027 Gold Equivalent Ounces.
However, by March 2021, Wheatstone directors showed a $0.13 dividend for all common shares, depicting a 30% growth in previous earnings or revenue.
In the first few weeks of 2021, financial experts speculated that the company would earn around $331.99 million in April as profit for the month. The speculations showed that the company's investors expected to have a 32.6% growth in profit. In addition, financial experts predicted that the company's yearly profit would soar up to $.35 billion, which is more than a 23% increase.
Performance and stock earnings are assessed carefully by stock market professionals, and the current Wall Street agreement gave Wheaton a share of $60.45 per share as its target value by the end of 2021.
That year, 18 stock market analysts rated Wheaton as 5.00. A 1 to 5 score indicates the stock rating of a standard analyst. 5 is a suggestion to buy, while 1 is a sell suggestion. Hence, the analysts that rated the company suggested a buy to investors.
By the 30th of December 2022, the Market Capitalization of Wheaton Precious Metals Corp was $17.9 billion. Its Market Cap placed it in the 92nd percentile of firms in the Precious Metals and Mining Industry.
When we wrote this review, the ratio of price to earnings of Wheaton Precious Metals Corp was 22.2. Wheaton Precious Metals Corp’s revenue at the end of 2022 was $1.1 billion, a 71.8% increase in its profit margin. The recent growth of year-over-year quarterly sales was -18.7%. As predicted by analysts, the expected adjusted earnings are $1.149 for this fiscal year. The current dividend yield of Wheaton Precious Metals Corp is 1.5%.
From what we could gather about this company's stock market overview, the outlook of Wheaton Precious Metals Corp for 2022 seems optimistic. The increased uncertainties in the geopolitical and economic sectors have heightened gold demand because people now realize it is a safe investment haven. The increasing demand will lead to decreasing supplies from the mines, making the gold market tighter.
Over the years, various developments have increased the risks associated with geopolitical events and economic growth. Some of these developments are Covid-19, China and U.S. trade disputes, etc. Amazingly, the increased risks of these events have further increased the price of gold.
In addition, gold investors focus on precious metals investment as an investment that hedges their funds against inflation effects caused by the economic simulations of governments.
Central banks worldwide are cutting interest rates and pumping more money into their economies because of the demand for easy money. As long as events like this keep happening, countries will keep experiencing higher inflation levels, leading to a positive environment for gold investment to thrive.
The mining companies that get funding from Wheaton Precious Metals Corp. give the company precious metals as payoffs. Hence, Wheaton Precious Metals Corp. receives gold, silver, platinum, palladium, and copper. Wheaton also invests in zinc and cobalt production mines.
By entering into agreements with mining companies, Wheaton presents investors with the financial benefits of lower precious metals prices via its portfolio of royalties and streams on some prolific mines globally.
Producers of precious metals can also buy or sell precious metals directly at the prices that the trade or manufacturers' association set. Expensive or rare precious metals are not traded publicly, and you can buy them via exclusive and personal agreements with the manufacturer you are buying from. Remember that a streaming company's stock market price depends on its expected performance, not its metals.
The question above is another question that we asked a different staff team member, and according to him, Wheaton Precious Metals is a better investment company than its competitors in the industry because of the following reasons;
The company is one of the foremost precious metals streaming firms across the globe. It has one of the best portfolios with high-quality, low costs, and long-term assets. Wheaton operates a business model that allows it to leverage exploration upside and commodity values. Its risk profile is also lower than established precious metals mining companies.
Wheaton Precious Metals is one of the companies that provided the highest margins for cash operations in the mining industry. Therefore, its dividend is highly competitive and constantly growing through the company's increasing acquisitions. Hence, the company has outperformed mining investments consistently through streaming.
Currently, the company has streaming contracts for more than 20 mines and more than eight projects in their developmental stages. The company's production profile runs on various low-cost and long-life assets, including a gold stream on Vale's Salobo mine and a silver stream on Glencore's Antamina and Newmont's Penasquito mine.
Wheaton is only involved with arranging, coordinating, and doing various streaming and royalty deals. It is not engaged in the daily operations of its selected mines. The main expenses that the company makes are the increasing capital needed to fund the various deals. The other overhead expenses that Wheaton makes are very minimal.
Between January and April 2021, the company listed only $7.9 million for general and administrative costs, $6.4 million in interest costs, and $14 million for corporate costs. All these costs were as opposed to the reportable precious metals sales, around $198 million. These costs were relatively low when compared to the costs that come with traditional mining firms and their total operations. Hence, this is why Wheaton's marginal rates in the business are high, amongst other reasons.
Wheaton has a lot of streaming and royalty partners. This feature ensures investors that the mining problems of one of the company's partners will not wreck it. For example, in February 2021, the mine in Primero Mining's San Dimas did not run due to a strike. The mine was one of the multiple silver mines that Wheaton depended on. Alternatively, the mine in Vales Sudbury gave the company a significant amount of gold production, up to 91%, and its Salobo mine increased gold production by 38%. Hence, the ability to strike multiple royalty deals allows the company to stand firm even if it has low output from just one of its mines.
This feature is another reason to tag the company as a better investment choice in the industry. Wheaton has improved the diversity of its production this year. Some years back, Wheaton decided to make more than 50% of its profits by selling off its silver. However, the company occupied the space with more gold production in that year.
Wheaton is committed to employing people from various backgrounds to be part of its workforce. As a company, it ensures that its working environment is safe and filled with mutual respect. No matter the race, gender, religion, sexual orientation, or marital status of its staff, it treats all of them equally. According to the staff we spoke to, Wheaton is dedicated to fostering a work setting that encourages diversity to boost effectiveness and efficiency.
Wheaton also provides job opportunities for job seekers interested in working with the company and offers promotions to existing staff team members who do well as workers. Wheaton's promotions are based on employees' performances, and it considers people's capacities before recruiting them for work in the company.
The truth is that mining activities damage our environment. Hence, the company employs a practical and hands-on approach to reduce the environmental footprint through its dedication to becoming and remaining a streaming company that is carbon neutral. Wheaton also generates greenhouse gas and climate change data through the Carbon Disclosure Project (CDP). It also has aligned its sustainability reporting with the Task Force on Climate-Related Financial Disclosures (TCFD) suggestions.
Wheaton believes that mining and energy production are significant factors that affect climate change, and it has made these areas its central focus. Wheaton ensures that there are no possible hazards associated with its mining agreement because it knows that climatic risk evaluation is essential for mining operations.
Wheaton also ensures that it takes out all the environmental problems and climatic changes caused by its businesses by creating the necessary policies where and when needed. One of the ways that the company achieves this is by employing various methods to evaluate long and short-term climatic risks before entering new agreements with core mining companies.
Wheaton knows that waste management is a consistent international and local environmental issue in the mining industry. The waste products that remain after extracting the raw precious metals need to be evacuated because of their toxicity. They can contaminate the water and soil around mining environments.
Wheaton's approach to waste management is extreme because it knows the long-term toxic effect of mining wastes. It ensures that professionals in the company solve the issues with waste management and disposal. Sometimes, it contracts external professionals to join in the waste management activities.
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5 stars our of 5
This rating was as a result of only 6 customer reviews, we consider this not to be a significant enough sample size
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Wheaton Precious Metals does not have any new promotions at the moment for new investors. If you want to invest in gold and silver or other precious metals through a precious metals company that offers new promotions to customers, we recommend investing through Goldco. Goldco offers new customers $10,000 worth of free silver when they open gold IRAs through or buy precious metals from them.
After conducting our research and evaluating the details we gathered, we concluded that Wheaton Precious Metals is not a scam operator. The company is a legitimate precious metal streaming business with a verifiable management team and a fantastic business model.
Wheaton Precious Metals is a leading company with a good reputation in the precious metals mining industry. Its reputation has given it a high place in the Canadian Mining Association (CMA), and it witnesses an average of more than 2 million shares traded daily on the New York Stock Exchange (NYSE). The company also has a market capitalization of more than $20 billion.
Currently, the number of precious metals streaming companies in the mining industry is not up to 20, and Wheaton Precious Metals is a leading firm in the industry. However, while Wheaton is a solid and reputable investment option, we also want you to know that the business profits from investing in streaming companies like Wheaton can vary from year to year. So, you'll need to do your due diligence and research before purchasing the company stocks.
In addition, investing in stocks or precious metals investment company shares open you up to the risk associated with stock market investments. So, we would like to suggest that our readers put only some of their earnings into company stocks and shares. We always recommend a portfolio diversification method that will allow you to put some of your retirement earnings in a gold IRA or precious metals investment. Investing in tangible precious metal assets is one way to hedge your funds against inflation effects.
If you have decided to invest some of your retirement funds via portfolio diversification in a gold IRA, we recommend you invest through our top three gold IRA companies; Augusta Precious Metals, Goldco, and American Hartford Gold. When we evaluated these companies, we discovered they were transparent, had the best customer service, and offered amazing promotions to new customers.
To see what other people say about these companies and the FREE perks that come with investing in a gold IRA through them, please click the relevant buttons in the 'Top Three Wheaton Precious Metals Alternatives' section below and request their complete and detailed guides.
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Goldco is our second top rated gold and precious metal company. Having been top rated all of last year they were very close top Augusta Precious metals
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