One of the giants of the streaming and royalty business is benefiting from the rising prices of precious metals. Is it just the beginning?
What’s happening:
- Wheaton Precious Metals (NYSE: WPM) has announced new record breaking quarterly cash flow from their operations
By the numbers:
- Total revenue from Wheaton Precious Metals' most recent quarter was $308M USD and total operating cash flow was $254M USD
- Wheaton Precious Metals also had 144,200 ounces of attributable gold production in their most recent quarter
- Currently, Wheaton Precious Metals has streaming and royalty agreements on 18 operating mines and 28 projects that are still under development
Why it matters:
- The price of gold continues to make new all time highs, which has caused a boom in demand that has led to everything from Costco (NASDAQ: COST) selling out of physical gold bars to large financing rounds to restart historic Canadian gold mines
Going deeper:
- Wheaton Precious Metals has also been taking advantage of rising gold prices by striking new streaming deals recently, including their notable new agreement with Montage Gold (TSXV: MAU) which will see them secure production from their African mine
The intrigue:
- Excitement about gold has also kickstarted a wave of new capital flowing into the public markets recently, with many early stage exploration companies with promising projects in the United States seeing a big uptick in interest from investors
