Here's Why the Best Is Yet to Come for Wheaton Precious Metals
Precious metals focused Wheaton Precious Metals (NYSE: WPM) isn't your typical gold and silver stock. It's a streaming company, which is a similar but notably different business than mining. The company used the commodity downturn to invest for the future, which is showing up now in its results. And there should be plenty more to come. Here's why there are good things ahead for Wheaton Precious Metals.
The first thing you need to understand about Wheaton is that it doesn't own or operate gold and silver mines. As a streaming company, it provides cash up front to miners like Glencore and Vale SA (NYSE: VALE) in exchange for the right to buy silver and gold at reduced rates in the future. This is a good deal for miners who might have a hard time finding reasonably priced capital via other means, like bank loans or issuing stock and debt in the capital markets.
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Source: Fool.com
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