This Precious Metals Stock Got Rocked by Silver
Wheaton Precious Metals (NYSE: WPM) is a streaming and royalty company. It provides cash up front to miners in exchange for the right to buy silver and gold at reduced rates in the future. That locks in a profit when Wheaton sells the precious metals at currently prevailing rates. If you are looking for a precious metals investment, you should strongly consider Wheaton. But there are some factors to consider here, and tough results out of the company's silver business is a highlight on that front.
Mining for precious metals is an expensive and risky thing. First, a company has to find a location where it thinks a mine can be built. Then, it needs to get permission to build that mine. After getting that OK, it has to actually build the mine. Only after it is built, usually at great expense and years later, does any revenue come in. Meanwhile, operating the mine comes with its own set of costs (salaries, for example) and potential problems (mine disasters). And, once the mine has run its course, the area has to be returned as closely as possible to its pre-mine state.
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Source Fool.com
