How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Wheaton Precious Metals Corp. (WPM) ten years ago? It may not have been easy to hold on to WPM for all that time, but if you did, how much would your investment be worth today?
Wheaton Precious Metals Corp.'s Business In-Depth
With that in mind, let's take a look at Wheaton Precious Metals Corp.'s main business drivers.
Wheaton Precious Metals is one of the largest precious metal streaming companies in the world that generates its revenues from the sale of precious metals and cobalt.
The company enters into purchase agreements (“PMPAs”) to purchase the entireity or a portion of the precious metals or cobalt production from mines located across the globe for an upfront payment and an additional payment upon the delivery of the precious metal or cobalt.
As of Dec. 31, 2024, Wheaton Precious Metals holds 38 long-term agreements, comprising 30 precious metal purchase deals, 3 early deposit agreements, and 5 royalties, spanning 18 operating mines, 23 development projects, and 4 mines which are closed or in care-and-maintenance.
Following the PMPAs, Wheaton acquires metal production from the counterparties for an initial upfront payment plus an additional cash payment for each ounce or pound delivered that is fixed by contract, generally at or below the prevailing market price. The company’s production profile is driven by the volume of metal production at its various mining assets.
The primary drivers of the company’s financial results are the volume of metal production at the various mines to which the PMPAs relate and the price realized by Wheaton upon the sale of the metals received.
The company offers investors leverage to increasing precious metals prices, a sustainable dividend payout as well as organic and acquisition growth opportunities.
Wheaton’s operating costs are contractually set at the time the stream is entered into, which enables investors to benefit from cost predictability and strong margin growth amid rising metal prices.
Wheaton is focused on adding additional production capacity from high-quality accretive metals. Its business model focuses on reducing risk while leveraging higher commodity prices. The company continues to add streams which bring immediate production, as well as medium and longer-term growth to its robust portfolio of assets.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Wheaton Precious Metals Corp. ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in June 2015 would be worth $5,002.18, or a gain of 400.22%, as of June 17, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 187.80% and gold's return of 173.85% over the same time frame.
Analysts are forecasting more upside for WPM too.
Wheaton Precious Metals is poised to gain from its diversified portfolio of high-quality and long-life assets. The company continues to add streams, which lead to immediate production, as well as medium and long-term growth, to its portfolio of assets. Its debt-free balance sheet will enable further acquisitions. Even though the company has been bearing the brunt of the suspension of operations at the Minto mine and the temporary halting of production at Aljustrel, this will be offset by growth from operating assets, including Salobo, Antamina, Peñasquito, Voisey's Bay and Marmato. It expects production to increase 40% over the next five years and be more than 870,000 GEOs by 2029, aided by contributions from assets, including Salobo, Antamina, Peñasquito, Voisey's Bay and Marmato mines. Estimates have lately moved north.
The stock has jumped 17.06% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2025; the consensus estimate has moved up as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Wheaton Precious Metals Corp. (WPM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
