London Stock Exchange has welcomed Wheaton Precious Metals Corp., one of the world’s largest precious metals streaming companies, to trading on the Main Market. Wheaton is the first company of its kind to join the bourse, offering investors with the upside associated with mining companies but with a much lower risk profile.
The company’s shares were admitted to the Standard Segment of the Official List of the Financial Conduct Authority, at 8am on Wednesday 28th October 2020. The company will maintain a primary listing on the Toronto Stock Exchange, as well as a listing on the New York Stock Exchange.
Wheaton is a streaming company, which generates its revenue primarily from the sale of precious metals. The company enters into purchase agreements to purchase all, or a portion, of the precious metals production from mines located around the world for an upfront payment and an additional payment upon the delivery of the precious metal. As of 28 October 2020, Wheaton has entered into purchase agreements with 17 different mining companies relating to 20 currently operating mining assets, and nine which are at various stages of development, located across 11 countries. Its business model offers investors commodity price leverage and delivers amongst the highest cash operating margins in the mining industry. As a result, Wheaton has consistently outperformed gold and silver, as well as other mining investments.
The company’s unique business model creates significant shareholder value by providing:
- Leverage to increases in the price of precious metals.
- Additional growth through accretive acquisitions of new streams.
- A competitive dividend yield, which has the potential to grow over time.
- Participation in the exploration and expansion success of the mines underlying current streaming agreements.
Wheaton offers these benefits while at the same time reduces many of the downside risks faced by traditional mining companies. In particular, Wheaton offers its investors both capital and operating cost predictability. Other than its initial upfront payment, Wheaton typically has no ongoing capital or exploration costs.
Wheaton has an experienced management team whose vision is to be the world’s premier precious metals investment vehicle and to deliver sustainable value through streaming to all of its stakeholders.
The company is a leader in sustainability amongst the streaming and royalty companies having joined the UN Global Compact in 2019 and maintaining a dedicated support program for local communities around the mines from which the company receives metals.
Randy Smallwood, President & CEO of Wheaton Precious Metals, commented: “We are delighted to be celebrating Wheaton’s London Stock Exchange listing today, a pivotal moment in the company’s journey. Our business model offers UK investors a unique and appealing opportunity to gain exposure to precious metals through a high-quality portfolio of long-life, low-cost assets. We believe Wheaton is the best way to invest in the sector and we are confident in the underlying market dynamics.”
“Our key aim is to deliver value through streaming to all of our stakeholders: To our shareholders, by delivering low-risk, high-quality, diversified exposure and growth optionality to precious metals; to our partners, by crystallising value for precious metals yet to be produced; and, to our neighbours, by promoting responsible mining practices and supporting the communities in which we live and operate.”
“We would like to thank London Stock Exchange for its warm welcome, and our employees and shareholders who have supported us thus far. We look forward to their continued support as we commence the next phase of our growth strategy.”
Wheaton has appointed Joh. Berenberg, Gossler & Co. KG and Peel Hunt LLP as joint UK corporate brokers and Tavistock Communications Ltd. as its UK public relations adviser. Bryan Cave Leighton Paisner LLP has acted as the UK legal adviser.
Read the article online at: https://www.globalminingreview.com/finance-business/28102020/lse-welcomes-wheaton-precious-metals-to-main-market/
You might also like
Nik Gresshoff and Matt Youngblood, Railveyor, review how operators can cut costs and emissions by implementing an electric haulage system.