WHEATON PRECIOUS METALS - Hohe Margen

Diversifizierter Gold & Silber Streamer mit hohen Margen

1. Exceptionally high precious-metal margins

(average cash costs of $4.54 per silver ounce and $391 per gold ounce)

2. No direct day-to-day mining costs

(Essentially $14 million is general corporate expensing, compared with $198 million in reportable precious-metal sales) 

3. Multiple royalty and streaming deals 

4. Improved production diversity  

(This year, the company is set to generate just a little more than half of its revenue from the sale of silver. In years past, this figure would have been significantly higher.)

 5. Positive long-term outlook for gold and silver

6. A tenured management team

(you're getting a management team that's not only seasoned but has also stuck with the company for an extended period of time) 

7. Shareholder yield

(announced its intention to rebuy 20.2 million shares of its common stock, or at the time what represented about 5% of its outstanding shares. The company is also paying a $0.07-per-share quarterly dividend that's more or less tied to the price of silver. That works out to a current annual yield of 1.4%.) 

8. Valuation

(average price-to-cash flow (P/CF) has averaged a bit over 16. The industry average tends to be between 11 and 12, but Wheaton's considerably higher margins afford it a premium valuation in this respect. However, looking at Wall Street's cash-flow estimate in the years that lie ahead for Wheaton, its P/CF is valued closer to 13 or 14, signaling a possible undervaluation at current levels.)