What's Happening With WPM Stock?
POLAND - 2024/12/17: In this photo illustration, the Wheaton Precious Metals company logo is seen ... More displayed on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images)
If you're interested in gold and silver stocks but prefer to avoid the complications of mining companies exceeding budgets or encountering barren sites—Wheaton Precious Metals stock (NYSE: WPM) could be just the stock for you. Wheaton is not your ordinary mining company. They don't extract the gold and silver themselves. Instead, they operate on a model known as 'streaming.' Essentially, they provide financing to mining companies and, in exchange, receive the rights to purchase gold, silver, or other metals at significantly reduced prices for decades. It's akin to having exclusive access to the metals market without any mess!
The year 2025 has begun with strong momentum. The company exceeded expectations in Q1—revenues surged nearly 60% compared to the previous year. And they don't plan to slow down. WPM anticipates increasing metal production by 40% over the next 5 years. This is due to new projects coming online and some existing ones resuming operations. The company's profit margins are exceptionally robust—current operating margins hover around 60%. Additionally, the company boasts a solid cash reserve of $1.1 billion, giving its balance sheet a healthy appearance.
Gold and silver prices are soaring—and this is advantageous for WPM. Unlike conventional miners, they don't worry about fluctuating fuel prices or labor strikes at mines. They have long-term agreements with reputable miners, ensuring solid future production. For investors seeking potential gains with less volatility, the High Quality portfolio has consistently outperformed the S&P 500, providing over 91% returns since its inception.
Even though WPM employs a streaming model, its cash flows remain linked to gold and silver prices. A prolonged decrease in precious metals could reduce its royalty income. WPM's performance hinges on that of the miners. Any operational issues or geopolitical/regulatory disruptions at partner mines could affect expected deliveries or lead to renegotiation of favorable terms.
It is currently trading close to its all-time highs, so the potential for further upside in the short term may be limited. See Buy or Fear WPM Stock.
WPM presents a smart, lower-risk method to invest in gold and silver without owning a conventional mining company. The company remains fundamentally robust: high margins, low debt, appealing cash flow, and diversified income streams. Supported by a billion-dollar cash reserve and consistent dividends, WPM is a noteworthy choice for investors optimistic about precious metals. Check out our analysis of Wheaton Precious Metals revenue for additional insights into the company's business model and primary revenue sources. While WPM is a strong stock, if you are looking for even lower volatility while still enjoying the upside, consider the High Quality portfolio, which has outperformed the S&P 500, delivering returns exceeding 91% since inception.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
17 minutes ago
- Wall Street Journal
Oil Futures Diverge on U.S. Holiday Price Lag, Contract Expiration
Oil prices were mixed in European afternoon trade on Friday, with Brent crude down more than 2% to around $77 a barrel and West Texas Intermediate edging 0.7% higher to $74 a barrel. Brent futures fell after President Trump set a two-week deadline to decide whether the U.S. will strike Iran, easing fears of an imminent military intervention. The international oil benchmark had settled 2.8% higher on Thursday at $78.85, its highest close since January.
Forbes
19 minutes ago
- Forbes
Dispute Resolution: Is Decentralization The Answer?
Saro McKenna is the CEO of Dacoco GmbH and cofounder of Alien Worlds. Although the godfather of online dispute resolution, Ethan Katsh, once observed that "the power of technology to resolve disputes is exceeded by the power of technology to generate disputes," as human beings, we cannot help ourselves. Even the prospect of AI sentience and bots capable of overpowering their flesh-and-bone creators cannot halt our penchant for relentlessly leveraging tech to achieve advancement in one area or another. As far as disputes are concerned, the technology that has increasingly been used to intercede is blockchain. This is no surprise. Of all the suggested use cases for a censor- and tamper-proof decentralized digital ledger, jurisprudence rightly ranks high. Over the past decade, many technologists have attempted to adapt traditional legal concepts and resolve conflicts on-chain, with mixed success. So, why is blockchain considered the best "lawtech" tool to settle disputes? Decentralized dispute resolution is appealing because of its ability to bypass centralized authorities that are prone to bias or bureaucracy. Smart contracts and empowered jurors streamline arbitration, handling all kinds of disputes with transparency. As traditional legal systems often prove unwieldy or unfit for specific disagreements, DDR offers fast, fair outcomes. Evidently, there are many factors that entice developers to build Web3 protocols that are concerned with dispute resolution. Blockchain, being apolitical, decentralized and transparent, is perceived to be perhaps the best vehicle for administering justice when two or more parties are in disagreement. These parties can consist of individuals or even companies and governments. Perhaps blockchain is too broad a term, however, because it is often specific features of certain chains, like decentralized autonomous organizations (DAOs) and smart contracts, that prove useful in an arbitration capacity. The economic incentives baked into blockchains are another important consideration, with the general idea being that users can become jurors, reviewing evidence and voting for the party they believe is right. In blockchain-based systems, jurors are usually financially motivated to make a sound judgment, i.e., one that accords with the majority. Kleros is one of the earliest examples of a decentralized adjudication system, one that uses jurors and game theory to produce judgments in a secure and inexpensive way. Founded in 2017, the Ethereum-based arbitration service was designed to "resolve any kind of dispute," building on the work of early Web3 pioneers like Vitalik Buterin and Paul Sztorc, whose idea to use Schelling Point-based incentives for blockchain oracles gave rise to the notion of "decentralized truth-telling." In the case of Kleros, the probability of crowdsourced jurors being selected is proportional to the amount of tokens staked. Staking, then, signifies one's willingness to participate in the adjudication process in contrast to the traditional court system, where jurors are selected at random. Arbitration fees, meanwhile, make it difficult for attackers to spam the system by creating frivolous disputes. Many similar protocols appeared around this time, among them Jur (2018) and Aragon (2016). While the former focused on enterprise use cases and selected jurors based on their reputation rather than token stake, the latter favored a subscription model and was intended for arbitration within DAOs themselves. Although they held promise, neither project is currently actively maintained. The popularization of DeFi around 2020 prompted renewed interest in dispute resolution, most notably in the case of the UMA protocol's Data Verification Mechanism (DVM), which resolves disputes about the price of a synthetic token derivative contract. This type of system, of course, has a much narrower focus than projects like Kleros, which seek to be multipurpose courts. A watershed moment for DDR occurred in 2021 when a Mexican court enforced a decentralized arbitration award governed by Kleros, which related to a real estate dispute. Last year, Mexico also passed the General Law of Alternative Dispute Resolution Mechanisms, the first national legislation recognizing decentralized justice as a valid dispute resolution system. Central to the premise of DDR is the idea that arbiters can come to a fair and transparent judgment based on the available evidence: the wisdom of the crowd, enforced on-chain. Arbiters play a key role in the recently unveiled Worker Proposal System of blockchain-based metaverse Alien Worlds (which I cofounded), which is centered on the activity of various DAOs. While the system empowers users to suggest and execute new projects, arbiters act as neutral mediators in any disputes that arise. For example, arbiters can step in and cast a deciding vote when there is a disagreement about project milestones. In this particular arbitration model, a blockchain escrow account is also used since the Worker Proposal System is designed to furnish the awarded party with tokens for meeting pre-agreed targets. Arbiters must complete an identity verification process, demonstrate a solid understanding of the Alien Worlds ecosystem, commit to a minimum term of four months to ensure continuity and dedicate specific weekly hours to their role. They are also paid a set rate for performing this role. As the primary contributor to Alien Worlds, my company, Dacoco, takes a notable approach to dispute resolution by blending Web2 and Web3 concepts in a unique way. While disputes are enforced on-chain, and a DAO system transparently manages worker proposals, the arbiter functions similarly to an independent mediator in any traditional legal process. In other words, Dacoco is not relying entirely on blockchain to adjudicate. In most cases, protocols promising to administer decentralized justice have failed to achieve their objectives, whether due to technical, market or other challenges. This is a great shame because on-chain arbitration offers many advantages over a sluggish legal system that is notorious for its inequity (the most powerful people can afford the best litigators) and complexity. Although decentralized dispute resolution has yet to gain widespread adoption, and many challenges remain, expect lawtech solutions to grow more sophisticated over time and for traditional courts to follow Mexico's lead in recognizing such systems. In a sense, it is analogous to the way in which the financial world has gradually recognized Bitcoin, a consequence of the number of individuals storing their wealth in the network. Ultimately, the best and most efficient solutions have a tendency to break into the spotlight. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Yahoo
20 minutes ago
- Yahoo
Niger military leaders to nationalise uranium firm
Niger's military junta says it will nationalise the majority French-owned local uranium company in the latest escalation in a row between the two countries. Somaïr is operated by French nuclear fuels company Orano, which Niger accuses of several "irresponsible acts". Since seizing power in 2023, Niger's military leaders have said they want to keep more local control of the country's mineral wealth, and have distanced themselves from France, the former colonial power, moving closer to Russia. Niger is the world's seventh largest producer of uranium and has the highest-grade ores in Africa. "This nationalisation will allow for healthier and more sustainable management of the company and, consequently, optimal enjoyment of the wealth from mining resources by Nigeriens," the junta said in a statement. Orano has not yet commented. The company, which has operated in Niger for decades, owns a 63% stake in Somaïr but last year the military authorities seized operational control of the firm. According to the Reuters news agency, Orano, which is owned by the French state, has launched legal action against Niger over its actions. How a uranium mine became a pawn in the row between Niger and France Niger achieved independence from France in 1960 and the former colonial power managed to secure exclusive access to Niger's uranium supply through various agreements. Analysts say this was seen by many in Niger as a symbol of the country's continued domination by France. However, they also note that any uncertainty over the mining sector's future could threaten hundreds of jobs, as well as export earnings. Earlier this week, neighbouring Mali announced it was building a gold refinery in partnership with a Russian conglomerate. Like Niger, Mali is under military control and says it wants to assert more economic control of its mineral wealth, while cutting ties with France and the West. WATCH: How has Niger changed since the coup? 'France takes us for idiots' - Inside coup-hit Niger Is France to blame for coups in West Africa? Why young Africans are celebrating military takeovers Go to for more news from the African continent. Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica Africa Daily Focus on Africa
