Wheaton Precious Metals Corp.

Wheaton Precious Metals Corp. is a senior gold and silver royalty and streaming company headquartered in Vancouver, Canada, operating primarily in Mexico and South America. Key assets include Antamina, Constancia, Peñasquito, and Salobo. Portfolio composition includes 18 cash-flowing streams, 28 development streams, and 5 development royalties. The organization generates revenue primarily from the sale of precious metals and cobalt acquired through Precious Metal Purchase Agreements (PMPAs). This business model involves an upfront payment to a mining partner in exchange for the right to purchase all or a portion of their future metal production at a low, fixed price, with an additional payment made upon delivery. The primary drivers of financial results are the volume of metal produced by counterparties and the price realized upon sale. The company maintains a diversified portfolio with agreements spread across 33 different mining companies, mitigating single-asset or single-partner risk. This structure provides investors with exposure to metal price upside while limiting exposure to the operating and capital cost risks typically associated with traditional mining companies. As one of the largest precious metals streaming companies globally, the enterprise leverages its scale and expertise to compete for new PMPAs and similar transactions. The business model is designed to be resilient through commodity cycles, supported by fixed-cost purchase agreements and a focus on high-quality, long-life assets operated by established partners.

Strategic focus centers on disciplined growth through the acquisition of new precious metal purchase agreements and the active optimization of the existing portfolio. The organization pursues opportunities with exploration, development, and producing companies, guided by a set of Investment Principles that evaluate potential partners on their ability to manage environmental, social, and governance risks. Portfolio management includes considering the restructuring or disposition of assets to enhance long-term value, as demonstrated by recent stream terminations. Capital allocation is managed through a disciplined framework, evidenced by the decision not to renew an at-the-market equity program due to balance sheet strength and forecasted cash flows. A progressive dividend policy was adopted in 2024 to provide stable shareholder returns. The financing strategy incorporates sustainability, utilizing a $2 billion revolving credit facility with interest rates linked to performance on emissions targets, diversity, and ESG scores. This approach aligns financial incentives with strategic sustainability objectives and reinforces the commitment to responsible investment and partnership.

Executive leadership is composed of industry veterans, including a President and CEO who was a founding member of the company and instrumental in its growth, and who serves in leadership roles at industry organizations like the World Gold Council. The Board of Directors consists of 10 members with extensive experience in mining, corporate development, and investment banking, including a Chair with a 35-year career in the sector and a director who previously served as President and CEO of a major global gold producer. Governance is structured through 3 primary committees: Audit; Human Resources; and Governance and Sustainability. The Audit Committee, composed of 4 independent and financially literate members, meets at least 4 times annually to oversee financial reporting, internal controls, and risk management, including quarterly reviews of cybersecurity. A planned transition for the Chief Financial Officer role in 2025 demonstrates proactive succession planning. The governance framework is further strengthened by advance notice provisions for director nominations, ensuring an orderly process for board appointments.

A comprehensive sustainability framework is integrated into the business model, with oversight from a dedicated Governance and Sustainability Committee. The organization has published its second TCFD-aligned Climate Change Report and established a Climate Solutions Committee to support decarbonization investments at partner operations. Financial strategy is directly linked to sustainability performance through a $2 billion credit facility, where borrowing costs are adjusted based on achieving targets for partner emissions reductions, board and management diversity, and overall S&P ESG score. The entity's human capital strategy includes a formal diversity policy with a stated goal to increase the percentage of gender-diverse individuals and visible minorities in leadership roles by 2028. A key element of the sustainability approach involves influencing partners through a Supplier Code of Conduct and specific Investment Principles, which are used to evaluate and monitor counterparties on their management of ESG risks, including business ethics, health and safety, human rights, and environmental performance. The human rights policy is guided by international frameworks, including the UN Guiding Principles on Business and Human Rights.

Corporate structure has been actively managed through strategic acquisitions and dispositions. In 2024, the company closed the acquisition of 3 existing streams from entities advised by Orion Resource Partners for an aggregate payment of $450 million, significantly expanding its development portfolio. Portfolio optimization was demonstrated in 2022 through the termination of 2 separate stream agreements, for which the company received $135 million in shares of one mining company and a net cash payment of $132 million from another. The organization also functions as a strategic investor, holding long-term equity positions in a number of publicly-traded mineral exploration and development companies. These holdings include an approximate 11% ownership stake in one development-stage entity. The company actively manages these investments, as shown by the 2024 disposition of its entire holding in one public company for gross proceeds of $177 million. A foundational transaction was the 2009 acquisition of Silverstone Resources Corp., which added several key assets to the portfolio.