Our Business Model

Most mines produce a variety of metals. For example, a copper mine may also produce significant amounts of gold and silver, and a lead-zinc mine may also produce significant amounts of silver. Those by-product metals are, generally, not a mine’s business focus and the mine may not be positioned to realize the maximum return from them.

The streaming model allows mine operators to realize more value from their by-product metals—and provides investors with some of the highest sustainable margins in the industry. In the streaming model, Wheaton purchases a percentage of the metals produced by a mine, for an upfront payment plus an additional payment when the metal is delivered.

Our Business Grid

Both parties benefit from a streaming agreement

How Precious Metals Streaming Works

Business Model Benefits

Wheaton’s Shareholders
We believe the key benefit of streaming to Wheaton’s shareholders is cost predictability, which translates into direct leverage to potential increases in precious metal prices. Inflationary cost pressures have historically plagued the mining industry, driving capital and operating costs higher for traditional miners and cutting into profit margins. Wheaton’s ongoing operating costs are set at the time a stream is entered into at a predetermined delivery payment, allowing Wheaton to deliver amongst the highest cash operating margins in the mining industry.

Mining Partner’s Shareholders
At Wheaton, the goal is first and foremost to generate superior returns for our shareholders; however, the sustainability of the model is dependent on uncovering value for all of the parties involved in a streaming agreement. Wheaton is able to do this by unlocking the value of precious metals produced by traditional miners. By entering into a streaming agreement, mining companies can receive greater value for their by-product precious metals than what is reflected in the market. These companies can use the upfront payment to continue growing their core business, either through exploration, production expansions or acquisitions; alternatively, the proceeds can be used to strengthen their balance sheet.

HOW STREAMING WORKS

Stream Graph One

Wheaton purchases a percentage of the metals produced by a mine for an upfront payment plus an additional payment upon delivery of the metal

Delivery of by-product metals from Mining Partner to Wheaton

Delivery payment from Wheaton to Mining Partner ($ Per Unit)

Stream Graph Two
Wheaton
  1. Wheaton purchases a percentage of the metals produced by a mine for an upfront payment plus an additional payment upon delivery of the metal
  2. Delivery of by-product metals from Mining Partner to Wheaton
  3. Delivery payment from Wheaton to 
Mining Partner ($ Per Unit)

Partnerships that Benefit Both Parties

  • WHEATON PRECIOUS METALS
  • MINING PARTNER

Wheaton’s upfront payment purchases a percentage of future metal production from the mine.

On receipt, Wheaton pays the predetermined “delivery payment” per unit, generally below the prevailing spot price. Wheaton then sells the precious metals or cobalt at spot price.

USES CAPITAL TO:

Invest in new accretive acquisitions

Distribute value back to shareholders through dividends

Support local and international communities through Community Investment Program

Mining Partner receives capital, which it can use as non-dilutive financing as it chooses (e.g. build or expand mines, help fund an acquisition, or repay debt).

As minerals are produced, the mine delivers the agreed percentage of precious metals to Wheaton.

  • WHEATON PRECIOUS METALS
  • MINING PARTNER
Wheaton
  1. Wheaton’s upfront payment purchases a percentage of future metal production from the mine.
  2. Mining Partner receives capital, which it can use as non-dilutive financing as it chooses (e.g. build or expand mines, help fund an acquisition, or repay debt).
  3. As minerals are produced, the mine delivers the agreed percentage of precious metals to Wheaton.
  4. On receipt, Wheaton pays the predetermined “delivery payment” per unit, generally below the prevailing spot price. Wheaton then sells the precious metals or cobalt at spot price.
  5. Invest in new accretive acquisitions
  6. Distribute value back to shareholders through dividends
  7. Support local and international communities through Community Investment Program