Gold had its worst week since March, falling some 4.6 percent from the previous Friday, as the U.S. dollar staged a rally against the euro.
Gold and silver are in “golden times” right now, according to Wheaton Precious Metals’ president and CEO Randy Smallwood during an online Denver Gold event last week. The “helicopter money” from governments will continue to be highly supported of prices.
Randy is also optimistic base metals, saying they are likely to be the bulk of streaming deal opportunities going forward. “It’s of good to see money going to the ground in the base-metals space,” he commented.
Wheaton Precious is planning to list on the London Stock Exchange by year end, which will put the $23 billion streaming company on the radar of United Kingdom investors who are seeking to gain equity exposure to precious metals. Wheaton currently trades in Toronto and New York.
I believe this is a well-timed decision on the part of Randy, who was named the new chair of the World Gold Council (WGC) earlier this month. According to Edison Investment Research, precious metal companies listed in London “have tended to outperform their peers, with 52 percent of London-listed companies outperforming the gold price over the period of the worst depredations of the coronavirus so far this year, compared with 39 percent globally.”
Further, Wheaton Precious “will provide premium-quality, geared exposure to precious metals prices and fill a void for investors left by the departure of Randgold Resources in December 2018 after it was acquired by Barrick,” analyst Charles Gibson wrote in a note dated September 22.
As you know, Wheaton is one of our favorite mining stocks. At present it pays out 30 percent of its cash flow in dividends, but this could rise to between 40 percent and 50 percent with higher metal prices, Randy says.
By Frank Holmes, Sep 28, 2020, at 11:28 a.m.