We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wheaton (WPM) Inks Metal Purchase Deal with Generation Mining
Read MoreHide Full Article
Wheaton Precious Metals Corp. (WPM - Free Report) recently entered into a binding arrangement with Generation Mining Limited. This agreement is for a Precious Metal Purchase Agreement (“PMPA”) in relation to the Marathon Project located in Ontario, Canada. The Marathon Project is expected to be a high-margin palladium mine with a 13-year mine life.
Wheaton will acquire 100% of the payable gold production until 150,000 ounces have been delivered under the Marathon PMPA. When achieved, WPM will acquire 67% of payable gold production for the life of the mine and 22% of the payable platinum production until 120,000 ounces has been delivered, thereafter reducing to 15% for the life of mine.
Wheaton will make a total upfront cash payment of C$240 million (roughly $187.2 million) to Generation Mining. The company will pay C$40 million (roughly $31.2 million) of the consideration amount on an early deposit basis before construction to be used for the development of the Marathon Project. The remaining amount will be paid in four staged installments during construction, subject to the clearance of certain customary conditions and a pre-determined completion test.
Wheaton will make ongoing payments for the gold and platinum ounces delivered at 18% of the spot prices until the difference between value of gold and platinum delivered and the production payment is equal to the upfront consideration of C$240 million. Once this is achieved, the production payment will rise to 22% of the spot prices.
It is expected that the first advance of the early deposit under the Marathon PMPA will occur early in 2022, subject to the completion of certain corporate matters and customary conditions.
Generation Mining expects construction activities to begin in 2022, with production starting in 2024.Following the closing of this acquisition, the Marathon Project will add to Wheaton's estimated proven and probable gold reserves by 0.26 million ounces and platinum by 0.17 million ounces. Measured and indicated gold resources would go up by 0.18 million ounces and platinum by 0.10 million ounces. Inferred gold resources will rise by 0.04 million ounces and platinum by 0.02 million ounces.
Shares of Wheaton have dropped 1.6% in the past year compared with a 5.4% decline of the industry.
Image Source: Zacks Investment Research
Wheaton’s attributable production is estimated between 735,000 GEOs and 765,000 GEOs for the current year. Gold production is expected in the band of 330,000-345,000 ounces. Silver production is projected between 25.5 million ounces and 26.5 million ounces, while production of other metals is anticipated in the band of 45,000-55,000 GEOs.
During the third quarter, the company announced a quarterly dividend of 15 cents per share, reflecting an increase of 25% from the year-ago quarter’s levels.
Zacks Rank & Key Picks
Wheaton currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Nutrien Ltd. (NTR - Free Report) , The Chemours Company (CC - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Nutrien has an expected earnings growth rate of 233.3% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 16.3% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 73.5%, on average. The stock has rallied 62.3% in a year. NTR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth rate of 104% for the current year. The Zacks Consensus Estimate for CC’s earnings for the current year has been revised 10% upward in the past 60 days
Chemours beat the Zacks Consensus Estimate for earnings in the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 34.2%, on average. It has rallied 30.8% in a year. CC currently flaunts a Zacks Rank #1.
AdvanSix has a projected earnings growth rate of 194.5% for the current year. The Zacks Consensus Estimate for ASIX’s earnings for the current year has been revised 5.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied 130% in a year. ASIX currently carries a Zacks Rank #2 (Buy).
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Wheaton (WPM) Inks Metal Purchase Deal with Generation Mining
Wheaton Precious Metals Corp. (WPM - Free Report) recently entered into a binding arrangement with Generation Mining Limited. This agreement is for a Precious Metal Purchase Agreement (“PMPA”) in relation to the Marathon Project located in Ontario, Canada. The Marathon Project is expected to be a high-margin palladium mine with a 13-year mine life.
Wheaton will acquire 100% of the payable gold production until 150,000 ounces have been delivered under the Marathon PMPA. When achieved, WPM will acquire 67% of payable gold production for the life of the mine and 22% of the payable platinum production until 120,000 ounces has been delivered, thereafter reducing to 15% for the life of mine.
Wheaton will make a total upfront cash payment of C$240 million (roughly $187.2 million) to Generation Mining. The company will pay C$40 million (roughly $31.2 million) of the consideration amount on an early deposit basis before construction to be used for the development of the Marathon Project. The remaining amount will be paid in four staged installments during construction, subject to the clearance of certain customary conditions and a pre-determined completion test.
Wheaton will make ongoing payments for the gold and platinum ounces delivered at 18% of the spot prices until the difference between value of gold and platinum delivered and the production payment is equal to the upfront consideration of C$240 million. Once this is achieved, the production payment will rise to 22% of the spot prices.
It is expected that the first advance of the early deposit under the Marathon PMPA will occur early in 2022, subject to the completion of certain corporate matters and customary conditions.
Generation Mining expects construction activities to begin in 2022, with production starting in 2024.Following the closing of this acquisition, the Marathon Project will add to Wheaton's estimated proven and probable gold reserves by 0.26 million ounces and platinum by 0.17 million ounces. Measured and indicated gold resources would go up by 0.18 million ounces and platinum by 0.10 million ounces. Inferred gold resources will rise by 0.04 million ounces and platinum by 0.02 million ounces.
Shares of Wheaton have dropped 1.6% in the past year compared with a 5.4% decline of the industry.
Wheaton’s attributable production is estimated between 735,000 GEOs and 765,000 GEOs for the current year. Gold production is expected in the band of 330,000-345,000 ounces. Silver production is projected between 25.5 million ounces and 26.5 million ounces, while production of other metals is anticipated in the band of 45,000-55,000 GEOs.
During the third quarter, the company announced a quarterly dividend of 15 cents per share, reflecting an increase of 25% from the year-ago quarter’s levels.
Zacks Rank & Key Picks
Wheaton currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Nutrien Ltd. (NTR - Free Report) , The Chemours Company (CC - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Nutrien has an expected earnings growth rate of 233.3% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 16.3% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 73.5%, on average. The stock has rallied 62.3% in a year. NTR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth rate of 104% for the current year. The Zacks Consensus Estimate for CC’s earnings for the current year has been revised 10% upward in the past 60 days
Chemours beat the Zacks Consensus Estimate for earnings in the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 34.2%, on average. It has rallied 30.8% in a year. CC currently flaunts a Zacks Rank #1.
AdvanSix has a projected earnings growth rate of 194.5% for the current year. The Zacks Consensus Estimate for ASIX’s earnings for the current year has been revised 5.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied 130% in a year. ASIX currently carries a Zacks Rank #2 (Buy).