11 Best TSX Stocks to Buy According to Hedge Funds

8. Wheaton Precious Metals Corp. (NYSE:WPM)

Number of Hedge Fund Holders: 39

Stock Upside: 25.76%

Wheaton Precious Metals Corp. (NYSE:WPM) is one of the best TSX stocks to buy according to hedge funds. On April 1, Wheaton Precious Metals Corp.’s (NYSE:WPM) wholly-owned subsidiary, Wheaton Precious Metals International Ltd. (WPMI), officially closed its silver streaming agreement with a wholly-owned subsidiary of BHP Group Limited. The transaction secured rights to BHP’s share of silver production from the Antamina Mine in Peru. Wheaton first announced this deal on February 16 and described it as the most valuable streaming transaction ever based on upfront consideration.

Under the agreement, WPMI paid BHP $4.3 billion upfront and will also make ongoing payments equal to 20% of the spot silver price for every ounce delivered. In return, WPMI receives the equivalent of BHP’s 33.75% share of payable silver from Antamina until a cumulative 100 million ounces have been delivered, after which the entitlement steps down to 22.5% for the remaining life of mine.

Wheaton said that the settlement is handled through metal credits rather than physical silver delivery. Put simply, BHP does not ship bars to Wheaton; rather, it transfers value equivalent to the agreed silver volumes.

For BHP, the deal monetizes silver as a by-product while allowing it to retain full exposure to Antamina’s copper, zinc, and lead production. These three are BHP’s primary interest in the mine, where it holds a 33.75% stake in the joint venture company, Compañía Minera Antamina S.A.

Wheaton Precious Metals Corp. (NYSE:WPM) is a precious metals streaming company. It provides upfront financing to mining operators in exchange for the right to purchase a portion of future production at predetermined prices. Its portfolio includes streaming agreements for gold, silver, and other metals across multiple mines globally.