Wheaton Precious Metals Corp. (WPM) Strengthens Gold Reserves Following Carcetti Capital Deal

Wheaton Precious Metals Corp (NYSE:WPM) is one of the best 52-week high stocks to buy right now. On November 26, the company increased its proven and probable gold reserves by 0.19 million ounces. The company entered into a gold stream agreement with Carcetti Capital Corporation. While the agreement is poised to support Carcetti Capital’s acquisition of the Hemlo Mine from Barrick Gold, it will allow the company to gain access to a reliable stream of gold production.

Photo by Dominik Vanyi on Unsplash

Wheaton is to purchase 10.13% of payable gold until 135,750 ounces are delivered. The percentage is to drop to 6.75% until an additional 117,998 pounds is delivered, and then to 4.50% for the life of the mine. Under the gold stream agreement, the company is to access 15 ounces of gold annually for the first 10 years, and thereafter access over 13,000 ounces per year.

Earlier on November 24, BofA nudged its price target on Wheaton Precious Metals down to $132 from $133 but kept its Buy rating. The slight change comes after updated Metals & Mining forecasts, with analysts noting that weaker commodity demand from China is weighing on the sector, even as trends in the U.S. and Europe show signs of improvement.

Wheaton Precious Metals Corp. (NYSE:WPM) is a precious metals streaming company that enters into agreements with mining companies to purchase a portion of their future production, such as gold, silver, platinum, palladium, and cobalt. In exchange for an upfront payment and a per-ounce cost, Wheaton receives a percentage of the mine’s precious metals.

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Disclosure: None. This article is originally published at Insider Monkey.