Wheaton Precious Metals ( (TSE:WPM) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
Wheaton Precious Metals shares are sliding as gold and silver prices tumble, hit by a jump in crude oil and Treasury yields that has reignited fears of more Federal Reserve rate hikes. With Wheaton’s streaming-based model tightly tied to bullion prices, the selloff in precious metals is directly squeezing expected revenue and pushing investors toward higher-yielding assets.
The long-term story remains more constructive, thanks to Wheaton’s asset-light streaming approach and a pipeline of production growth that can scale revenues without the heavy costs and risks of running mines. Still, recent negative free cash flow and higher leverage after big upfront commitments leave the company more exposed if metal prices stay weak or if partner mines fail to deliver the output needed to support its growth plans.
More about Wheaton Precious Metals
YTD Price Performance: 22.15%
Average Trading Volume: 1,946,396
Technical Sentiment Signal: Strong Buy
Current Market Cap: $64.86B
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