Name Aside, Silver Wheaton Says It May Be Tilting Toward Gold

Updated on
  • Canadian streamer sees $4 billion in potential opportunities
  • Expects to close some deals before end of year, CEO says

Silver Wheaton Corp., the Canadian company that provides cash to miners including Glencore Plc in exchange for future metal deliveries, may need to change its name.

Three-quarters of the so-called streaming deals it’s looking at are for gold, meaning the company could end up earning as much revenue from the yellow metal as silver, Chief Executive Officer Randy Smallwood said in an interview.

“There are a lot more gold opportunities out there than silver opportunities,” Smallwood said in Vancouver. "We joke we might have to change our name."

Worldwide, there are potentially $4 billion worth of streaming deals, of which Silver Wheaton is interested in about half, he said. The company expects to close a couple transactions by the end of the year.

The company may further tilt toward gold by targeting cash-strapped copper mines, which often also yield the yellow metal. Copper prices haven’t joined the rebound seen in other commodities, dropping more than 8 percent since April.

“There’s more gold byproduct from copper mines than there is silver byproduct,” he said.

Both precious metals are likely to extend their gains because they serve as a store of value in times of economic uncertainty, Smallwood said.

“The reserve currencies of the world are in trouble,” he said. “When we see things like Brexit and German bonds trading below zero percent, when there’s uncertainty in the world, people want to put their money in a safe place.”

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