First Eagle Gold Fund on Wheaton Precious Metals Corp.
Thesis
Wheaton is a Canadian precious-metals streaming and royalty company. First Eagle points to its operational expertise and consistent record of strong cash-flow conversion as core strengths. The fund believes the Antamina streaming contract in Peru could be transformational over the longer term. Wheaton's growth potential is further supported by a strong balance sheet and a smooth leadership transition.
“Longer term, Wheaton's precious-metals streaming contract at the Antamina mine in Peru could prove transformational for the company.”
Key risks
- Lower precious-metals prices.
- Margin contraction at partner mines.