Wheaton Precious Metals plans London listing

Wheaton has a life-long gold streaming deal with Vale over its Salobo mine. (Photo: Ricardo Teles | Vale SA.)

Canada’s Wheaton Precious Metals (TSX, NYSE: WPM), one of the world’s largest gold and silver streaming companies, plans to list on the London Stock Exchange to boost exposure to European investors seeking precious metals deals.

The Vancouver-based firm, which has a market capitalization of about $23 billion, is listed in Toronto and New York, where its shares have climbed about 75% this year.

Wheaton’s planned UK listing by year-end would make it the largest metals and mining company to join the LSE since Glencore in 2011.

Streaming companies provide upfront payments to miners in exchange for the right to buy metals at a discount in the future. These kind of firms are some of the most profitable in the natural resources sector as they tend to have low overheads and costs. Wheaton employs just 40 people.

The group has streaming deals with 17 mining companies including majors Barrick Gold (TSX: ABX) (NYSE: GOLD), Vale (NYSE: VALE) and Glencore (LON: GLEN).

Not raising money

President and chief executive Randy Smallwood said the company is not seeking to raise any money in conjunction with the listing. Paired with the fact that it will apply for a standard rather than a premium listing, Wheaton will not be eligible for inclusion in the indices run by FTSE.

“The listing is really about trying to open up new ways of investing in precious metals to LSE-based shareholders and funds,” Smallwood said. “[It] will complement our existing North American stock exchange listings, which have served us well over the years and supported our growth.”

Fellow Canadian miner Yamana Gold (TSE: YRI)(NYSE: AUY) is also planning an LSE listing, while B2Gold (TSX: BTO)(NYSE: BTG) said earlier this month it may consider such a move.

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