Mining Miscellany: SSR Mining (SSRM) vs. Wheaton Precious Metals Corp. (WPM)
For those investors with a penchant for the Mining – Miscellaneous sector, the choice between SSR Mining (SSRM) and Wheaton Precious Metals Corp. (WPM) may not be an easy one. Both companies have their unique strengths and weaknesses, leaving investors pondering which stock presents the better value opportunity at the moment.
SSR Mining: A Silver Lining
SSR Mining is a Canadian-based mining company producing precious metals and copper. With a market capitalization of approximately $2.4 billion, SSR Mining operates three mines: the Seabee Gold Operation in Canada, the Marigold Gold Mine in the United States, and the Pampea-Golcop Project in Brazil. The company’s diverse portfolio of projects is expected to contribute to steady growth in the years to come.
Wheaton Precious Metals Corp.: The Streaming Giant
Wheaton Precious Metals Corp., on the other hand, is a streaming company, meaning it purchases precious metal production from mines at a discount and sells the metals on the market. With a market capitalization of around $19 billion, Wheaton Precious Metals Corp. boasts an impressive portfolio of streams and royalties, providing it with a steady source of precious metals. The company’s diversified portfolio includes streams and royalties on gold, silver, palladium, and cobalt.
Comparing the Contenders
Financial Performance: In the past year, SSR Mining’s stock price has seen a significant increase, up by approximately 65%. This can be attributed to the company’s strong financial performance, with revenue growing by 14% year over year in Q3 2021. On the other hand, Wheaton Precious Metals Corp.’s stock price has remained relatively stable, with a modest increase of around 5% in the same timeframe. However, the company’s revenue grew by a robust 37% year over year in Q3 2021.
Dividends: Both companies offer attractive dividends to investors. SSR Mining pays a quarterly dividend of $0.0125 per share, yielding around 2.3%. Wheaton Precious Metals Corp., on the other hand, pays a quarterly dividend of $0.30 per share, yielding around 1.3%. While the yield for SSR Mining is higher, investors should consider the company’s smaller market capitalization and potential for higher growth.
Expert Opinions
According to a report by Mining.com, analysts at BMO Capital Markets believe that SSR Mining’s strong operational performance and growth potential make it an attractive investment opportunity. Meanwhile, Scotiabank analysts see value in Wheaton Precious Metals Corp.’s streaming model and its ability to provide investors with a stable and consistent source of precious metals.
Impact on Individuals and the World
Impact on Individuals: For individual investors, the choice between SSR Mining and Wheaton Precious Metals Corp. depends on their investment goals. Those seeking higher growth potential and a higher dividend yield might find SSR Mining more appealing. On the other hand, investors looking for a stable and consistent source of precious metals might prefer Wheaton Precious Metals Corp.
Impact on the World: The mining industry, including companies like SSR Mining and Wheaton Precious Metals Corp., plays a crucial role in the global economy, particularly in the production of precious metals. These metals are essential in various industries, including electronics, healthcare, and renewable energy. As the demand for these metals continues to grow, companies like SSR Mining and Wheaton Precious Metals Corp. will likely remain strong investment options for those seeking exposure to the Mining – Miscellaneous sector.
Conclusion
Both SSR Mining and Wheaton Precious Metals Corp. offer unique value propositions for investors in the Mining – Miscellaneous sector. While SSR Mining’s strong operational performance and growth potential make it an attractive option, Wheaton Precious Metals Corp.’s streaming model and stable source of precious metals are also noteworthy. Ultimately, the choice between these two stocks depends on an investor’s individual investment goals and risk tolerance. As always, it’s essential to conduct thorough research and consult with a financial advisor before making any investment decisions.
