Opportunities Ahead for Mexico’s Mining Industry

Q: What key factors do you consider when investing in a mining project, and are you looking at any opportunities in Mexico?
A: Our top priority is the project’s operating margins — we ensure it remains highly profitable for our partners, as their success directly impacts ours. Due diligence is critical in determining whether a mine or project can withstand market pressure and manage ESG risks and issues. Before investing, we thoroughly assess the project’s finances to evaluate its long-term viability, even after our streaming agreement. While we have not closed any new deals in Mexico, around 20% of our prospects are there, and we continue exploring opportunities to support new or expanding mining operations in the country.

Q: What does Wheaton Precious Metals look for in potential investment projects?
A: We prioritize high-quality projects rather than company size. Larger mining companies are usually profitable and self-sufficient, so they rarely seek external capital. In contrast, mid-tier and junior companies often require funding to develop their operations, making them our primary focus. This trend is evident in Mexico, where we continue to explore opportunities with smaller players looking for financial support to advance their projects.

Q: How does Wheaton Precious Metals maintain its reputation as a reliable source of capital during market volatility?
A: We maintain our reputation by being highly selective in our investments. Every project we support must genuinely deserve our endorsement, as our name serves as a stamp of approval in the industry. One of the biggest challenges is identifying which projects to avoid, as many come with hidden risks. To mitigate this, we carry out due diligence to review financial, technical, legal, and ESG risks. This disciplined approach ensures that we only invest in high-quality, profitable assets, reinforcing our credibility as a dependable financial partner even in volatile market conditions.

Q: What are your expectations for the Mexican mining industry given government transitions and regulatory challenges?
A: Globally, countries are recognizing the need for self-sufficiency in commodities. We have seen this shift in Canada, where governments now acknowledge the strategic importance of resource extraction. Since commodities operate in a global market, they remain valuable regardless of trade restrictions or tariffs. Given these factors, Mexico is expected to strengthen its support for the mining sector to enhance economic resilience and reduce vulnerability to external political shifts. We are already seeing signs of this change, which bodes well for the industry’s future in Mexico.

Q: What makes Wheaton Precious Metals stand out as a financing partner compared to other capital providers in the streaming sector?
A: Our streaming agreements offer two key advantages: first, a strong stamp of approval that enhances a project’s credibility, and second, highly attractive capital terms. Smaller companies often find debt financing prohibitively expensive, and in these cases, streaming becomes a more viable and cost-effective option.
Where we compete most effectively is against equity financing. Many mid-tier and junior mining companies are trading at significant discounts to their net asset value (NAV), meaning they would have to issue shares at a fraction of their true worth. In contrast, a stream provides capital at full NAV, making it a far more attractive option. Additionally, we are evolving beyond traditional streaming, in some cases functioning as a one-stop financing solution, covering both the equity and debt components of project funding. This approach is gaining traction, allowing companies to secure all necessary capital through us without the complexity of dealing with banks or diluting shareholder value. As a result, we are not just a streaming partner — we are becoming a comprehensive financing solution for the mining industry.

Q: What is Wheaton Precious Metals’ long-term vision for Mexico?
A: Mexico has always been a key market for us. Our first-ever streaming deal 21 years ago was on the San Dimas Mine. Major assets like Peñasquito — one of our largest producers — now reinforce our strong presence in the country.

We see opportunities to expand further, though competition for streaming agreements has increased. While we will not secure every deal, we remain committed to Mexico’s mining sector and will continue pursuing high-quality assets. Mexico has a long history of valuing mining’s economic contributions, and we aim to strengthen our role in supporting its continued growth.

Q: What minerals does Wheaton Precious Metals prioritize?
A: Wheaton Precious Metals primarily focuses on precious metals, but over 65% of our gold comes as a byproduct from copper mining. For copper-focused companies, gold is often a secondary output. That is where we add value — by purchasing that non-core gold production, allowing these companies to focus on their primary operations.

Q: What would make 2025 a successful year for Wheaton Precious Metals?
A: 2024 was a strong year, with production exceeding guidance. 2025 is off to a great start, supported by record gold prices and share performance. Our cash flow is strong, and we are in the early stages of a sustained growth phase. Over the next five years, we expect to grow by 40 %,. Production will increase from 635,000 GEOs  this year to about 870,000 GEOs by 2029. 

We also remain optimistic about gold prices, expecting them to surpass US$3,000 per ounce as global economic conditions continue to favor gold as a store of value. With all these factors aligning, this is the right business, in the right place, at the right time.

Wheaton Precious Metals is a Canadian multinational precious metals streaming company and the world’s premier precious metals investment firm. Through industry-leading financial, technical, and ESG due diligence practices, the company unlocks the value of precious metals embedded within traditional mining operations.