Wheaton’s $3B War Chest Sets Stage for Next Wave of Metal Streams

Speaking with Kitco News during VRIC 2026 in Vancouver, Smallwood argued that fixed-price streaming contracts shield Wheaton from the inflationary pressures now squeezing mine operators worldwide.

As gold and silver prices climb, miners are increasingly processing lower-grade ore that was once uneconomic. While higher prices make that material viable, they also push up costs on a per-ounce basis. According to Smallwood, that dynamic creates a widening gap between streaming companies and traditional producers. “We take the cost risk outta the investment,” he said, explaining why Wheaton’s margins remain stable even as operators face rising expenses.

As of Tuesday, Jan. 27, an ounce of fine gold is trading for $5,084 per ounce while silver trades for $107.70. Streaming agreements lock in the price Wheaton pays for metals upfront, insulating the company from labor, fuel, and processing cost inflation. Smallwood said that the advantage becomes more pronounced in high-price environments, when miners feel pressure to extract more marginal material simply because it is now profitable.

“That pressure is going to really impact the broader miners over the next two to three years,” he said, adding that Wheaton avoids that exposure entirely.

Smallwood pointed to Wheaton’s newly secured Helo gold stream as a clear example of how the model works in practice. He described the asset as “a Canadian legend,” noting that it had been underinvested while held by larger operators for whom it was not a core focus. Wheaton structured a $300 million stream that values the metal itself rather than equity, preserving upside for shareholders while providing development capital.

Unlike equity financing, which often comes at a discount to net asset value, Smallwood said streaming pays full net asset value for the metal. That distinction matters in a capital-hungry environment, especially as governments and strategic investors increase their involvement in the mining sector. “A stream pays full net asset value,” Smallwood said, calling it an increasingly attractive alternative to dilution.

Looking ahead, Smallwood said Wheaton expects to generate more than $3 billion in cash flow in 2026, giving the company substantial flexibility to fund new gold, silver, and copper streams. He said development activity is accelerating across the sector as sustained high prices improve project economics. “That’s three billion that we’re going to have to put to work,” he said, adding that the company is already evaluating opportunities.

Wheaton’s focus remains on late-stage projects with completed feasibility studies and permits in place. Smallwood said the streaming model naturally limits permitting risk because capital is deployed gradually during construction rather than upfront. He added that the company avoids political risk where possible, leaving jurisdictional challenges to operators better positioned to manage them.

Also read: Polymarket Traders Weigh Silver’s Ceiling and Gold’s Staying Power Into 2026

Beyond financial structure, Smallwood emphasized the importance of partner relationships. Wheaton has repeatedly ranked among the world’s most sustainable companies, a track record he said reflects long-term investment in community programs at partner mine sites. Strong partnerships, he noted, reduce operational disruptions and support consistent metal deliveries over time.

Smallwood also addressed broader market shifts, arguing that gold is no longer trading like a traditional commodity. “It’s really a currency,” he said, pointing to sustained central bank demand and gold’s role as a politically neutral store of value. In his view, that shift helps explain the metal’s resilience and strengthens the long-term case for precious metals streams.

As for silver, Smallwood acknowledged its volatility but maintained a constructive outlook. He called silver a critical industrial metal with structural demand tied to electrification and technology, even as it increasingly trades alongside gold as a precious asset. Wheaton’s portfolio, he said, remains positioned to benefit without absorbing the cost risks faced by producers.

With capital requirements for new copper projects running into the billions, Smallwood said streaming could play a growing role in financing the next generation of mines. For Wheaton, that means staying disciplined while leveraging its balance sheet in a market that is rediscovering the value of stable, contract-driven exposure to metals.

FAQ ❓

• What is Wheaton Precious Metals’ streaming model?
  Wheaton provides upfront capital to mining projects in exchange for fixed-price metal streams, avoiding operating cost inflation.
• Why does Wheaton expect to outperform miners?
  Fixed streaming contracts shield Wheaton from rising costs as miners process lower-grade material.
• What is the Helo gold stream?
  Helo is a newly secured Canadian gold stream that Smallwood called a long-underinvested, high-upside asset.
• How much cash flow does Wheaton expect in 2026?
  The company expects more than $3 billion in cash flow, according to Smallwood.

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