Major Streaming Company Closes Cobalt Agreement

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Source: Streetwise Reports   07/03/2018

A Voisey’s Bay cobalt production agreement is finalized.

Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) recently announced the completion of an acquisition of a cobalt stream from a subsidiary of Vale S.A. Under the agreement, Wheaton has the right to receive an amount of finished cobalt equal to a fixed percentage of cobalt production from the Voisey's Bay mine.

Wheaton paid US $390 million to Vale and will make payments of 18% of the Metal Bulletin market price per cobalt pound delivered. In conjunction with the completion of the Wheaton deal, Vale has also finalized a different streaming arrangement with Cobalt 27 Capital Corp. Vale has been provided with an aggregate of US $690 million in funding by Wheaton and Cobalt 27. This separate deal is for for the combined purchase of cobalt equal to 75% of Voisey's Bay cobalt production effective January 1, 2021.

As of this future date, Wheaton has the right to receive from Vale an amount of cobalt equal to 42.4% of the Voisey's Bay mine cobalt production until the delivery of 31 million pounds of cobalt and an amount of cobalt equal to 21.2% of cobalt production after that for the life of the mine.

Voisey's Bay is located in Newfoundland and Labrador, Canada. It is one of the highest-margin nickel mines in the world.

Wheaton Precious Metals has streaming agreements for 17 operating mines and 10 development stage projects.

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Disclosure:
1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Wheaton Precious Metals. Click here for important disclosures about sponsor fees.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Wheaton Precious Metals, a company mentioned in this article.

( Companies Mentioned: WPM:TSX; WPM:NYSE, )

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