Q: To follow up on a previous question that asked about short term. Would you give an edge to AEM compared to WPM going forward over the next 3-5 years?
5i Research Answer:
WPM has historically outperformed AEM, and this is consistent with its historically premium valuation to AEM and stronger sales growth, at times. Both have performed excellently over the years, and we feel the choice ultimately comes down to a matter of preference for exposure and risk profile. AEM has operating risk, while WPM has a streaming model. AEM provides exposure to mostly gold while WPM is exposed to both gold and silver, but in rising bull markets, AEM can provide more upside torque. Largely, we would give WPM the slight edge today.