Investors are turning to materials stocks as rising commodity prices and shifting cost dynamics reshape the outlook for gold, silver and copper producers.
BNN Bloomberg spoke with Martin Pradier, equity research analyst at Veritas Investment Research, about why royalty companies and select miners stand out for growth, valuation and potential catalysts.
Key Takeaways
- Royalty and streaming models provide insulation from rising operating costs due to fixed purchase prices for metals.
- Strong silver price gains are supporting revenue growth for companies with significant exposure to the metal.
- A potential restart of a major Panama copper mine could significantly lift growth and valuations if realized.
- Copper producers with meaningful gold exposure can reduce costs and provide downside protection during price volatility.
- Large-scale development projects and acquisitions are expected to drive significant production growth over the next decade.
Read the full transcript below:
ANDREW: On Hot Picks today, we’re looking at a couple of gold ideas and a copper miner. Our guest is Martin Pradier, equity research analyst at Veritas Investment Research. Martin, great to hear from you. Thanks for joining us. Let’s jump in with Wheaton Precious Metals. You say the valuation is higher than gold miners, but it always is?
MARTIN: Yes, that’s always been the case. What’s important here is that Wheaton Precious Metals has about 40 per cent of its revenue coming from silver, and silver has increased even more than gold. Gold has risen about 17 per cent quarter-over-quarter and roughly 60 to 69 per cent year-over-year. Silver has increased about 55 per cent quarter-over-quarter and roughly 63 per cent year-over-year. So revenue is growing very fast.
The other important factor is growth. No gold miner has this kind of growth. Most gold miners have very little growth, and the best ones are around 15 to 20 per cent. Wheaton has about 50 per cent growth to 2030 and about 11 per cent this year. So there is strong growth, and valuations are attractive. The stock is trading at its lowest level relative to the past five years, about one standard deviation below the average.
Another key point is that Wheaton doesn’t suffer from oil price increases because its costs are fixed. That’s also true for my second pick, Franco-Nevada. Both companies benefit from the streaming and royalty model, where the price they pay for gold is fixed.
Franco-Nevada is also interesting. About 85 per cent of its revenue comes from gold and silver, mostly gold, while roughly 15 per cent comes from iron ore, oil and gas. Oil represents about seven per cent, and that portion benefits when oil prices rise. Growth is about four per cent this year and roughly 12 per cent to 2030, which is modest, but there is a major catalyst.
That catalyst is the potential restart of Cobre Panama. We think there is a 70 to 80 per cent probability of that happening. If it does, growth to 2030 could reach about 45 per cent, which is very compelling. The stock does not reflect that in its valuation. It is trading more than one standard deviation below its historical average, so that upside is not priced in.
The last idea is a copper name. We have a price target of $46, implying about 54 per cent upside. This is a different kind of copper company because about 40 per cent of its revenue comes from gold, which provides strong downside protection.
In 2023, the company had copper costs of about $1.92 per pound. With higher gold prices, costs have fallen significantly, reaching negative $0.22 per pound in 2025, and are expected to remain low. That makes it one of the lowest-cost producers in our coverage.
The other key factor is growth. The World Copper project could increase production by about 50 per cent. The company is also in the process of acquiring the Cactus project, which could boost production by up to 160 per cent by 2032.
Both projects have very high internal rates of return. The World Copper project has an IRR of about 90 per cent. The Cactus project ranges from about 23 per cent at a $4.50 copper price to about 35 per cent at $6, but the acquisition is being made at a discount, which could lift returns further.
This is important because those returns ultimately benefit shareholders. The company also trades at about a 40 per cent discount to peers, offering both value and growth potential.
ANDREW: Martin, great hearing from you. Thank you very much. Martin Pradier, equity research analyst at Veritas Investment Research.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| WPM TSE | N | N | N |
| FNV TSE | N | N | N |
| HBM TSE | N | N | N |
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This BNN Bloomberg summary and transcript of the April 6, 2026 interview with Martin Pradier are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
