Why Franco-Nevada Might Outshine WPM as Your Precious Metals Play in 2026

The Streaming Model’s Appeal — And Its Limits

Wheaton Precious Metals (WPM) operates on a compelling premise: supply capital to mining operations through streaming agreements and lock in metals at discounted rates. The mechanics are straightforward. Take the Spring Valley project deal from November — WPM commits $670 million upfront and secures 8% of production at just 20% of spot price initially, then 6% at 22% afterward.

Currently, WPM’s portfolio spans 23 operating mines plus 25 in development. The company projects 600,000 to 670,000 gold equivalent ounces (GEOs) for 2025, scaling to 870,000 by 2029. These production figures demonstrate solid growth, and the acquisition costs remain attractive — averaging $473 per gold ounce and $5.75 per silver ounce through 2029. Cash generation from these streams funds both new deal flow and a rising dividend.

The Diversification Factor Changes Everything

Franco-Nevada operates in the same precious metals ecosystem but with a fundamentally different scope. Rather than focusing narrowly on streaming, it manages a portfolio of 434 assets spanning gold, silver, platinum group metals, and broader commodity exposure including oil and gas. This isn’t just bigger — it’s structurally different.

Of those 434 assets, 120 are already producing, 38 are in advanced development stages, and 376 remain in exploration. The majority (418 assets) operate under royalty agreements, a distinct advantage over pure streaming arrangements. Royalties provide longer-term cash flows and better alignment with mine economics.

The recent Cote Gold acquisition illustrates this scale: Franco-Nevada paid $1.1 billion for a 7.5% gross margin royalty expected to generate $67 million in annual revenue. With another 175,000 GEOs potential from Cote and Cobre Panama’s possible restart, plus 225,000 GEOs of longer-term incremental production potential, Franco-Nevada’s runway extends considerably further than WPM’s.

Production Metrics Tell the Story

Franco-Nevada expects annual production averaging 495,000 to 525,000 GEOs through 2029 from current assets — which means their portfolio alone is already competitive with WPM’s high-end projections. Add the growth optionality, and the comparison becomes stark.

Both companies maintain 82% and similar weighted exposure to precious metals, and both deploy cash flow into dividend programs — Franco-Nevada boasting 18 consecutive years of increases. The dividend sustainability story aligns, but Franco-Nevada’s diversification provides additional income sources during precious metals downturns.

The Risk Calculus

WPM’s focused streaming approach concentrates dependency on mining operations and precious metals spot prices. When mining cycles contract or metals underperform, the business model tightens significantly.

Franco-Nevada’s broader portfolio — spanning royalties across multiple commodity types, geographic regions, and development stages — distributes that risk. The oil and gas exposure, while modest, provides a structural hedge. The royalty structure locks in more favorable long-term arrangements than pure streaming deals.

The Verdict

Both companies offer legitimate precious metals exposure with sustainable dividends. However, Franco-Nevada’s scale, diversification across 434 assets, and hybrid royalty-streaming model create a more resilient investment profile heading into 2026. For investors seeking precious metals upside with lower concentration risk, it merits consideration before WPM.