- Wheaton Precious Metals (TSX:WPM) signed a C$4.3B silver streaming deal with BHP, securing rights to 33.75 per cent of Antamina’s silver output starting April 2026
- The agreement doubles Wheaton’s total silver exposure at Antamina to 67.5 per cent, boosting expected production to an average of 12 million ounces per year for the first five years
- Wheaton will fund the transaction through cash on hand and new debt, and says the deal is highly accretive, making Antamina its second‑largest asset by 2030
- Wheaton Precious Metals stock (TSX:WPM) last traded at C$198.68
Wheaton Precious Metals (TSX:WPM) has signed one of the largest streaming transactions in its history, announcing that its subsidiary Wheaton Precious Metals International Ltd. (WPMI) will acquire a major new silver stream from BHP Group Limited. The C$4.3 billion agreement grants Wheaton rights to 33.75 per cent of the silver produced from BHP’s share of the Antamina mine in Peru, one of the world’s most significant copper‑zinc operations.
The definitive Precious Metals Purchase Agreement nearly doubles Wheaton’s exposure to Antamina. Once the deal closes—expected on or around April 1, 2026—Wheaton will receive 67.5 per cent of all silver produced at the mine, combining the newly acquired BHP stream with an existing 33.75 per cent stream tied to Glencore’s ownership stake.
A major production boost starting in 2026
The new silver stream becomes effective April 1, 2026. Under the agreement, WPMI will purchase BHP’s full 33.75 per cent share of payable silver until cumulative deliveries reach 100 million ounces. After that, Wheaton will continue purchasing 22.5 per cent of silver production from BHP’s stake for the life of the mine, using a fixed payable factor of 90 per cent.
The impact on Wheaton’s production profile is immediate. The company expects:
- 6.0 million ounces of attributable silver per year on average for the first five years
- 5.4 million ounces per year over the first decade
- A combined 12 million ounces per year when including its existing Glencore-linked stream
Antamina’s current reserves support operations through 2036, but Wheaton notes that expansion studies and exploration potential—including deeper mineralization and regional targets—could extend the mine’s life significantly.
Financial terms and strategic rationale
Wheaton will pay C$4.3 billion in upfront consideration, funded through:
- C$1.9 billion in cash on hand
- A new C$1.5 billion two‑year term loan
- A C$0.9 billion draw on its existing C$2 billion revolving credit facility
The company estimates ending net debt of C$2.4 billion at closing but projects strong near‑term cash flows—over C$3.2 billion in 2026 and more than C$10 billion through 2028—to comfortably support repayment.
For ongoing production, WPMI will pay 20 per cent of the spot silver price, in line with Wheaton’s standard streaming terms.
Wheaton highlighted the deal’s accretive nature: the investment represents just 6.5 per cent of its market capitalization, while boosting projected 2026 production by 11.3 per cent on a pro‑forma basis. With its increased stake, Antamina is expected to contribute roughly 18 per cent of Wheaton’s gold‑equivalent output by 2030, becoming its second‑largest asset.
Bolstering reserves and portfolio diversification
The added exposure lifts Wheaton’s attributable silver estimates by:
- 66 million ounces of Proven & Probable reserves
- 38 million ounces of Measured & Indicated resources
- 110 million ounces of Inferred resources
Wheaton also emphasized that once the new stream is active, approximately 76 per cent of its 2026 production will originate from mines operating in the first quartile of their cost curves—strengthening the company’s low‑cost portfolio positioning.
A globally significant mine
Located in Peru’s Ancash region, Antamina is operated by Compañía Minera Antamina S.A. and jointly owned by Glencore (33.75 per cent), BHP (33.75 per cent), Teck Resources (22.5 per cent), and Mitsubishi Corporation (10 per cent).
Antamina is one of the world’s largest copper‑zinc skarn deposits and a major contributor to Peru’s economy, accounting for 2.9 per cent of national GDP in 2024. Its stable operating history, well‑developed infrastructure, and year‑round accessibility have made it one of the most commercially reliable base‑metal mines globally.
The new streaming arrangement includes a full BHP parent guarantee, no buyback provisions, and a production drop‑down limited to one‑third—terms Wheaton described as “highly attractive.”
Leadership commentary
“Wheaton has grown into the company we are today by entering into stream agreements on world class operations and adding exceptional assets to our portfolio, and Antamina has long stood as one of our true cornerstones,” Haytham Hodaly, Wheaton Precious Metals’ president said in a news release. “Deepening our exposure to an asset of this scale, quality and longevity is a unique and transformative opportunity for Wheaton, made even more meaningful through our collaboration with BHP. Antamina is a proven, long-life, low-cost operation that will deliver immediate production and operating cash flow, and we are confident it will continue to create lasting value for our stakeholders well into the future.”
About Wheaton Precious Metals
Wheaton is a top precious metals streaming company providing exposure to a high-quality portfolio of 18 low-cost, long-life mines and 29 earlier-stage projects around the world.
Wheaton Precious Metals stock (TSX:WPM) last traded at C$198.68 and has risen more than 100 per cent since this time last year.
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