Wheaton Precious Metals™ Corp. (“Wheaton” or the “Company”) is pleased to announce that its wholly-owned subsidiary, Wheaton Precious Metals International Ltd. (“WPMI”) has entered into a definitive Precious Metals Purchase Agreement (the “Silver Stream”) with a wholly-owned subsidiary of BHP Group Limited (“BHP”) for their 33.75% portion of the silver produced at the Antamina Mine located in Peru (the “Mine” or “Antamina”). Upon closing, Wheaton will receive a combined 67.5% of all the silver produced from Antamina, up from the 33.75% currently delivered under the existing Glencore silver stream.
“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,” said Haytham Hodaly, President of Wheaton Precious Metals. “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.”
“Quality silver production is becoming increasingly difficult to source while demand continues to rise for both critical industrial uses and for silver’s safe haven qualities in today’s economic environment,” said Randy Smallwood, Chief Executive Officer of Wheaton Precious Metals. “Our expanded stream on Antamina reinforces Wheaton’s role as one of the largest silver producers in the world and further adds to one of the strongest growth profiles in the mining sector. The largest mining company in the world has chosen streaming as a means to unlock value from silver, underscoring how compelling the streaming model has become. We are excited to continue building on this long-standing relationship with the exceptional consortium behind Antamina that shares our commitment to responsible development and long-term value creation.”
Transaction Key Terms
(All values in US$ unless otherwise noted)
- Silver Stream Upfront Consideration: WPMI will pay BHP total upfront cash consideration of $4.3 billion (the “Deposit”) on closing, subject to certain customary conditions.
- Streamed Metal: The Silver Stream is effective April 1, 2026, from which time WPMI will purchase BHP’s 33.75% of the payable silver until a total of 100 million ounces (“Moz”) has been delivered, at which point Wheaton will purchase 22.5% of the payable silver for the life of mine. Payable silver will be calculated using a fixed payable factor of 90.0%.
- Production Profile1: This acquisition immediately increases Wheaton’s production and cash flow profile by adding expected average attributable silver production of approximately 6.0 Moz of silver per year for the first five years of production and approximately 5.4 Moz of silver per year for the first 10 years of production. When combined with Wheaton’s existing stream on Antamina, total attributable production is expected to average 12.0 Moz per year over the first five years, and 10.8 Moz per year over the first ten years10.
- Current declared reserves are sufficient to support mining activities at Antamina until 2036. Multiple options to expand mine infrastructure are under evaluation which would significantly extend mine life, consistent with historical trends at the mine. Further exploration potential also exists both at depth below the current resource pit, as well as regionally.
- Production Payments: WPMI will make ongoing payments for the silver ounces delivered equal to 20% of the spot price of silver.
- Incremental Reserves and Resources1: The incremental exposure to the Antamina Mine will increase Wheaton’s total estimated Proven and Probable silver reserves by 66 Moz, Measured and Indicated silver resources by 38 Moz and Inferred silver resources by 110 Moz.
- Accretive Transaction Increases Diversification
- The Silver Stream is expected to increase 2026 production by 11.3% on a pro-forma basis9, while at $4.3 billion, the investment represents only 6.5% of the Company’s total market capitalization2 underscoring strong accretion and strategic fit within our overall portfolio.
- With Wheaton’s exposure to Antamina doubling, the mine is expected to contribute roughly 18% of total gold equivalent3 production by 2030, solidifying its position as Wheaton’s second‑largest asset while further strengthening the overall diversification of our portfolio.
- With the addition of Antamina, approximately 76% of Wheaton’s 2026 production is forecast to come from mines operating in the first quartile of their respective cost curve, with a total of 85% coming from assets that fall into the lowest half of their respective cost curves4.
Other Considerations
- Antamina is one of the lowest-cost copper mines globally and is the largest copper-zinc skarn deposit in the world.
- In 2024, Antamina contributed approximately 2.9% of Peru’s gross domestic product, underscoring its importance not just as a regional economic cornerstone but as a significant driver of Peru’s economic output5.
- Closing of the transaction is expected to occur on or about April 1, 2026, subject to satisfaction of certain customary conditions.
- Structurally, the stream features highly attractive terms, including no buyback clause, a production percentage drop-down limited to one-third, and full exposure to commodity prices, consistent with Wheaton’s standard approach to streaming agreements.
- The stream benefits from a top-level BHP parent guarantee and a BHP holding company guarantee, along with customary contractual protections6.
Financing the Transaction
The upfront payment of $4.3 billion will be funded through a combination of existing liquidity and new financing. Funding sources include estimated cash on hand at closing of approximately $1.9 billion7. The remaining balance will be funded through a new $1.5 billion term loan credit facility (“term loan”) and an approximate $0.9 billion draw on the Company’s existing undrawn $2 billion revolving credit facility (“RCF”). The new $1.5 billion senior, unsecured, non-revolving term loan underwritten by the Bank of Montreal and The Bank of Nova Scotia acting as Lead Arrangers and Joint Bookrunners, will be drawn down in full at the time of closing of the Silver Stream acquisition. The term loan carries a two-year maturity and aligns with the terms of the Company’s existing RCF8.
The term loan and the RCF provide flexible, non‑dilutive financing that may be repaid at any time without penalty and the remaining balance of the RCF, in addition to continued strong cash flows, still provides healthy balance sheet capacity. Net debt at closing of the Silver Stream acquisition is currently expected to be approximately $2.4 billion, assuming estimated approximate incremental cash flows. With more than $3.2 billion in cash flows expected in 2026 alone and more than $10 billion in operating cash flow forecast to be generated through 2028, the Company believes it has plenty of capacity to repay new debt taken on, fund existing commitments and continue sourcing new growth opportunities.
