Wheaton Precious Metals Completes Previously Announced Gold Stream on the Hemlo Mine

On November 26, 2025, Wheaton Precious Metals announced the completion of its previously announced gold stream agreement with Hemlo Mining Corp. for the Hemlo Mine in Ontario, Canada.

Key terms of the completed transaction include: - Upfront Consideration: Wheaton paid a total of $300 million. - Stream Percentage: Wheaton will receive 10.13% of the payable gold until 135,750 ounces are delivered. The stream then reduces to 6.75% until an additional 117,998 ounces are delivered, and finally to 4.50% for the life of the mine. - Production Payments: Wheaton will pay 20% of the spot gold price for each ounce delivered. - Production Profile: The stream is expected to add an average of 15,000 ounces of attributable gold production per year for the first 10 years. - Security: The stream is secured by corporate guarantees and first-priority security interests on substantially all of Hemlo Mining Corp.'s assets.

The completion of the Hemlo gold stream is a positive execution of strategy, but it is routine in nature as the market was already aware of the commitment. The original financing commitment was announced on September 10, 2025, for a stream of up to $400 million. The final deal for a $300 million upfront payment reflects the successful equity financing completed by Hemlo Mining Corp. (formerly Carcetti Capital), a scenario outlined as a possibility in the initial announcement.

• Alignment with Expectations: The closing was expected in the fourth quarter of 2025 and has occurred as planned. The final terms are slightly different from the maximum potential outlined in September but are consistent with the disclosed contingencies. Attributable production forecasts have been adjusted down slightly from the initial announcement (from ~20 Koz/year to ~15 Koz/year for the first 10 years) to reflect the smaller stream size, but this is a logical adjustment.

• Strategic Importance: The deal is strategically sound. It adds immediate, low-risk gold production from a tier-one jurisdiction (Canada), which helps balance the portfolio's development pipeline. Unlike the larger Spring Valley deal announced on November 6 (which adds ~29 Koz/year but not until 2028), Hemlo provides immediate cash flow. This aligns with management's stated goal of adding high-quality, accretive assets.

• Financial Impact: The $300 million payment reduces Wheaton's cash position from ~$1.2 billion (as of Sept 30, 2025) to ~$900 million. While a significant outlay, the company remains exceptionally well-capitalized with a fully undrawn $2 billion credit facility. As confirmed in the November 7 earnings call, management expects to fund this and all other commitments from cash and operating cash flows, without incurring debt.

• Market Reaction: Given that the commitment was already public knowledge, the impact of the final closing on the stock price should be minimal. The news removes the closing risk but does not introduce new material information.

In conclusion, the news confirms disciplined execution and adds a solid, cash-flowing asset to the portfolio. However, it is an expected development rather than a new catalyst. The more significant news in the period was the announcement of the much larger Spring Valley stream on November 6.

Wheaton Precious Metals is one of the world's largest precious metals streaming companies. Its business model involves making an upfront payment to a mining company in exchange for the right to purchase a fixed percentage of its future precious metals production at a predetermined low price. This provides leveraged exposure to commodity prices with reduced operating cost risks.

The company does not operate mines but has a diversified portfolio of streams on 20 operating mines and over 26 development projects. Its cornerstone assets include gold and silver streams on world-class mines such as Vale's Salobo mine (gold), Newmont's Peñasquito mine (silver), and Glencore's Antamina mine (silver). The company's strategy is focused on long-life, low-cost assets located primarily in politically stable jurisdictions.