Wheaton Precious Metals Announces Acquisition of Additional Silver Stream on Antamina Through New Partnership with BHP

Executive Summary

• Wheaton Precious Metals’ subsidiary, WPMI, entered a definitive $4.3 billion Precious Metals Purchase Agreement with BHP to acquire BHP’s 33.75% share of silver production at the Antamina Mine, raising Wheaton’s total Antimina exposure to 67.5%.
• The transaction adds ~6 Moz/yr of attributable silver for the first five years (≈12 Moz/yr combined with existing stream) and increases proven & probable reserves by 66 Moz, measured & indicated resources by 38 Moz, and inferred resources by 110 Moz.
• Financing will be sourced from $1.9 bn cash on hand, a new $1.5 bn two‑year term loan (led by BMO & Scotiabank), and a $0.9 bn drawdown on the existing revolving credit facility; net debt post‑closing is projected at ≈$2.4 bn.

Key Details

• Upfront Consideration: $4.3 billion cash payable to BHP at closing (subject to customary conditions).
• Stream Structure:
• Effective April 1, 2026 – WPMI purchases BHP’s 33.75% of payable silver until 100 Moz delivered; thereafter the share drops to 22.5% for the life of mine.
• Payable factor fixed at 90%.
• Ongoing production payments equal 20% of spot silver price.
• Production Impact:
• Immediate increase of ~6 Moz/yr (first five years) and ~5.4 Moz/yr (first ten years).
• Pro‑forma Antimina contribution ≈18% of total gold‑equivalent production by 2030.
• 2026 pro‑forma production up 11.3%; the $4.3 bn outlay represents only ~6.5% of Wheaton’s market cap.
• Reserve & Resource Additions:
• Proven & Probable reserves +66 Moz silver.
• Measured & Indicated resources +38 Moz silver.
• Inferred resources +110 Moz silver.
• Financing Details:
• Cash on hand at closing: ≈$1.9 bn (including $0.3 bn from prior equity monetizations).
• New senior unsecured term loan: $1.5 bn, two‑year maturity, arranged by BMO & Scotiabank; drawn in full at closing.
• Additional draw on existing $2 bn revolving credit facility: ≈$0.9 bn.
• Net debt after transaction expected ≈$2.4 bn; 2026 cash flow forecast >$3.2 bn, cumulative operating cash flow >$10 bn through 2028.
• Guarantees & Covenants:
• Top‑level BHP parent guarantee and holding company guarantee for the upfront deposit.
• No buy‑back clause; drop‑down limited to one‑third; full commodity price exposure retained.
• Closing Timeline: Expected on or about April 1, 2026, subject to customary conditions.

Notable Quotes

“Deepening our exposure to an asset of this scale, quality and longevity is a unique and transformative opportunity for Wheaton…” – Haytham Hodaly, President, Wheaton Precious Metals.

“Our expanded stream on Antamina reinforces Wheaton's role as one of the largest silver producers in the world…” – Randy Smallwood, CEO, Wheaton Precious Metals.