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

Core Viewpoint - Wheaton Precious Metals Corp. has announced the acquisition of an additional silver stream from the Antamina Mine in Peru through a partnership with BHP, increasing its silver production significantly and enhancing its cash flow profile [1][2]. Transaction Overview - Wheaton's subsidiary, Wheaton Precious Metals International Ltd., has entered into a Precious Metals Purchase Agreement with BHP for their 33.75% share of silver production at Antamina, raising Wheaton's total silver stream to 67.5% [1]. - The acquisition is expected to add approximately 6.0 million ounces (Moz) of silver production per year for the first five years and 5.4 Moz per year for the first ten years [1]. - Total attributable silver production from Antamina is projected to average 12.0 Moz per year over the first five years and 10.8 Moz per year over the first ten years [1]. Financial Impact - The upfront payment for the acquisition is $4.3 billion, which represents only 6.5% of Wheaton's total market capitalization, indicating strong strategic fit and accretion potential [1]. - The transaction is expected to increase Wheaton's 2026 production by 11.3% on a pro forma basis [1]. - Wheaton anticipates generating over $3.2 billion in cash flows in 2026 and more than $10 billion through 2028, providing ample capacity to manage new debt and fund growth opportunities [2]. Asset and Production Profile - With the addition of Antamina, approximately 76% of Wheaton's 2026 production is forecasted to come from mines in the first quartile of their respective cost curves, enhancing overall portfolio diversification [1]. - Antamina is recognized as one of the lowest-cost copper mines globally and is a significant contributor to Peru's economy, accounting for approximately 2.9% of the country's GDP in 2024 [1][2]. Financing Structure - The acquisition will be financed through a combination of existing liquidity, including approximately $1.9 billion in cash on hand, a new $1.5 billion term loan, and a draw on the existing $2 billion revolving credit facility [1][2]. - The term loan is structured to be flexible and non-dilutive, allowing for repayment without penalty [1]. Strategic Importance - The partnership with BHP underscores the growing importance of streaming agreements in the mining sector, as major companies seek to unlock value from silver production [1]. - The acquisition is viewed as a transformative opportunity for Wheaton, reinforcing its position as one of the largest silver producers globally and enhancing its growth profile in the mining industry [1].