Wheaton Precious Metals will acquire an additional silver stream on the Antamina mine in Peru by contracting with a BHP Group subsidiary for BHP’s 33.75% share of payable silver, increasing Wheaton’s combined stream coverage to 67.5% of Antamina’s silver production on closing from 33.75% currently delivered under the existing Glencore stream.
Wheaton’s upfront consideration is a $4.3 billion cash payment to BHP at closing, with the new stream effective April 1, 2026, subject to customary closing conditions.
Financing is structured as non-dilutive debt plus cash: Wheaton expects about $1.9 billion cash on hand at closing, a new $1.5 billion senior unsecured term loan drawn in full at closing with a two-year maturity, and an about $0.9 billion draw on its existing undrawn $2.0 billion revolver.
After the effective date, Wheaton will purchase BHP’s 33.75% of payable silver until 100.0 million ounces are delivered, after which the purchase rate steps down to 22.5% of payable silver for the life of mine. Payable silver is defined using a fixed payable factor of 90.0%, and ongoing production payments are set at 20% of the spot silver price per ounce delivered.
On reserves and resources, Wheaton said the incremental Antamina exposure increases its total estimated proven and probable silver reserves by 66 million ounces, measured and indicated silver resources by 38 million ounces, and inferred silver resources by 110 million ounces.
Wheaton framed the deal as accretive and diversifying, stating it would increase 2026 production by 11.3% on a pro-forma basis. The company also stated the $4.3 billion investment equals 6.5% of its total market capitalization, and that with exposure to Antamina doubling, the mine is expected to contribute roughly 18% of total gold equivalent production by 2030, becoming Wheaton’s second-largest asset.
Cost-curve mix also shifts, with Wheaton forecasting about 76% of 2026 production sourced from mines in the first quartile of their cost curves, and about 85% from assets in the lowest half of their cost curves after adding Antamina.
Antamina was described as one of the lowest-cost copper mines globally and the largest copper-zinc skarn deposit in the world, with 2024 contribution estimated at about 2.9% of Peru’s GDP.
Information for this briefing was found via the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
Silver at net to Wheaton of $100 average over first 100 million ozs is $10 Billion, plus balance life of mine is free.
This I think will be the minimum.