Wheaton Precious Metals (NYSE: WPM) (TSX: WPM) announced that its wholly owned subsidiary Wheaton Precious Metals International Ltd. has entered into a definitive precious metals purchase agreement with a subsidiary of BHP Group Limited for its 33.75% share of silver production from the Antamina Mine in Peru. Upon closing, Wheaton will receive a combined 67.5% of all silver produced at Antamina, up from 33.75% under its existing Glencore stream, in exchange for $4.3 billion in upfront cash consideration. The stream is effective April 1, 2026, and is expected to add average attributable silver production of approximately 6.0 million ounces annually over the first five years and 5.4 million ounces annually over the first 10 years, reinforcing Antamina’s role as a cornerstone, long-life asset in Wheaton’s portfolio.
This acquisition significantly enhances Wheaton's already industry-leading streaming portfolio. By securing additional silver output from one of the world's largest and lowest-cost copper-zinc mines, Wheaton is positioned to benefit from increased precious metals production without the operational risks associated with direct mining. The Antamina mine, located in the Peruvian Andes, is a large, open-pit operation with a long mine life, providing Wheaton with stable, long-term cash flows. The upfront payment of $4.3 billion reflects the high-quality nature of the asset and the expected strong returns over the life of the stream.
The transaction is expected to close in the first half of 2025, subject to customary conditions. The existing Glencore stream will remain in place, and the new BHP stream will bring Wheaton's total attributable silver production from Antamina to over 8 million ounces per year initially. This increase will bolster Wheaton's overall production profile and support its competitive dividend policy. Wheaton's business model, which offers investors commodity price leverage and exploration upside with lower risk, is further strengthened by this accretive acquisition. The company continues to demonstrate its ability to execute transformative deals that enhance shareholder value.
The announcement underscores Wheaton's commitment to growth through strategic streaming agreements. For more details, the full press release is available at https://ibn.fm/CfsOp. Investors seeking the latest updates on Wheaton Precious Metals can also visit the company's newsroom at https://ibn.fm/WPM.
