BHP, Wheaton sign $4.3bn silver streaming deal in Peru
BHP has signed a long-term streaming agreement with Wheaton Precious Metals, which includes a $4.3bn (£3.17bn) upfront payment for silver from BHP’s production share at the Antamina mine in Peru.
The transaction allows BHP to monetise its silver assets from Antamina while preserving its interests in copper, zinc and lead production.
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BHP holds a 33.75% stake in Compañía Minera Antamina, which operates the mine independently, and this new agreement does not alter BHP’s shareholder rights or existing customer agreements.
As per the terms, BHP will deliver 33.75% of the silver produced from Antamina, subject to a payable rate of 90%, until 100 million ounces (moz) have been delivered.
Subsequently, this will reduce to 22.5% for the remaining mine life.
Wheaton will pay 20% of the spot silver price to BHP for each ounce delivered under the agreement.
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By GlobalDataThe contract is set to become effective on 1 April 2026, with completion anticipated around the same date without requiring regulatory approvals.
BHP intends to use the capital realised from this deal to enhance shareholder value by reallocating funds towards high-return projects and returns.
The company expects no increase in its reported debt levels as a result of the transaction.
BHP CEO Mike Henry said: “We are pleased to partner with Wheaton – a global leader in precious metals streaming. BHP’s investment in Antamina has delivered value to investors through strong copper production performance, and this agreement further unlocks additional value from the asset in an innovative and disciplined way.”
BMO Capital Markets is serving as financial advisor and Davies Ward Phillips & Vineberg as legal counsel for BHP.
In a separate development, BHP reported a strong operational performance for the recent half-year, with revenue rising by $2.7bn.
This growth was largely driven by notable increases in copper and iron ore prices.
The company’s underlying earnings before interest, taxes, depreciation and amortisation saw a 25% uplift, with copper alone contributing 51%, up from 39% in the previous half-year, reaching $8bn.
Net operating cash flow experienced a 13% rise, spurred primarily by higher realised prices for copper and iron ore, although this was offset by an approximately $2.3bn increase in working capital due to larger receivables linked to elevated copper prices.
Earlier this month, Nyapiri Macro Mining entered into a three-year framework agreement with BHP, with the option for two additional one-year extensions.
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