Wheaton Precious Metals doubles Antamina silver take with $4.3B deal with BHP

Wheaton Precious Metals has agreed to purchase BHP’s one‑third silver holding at Antamina for $4.3 billion, immediately lifting Wheaton’s combined entitlement to 67.5% of the mine’s silver output and accelerating near‑term production and cash flow. The contract covers deliveries from 1 April 2026 until 100 million ounces have been supplied, after which the royalty converts to a lifetime 22.5% purchase interest.

Under the deal Wheaton pays ongoing production consideration equal to 20% of the spot silver price, with payable ounces calculated using a fixed 90.0% payable factor. Management projects an incremental attributable output of roughly 6.0 Moz/year for the first five years and about 5.4 Moz/year across ten years, producing combined averages of 12.0 Moz/year (five‑year) and 10.8 Moz/year (ten‑year) when layered on Wheaton’s existing Antamina exposure.

The acquisition materially expands Wheaton’s silver reserves and resources, adding an estimated 66 Moz to Proven & Probable silver reserves, 38 Moz to Measured & Indicated resources and 110 Moz to Inferred resources. Company modelling indicates the transaction is accretive: it could lift pro‑forma 2026 production by about 11.3% while the upfront payment represents roughly 6.5% of Wheaton’s market capitalization, signalling meaningful scale without extreme dilution.

Financing is structured to preserve equity: funding combines estimated cash at closing of ~$1.9 billion, a new $1.5 billion term loan, and an approximate $0.9 billion draw on an existing revolving credit facility. Net debt at closing is expected near $2.4 billion, with projected operating cash flows exceeding $3.2 billion in 2026 and more than $10 billion through 2028 to support repayment and future deals.

• Upfront consideration: $4.3 billion
• Combined silver entitlement post‑close: 67.5%
• Delivery trigger then step‑down: 100 million ounces → 22.5% thereafter
• Payable factor: 90.0%
• Production payment: 20% of spot
• Attributable silver production addition: ~6.0 Moz/year (first five years)
• Incremental reserves (P+P): +66 Moz Ag
• Financing: $1.5B term loan, $0.9B RCF draw, $1.9B cash

Antamina remains a high‑quality, low‑cost copper‑zinc operation in Peru and the transaction includes parent and holding company guarantees from BHP, limiting execution risk on deliverables. For Wheaton the deal reinforces a strategy of scaling through long‑dated streams on large operations, concentrates nearer‑term cash generation in the silver ledger and materially shifts the company’s production mix toward higher silver exposure.