Mining giant BHP Group announced Tuesday it has struck a major long-term silver streaming deal with a subsidiary of Wheaton Precious Metals, securing $4.3 billion in upfront cash when the transaction closes.
Under the agreement, BHP will supply silver extracted from its ownership stake in Peru’s Antamina mining operation, where the company holds a 33.75% interest in the facility’s operating company, Compañía Minera Antamina S.A.
“Supported by strong silver market conditions, the agreement maximises shareholder value by unlocking capital from a non-core commodity that can be reallocated to BHP’s high-return growth projects and shareholder returns, consistent with our capital allocation framework,” BHP said.
Once the deal finalizes, Wheaton will obtain rights to a total of 67.5% of Antamina’s entire silver output, representing a significant increase from the current 33.75% portion it receives through an existing streaming arrangement with Glencore.
“Quality silver production is becoming increasingly difficult to source while demand continues to rise for both critical industrial uses and for silver’s safe haven qualities in today’s economic environment,” said Randy Smallwood, chief executive officer of Wheaton Precious Metals.
Source: https://srnnews.com/bhp-group-signs-silver-streaming-agreement-with-wheaton-precious-metals/
