1 week ago
Diversified miner BHP Group Ltd. (NYSE:BHP) has signed a $4.3-billion silver streaming agreement with Wheaton Precious Metals Corp. (NYSE:WPM) covering its share of output from the Antamina mine in Peru.
Based on the upfront consideration, this is the most valuable precious-metals streaming transaction to date.
“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,” BHP CEO Mike Henry said in the statement.
Monetizing Byproduct
A streaming agreement is a long-term contract in which a mining company receives an upfront payment in exchange for the streamer’s right to buy a portion of future production at a fixed or discounted price.
In this case, Wheaton will pay BHP the upfront $4.3-billion consideration and ongoing payments equal to 20% of the spot silver price for each ...
