BHP has completed its long-term silver streaming transaction with Wheaton Precious Metals International, receiving a total upfront payment of US$4.3 billion.
In return for the money and ongoing production transfer payments (payable at 20 per cent of the spot silver price per ounce of silver delivered), BHP will deliver to Wheaton the equivalent of 33.75 per cent of the silver produced by Antamina (subject to a fixed payable rate of 90 per cent).
After 100 million ounces of silver have been delivered to Wheaton, the stream will be reduced, and BHP will deliver the equivalent of 22.5 per cent of silver produced by Antamina over the remaining life of mine.
The settlement of the stream is completed via metal credits with no physical delivery of silver to Wheaton.
Wheaton is the world’s largest precious metals streaming company, focused primarily on gold and silver streaming agreements across a global portfolio of high-quality mining operations. Its business model offers investors commodity price leverage and exploration upside.
In February, BHP chief executive officer Mike Henry said the company’s investment in Antamina has delivered value to investors through strong copper production performance.
“This agreement further unlocks additional value from the asset in an innovative and disciplined way,” he said.