Here's how to turn your byproduct into billions: BHP Group Ltd. (BHP) just pulled off the biggest precious metals streaming deal in history, signing a $4.3 billion agreement with Wheaton Precious Metals Corp. (WPM) for silver from the Antamina mine in Peru. It's a clever bit of financial engineering that lets BHP pocket a massive upfront check while staying fully exposed to what it really cares about—copper.
"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.
How Streaming Deals Actually Work
If you're unfamiliar with streaming agreements, think of them as forward contracts with a twist. The mining company gets cash now—lots of it—and in exchange, the streamer gets the right to buy a portion of future production at a deeply discounted, predetermined price. In this case, Wheaton pays $4.3 billion upfront, then continues paying just 20% of the spot silver price for each ounce delivered. That's an 80% discount on future silver, which sounds absurdly good for Wheaton until you remember they just wrote a check for $4.3 billion.
The deal covers 33.75% of Antamina's silver output attributable to BHP, stepping down to 22.5% after 100 million ounces have been delivered. But here's the beautiful part for BHP: silver is just a byproduct at Antamina. The mine's main game is copper, zinc, and lead, and BHP keeps 100% exposure to all of that. No customer contracts affected, no joint venture rights altered. Just a clean monetization of something that was going to come out of the ground anyway.
Antamina sits about 270 km north of Lima in Peru's Ancash region and ranks among the world's largest copper-zinc operations. BHP and Glencore Plc (GLNCY) each own 33.75%, with Teck Resources Ltd. (TECK) and Mitsubishi Corporation (MTSUY) holding the rest. Last year, BHP's share of the mine produced 124,200 tons of copper, 129,400 tons of zinc, and 5.4 million ounces of silver.
Wheaton Doubles Down on Silver Exposure
For Wheaton, this isn't just a new deal—it's an upgrade. The company already had a streaming arrangement tied to Glencore's stake in the mine. This new transaction doubles Wheaton's exposure to Antamina's silver production, bumping its attributable share from 33.75% to 67.5%. CEO Randy Smallwood said the move reflects increasingly tight supply conditions, noting that quality silver production is becoming harder to find while demand keeps climbing from both industrial applications and safe-haven investment.
And the silver market has been wild lately. Demand from solar panels, electronics, and electrification technologies has surged while mine supply hasn't kept up. The result? Multiple years of production deficits and unprecedented price volatility over the past 12 months. So locking in long-term access to a tier-one asset at a fixed discount makes strategic sense, even if you have to pay a record-breaking price for the privilege.
The transaction takes effect April 1, 2026, pending regulatory approvals.
Price Action: BHP Group shares were down 0.35% at $73.12 during premarket trading on Tuesday. The stock is approaching its 52-week high of $75.14, according to market data. Wheaton Precious Metals shares were down 2.71% at $141.94.
