Wheaton inks long-term precious metals streaming deals with BHP, KGL

Wheaton also entered into a definitive precious metals purchase agreement with a subsidiary of ASX-listed KGL Resources for a portion of the gold and silver produced at the Jervois project, in Australia.

BHP will supply Wheaton’s wholly-owned subsidiary, Wheaton Precious Metals International, with silver produced from the Antamina mine, in Peru.

In turn, KGL will supply Wheaton with a portion of the gold and silver produced at the incoming Jervois project, in Australia.

BHP DEAL

In return for a $4.3-billion upfront consideration and ongoing production transfer payments by Wheaton, which is payable at 20% of the spot silver price per ounce of silver delivered in respect of the agreement, BHP will deliver to Wheaton the equivalent of 33% of the silver produced by Antamina.

After 100-million ounces of silver have been delivered to Wheaton, the stream will be reduced to 22.5% of Antamina’s silver production over the remaining life-of-mine.

The settlement of the stream will be completed through metal credits with no physical delivery of silver to Wheaton.

KGL DEAL

The KGL agreement marks Wheaton’s first streaming transaction in Australia. The Jervios project, which will predominantly produce copper, is fully permitted and ready to start construction imminently.

KGL chairperson Jeff Gerard says Wheaton’s early deposit payments under the agreement will ensure the company can maintain its development schedule under stewardship of a new CEO Sam Storhmayr.

Wheaton will pay KGL an upfront cash consideration of $275-million as a deposit through two instalments of $16-million each as early payments during the second and third calendar quarters of 2026, while the remaining balance of $243-million will be paid in four equal instalments over the construction period of the project.

Once in operation, Wheaton will purchase 75% of the payable gold production from Jervois until a total 45 000 oz has been delivered, at which point Wheaton will continue to purchase 37.5% of the payable gold produced from the project until 15 000 oz has been delivered. Following this, Wheaton will purchase 25% of the payable gold produced by the mine over its lifetime.

Wheaton will also purchase 75% of the payable silver produced from Jervois until a total of 4.3-million ounces has been delivered, following which Wheaton will purchase 37.5% of the mine’s silver production until an additional 1.7-million ounces has been delivered. Wheaton will ultimately purchase 25% of the payable silver produced by the Jervois mine over its lifetime.

Wheaton’s payments for the gold and silver from Jervois will be equal to 20% of the spot price of gold and silver at the points of sale.