Inside the US$4.3bn Silver Deal Reshaping BHP’s Portfolio

BHP has finalised a long-term silver streaming agreement with Wheaton Precious Metals International in the largest streaming deal ever recorded by upfront consideration.

The US$4.3bn (£3.4bn) transaction signals a pivotal development in corporate capital management for the global mining sector.

The agreement stipulates that BHP will supply silver to Wheaton based on its 33.75% ownership stake in Peru's Antamina mine. This structure enables BHP to monetise the value of its silver by-product whilst maintaining complete exposure to the site's primary copper, zinc and lead output.

Unlocking value through portfolio optimisation

The transaction is part of a targeted approach to portfolio optimisation for BHP, the world's largest mining company.

By extracting capital from what it considers a non-core commodity such as silver, the Melbourne-based multinational plans to channel resources towards high-return growth initiatives and shareholder distributions.

The deal is anticipated to be debt-neutral, offering BHP substantial balance sheet flexibility. This strategic approach allows the company to maintain its mining operations whilst extracting maximum value from by-products.

Mike Henry, BHP CEO, says: "We are pleased to partner with Wheaton – a global leader in precious metals streaming. This agreement further unlocks additional value from the asset in an innovative and disciplined way."

Understanding the streaming structure

The Antamina mine is operated independently by Compañía Minera Antamina S.A. (CMA), which is not a party to this agreement. BHP's rights as a shareholder and its existing customer contracts remain wholly unchanged.

Starting from 1 April 2026, BHP will supply silver credits equivalent to 33.75% of Antamina's output, calculated at a 90% fixed payable rate. After 100 million ounces have been supplied, the stream will reduce to 22.5% for the asset's remaining operational life.

Beyond the substantial upfront payment, Wheaton will pay BHP 20% of the prevailing spot silver price for each ounce supplied. This ongoing payment structure ensures BHP maintains some exposure to silver price movements.

Vandita Pant, BHP's Chief Financial Officer, highlighted that the US$4.3bn valuation compares favourably with consensus projections for BHP's entire stake in the operation.

"Together with the recent transaction with Global Infrastructure Group and subject to closing of both transactions, we expect to unlock more than US$6bn of cash to strengthen our balance sheet flexibility, support long-term value creation and enhance BHP's shareholder value," she says.

The streaming model allows Wheaton to secure future silver production at below-market rates whilst providing BHP with immediate capital and reduced commodity price risk.

Accelerating Wheaton's expansion trajectory

The arrangement serves as a significant catalyst for Vancouver-based Wheaton Precious Metals' robust growth strategy. The company disclosed in January 2026 that its 2025 production reached approximately 692,000 gold equivalent ounces (GEOs), exceeding its guidance.

Incorporating the Antamina agreement alongside other new assets entering production, Wheaton has established a 2026 production target of 860,000 to 940,000 GEOs. Looking ahead to 2030, the company projects a 50% production increase to 1.2 million GEOs annually.

Haytham Hodaly, President of Wheaton Precious Metals, adds: "Production surpassed the upper end of our annual guidance, with notable contributions from several operations, including record results from Salobo.

"Together with today's announcement of an additional silver stream at Antamina, these developments significantly enhance our near-term growth outlook."

Market dynamics and future outlook

The transaction is unfolding against a backdrop of remarkable volatility and strength in precious metals markets. In January 2026, silver prices averaged approximately US$88 per ounce, materially affecting gold-equivalent calculations.

Randy Smallwood, CEO of Wheaton Precious Metals, continues: "We believe Wheaton is on track to reach unprecedented levels of precious metals production within the streaming space.

"With the most precious metals focused portfolio in the industry, we believe Wheaton is exceptionally well positioned to continue delivering industry-leading growth."

As the mining sector navigates the energy transition, this transaction exemplifies an emerging trend whereby major diversified miners leverage precious metal by-products to finance substantial capital expenditures required for energy transition metals such as copper.

The deal is expected to complete around 1 April 2026, subject to customary closing conditions.