Here's What BHP's Record Silver Streaming Deal Says About Its Bigger Picture Corporate Strategy
A shocking announcement on a long term silver streaming agreement that includes a US$4.3 billion upfront payment by Silver Wheaton to the world's largest mining company, BHP.
On Tuesday morning in Australia, BHP (NYSE:BHP) announced a record streaming deal with Wheaton Precious Metals (NYSE:WPM)—this is definitely cause for some deeper analysis and unpacking of this silver streaming deal between two of the world’s largest mining/royalty companies.
The Headline: $4.3B Upfront Payment
BHP will receive US$4.3 billion upfront from Wheaton Precious Metals.
In return, BHP agrees to stream silver tied to its share of production from the Antamina mine in Peru.
BHP immediately monetizes future silver production without selling the underlying asset. The size and timing of the deal, the valuation details, and the fact that the world’s largest mining company has decided to monetize a portion of its silver production offer fodder for deeper analysis.
