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Wheaton Precious Metals eyes regular multi-billion streaming deals

The company said the $4.3-billion Antamina transaction supports about one deal of similar size per year over the next three to four years, while free cash flow is expected around $2.7 billion annually.

Reported · Written up by our desk · Mining

Wheaton Precious Metals is preparing for a more frequent era of large mine streaming transactions after its $4.3-billion Antamina deal, CEO Haytham Hodaly said in an interview with The Northern Miner Podcast. The precious metals streamer expects roughly one transaction of that scale per year over the next three to four years rather than pursuing multiple simultaneously.

Hodaly said the Antamina agreement reflects what the market views as a 10- to 12-year life, while the company’s technical due diligence indicates the mine could keep operating for at least another 30 to 50 years. He linked Wheaton’s ability to scale to portfolio cash generation, saying its assets produce about $2.7 billion annually in free cash flow.

The company has committed about $4.7 billion this year and said it is retaining more than $2.5 billion of capacity on its revolving credit facility. Wheaton, which historically deployed close to $1 billion annually on new streams, also said its core approach remains focused on high-quality, low-cost, long-life mines in stable jurisdictions.

Wheaton said it does not need additional acquisitions to drive near-term growth, forecasting output rising from about 803,000 gold-equivalent ounces in 2025 to 1.2 million ounces by 2030, an increase of about 50%. Hodaly became CEO on March 31 after moving from president, succeeding Randy Smallwood, who shifted to non-executive chair, and the Antamina benchmark was built on Wheaton’s earlier silver stream tied to BHP’s Antamina stake in Peru.

Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%

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