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Streaming turns future metal output into a multibillion-dollar asset class
Wheaton Precious Metals agreed to pay $4.3 billion for a silver stream tied to BHP’s Antamina mine in Peru.
Streaming has expanded well beyond niche financing for miners, evolving into a multibillion-dollar asset class supported by a growing secondary market for rights to future metal production, Mining.com reports.
The outlet points to deals such as Wheaton Precious Metals, which agreed to pay $4.3 billion for a silver stream linked to BHP’s share of production from the Antamina mine in Peru.
Under streaming arrangements, a financier provides upfront capital in exchange for the right to buy a portion of future metal output at a fixed or discounted price, while royalties generally pay holders a percentage of mine revenue or production.
Mining.com also notes that the growth of the market has increased the sophistication around how streams are valued, traded, and packaged, drawing in private-equity firms and specialist companies.
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