BHP Secures Multi-Billion Dollar Funding Through Silver Streaming Deal

BHP enters a $4.3B silver streaming deal with Wheaton Precious Metals, using proceeds from its Antamina stake to strategically fund its growing copper operations.

Mining giant BHP has arranged a substantial liquidity injection by entering into a silver streaming agreement worth billions. The company is leveraging its stake in Peru's Antamina mine to raise capital, which is earmarked for the strategic expansion of its copper operations. This move reinforces the firm's focused bet on the metal that is already its primary growth engine.

Strategic Capital for Copper Ambitions

The proceeds from this deal are central to the company's strategic realignment. Copper recently contributed 51 percent to BHP's adjusted underlying EBITDA (earnings before interest, taxes, depreciation, and amortization), cementing its role as the cornerstone of future strategy. This financial maneuver comes during a period of leadership transition, with CEO Mike Henry set to step down in July 2026. It also coincides with the company advancing other capital-intensive projects, such as the Jansen potash mine in Canada.

The transaction involves Wheaton Precious Metals, which will provide BHP with an upfront cash payment of $4.3 billion. In return, BHP will deliver 33.75 percent of the silver produced from its share of the Antamina mine until 100 million ounces have been transferred. Thereafter, the delivery share drops to 22.5 percent for the mine's remaining life.

The structure is notably efficient for BHP: physical delivery is avoided in favor of metal credits, and the miner will continue to receive ongoing payments of 20 percent of the prevailing silver spot price for each ounce delivered. Market observers view this as disciplined portfolio management, allowing BHP to monetize a by-product without relinquishing full economic interest in Antamina's primary commodities: copper, zinc, and lead.

Antamina's Ownership Structure

BHP holds a minority interest in the Antamina mine, which is operated by a consortium. The ownership is split among four partners:
* BHP: 33.75%
* Glencore: 33.75%
* Teck: 22.5%
* Mitsubishi: 10%

Market Reaction and Share Performance

The market response to the Friday announcement was muted. BHP shares currently trade at €31.59, sitting approximately 11 percent below their March 52-week high. On a year-to-date basis, however, the stock remains up by around 20 percent, reflecting sustained investor confidence in the company's copper-centric trajectory.