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Diversified miner BHP Group Ltd. (NYSE:BHP) has signed a $4.3-billion silver streaming agreement with Wheaton Precious Metals Corp. (NYSE:WPM) covering its share of output from the Antamina mine in Peru. Based on the upfront consideration, this is the most valuable precious-metals streaming transaction to date. “We are pleased to partner with Wheaton – a global leader in precious metals streaming. BHP’s investment in Antamina has delivered value to investors through strong copper production performance, ...

Summary of Wheaton Precious Metals Conference Call Company Overview - **Company**: Wheaton Precious Metals (NYSE: WPM) - **Event**: Silver Stream Transaction conference call regarding Antamina mine - **Date**: February 17, 2026 Key Points Industry and Company Context - Wheaton Precious Metals is positioned as the largest precious metal streaming company globally, with a focus on silver production [3][4] - The company has acquired an additional silver stream on the Antamina mine in Peru, partnering with BHP [3][4] Acquisition Details - **Transaction Value**: $4.3 billion for 33.75% of the silver produced at Antamina, marking the largest precious metal stream ever executed [3][4][8] - **Payment Structure**: Upfront payment of $4.3 billion and ongoing payments equal to 20% of the spot silver price [8][19] - **Production Forecast**: Attributable silver production is expected to average approximately 6 million ounces per year for the first five years and 5.4 million ounces per year for the first ten years [9] Production Guidance and Growth - Updated production guidance indicates a 50% growth by 2030, targeting 1.2 million gold equivalent ounces annually [4][17] - Antamina is projected to contribute approximately 18% of Wheaton's total production by 2030, solidifying its position as the second-largest asset in the portfolio [9][11] Asset Quality and Longevity - Antamina is recognized as a long-life, low-cost operation, contributing to immediate production and cash flow [5][11] - The mine has a proven track record of extending its life through resource conversion and exploration, with a current mine life extended to 2036 [12][63] - The asset is expected to operate for decades, with significant exploration potential and ongoing investments in infrastructure [12][36] Financial Position and Strategy - Wheaton plans to fund the acquisition through a combination of existing liquidity, free cash flows, and a new $1.5 billion term loan [19] - The company anticipates generating over $10 billion in operating cash flow through 2028 at current spot prices, with a return to a net cash position expected within a year [19][98] - The transaction represents only 6.5% of Wheaton's total market capitalization, indicating strong strategic fit and accretion potential [19] Community and Sustainability Commitment - Wheaton emphasizes its commitment to supporting local communities and sustainability practices, particularly in Peru [10] Market Outlook - The silver market is expected to remain in a supply deficit for the next five years, with increasing investment demand [58] - Wheaton's management expresses confidence in the long-term fundamentals of silver, despite recent price fluctuations [58] Risk Management - The acquisition reduces concentration risk, as Antamina will represent under 18% of Wheaton's total assets, while Salobo will be under 25% in the coming years [39][40] - The company maintains a strong credit position with 70% of its exposure to investment-grade mining partners, significantly decreasing credit risk [11] Future Opportunities - Wheaton is exploring additional opportunities for growth, particularly in the copper space, which is expected to require significant capital investment [82] Additional Insights - The transaction with BHP is seen as a validation of the streaming model, highlighting its attractiveness as a source of capital for major mining companies [84] - The company is actively engaging with other large miners for potential future streaming agreements [82]

Cautionary Statements Cautionary Note Regarding Forward-Looking Statements The information contained in this presentation contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities legislation, in particular, but not limited to, the future price of commodities and the estimation of future production. There can be no assurance that forward-looking statements will pro ...

Group 1 - Nexa Resources S.A. (NEXA) is a notable stock in the Basic Materials sector, currently outperforming its peers with a year-to-date return of 34.8% compared to the sector average of 21.3% [4] - The Zacks Rank for Nexa Resources S.A. is 1 (Strong Buy), indicating strong analyst sentiment and an improving earnings outlook [3] - The Zacks Consensus Estimate for NEXA's full-year earnings has increased by 100.4% over the past three months, reflecting positive analyst revisions [4] Group 2 - Nexa Resources S.A. is part of the Mining - Miscellaneous industry, which ranks 55 in the Zacks Industry Rank, with an average year-to-date return of 22.5% [6] - Another stock in the Basic Materials sector, Wheaton Precious Metals Corp. (WPM), has also shown strong performance with a year-to-date increase of 24.2% and a Zacks Rank of 2 (Buy) [5] - Investors should monitor both Nexa Resources S.A. and Wheaton Precious Metals Corp. for potential continued strong performance in the Basic Materials sector [7]

Core Viewpoint - BHP has entered into a long-term streaming agreement with Wheaton Precious Metals, involving a $4.3 billion upfront payment for silver from its share of production at the Antamina mine in Peru, allowing BHP to monetize its silver assets while maintaining its interests in other minerals [1][2][3]. Group 1: Agreement Details - BHP holds a 33.75% stake in Compañía Minera Antamina, and the new agreement does not change its shareholder rights or existing customer agreements [2]. - Under the terms, BHP will deliver 33.75% of the silver produced from Antamina at a payable rate of 90% until 100 million ounces are delivered, after which the rate will decrease to 22.5% for the remaining mine life [2]. - Wheaton will pay 20% of the spot silver price for each ounce delivered under the agreement, which will take effect on April 1, 2026, with completion expected around the same date [3]. Group 2: Financial Implications - BHP plans to use the capital from this deal to enhance shareholder value by reallocating funds towards high-return projects and returns, with no expected increase in reported debt levels as a result of the transaction [3]. - BHP reported a strong operational performance for the recent half-year, with revenue increasing by $2.7 billion, driven by higher copper and iron ore prices [5]. - The company's underlying earnings before interest, taxes, depreciation, and amortization saw a 25% uplift, with copper contributing 51% to this increase, reaching $8 billion [5]. Group 3: Management Commentary - BHP CEO Mike Henry expressed satisfaction in partnering with Wheaton, highlighting that the investment in Antamina has provided value to investors through strong copper production and that the agreement unlocks additional value from the asset [4].

Core Viewpoint - BHP Group Ltd. has entered into a $4.3-billion silver streaming agreement with Wheaton Precious Metals, marking the most valuable precious-metals streaming transaction to date [1] Group 1: Transaction Details - The streaming agreement involves an upfront payment of $4.3 billion from Wheaton to BHP, along with ongoing payments equal to 20% of the spot silver price for each ounce delivered [3] - The agreement covers 33.75% of Antamina's silver output attributable to BHP, which will decline to 22.5% after 100 million ounces have been delivered [3] - The transaction is set to take effect on April 1, 2026, pending regulatory approvals [5] Group 2: Strategic Implications - This agreement allows BHP to monetize silver as a byproduct from the Antamina mine while maintaining full exposure to its primary copper, zinc, and lead production [4] - The demand for silver has increased due to its applications in solar panels, electronics, and electrification technologies, amidst a backdrop of production deficits in the market [5] Group 3: Market Reaction - BHP Group shares experienced a slight decline of 0.35% to $73.12 during premarket trading, nearing its 52-week high of $75.14 [6] - Wheaton Precious Metals shares fell by 2.71% to $141.94 [6]

Core Insights - BHP Group's earnings for the six months ending December increased by over 20% due to rising copper prices, despite stagnant demand in China affecting its iron ore and steelmaking coal sectors [1] - The company's underlying attributable profit reached $6.2 billion, marking a 22% increase and aligning with analyst expectations [1] Copper Division Performance - The copper division, crucial for BHP's growth strategy, contributed over 50% to the company's bottom line for the first time, with underlying earnings before interest, tax, depreciation, and amortization rising 59% to $8 billion [2] - Realized copper prices increased by nearly 30% during the period, and the company achieved approximately 30% growth in copper production over the last four years, positioning itself favorably in the strengthening copper market [2] Iron Ore Business - Earnings from the iron ore segment saw a modest increase of 4%, supported by steel exports and manufacturing demand in China, which helped mitigate ongoing weaknesses in the real estate sector [3] Silver Streaming Agreement - BHP announced a $4.3 billion long-term silver streaming agreement with Wheaton Precious Metals Corp, aimed at capitalizing on high silver prices, related to silver produced as a by-product at the Antamina copper mine in Peru, where BHP holds a 33.75% stake [4] Growth and Capital Discipline - The company is focused on balancing growth, particularly in copper, with a commitment to capital discipline, having made unsuccessful attempts to acquire rival Anglo American Plc [5] - BHP declared an interim dividend of 73 cents, reflecting a 60% payout ratio [5]

Company Developments - BHP Group has entered into a long-term silver streaming agreement with Wheaton Precious Metals, securing an upfront cash payment of $4.3 billion upon completion [2][9] - The agreement focuses on silver output from BHP's share of the Antamina mine, with Wheaton paying 20% of the spot price per ounce of silver at the time of delivery, allowing BHP to crystallize the value of its silver by-product [3][9] - BHP reported mixed H1 2026 results, with an underlying profit of $6.20 billion, slightly below the expected $6.22 billion, and net income of $5.64 billion, significantly below the consensus estimate of $6.25 billion [4][9] - Despite the bottom-line misses, BHP showed operational strength with an underlying EBITDA of $15.46 billion, surpassing the forecast of $15.09 billion, and declared an interim dividend of $0.73 per share, exceeding the $0.65 estimate [5][9] Industry Insights - Canada has appointed a new chief trade negotiator to the United States, indicating a strategic shift in managing bilateral trade relations amid evolving industrial policies [6][9] - U.S. steel capacity utilization stood at 77.8% for the week ending February 14, according to the American Iron and Steel Institute, serving as a key indicator of domestic manufacturing health and construction demand [7][9] - Global financial markets experienced limited movement due to holiday-thinned trading and soft U.S. inflation data, which has influenced expectations for upcoming interest rate cuts by the Federal Reserve [8][9]

Core Viewpoint - Wheaton Precious Metals Corp. has announced the acquisition of an additional silver stream from the Antamina Mine in Peru through a partnership with BHP, increasing its silver production significantly and enhancing its cash flow profile [1][2]. Transaction Overview - Wheaton's subsidiary, Wheaton Precious Metals International Ltd., has entered into a Precious Metals Purchase Agreement with BHP for their 33.75% share of silver production at Antamina, raising Wheaton's total silver stream to 67.5% [1]. - The acquisition is expected to add approximately 6.0 million ounces (Moz) of silver production per year for the first five years and 5.4 Moz per year for the first ten years [1]. - Total attributable silver production from Antamina is projected to average 12.0 Moz per year over the first five years and 10.8 Moz per year over the first ten years [1]. Financial Impact - The upfront payment for the acquisition is $4.3 billion, which represents only 6.5% of Wheaton's total market capitalization, indicating strong strategic fit and accretion potential [1]. - The transaction is expected to increase Wheaton's 2026 production by 11.3% on a pro forma basis [1]. - Wheaton anticipates generating over $3.2 billion in cash flows in 2026 and more than $10 billion through 2028, providing ample capacity to manage new debt and fund growth opportunities [2]. Asset and Production Profile - With the addition of Antamina, approximately 76% of Wheaton's 2026 production is forecasted to come from mines in the first quartile of their respective cost curves, enhancing overall portfolio diversification [1]. - Antamina is recognized as one of the lowest-cost copper mines globally and is a significant contributor to Peru's economy, accounting for approximately 2.9% of the country's GDP in 2024 [1][2]. Financing Structure - The acquisition will be financed through a combination of existing liquidity, including approximately $1.9 billion in cash on hand, a new $1.5 billion term loan, and a draw on the existing $2 billion revolving credit facility [1][2]. - The term loan is structured to be flexible and non-dilutive, allowing for repayment without penalty [1]. Strategic Importance - The partnership with BHP underscores the growing importance of streaming agreements in the mining sector, as major companies seek to unlock value from silver production [1]. - The acquisition is viewed as a transformative opportunity for Wheaton, reinforcing its position as one of the largest silver producers globally and enhancing its growth profile in the mining industry [1].