Ahead of the Easter break, mining giant BHP Group (ASX:BHP) completed its long-term silver streaming transaction with Wheaton Precious Metals International, conducted through each of the parties’ wholly owned subsidiaries.
BHP received a total upfront consideration of US$4.3 billion ($6.2 billion) from Wheaton, with ongoing production transfer payments payable at 20% of the spot silver price per ounce in exchange for delivering 33.75% of silver produced from the Antamina mine in Peru.
The stream will be reduced after delivering 100 million ounces to Wheaton to 22.5% of silver produced from the mine for the remaining life of mine.
The settlement of the stream has now been completed through metal credits with no physical delivery of silver to Wheaton.
Last week Wheaton’s President, Haytham Hodaly, succeeded Randy Smallwood as CEO, as a part of the company’s plan to evolve its leadership team for growth trajectory.
Smallwood led the company, which he co-founded, for 15 years, and will assume the role of non-executive Chairman.
“I am honoured to step into the role of President and CEO at such an exciting time in both the company’s history and the broader precious metals market,” new CEO Hodaly says.
“We have a clear vision for the future and an exceptionally strong foundation from which to grow, positioning us well to support the next generation of mine builders in an unprecedented environment for gold and silver.”
Former CEO Smallwood says building and leading the company with a “dedicated and talented team” has been a highlight of his career.
“I am deeply grateful to the board — current and former members included — for its guidance and partnership over the past two decades, as well as our team for their steadfast commitment to creating what I believe is one of the strongest precious metals companies in the world today,” Smallwood says.
“I’d also like to extend my thanks to all of our stakeholders, for their continued trust and support as we helped transform the landscape of mining financing.”
Smallwood co-founded Wheaton in 2004 before stepping into the CEO role in 2011, guiding the company to become one of the “largest precious metals companies in the world”.
Wheaton is a precious metals streaming company focused primarily on gold and silver streaming agreements across a global portfolio of mining operations.
BHP is a resources company that operates in more than 90 locations worldwide.
The company has been in operation since 1851, developing and contributing to the mining industry with more than 90,000 employees and contractors globally.
Write to Maddison Elliott at Mining.com.au
Images: iStock
