Silver Supply Locked Up as Wheaton Lands $4.3B Stream

Silver Supply Locked Up as Wheaton Lands $4.3B Stream

Wheaton Precious Metals has committed $4.3 billion for a silver stream on BHP’s Antamina mine while separately entering Australia through a gold deal with KGL Resources - two moves that pull future supply off the market as silver trades at $75.11/oz.

What to know

• Wheaton Precious Metals has committed $4.3 billion for a silver stream on BHP’s Antamina mine in Peru, one of the largest streaming deals in the sector’s history.

• The company is simultaneously entering Australia for the first time through a separate gold streaming agreement with KGL Resources.

• Silver is trading at $75.11/oz with the gold/silver ratio at 65.4, suggesting the white metal still has room to run relative to gold at $4,910/oz.

What happened

Wheaton Precious Metals has struck a $4.3 billion silver streaming deal tied to BHP’s Antamina copper-zinc mine in Peru - one of the largest such agreements ever executed in the precious metals streaming space. The deal locks in a significant portion of Antamina’s silver by-product output for Wheaton at below-market costs, removing future ounces from the open market before they’re mined.

Simultaneously, Wheaton has entered Australia for the first time through a gold streaming arrangement with KGL Resources, adding geographic diversification to a portfolio historically concentrated in the Americas. The dual announcement reshapes Wheaton’s production pipeline across both precious metals.

Who’s involved

BHP, the world’s largest miner by market capitalisation, is monetising silver by-product from Antamina - a Tier 1 asset in Peru’s Ancash region with decades of remaining mine life. For BHP, this is balance sheet optimisation: crystallising value from a non-core metal stream while retaining full ownership of the copper and zinc revenues that drive the operation.

Wheaton, already the largest precious metals streaming company globally, is targeting long-life assets. The Antamina stream alone could deliver millions of silver ounces annually at production costs well below spot. At current silver prices of $75.11/oz, the economics are compelling - Wheaton typically pays a fraction of spot as an ongoing production payment, locking in substantial margins.

KGL Resources, a smaller Australian developer, gives Wheaton its first foothold in a jurisdiction that’s becoming increasingly attractive as geopolitical risk repricing pushes capital towards stable mining regions. Australia’s regulatory clarity and established infrastructure make it a natural target for streaming capital looking to de-risk.

Why it matters

The scale of this deal matters for silver supply dynamics. Streaming agreements don’t create new supply - they redirect existing and future production into committed channels, reducing the volume available to the broader market. With silver already up 6.8% on the week and the gold/silver ratio sitting at 65.4, the physical market is tightening.

World Gold Council figures indicate that investment demand for precious metals has been running at elevated levels throughout 2025 and into 2026. Silver, which serves dual roles as both an industrial and monetary metal, faces structural supply constraints that streaming deals deepen. Antamina’s silver is now spoken for - and it won’t be showing up on the spot market.

The geographic expansion into Australia also signals something broader. Wheaton has historically operated almost exclusively in the Americas. Moving into Australia suggests the company sees diminishing marginal returns from further concentration in Latin American jurisdictions, or recognises that the current precious metals cycle demands a wider net. Gold at $4,910/oz rewards aggressive pipeline building.

With US nonfarm payrolls data due today, any labour market softness could further support the case for precious metals. A weak print would reinforce rate cut expectations and push more capital towards gold and silver - exactly the metals Wheaton is locking up.

What to watch

The Antamina stream’s delivery schedule and annual ounce commitments will determine how materially this affects silver market balances. Any detail on the ongoing per-ounce payment Wheaton has agreed will reveal the true margin profile.

Other streamers will be watching. When the largest streamer in the world pays $4.3 billion for silver exposure, it validates the bull case in a way that reverberates across the sector. Franco-Nevada and Royal Gold will be under pressure to match.

Silver’s month-on-month decline of 9.4% despite strong weekly gains suggests volatility is elevated. The $75 level is acting as a near-term pivot - a sustained break higher, particularly if payrolls disappoint, could see silver challenge the $80 handle. The gold/silver ratio at 65.4 still implies relative undervaluation for silver in a market where gold has gained 8.5% in a single week.

Whether BHP deploys the $4.3 billion proceeds towards further copper acquisitions would confirm that major miners are actively rotating out of precious metals exposure.

This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.