BHP Unlocks $4.3 Billion in Record Silver Streaming Deal with Wheaton as H1 Profit Beats
February 16, 2026 · by Fintool Agent
BHP Group has struck the largest silver streaming deal in history, receiving a $4.3 billion upfront payment from Wheaton Precious Metals for its share of future silver production from Peru's Antamina mine. The announcement came alongside half-year results that beat expectations, with underlying profit rising 22% to $6.2 billion and dividends jumping 46%.
The deal exemplifies BHP's "razor-sharp" approach to capital management, as CEO Mike Henry put it—monetizing non-core commodities at a time of strong precious metals prices while retaining full exposure to the copper, zinc, and lead production that defines Antamina's value to the diversified miner.
The Deal: Largest Silver Stream Ever
BHP will receive $4.3 billion at closing—expected around April 1, 2026—in exchange for delivering silver calculated by reference to its 33.75% stake in Antamina. Wheaton will also pay 20% of the prevailing spot silver price for each ounce delivered, providing ongoing cash flow to BHP.
The stream covers 33.75% of silver production (at a 90% payable rate) until 100 million ounces have been delivered, then drops to 22.5% for the remaining life of the mine. Settlement occurs via metals credits—no physical silver changes hands.
For Wheaton, this transforms its relationship with Antamina. Combined with its existing stream from Glencore's stake, Wheaton will now receive 67.5% of all silver produced at the mine—making Antamina the company's second-largest asset by contribution.
Ask Fintool AI AgentWhy Now? Silver's Wild Ride Creates Opportunity
The timing is significant. Silver prices have been extraordinarily volatile, surging above $121 per ounce in late January before crashing 27% after President Trump nominated Kevin Warsh as Federal Reserve chair. The metal currently trades around $75-82 per ounce—still more than double its average in 2025.
J.P. Morgan sees silver averaging $81/oz in 2026, while Goldman Sachs describes recent volatility as "a story of a liquidity squeeze" centered in London, where available supply has tightened sharply.
For BHP, this created an asymmetric opportunity: lock in historically elevated silver values today while retaining full exposure to copper—the commodity at the heart of its growth strategy.
CFO Vandita Pant framed the deal's value starkly: "The Upfront Consideration compares favourably with the consensus estimates of our entire share of Antamina's entire value." In other words, BHP is receiving nearly what analysts valued its entire Antamina stake at—for just the silver byproduct.
Part of a Bigger Picture: $10 Billion Capital Unlocking
The silver stream is the second major transaction in BHP's portfolio optimization push. In December, the company struck a $2 billion deal with Global Infrastructure Group related to its Western Australia Iron Ore (WAIO) inland power consumption—a 25-year tariff arrangement that monetizes infrastructure without surrendering asset ownership or operational control.
Together, these deals unlock over $6 billion in cash. BHP sees potential for up to $10 billion total from similar arrangements.
"We continuously seek to unlock additional value from our capital base and assets," Pant said. "This disciplined approach is central to how we maximize long-term value for shareholders."
The freed capital will flow through BHP's capital allocation framework, competing for deployment across growth projects (copper expansion, Jansen potash), shareholder returns, and balance sheet strengthening. With net debt of $13.6 billion at fiscal year-end 2025, the company has headroom to pursue all three.*
Ask Fintool AI AgentH1 Results: Copper Drives Record Performance
The streaming deal overshadowed what was already a strong earnings report. BHP's underlying attributable profit of $6.2 billion beat consensus estimates of $6.03 billion and rose 22% year-over-year. Net profit jumped 28% to $5.64 billion.
The standout was copper, which generated a record $8 billion in EBITDA at a 66% margin—over half the group total. This marks a dramatic shift: copper now accounts for more than 50% of BHP's earnings, up 30 percentage points over the past three years.
| Metric | H1 2025 | H1 2026 | Change |
|---|---|---|---|
| Net Profit | $4.42B | $5.64B | +28% |
| Underlying Profit | $5.08B | $6.20B | +22% |
| Underlying EBITDA | - | Up 25% | 58% margin |
| Copper EBITDA | - | $8.0B | Record; 66% margin |
| Dividend/Share | $0.50 | $0.73 | +46% |
| Payout Ratio | 50% | 60% | +10pp |
| Return on Capital | - | 24% | - |
Sources: BHP H1 2026 earnings call , Morningstar
Directors increased the interim dividend by 46% to $0.73 per share, reflecting a 60% payout ratio versus the 50% minimum policy. "The dividend reflects strong operating performance, disciplined capital allocation and confidence in our outlook," Henry said.
What It Means for Wheaton
For Wheaton Precious Metals, the deal is transformational. At $4.3 billion, it represents just 6.5% of the company's market capitalization but is expected to boost 2026 production by 11.3% on a pro-forma basis.
Wheaton funded the acquisition through a mix of cash on hand, $1.1 billion drawn from a new term loan, and additional capacity from a $2 billion revolving credit facility. Net debt at closing is expected to be approximately $2.4 billion.
The company expects to generate over $3.2 billion in operating cash flow in 2026 alone and more than $10 billion through 2028—providing ample capacity to repay new debt, fund existing commitments, and source additional growth opportunities.
Wheaton shares surged 4.8% on the news to $145.90, reflecting investor enthusiasm for the accretive transaction.
The Antamina Asset
Antamina sits 270 kilometers north of Lima in the Peruvian Andes—a massive copper-zinc operation that also produces significant silver and lead as byproducts. The ownership consortium includes BHP (33.75%), Glencore (33.75%), Teck Resources (22.5%), and Mitsubishi (10%).
In calendar year 2025, BHP's share of production included 124,200 tonnes of copper, 129,400 tonnes of zinc, and 5.4 million ounces of silver. The mine recently received environmental approval to extend operations through 2036.
Importantly, BHP retains full exposure to copper, zinc, and lead production—the metals that drive Antamina's strategic value. The streaming agreement only covers the silver byproduct, allowing BHP to maintain its copper growth trajectory while extracting maximum value from non-core commodities.
Ask Fintool AI AgentWhat to Watch
For BHP:
- Progress toward $10 billion capital unlocking target—what's next after silver and power deals?
- Copper production guidance: Escondida raised to 1.0-1.1 million tonnes for FY2027
- Jansen potash first production on track for mid-2027 (cost estimate updated to $8.4 billion)
- Vicuña copper-gold JV with Lundin: FID possible by year-end 2026
For Wheaton:
- Integration of doubled Antamina exposure into production forecasts
- Net debt trajectory as deal closes and cash flows accelerate
- Further streaming acquisition opportunities given strong balance sheet capacity
For the Market:
- Silver price volatility: Will the "liquidity squeeze" in London persist?
- Streaming deals as a capital markets innovation: Do other miners follow BHP's playbook?
- Gold nearing $5,000—central bank demand and retail flows continue to support
The silver streaming market has traditionally been the domain of specialist financiers like Wheaton, Franco-Nevada, and Royal Gold. BHP's willingness to engage with this structure at scale—and the valuation it achieved—may encourage other diversified miners to view precious metal byproducts as untapped capital sources rather than incidental revenue.