Legend
  • 19Operating Mines
  • 9Development Projects

Streaming

Streaming allows Wheaton to purchase generally by-product precious metals or cobalt production from a mine that it does not own or operate in exchange for an upfront payment plus an additional payment upon delivery of each ounce or pound. The operating costs that Wheaton pays for future production are pre-determined in the agreements with a small inflationary adjustment in most contracts. This amount offsets our partners’ typical cost to produce the silver, gold, palladium or cobalt. 

Predictable costs reduce our shareholders’ downside risk while at the same time providing the upside to increases in the precious metals or cobalt price. Other than the initial upfront cash payment, Wheaton typically does not contribute to future capital expenditures or exploration costs invested by the mine; yet, it benefits from the production and exploration growth that results from these expenditures. This business model often translates into significant value creation for Wheaton shareholders.

Mineral Stream Interests

The following table summarizes the Company's commitments to make per-ounce or per-pound cash payments for silver, gold, palladium or cobalt to which it has the contractual right pursuant to the precious metal purchase agreements:

MINERAL STREAM INTERESTS

MINER OWNER

LOCATION OF MINE

UPFRONT CONSIDERATION1,2

ATTRIBUTABLE PRODUCTION TO BE PURCHASED

TERM OF AGREEMENT

DATE OF ORIGINAL CONTRACT

 

 

 

 

Silver

Gold

Other

 

 

Peñasquito

Newmont Goldcorp

Mexico

$ 485,000

25%

 

 

LOM

24-Jul-07

Constancia

Hudbay

Peru

$ 429,900

100%

50%3

 

LOM

08-Aug-12

Salobo

Vale

Brazil

$ 3,059,360

 

75%

 

LOM

28-Feb-13

Sudbury4

Vale

Canada

$ 623,572

 

70%

 

20 years

28-Feb-13

Antamina

Glencore

Peru

$ 900,000

33.75%5

 

 

LOM

03-Nov-15

San Dimas

First Majestic

Mexico

$ 220,000

 

Variable6

 

LOM

10-May-18

Voisey's Bay

Vale

Canada

$ 390,000

 

 

42.4%7

LOM

11-Jun-18

Stillwater

Sibanye

USA

$ 500,000

 

100%

4.5%8

LOM

16-Jul-18

Other

 

 

 

 

 

 

 

 

Los Filos

Leagold 9

Mexico

$ 4,463

100%

 

 

25 years

15-Oct-04

Zinkgruvan

Lundin

Sweden

$ 77,866

100%

 

 

LOM

08-Dec-04

Yauliyacu

Glencore

Peru

$ 285,000

100%10

 

 

LOM

23-Mar-06

Stratoni

Eldorado11

Greece

$ 57,500

100%

 

 

LOM

23-Apr-07

Neves-Corvo

Lundin

Portugal

$ 35,350

100%

 

 

50 years

05-Jun-07

Aljustrel

Almina

Portugal

$ 2,451

100%12

 

 

50 years

05-Jun-07

Keno Hill

Alexco

Canada

$ 45,065

25%

 

 

LOM

02-Oct-08

Pascua-Lama

Barrick

Chile/Argentina

$ 252,26113

25%

 

 

LOM

08-Sep-09

Rosemont

Hudbay

United States

$ 230,000

100%

100%

 

LOM

10-Feb-10

777

Hudbay

Canada

$ 455,100

100%

50%

 

LOM

08-Aug-12

Loma de La Plata

Pan American

Argentina

$ 43,289

12.5%

 

 

LOM

n/a 14

Early Deposit

 

 

 

 

 

 

 

 

Toroparu

Sandspring

Guyana

$ 153,500

50%

10%

 

LOM

11-Nov-13

Cotabambas

Panoro

Peru

$ 140,000

100%15

25%15

 

LOM

21-Mar-16

Kutcho

Kutcho Copper

Canada

$ 65,000

100%16

100%16

 

LOM

12-Dec-17

  1. Expressed in United States dollars, rounded to the nearest thousand; excludes closing costs and capitalized interest, where
  2. Please refer to the section entitled “Other Contractual Obligations & Contingencies” on page 30 of the Q2 2018 MD&A for details of when the remaining upfront consideration to be paid becomes
  3. Gold recoveries will be set at 55% for the Constancia deposit and 70% for the Pampacancha deposit until 265,000 ounces of gold have been delivered to the Should Hudbay fail to achieve a minimum level of throughput at the Pampacancha deposit during 2018, 2019 and 2020, Wheaton will be entitled to additional compensation in respect of the gold stream.
  4. Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton, Totten and Victor gold The Stobie gold interest was placed into care and maintenance as of May 2017
  5. Once the Company has received 140 million ounces of silver under the Antamina agreement, the Company’s attributable silver production to be purchased will be reduced to 5%
  6. Under the terms of the new precious metal purchase agreement, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such time as the average gold to silver price ratio is between 50:1
    to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. As of the completion date of the streaming transaction with First Majestic, the amount of attributable production of gold to be purchased was expected to represent approximately 50% over the life of mine of San Dimas.
  7. Deliveries are to commence after January 1, 2021. Once the Company has received 31 million pounds of cobalt under the Voisey’s Bay agreement, the Company’s attributable cobalt production to be purchased will be reduced to 21.2%.
  8. Stream is effective July 1, 2018. Wheaton will be entitled to an amount of palladium equal to: 4.5% of Stillwater palladium production up to 375 Koz: 2.25% of Stillwater palladium production between 375 Koz to 550 Koz delivered:and 1% of Stillwater palladium production thereafter for the life of mine. Production payment is set at 18% of the gold and palladium spot price until the value of the upfront cash consideration is reduced to zero, then the production payment is 22% of the gold and palladium spot price.
  9. On April 7, 2017, Leagold Mining Corporation completed the acquisition of the Los Filos mine from Goldcorp’s guarantee of deliveries in respect of the Los Filos mine remains in place
  10. Glencore will deliver a per annum amount to Wheaton equal to the first 5 million ounces of payable silver produced at Yauliyacu and 50% of any excess.
  11. 95% owned by Eldorado Gold
  12. Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel
  13. The upfront consideration is net of the $373 million cash flows received relative to silver deliveries from the Lagunas Norte, Veladero, and Pierina
  14. Wheaton and Pan American Silver (“PAAS”) have not yet finalized the definitive terms of the agreement.
  15. Once 90 million silver equivalent ounces attributable to Wheaton have been produced, the attributable production to be purchased will decrease to 67% of silver production and 16.67% of gold production for the life of mine.
  16. Once 51,000 ounces of gold and 6 million ounces of silver have been delivered to Wheaton, the stream will decrease to 66.67% of silver and gold production for the life of mine.

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