Wheaton Precious Metals Secures Steady Cash Flow With $300 Million Gold Stream on Hemlo Mine
Major Gold Stream Unlocks Immediate Value and Long-Term Production
Wheaton Precious Metals (WPM) has closed a $300 million gold streaming agreement on the Hemlo Mine, immediately boosting its production profile and providing stable cash flow for years to come. The deal supports Carcetti Capital Corporation’s (now Hemlo Mining Corp.) acquisition of Hemlo from Barrick Mining, anchoring Wheaton’s presence at one of Canada’s most storied gold operations.
Production Forecasts Offer Reliable Growth Over the Next Decade
Under the terms, Wheaton will purchase 10.13% of payable gold from Hemlo until 135,750 ounces have been delivered. Afterward, the percentage drops to 6.75% for the next 117,998 ounces, and finally, 4.50% for the mine’s remaining life. The effective start date for streaming is October 31, 2025. Hemlo is forecast to yield Wheaton an average of approximately 15,000 ounces annually for the first ten years and more than 13,000 ounces per year over its expected 14-year lifespan.
| Key Terms | Details |
|---|---|
| Upfront Consideration | $300 million paid by Wheaton |
| Stream Percentage | 10.13% (to 135,750 oz), then 6.75% (next 117,998 oz), then 4.50% for life of mine |
| Average Annual Production (First 10 Years) | ~15,000 ounces |
| Ongoing Payment per Delivered Ounce | 20% of spot gold price |
| Effective Date | October 31, 2025 |
| Mine Life Forecast | 14 years |
Financial Flexibility and Expansion of Reserve Base
The deal’s structure requires ongoing production payments at 20% of gold’s spot price—offering significant margin leverage in a rising commodity environment. As a result, Wheaton will increase its total estimated gold reserves by 0.19 million ounces, with an additional 0.06 million measured and indicated, and 0.03 million inferred ounces. Combined with roughly $1.2 billion in cash as of September 30, 2025, and a $2 billion undrawn revolving credit facility, Wheaton retains significant firepower for future accretive acquisitions.
Long-Term Partnerships Drive Low-Risk, High-Margin Profile
This Hemlo agreement strengthens Wheaton’s model of acquiring streams from high-quality assets with robust operating histories. The Hemlo Mine, in continuous production for over 30 years, remains a cornerstone of Canada’s gold sector. Wheaton’s focus on predictable, long-life production gives investors a differentiated risk/return profile—balancing exploration upside with the security of upfront agreements and proven reserves.
Investor Perspective: Consistency and Exploration Upside
The gold stream’s structure ensures steady cash flow and manageable operating risk for Wheaton, while incremental reserves and the potential for brownfield discoveries at Hemlo offer room for upside. Investors will want to watch Wheaton’s production reports and future acquisition activity, as its model continues to target accretive deals from established mines around the globe.
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