BHP Signs Long-Term Silver Streaming Deal with Wheaton
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Silver Streaming Agreement: BHP has signed a long-term silver streaming agreement with Wheaton Precious Metals, securing an upfront payment of $4.3 billion, which is expected to significantly enhance the company's cash flow and market competitiveness.
- Increased Silver Production: BHP will deliver silver from its Antamina mine in Peru, with Wheaton receiving 67.5% of the silver produced, a substantial increase from the current 33.75%, reflecting BHP's strategic resource allocation adjustments.
- Strong Earnings Performance: BHP reported a 22% year-over-year increase in underlying attributable profit to $6.2 billion for the six months ending December, surpassing market expectations, indicating the successful diversification of revenue sources as copper profitability exceeds that of iron ore for the first time.
- Dividend Growth Reflects Confidence: BHP declared an interim dividend of $0.73 per share, exceeding market expectations of $0.63, which reflects the company's strong operational performance and confidence in its outlook, while also demonstrating prudent and effective capital allocation.
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Analyst Views on BHP
Wall Street analysts forecast BHP stock price to fall
3 Analyst Rating
1 Buy
1 Hold
1 Sell
Hold
Current: 72.760
Low
49.50
Averages
56.50
High
68.00
Current: 72.760
Low
49.50
Averages
56.50
High
68.00
About BHP
BHP Group Limited is an Australia-based resources company. The Company is a producer of commodities, including iron ore, copper, nickel, potash and metallurgical (steelmaking) coal. It is focused on offering a range of resources, which provides copper for renewable energy; nickel for electric vehicles; potash for sustainable farming, and iron ore and metallurgical coal for the steel needed for global infrastructure and the energy transition. Its segments include Copper, Iron Ore, and Coal. Its Copper segment is engaged in mining of copper, silver, zinc, molybdenum, uranium, and gold. Its Iron Ore segment is engaged in mining of iron ore. Its Coal segment is engaged in mining of metallurgical coal and energy coal. The Company is also focused on operating Olympic Dam, Prominent Hill, and Carrapateena underground copper-gold mines in South Australia. Its operations are situated in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BHP Signs Long-Term Silver Streaming Deal with Wheaton
- Silver Streaming Agreement: BHP has signed a long-term silver streaming agreement with Wheaton Precious Metals, securing an upfront payment of $4.3 billion, which is expected to significantly enhance the company's cash flow and market competitiveness.
- Increased Silver Production: BHP will deliver silver from its Antamina mine in Peru, with Wheaton receiving 67.5% of the silver produced, a substantial increase from the current 33.75%, reflecting BHP's strategic resource allocation adjustments.
- Strong Earnings Performance: BHP reported a 22% year-over-year increase in underlying attributable profit to $6.2 billion for the six months ending December, surpassing market expectations, indicating the successful diversification of revenue sources as copper profitability exceeds that of iron ore for the first time.
- Dividend Growth Reflects Confidence: BHP declared an interim dividend of $0.73 per share, exceeding market expectations of $0.63, which reflects the company's strong operational performance and confidence in its outlook, while also demonstrating prudent and effective capital allocation.
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- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
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- Current Control of Critical Minerals: China controls 60% to 90% of the global critical mineral processing market, particularly in missile defense and energy infrastructure, which creates vulnerabilities for the US and its allies, compelling them to take action to ensure supply security.
- US Policy Shift: President Trump launched the $12 billion Project Vault to stockpile critical minerals, while Congress passed the Critical Mineral Dominance Act, marking a significant step in breaking China's control over mineral supply chains and expected to boost domestic mining and refining sectors.
- Surge in Copper Demand: Copper demand is projected to rise by 50% to 42 million metric tons by 2040, while supply is expected to decline by 7%, leading to a 10 million ton shortfall, particularly driven by emerging technologies like AI and electric vehicles, intensifying the demand for copper.
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- Rio Tinto Stock Surge: The company has seen its stock price increase by over 35% in the last three months, currently trading at a price-to-earnings ratio of 12.5 and offering a 4% dividend yield, which positions it favorably among mining peers and attracts investor interest.
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- Multidisciplinary Collaboration: The selected companies include junior exploration firms, geoscience organizations, and technology teams, emphasizing the intersection of geological insights, data, and emerging technologies, which is becoming central to mineral discovery.
- Innovative Technology Applications: Companies like RadiXplore and Mineural are leveraging artificial intelligence and modern geological data analytics to improve mineral target identification efficiency, indicating BHP's proactive adoption of new technologies to tackle complex geological environments.
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See More
BHP Signs Long-Term Silver Streaming Deal with Wheaton
- Silver Streaming Agreement: BHP has signed a long-term silver streaming agreement with Wheaton Precious Metals, securing an upfront payment of $4.3 billion, which is expected to significantly enhance the company's cash flow and market competitiveness.
- Increased Silver Production: BHP will deliver silver from its Antamina mine in Peru, with Wheaton receiving 67.5% of the silver produced, a substantial increase from the current 33.75%, reflecting BHP's strategic resource allocation adjustments.
- Strong Earnings Performance: BHP reported a 22% year-over-year increase in underlying attributable profit to $6.2 billion for the six months ending December, surpassing market expectations, indicating the successful diversification of revenue sources as copper profitability exceeds that of iron ore for the first time.
- Dividend Growth Reflects Confidence: BHP declared an interim dividend of $0.73 per share, exceeding market expectations of $0.63, which reflects the company's strong operational performance and confidence in its outlook, while also demonstrating prudent and effective capital allocation.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
US, EU, and Japan Unite to Counter China's Mineral Dominance
- Global Mineral Cooperation Agreement: The US and EU committed to a deal within 30 days to identify cooperation areas, stimulate demand, and diversify critical mineral supply, aiming to prevent supply chain disruptions and promote research and innovation, reflecting the strategic collaboration of three major economies in global mineral supply chains.
- Current Control of Critical Minerals: China controls 60% to 90% of the global critical mineral processing market, particularly in missile defense and energy infrastructure, which creates vulnerabilities for the US and its allies, compelling them to take action to ensure supply security.
- US Policy Shift: President Trump launched the $12 billion Project Vault to stockpile critical minerals, while Congress passed the Critical Mineral Dominance Act, marking a significant step in breaking China's control over mineral supply chains and expected to boost domestic mining and refining sectors.
- Surge in Copper Demand: Copper demand is projected to rise by 50% to 42 million metric tons by 2040, while supply is expected to decline by 7%, leading to a 10 million ton shortfall, particularly driven by emerging technologies like AI and electric vehicles, intensifying the demand for copper.
See More
European Markets Surge as Stocks Outperform U.S. Amid Tariff Threats
- European Market Performance: Despite ongoing tariff threats from the Trump administration, Europe's largest equity index, the STOXX 600, has risen over 4% year-to-date, reflecting strong market confidence and suggesting it will continue to outperform U.S. markets.
- Rio Tinto Stock Surge: The company has seen its stock price increase by over 35% in the last three months, currently trading at a price-to-earnings ratio of 12.5 and offering a 4% dividend yield, which positions it favorably among mining peers and attracts investor interest.
- ASML's Technological Leadership: As Europe's most crucial tech company, ASML's EUV machines cost upwards of $300 million each, with annual sales of about 40 units; despite its high valuation, a gross margin of 52% keeps it attractive to investors, likely driving further stock price increases.
- Constellium Stock Rise: The aluminum products manufacturer saw its rating upgraded by Wells Fargo from Neutral to Overweight, with a price target raised to $25, representing over 45% upside, and the upcoming earnings report is expected to further boost the stock price.
See More
Market Movements Ahead of U.S. Mining Conference
- Mining Stocks Surge: Ahead of the upcoming U.S. mining conference, MP Materials saw a 9.3% increase, with a nearly 30% rise year-to-date in 2026, indicating heightened market interest and demand for critical minerals, which may drive future investments and expansions for the company.
- Software Sector Decline: The S&P Software and Services sector dropped nearly 4% on Tuesday, with Cognizant plummeting 10%, reflecting investor concerns over the impact of artificial intelligence, which could undermine confidence in software companies and affect their growth potential moving forward.
- Walmart Hits $1 Trillion Market Cap: Walmart crossed the $1 trillion market cap for the first time on Tuesday, with shares up 25% over the past three months, indicating a strong recovery in the retail sector under new CEO John Furner, which may attract more investor interest.
- Biotech Earnings Reports Ahead: Eli Lilly and AbbVie are set to report earnings on
See More
BHP Selects 10 Companies for 2026 Xplor Program
- Program Expansion: BHP has selected 10 early-stage exploration and technology companies for the 2026 Xplor program, marking the largest cohort since its inception, reflecting the company's commitment to innovative exploration methods aimed at enhancing mineral discovery efficiency.
- Multidisciplinary Collaboration: The selected companies include junior exploration firms, geoscience organizations, and technology teams, emphasizing the intersection of geological insights, data, and emerging technologies, which is becoming central to mineral discovery.
- Innovative Technology Applications: Companies like RadiXplore and Mineural are leveraging artificial intelligence and modern geological data analytics to improve mineral target identification efficiency, indicating BHP's proactive adoption of new technologies to tackle complex geological environments.
- Future Development Potential: BHP Exploration Officer Tim O'Connor noted that new tools and data are rapidly changing early exploration methods, and the Xplor program provides valuable opportunities for the company to learn alongside these innovators, suggesting a broader potential for future mineral discoveries.
See More
