BHP Group (BHP) investor relations material

Deal rationale and strategic fit

• Acquisition of an additional 33.75% silver stream on Antamina, a world-class, low-cost mine in Peru, expands exposure to a proven, long-life asset and reinforces leadership in precious metal streaming.

• Partnership with BHP, Glencore, Teck, and Mitsubishi highlights the attractiveness of the streaming model and ensures operational stability with investment-grade partners.

• Antamina is a cornerstone asset, expected to provide immediate production, cash flow, and long-term value, with significant exploration and mine life extension potential.

• The transaction diversifies portfolio risk, reducing concentration from the largest asset and supporting future growth.

• Enhances portfolio diversification and strengthens position in silver streaming, with Antamina forecast to be a top-producing asset through 2030 and beyond.

Financial terms and conditions

• Upfront payment of $4.3 billion funded through cash, free cash flow, monetization of non-core investments, a $1.5 billion term loan, and a $900 million draw on a revolving credit facility.

• Ongoing payments for delivered silver set at 20% of the spot silver price.

• The stream covers 33.75% of payable silver until 100 million ounces are delivered, then 22.5% for the life of mine.

• Forecast average attributable production: 6 million ounces/year for the first 5 years and 5.4 million ounces/year for the first 10 years.

• The investment represents 6.5% of total market capitalization and is immediately accretive, with pro forma 2026 production expected to increase by 11.3%.

Synergies and expected cost savings

• 76% of production now falls within the lowest cost quartile, with Antamina accounting for 25% of that, reducing overall cost exposure.

• Immediate accretive production from a top-tier, low-cost asset, improving overall cost profile.

• Increased exposure to investment-grade partners (70%), lowering credit risk.

• Tax benefits from combining depletion of upfront payment with other assets for sheltering income.