BHP Group (BHP) investor relations material

Deal rationale and strategic fit

• Acquisition of an additional 33.75% silver stream on Antamina in Peru for $4.3 billion, the largest precious metal stream ever executed, expands exposure to a world-class, low-cost mine.

• Deepens exposure to a proven, long-life, low-cost asset, enhancing both immediate and long-term production and cash flow, with Antamina forecast to be a top-producing asset through 2030 and beyond.

• Strengthens position as the largest precious metal streaming company globally and diversifies asset concentration, with Antamina expected to provide over 18% of total production by 2030.

• Partnership with BHP and a strong ownership consortium, including Glencore, Teck, and Mitsubishi, reduces credit risk and ensures operational stability.

• Supports long-term growth potential through significant exploration opportunities and mine life extension.

Financial terms and conditions

• Upfront payment of $4.3 billion, funded through a mix of cash, free cash flow, asset sales, a term loan, and a revolving credit facility.

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

• Stream covers 33.75% of payable silver until 100M ounces delivered, then 22.5% for life of mine.

• Forecast average attributable production: 6.0 Moz/year (first 5 years), 5.4 Moz/year (first 10 years).

• Transaction value represents 6.5% of total market capitalization, with pro forma 2026 production expected to increase by 11.3%.

Synergies and expected cost savings

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

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

• Tax benefits as the upfront payment can be used to shelter income from other assets.

• Enhances first quartile production and reduces credit risk through partnership with investment-grade counterparty BHP.