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WPM Boosts Gold Reserves With Carcetti's Hemlo Mine Financing Package
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Key Takeaways
Wheaton Precious Metals is financing Carcetti's Hemlo Mine purchase from Barrick Mining.
The package includes a $400M gold stream, equity participation and bank debt support.
Hemlo adds 0.25M ounces in reserves, with 14 years of output and exploration potential.
Wheaton Precious Metals Corp. (WPM - Free Report) announced that it inked a deal to provide financing to Carcetti Capital Corporation for its planned acquisition of the Hemlo Mine from Barrick Mining Corporation (B - Free Report) . The addition of Hemlo Mine is estimated to increase Wheaton Precious Metals’ total Proven and Probable Mineral gold reserves by 0.25 million ounces, diversifying and strengthening its reserve base.
Details of Wheaton Precious Metals’ Deal With Carcetti Capital
Wheaton Precious Metals is providing Carcetti with a financing package for the acquisition of the Hemlo Mine from Barrick Mining, consisting of $400 million gold stream, a concurrent equity financing expected to raise $415 million, and a $200-million bank debt facility. WPM will provide the gold stream and participate in the equity financing, up to $50 million or 20% of the total equity financing, subject to regulatory conditions.
Carcetti’s deal with Barrick Mining is expected to be completed in the fourth quarter of 2025, after which Carcetti plans on changing its name to Hemlo Mining Corp (“HMC”).
WPM’s Benefits from the Deal
The addition of Hemlo Mine will add immediate, accretive gold ounces to Wheaton Precious Metals’ portfolio. The mine has a politically stable jurisdiction, driven by a long history of production and a capable operating team.
Under the terms of the deal, Wheaton Precious Metals will buy 13.5% of the payable gold until HMC delivers 181,000 ounces (the First Dropdown Threshold). Under the Second Dropdown Threshold, WPM will acquire 9.0% payable gold until an additional 157,330 ounces are delivered. After this condition is met, WPM will continue with 6.0% of the payable gold for the remaining life of the mine.
The Hemlo Mine is projected to operate for 14 years, with considerable brownfield exploration opportunities in proximity to the existing underground infrastructure. Attributable gold stream production is expected to be 20 thousand ounces per year on average during the first 10 full years of operations, and more than 17,000 ounces per year during the entire mine life.
Wheaton Precious Metals Stock’s Price Performance
WPM shares have surged 73.3% in the past year compared with the industry’s 17.9% growth.
Image Source: Zacks Investment Research
WPM’s Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank of 3 (Hold).
The consensus estimate for Agnico Eagle Mines’ 2025 earnings is peqgged at $6.94 per share. The estimate indicates year-over-year growth of 64.1%. It has an average trailing four-quarter earnings surprise of 10%. Agnico Eagle Mines’ shares have soared 79.1% in a year.
Carpenter Technology has an average trailing four-quarter earnings surprise of 8.4%. The Zacks Consensus Estimate for CRS’s 2025 earnings is pegged at $9.36 per share. Its shares surged 68% last year.
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WPM Boosts Gold Reserves With Carcetti's Hemlo Mine Financing Package
Key Takeaways
Wheaton Precious Metals Corp. (WPM - Free Report) announced that it inked a deal to provide financing to Carcetti Capital Corporation for its planned acquisition of the Hemlo Mine from Barrick Mining Corporation (B - Free Report) . The addition of Hemlo Mine is estimated to increase Wheaton Precious Metals’ total Proven and Probable Mineral gold reserves by 0.25 million ounces, diversifying and strengthening its reserve base.
Details of Wheaton Precious Metals’ Deal With Carcetti Capital
Wheaton Precious Metals is providing Carcetti with a financing package for the acquisition of the Hemlo Mine from Barrick Mining, consisting of $400 million gold stream, a concurrent equity financing expected to raise $415 million, and a $200-million bank debt facility. WPM will provide the gold stream and participate in the equity financing, up to $50 million or 20% of the total equity financing, subject to regulatory conditions.
Carcetti’s deal with Barrick Mining is expected to be completed in the fourth quarter of 2025, after which Carcetti plans on changing its name to Hemlo Mining Corp (“HMC”).
WPM’s Benefits from the Deal
The addition of Hemlo Mine will add immediate, accretive gold ounces to Wheaton Precious Metals’ portfolio. The mine has a politically stable jurisdiction, driven by a long history of production and a capable operating team.
Under the terms of the deal, Wheaton Precious Metals will buy 13.5% of the payable gold until HMC delivers 181,000 ounces (the First Dropdown Threshold). Under the Second Dropdown Threshold, WPM will acquire 9.0% payable gold until an additional 157,330 ounces are delivered. After this condition is met, WPM will continue with 6.0% of the payable gold for the remaining life of the mine.
The Hemlo Mine is projected to operate for 14 years, with considerable brownfield exploration opportunities in proximity to the existing underground infrastructure. Attributable gold stream production is expected to be 20 thousand ounces per year on average during the first 10 full years of operations, and more than 17,000 ounces per year during the entire mine life.
Wheaton Precious Metals Stock’s Price Performance
WPM shares have surged 73.3% in the past year compared with the industry’s 17.9% growth.
WPM’s Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank of 3 (Hold).
Some better-ranked stocks from the basic materials space are Agnico Eagle Mines (AEM - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . AEM flaunts a Zacks Rank #1 (Strong Buy) at present and CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Agnico Eagle Mines’ 2025 earnings is peqgged at $6.94 per share. The estimate indicates year-over-year growth of 64.1%. It has an average trailing four-quarter earnings surprise of 10%. Agnico Eagle Mines’ shares have soared 79.1% in a year.
Carpenter Technology has an average trailing four-quarter earnings surprise of 8.4%. The Zacks Consensus Estimate for CRS’s 2025 earnings is pegged at $9.36 per share. Its shares surged 68% last year.