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WPM Boots Portfolio With Streaming Deal at Australia's Jervois Project
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Key Takeaways
WPM signs gold and silver streaming deal with KGL at Jervois, its first transaction in Australia.
WPM to pay $275M upfront in installments for streams, with staged gold and silver purchase percentages.
WPM expects output from 2027, boosting reserves and adding around10-year mine life with expansion potential.
Wheaton Precious Metals Corp. (WPM - Free Report) announced that its subsidiary, Wheaton Precious Metals International Ltd., signed an agreement with KGL Resources Limited for the gold and silver streams produced at Australia’s Jervois Project. This marks the Wheaton Precious Metals’ first streaming transaction in Australia, which is one of the top mining jurisdictions in the world.
Details on WPM’s Deal With KGL Resources
Wheaton Precious Metals will pay KGL Resources an upfront consideration of $275 million in cash for the gold and silver stream. WPM will pay the first installment of $16 million each in the second and third quarters of 2026, and pay the remaining $243 million in four installments during construction as conditions are met.
Per the deal, Wheaton Precious Metals will acquire 75% until 45 thousand ounces have been delivered. Post meeting this condition, WPM will purchase 37.5% payable gold till an additional 15 thousand ounces is delivered. Attributable gold stream production from the Jervois Project is expected to average 5.8 thousand ounces per annum for the first five full years of production. Post that, gold stream production is expected to average 5.3 thousand ounces annually for the life of mine.
For silver, Wheaton Precious Metals will acquire 75% till 4.3 million ounces are delivered. It will purchase 37.5% till an additional 1.7 million silver ounces is delivered, post which it will purchase 25% of the payable silver for the life of mine. For the first five years, the silver stream production is expected to average 0.77 million ounces annually. Post that, silver stream production is expected to average 0.59 million ounces per year.
The addition of the Jervois Project will boost WPM’s gold estimated Proven and Probable reserves by 92 thousand ounces, and silver estimated Proven and Probable by 9.2 million ounces.
The project is expected to have a 10-year mine life, with further potential for expansion. The project is expected to commence production in the second half of 2027.
Wheaton Precious Metals Stock’s Price Performance
Shares of the company have soared 93.1% in the past year compared with the industry’s 68.8% surge.
Image Source: Zacks Investment Research
WPM’s Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are DuPont de Nemours, Inc. (DD - Free Report) , Compass Minerals International, Inc. (CMP - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . DD and CMP sport a Zacks Rank #1 (Strong Buy) each at present, while 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 DuPont de Nemours’ 2026 earnings is pegged at $2.28 per share. The estimate indicates year-over-year growth of 35.7%. DuPont de Nemours’ shares have surged 90% in a year.
The consensus estimate for Compass Minerals’ 2026 earnings is pegged at 89 cents per share. The estimate indicates year-over-year growth of a whopping 285%. It has an average trailing four-quarter earnings surprise of 34.7%. Compass Minerals’ shares have surged 145% in a year.
The Zacks Consensus Estimate for Carpenter Technology’s 2026 earnings is pegged at $10.28 per share, indicating a year-over-year increase of 37.4%. CRS shares have skyrocketed 156.4% in a year. It delivered an average trailing four-quarter earnings surprise of 9.2%.
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WPM Boots Portfolio With Streaming Deal at Australia's Jervois Project
Key Takeaways
Wheaton Precious Metals Corp. (WPM - Free Report) announced that its subsidiary, Wheaton Precious Metals International Ltd., signed an agreement with KGL Resources Limited for the gold and silver streams produced at Australia’s Jervois Project. This marks the Wheaton Precious Metals’ first streaming transaction in Australia, which is one of the top mining jurisdictions in the world.
Details on WPM’s Deal With KGL Resources
Wheaton Precious Metals will pay KGL Resources an upfront consideration of $275 million in cash for the gold and silver stream. WPM will pay the first installment of $16 million each in the second and third quarters of 2026, and pay the remaining $243 million in four installments during construction as conditions are met.
Per the deal, Wheaton Precious Metals will acquire 75% until 45 thousand ounces have been delivered. Post meeting this condition, WPM will purchase 37.5% payable gold till an additional 15 thousand ounces is delivered. Attributable gold stream production from the Jervois Project is expected to average 5.8 thousand ounces per annum for the first five full years of production. Post that, gold stream production is expected to average 5.3 thousand ounces annually for the life of mine.
For silver, Wheaton Precious Metals will acquire 75% till 4.3 million ounces are delivered. It will purchase 37.5% till an additional 1.7 million silver ounces is delivered, post which it will purchase 25% of the payable silver for the life of mine. For the first five years, the silver stream production is expected to average 0.77 million ounces annually. Post that, silver stream production is expected to average 0.59 million ounces per year.
The addition of the Jervois Project will boost WPM’s gold estimated Proven and Probable reserves by 92 thousand ounces, and silver estimated Proven and Probable by 9.2 million ounces.
The project is expected to have a 10-year mine life, with further potential for expansion. The project is expected to commence production in the second half of 2027.
Wheaton Precious Metals Stock’s Price Performance
Shares of the company have soared 93.1% in the past year compared with the industry’s 68.8% surge.
WPM’s Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are DuPont de Nemours, Inc. (DD - Free Report) , Compass Minerals International, Inc. (CMP - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . DD and CMP sport a Zacks Rank #1 (Strong Buy) each at present, while 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 DuPont de Nemours’ 2026 earnings is pegged at $2.28 per share. The estimate indicates year-over-year growth of 35.7%. DuPont de Nemours’ shares have surged 90% in a year.
The consensus estimate for Compass Minerals’ 2026 earnings is pegged at 89 cents per share. The estimate indicates year-over-year growth of a whopping 285%. It has an average trailing four-quarter earnings surprise of 34.7%. Compass Minerals’ shares have surged 145% in a year.
The Zacks Consensus Estimate for Carpenter Technology’s 2026 earnings is pegged at $10.28 per share, indicating a year-over-year increase of 37.4%. CRS shares have skyrocketed 156.4% in a year. It delivered an average trailing four-quarter earnings surprise of 9.2%.