Wheaton Precious Metals Acquires Gold and Silver Streaming Interest in Australian Jervois Project for 275 Million Dollars

Wheaton Precious Metals Corp has announced the acquisition of a gold and silver streaming interest in the Jervois Project located in Australia’s Northern Territory. The company will purchase the streaming rights from KGL Resources for a total consideration of 275 million dollars, structured as staged payments aligned with construction progress.

Under the terms of the agreement, Wheaton will acquire 75 per cent of the gold and silver produced from the project until cumulative deliveries reach 45,000 ounces of gold and 4.3 million ounces of silver. Following this threshold, the stream percentage will decrease to 37.5 per cent before reducing further to 25 per cent for the remaining life of the mine. The streaming arrangement allows Wheaton to purchase the delivered metals at 20 per cent of prevailing spot prices.

Jefferies analysts have characterised the transaction as highly attractive, estimating an internal rate of return of approximately 14 per cent based on current commodity prices. The investment bank noted that additional upside potential exists through possible mine life extensions beyond the current operational plan.

The Jervois Project represents a high-grade copper development asset that has received full regulatory approval and is positioned to commence construction imminently. First production from the site is currently targeted for the second half of 2027. The operational design incorporates both open-pit and underground mining methods, with planned annual production of approximately 30,000 tonnes of copper in concentrate, alongside substantial gold and silver byproduct revenues.

Wheaton Precious Metals has indicated it intends to finance the acquisition through operating cash flows as construction milestones are achieved at the Jervois site. The company’s funding strategy reflects confidence in its existing production portfolio and cash generation capabilities.

Production forecasts indicate the streaming agreement will contribute an average of 5,800 ounces of gold and 770,000 ounces of silver annually to Wheaton’s output during the first five years of operation. Over the full life of mine, average annual contributions are projected at approximately 5,300 ounces of gold and 590,000 ounces of silver.

Recent exploration activities and resource updates across the Rockface, Reward and Bellbird deposits have substantially expanded the project’s resource base. Jefferies analysts highlighted that ongoing drilling results demonstrate potential to extend operational life beyond current planning assumptions, which could enhance the streaming agreement’s long-term value proposition.

Jefferies maintains a Buy rating on Wheaton Precious Metals with a price target of 182 dollars, implying approximately 33 per cent upside from prevailing market levels. The investment bank’s positive stance reflects favourable views on both the company’s existing portfolio and the incremental value contribution from the Jervois streaming acquisition.

The transaction reinforces Wheaton’s position as a leading precious metals streaming company whilst providing KGL Resources with development capital for the Jervois Project. The streaming model allows both parties to benefit from the asset’s production profile whilst allocating capital and operational responsibilities according to their respective business models and risk preferences.