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Wheaton Precious Metals Corp on Friday said it agreed to terminate its existing silver stream at the Yauliyacu mine in Peru.
The Canadian mining firm will receive a cash payment of $150 million for the termination. This is will be minus the value of any deliveries to Wheaton of silver produced in 2022 prior to closing, it added.
Wheaton said it has agreed to terminate the stream in order to help Glencore PLC's sale of the Yauliyacu mine.
The firm acquired the silver stream on the Yauliyacu mine in 2006 for an upfront consideration of $285 million. It has since generated over $485 million in cash flow.
Combined with the termination payment, Wheaton said the stream will have generated an absolute return of more than triple the original investment.
Following the termination, the company said it expects average annual production for the five-year period ending December 31, 2026 to be 800,000 gold equivalent ounces, down from 820,000 ounces previously.
Production is expected between 640,000 and 680,000 gold equivalent ounces.
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