Wheaton Precious Metals Corp. has made a significant move in the mining sector by announcing a financing deal with Carcetti Capital Corporation for the acquisition of the Hemlo Mine from Barrick Mining Corporation. This acquisition is anticipated to bolster Wheaton’s total Proven and Probable Mineral gold reserves by approximately 0.25 million ounces, thereby diversifying and strengthening its overall reserve base.
The financing package comprises a $400 million gold stream, concurrent equity financing expected to raise $415 million, and a $200-million bank debt facility. Wheaton will contribute to the equity financing up to $50 million, representing 20% of the total, contingent upon regulatory approval. The transaction is projected to conclude in the fourth quarter of 2025, at which point Carcetti plans to rebrand itself as Hemlo Mining Corp.
The inclusion of the Hemlo Mine is seen as a strategic enhancement to Wheaton’s portfolio, offering immediate accretive gold ounces. Situated in a politically stable jurisdiction, the mine boasts a history of production and is backed by a skilled operational team. Under the agreement, Wheaton Precious Metals will purchase 13.5% of the payable gold until Hemlo Mining Corp. delivers 181,000 ounces, termed the First Dropdown Threshold. Following that, Wheaton will take 9.0% of the payable gold until another 157,330 ounces are delivered, before finally receiving 6.0% of the payable gold for the remainder of the mine’s operational life.
The Hemlo Mine is projected to have a lifespan of 14 years, with significant opportunities for brownfield exploration nearby the existing underground infrastructure. Initial gold stream production is anticipated to average 20,000 ounces per year during the first decade of operations, tapering to more than 17,000 ounces annually throughout the life of the mine.
In terms of performance, Wheaton’s stock has significantly outperformed the industry, experiencing a remarkable 73.3% increase in the past year, in contrast to the industry’s growth of 17.9%. The company currently holds a Zacks Rank of 3 (Hold). Among other companies in the basic materials sector, Agnico Eagle Mines, ranked #1 (Strong Buy), and Carpenter Technology Corporation, ranked #2 (Buy), stand out with their strong earnings forecasts. Agnico Eagle Mines is estimated to report earnings of $6.94 per share for 2025, reflecting a year-over-year growth of 64.1%, while Carpenter Technology boasts a consensus estimate of $9.36 per share, with a respective shares’ surge of 68% over the past year.
The strategic acquisition and financing deal underscore Wheaton Precious Metals’ commitment to expanding its portfolio and securing its position in the competitive mining industry.
