Wheaton’s Silver Margins Swell, but Antamina Deal Adds Debt

Wheaton Precious Metals’ silver stream generated a cash operating margin of $66.96 an ounce in the first half of 2026, up 139% from a year earlier. The company’s latest dividend is rising, too. But investors weighing the payout against the metals rally should also account for the debt Wheaton took on to secure a major new silver stream.

Wheaton reported that in the second quarter it paid an average $9.57 an ounce for silver under its contracts and sold the metal for an average $73.41. Unlike a miner, Wheaton generally does not operate the mines itself. It advances money to mining companies in exchange for rights to buy a portion of future production at agreed prices. When market prices climb, the gap between those purchase costs and selling prices can widen without Wheaton directly absorbing all the mines’ fuel, labor and equipment expenses.

That model helped deliver $929 million in second-quarter revenue and $650 million in operating cash flow, according to the company. For the first six months of 2026, Wheaton’s silver margin averaged $66.96 an ounce, compared with $27.97 in the same period last year.

The board declared a quarterly dividend of 19.5 cents a share in March, an 18% increase from the fourth-quarter 2025 payment. Wheaton maintained that quarterly rate in its second-quarter results. The dividend is not automatic: the company says future declarations and payments remain at the board’s discretion.

There is a balance-sheet trade-off. Wheaton paid $4.3 billion upfront for a new stream tied to BHP’s share of silver production at Peru’s Antamina mine. The deal expanded Wheaton’s share of Antamina’s silver production from 33.75% to 67.5% starting April 1. At June 30, the company reported $1.9 billion in net debt, alongside $2.6 billion in available liquidity.

That financing makes the dividend story more complicated than a simple margin boom. The stream gives Wheaton greater exposure to future Antamina output, but returns depend on the mine delivering production and on metals prices holding up. A pullback in silver would narrow the spread; weaker output could also limit the benefit of the new agreement. Wheaton’s cash costs are contractually set across much of its portfolio, not its production or selling prices. Investors get leverage to a rally, not insulation from one.