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Antamina Streaming Transaction Announcement
GLENCORE PLC
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK
ISIN: JE00B4T3BW64
Baar, Switzerland
4 November, 2015
Streaming Transaction – Antamina
Glencore plc (“Glencore”) announces that a long-term streaming agreement has been entered
into by Anani Investments Limited (a wholly-owned subsidiary of Glencore) with Silver Wheaton
(Caymans) Ltd a wholly-owned subsidiary of Silver Wheaton Corp. (“Silver Wheaton”), for
delivery of silver calculated by reference to silver produced at the Antamina mine, located in
Peru. This transaction forms part of Glencore’s debt reduction plans announced on 7
September 2015.
Silver Wheaton will make an advance payment of US$900 million to Glencore five business
days after the closing of the transaction (closing is subject to the completion of certain corporate
matters and customary conditions and is expected to occur prior to the end of November 2015).
Thereafter, Silver Wheaton will pay 20% of the spot price at the time of delivery for each ounce
of silver delivered to Silver Wheaton under the streaming agreement.
In return, Glencore will deliver silver to Silver Wheaton equivalent to 33.75% of silver produced
by the Antamina mine at a 100% payable rate. After 140 million ounces of silver have been
delivered under the streaming agreement, the stream will be reduced to the equivalent of
22.50% (corresponding to two-thirds of Glencore’s ownership interest in Antamina) of silver
produced by the Antamina mine.
Glencore owns 33.75% of Compañía Minera Antamina S.A. (“CMA”), which owns and operates
the Antamina mine. However, CMA is not a party to the streaming agreement with Silver
Wheaton, no physical silver produced by CMA will be delivered to Silver Wheaton pursuant to
the streaming agreement, and Glencore’s rights as a shareholder of CMA are unaffected by the
streaming agreement.
Please see the appendix for a general explanation of precious metal streaming transactions.
Scotiabank Europe plc is acting as financial advisor to Glencore.
For further information please contact:
Investors
Paul Smith t: +41 41 709 24 87 m: +41 79 947 13 48 paul.smith@glencore.com
Martin Fewings t: +41 41 709 28 80 m: +41 79 737 56 42 martin.fewings@glencore.com
Elisa Morniroli t: +41 41 709 28 18 m: +41 79 833 05 08 elisa.morniroli@glencore.com
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
Pam Bell t: +44 20 7412 3471 m: +44 77 3031 9806 pam.bell@glencore.co.uk
www.glencore.com
www.youtube.com/glencorevideos
Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a major producer
and marketer of more than 90 commodities. The Group's operations comprise of over 150 mining and
metallurgical sites, oil production assets and agricultural facilities.
With a strong footprint in both established and emerging regions for natural resources, Glencore's
industrial and marketing activities are supported by a global network of more than 90 offices located in
over 50 countries.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power
generation, oil and food processing. We also provide financing, logistics and other services to producers
and consumers of commodities. Glencore's companies employ around 181,000 people, including
contractors.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
International Council on Mining and Metals. We are an active participant in the Extractive Industries
Transparency Initiative.
About Antamina:
Antamina is a large copper and zinc mine located 270 kilometres north of Lima, Peru. In 2014, Antamina
produced 344,900 tonnes of copper, 211,000 tonnes of zinc, 3.1 million pounds of molybdenum and 12
million ounces of silver.
The shareholders of CMA are BHP Billiton Plc (33.75%), Glencore plc (33.75%), Teck Resources Limited
(22.5%) and Mitsubishi Corporation (10%).
Appendix: Outline of a Precious Metals Streaming Transaction
A streaming transaction is a forward sale of a supply of precious metal calculated by reference to
underlying production at a particular mine owned by the stream seller.
In such a transaction the stream purchaser makes an advance payment, which represents a prepayment
of a portion of the purchase price, for metal equivalent to a fixed percentage of future precious metals
production from the mine.
Typically ongoing payment structured as a fixed price per ounce or a fixed percentage of the prevailing
spot price.
The stream provides the stream purchaser with exposure to the precious metals component of the mine
as if it were a stand-alone operation.
The stream purchaser benefits from any production and exploration upside, but bears operational risk as
well as the producer.
A stream does not carry any fixed annual delivery obligations, only a percentage of actual production
from the mine.
There is no requirement for the mine owner to change how it manages the mine’s operation.
Sponsor
Absa Bank Limited (acting through its Corporate and Investment Banking Division)
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