Near‑term Leverage From AntaminaThe Antamina upfront pushes net debt materially higher in the near term, financed with term debt and revolver draws. Although management targets rapid deleveraging, elevated leverage increases interest and rollover risk and constrains optionality during execution, raising financing and timing risk.
Free Cash Flow VariabilityFCF swings and sub‑par conversion versus earnings reduce certainty around funding for dividends, buybacks and upfront payments. Variable FCF (timing of investments, working capital, and upfronts) means capital planning depends on execution and commodity prices, elevating funding risk for big transactions.
Asset Grade & Mix HeadwindsStreaming revenue and volumes hinge on third‑party mine grades and mix. Grade declines at key assets (Constancia, Salobo) and changing ore mixes can materially reduce attributable ounces and create volatility in attributable production, complicating multi‑year output targets and cashflow predictability.