#precious metals#streaming#mining capital#metal production

How streaming precious metals is key to seeking capital

Finding new capital in the mining industry is crucial for the sustainability of a company, and of the industry as a whole. So what exactly is precious ...

Dale Benton
|Sep 22|magazine3 min read

Finding new capital in the mining industry is crucial for the sustainability of a company, and of the industry as a whole.

So what exactly is precious metals streaming? Well, streaming in itself is when a funder makes an agreement with a mining company to purchase all or part of their precious metals production at a low, fixed, predetermined price. 

The major benefit from the start comes from streaming companies offering capital before mine infrastructure is even built. This of course, allows the mine company to accelerate production or sales as it has the necessary capital to speed things along.

Silver Wheaton, the world’s largest precious metals streaming company, has streaming agreements with 22 operating mines and eight development stage products across the world.

The streaming model was pioneered and introduced just over 10 years ago and major mining companies such as Barrick Gold, Vale and Glencore all sold streams last year.