Precious metals streaming is a term for when a company makes an agreement with a mining company to purchase all or part of their precious metals production at a predetermined discounted price to which both parties agree. In return, streaming companies provide upfront financing for mining companies looking for capital. The precious metals defined by the agreement are usually a by-product of what the mining company's business is based on, typically base metals such as copper. [1] The first known example of precious metals streaming was in 1987, relating to gold at the Goldstrike mine. [2]
Wheaton Precious Metals, Franco-Nevada, Royal Gold, Osisko Mining and Sandstorm Gold are the largest precious metals streaming companies. [3] These streaming companies have no control over the mines that produce these materials, meaning that when production falls short of expectations or is affected by political instability, the streaming companies must incur the losses themselves. On the other hand, their investment is limited and the operation of a mine as well as its cost are the responsibility of the corresponding mining company. Earnings of the streaming companies are based on the market price of the minerals.
Mining is the extraction of valuable geological materials and minerals from the surface of the Earth. Mining is required to obtain most materials that cannot be grown through agricultural processes, or feasibly created artificially in a laboratory or factory. Ores recovered by mining include metals, coal, oil shale, gemstones, limestone, chalk, dimension stone, rock salt, potash, gravel, and clay. The ore must be a rock or mineral that contains valuable constituent, can be extracted or mined and sold for profit. Mining in a wider sense includes extraction of any non-renewable resource such as petroleum, natural gas, or even water.
Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a way of diversifying risk, especially through the use of futures contracts and derivatives. The gold market is subject to speculation and volatility as are other markets. Compared to other precious metals used for investment, gold has been the most effective safe haven across a number of countries.
Hudbay Minerals Inc. is a diversified Canadian mining company primarily producing copper concentrate and zinc metal. Much of its history has centered on Flin Flon, Manitoba, where it has mined for over 90 years. Hudbay currently has operations in Manitoba and Peru, and is working towards building a copper mine in southern Arizona. The company also has exploration properties in Canada, Peru, Chile and the United States.
The Henty Gold Mine is located at the head of the Henty River on the edge of the West Coast Range in Western Tasmania. It is approximately 30 km north of Queenstown. It is east of Zeehan and south of Rosebery. It can be reached by the Hydro-built road that passes between the Henty River and Tullah.
Lundin Mining Corporation is a Canadian company that owns and operates mines in Sweden, United States, Chile, Portugal and Brazil that produce base metals such as copper, zinc, and nickel. Headquartered in Toronto, the company was founded by Adolf Lundin and operated by Lukas Lundin. While it was incorporated to pursue an interest in a diamond mine in Brazil, the company re-structured and raised funds to develop the Storliden mine in Sweden. It purchased the Swedish Zinkgruvan Mine from Rio Tinto and then merged with Arcon International Resources for its Galmoy Mine in Ireland and Eurozinc for its Neves-Corvo mine in Portugal. The company subsequently purchased and operated the Eagle mine, Candelaria mine, and Chapada mine.
Coeur Mining, Inc. is a precious metals mining company listed on the New York Stock exchange. It operates five mines located in North America. Coeur employs 2,200 people and in 2012 it was the world's 9th largest silver producer. In 2013 the company changed its name to Coeur Mining, Inc. from Coeur d'Alene Mines and moved its head office to Chicago, Illinois from Coeur d'Alene, Idaho.
The mineral industry is one of the main sectors of the Armenian economy and in 2017 accounted for 30.1% of its exports.
The mineral industry of Russia is one of the world's leading mineral industries and accounts for a large percentage of the Commonwealth of Independent States' production of a range of mineral products, including metals, industrial minerals, and mineral fuels. In 2005, Russia ranked among the leading world producers or was a significant producer of a vast range of mineral commodities, including aluminum, arsenic, cement, copper, magnesium compounds and metals, nitrogen, palladium, silicon, nickel and vanadium.
Mining is the biggest contributor to Namibia's economy in terms of revenue. It accounts for 25% of the country's income. Its contribution to the gross domestic product is also very important and makes it one of the largest economic sectors of the country. Namibia produces diamonds, uranium, copper, magnesium, zinc, silver, gold, lead, semi-precious stones and industrial minerals. The majority of revenue comes from diamond mining. In 2014, Namibia was the fourth-largest exporter of non-fuel minerals in Africa.
Cortez Gold Mine is a large gold mining and processing facility in Lander and Eureka County, Nevada, United States, located approximately 63 miles (100 km) southwest of Elko. It is owned as a joint venture between Barrick Gold Corporation (61.5%) and Newmont Corporation (38.5%), operated by Barrick, and comprises the Pipeline, Crossroads, and Cortez Hills open pit mines; and the Cortez Hills underground mine. Ore from the mines is treated at an oxide mill at the site and on leach pads, while refractory ore is shipped to Barrick’s Goldstrike operation for processing.
Franco-Nevada Corporation is a Toronto, Ontario, Canada-based, gold-focused royalty and streaming company with a diversified portfolio of cash-flow producing assets. It is traded on the Toronto Stock Exchange and New York Stock Exchange.
The Youanmi Gold Mine is a gold mine 82 km south-southwest of the town of Sandstone. It is near the abandoned town of Youanmi, in the Murchison Region of Western Australia.
Sandstorm Gold Ltd. is a Canadian company that provides funding to mining companies in exchange for royalties, principally in the form of net smelter returns and streams. The company focuses on precious metals but did spin off Sandstorm Metals & Energy Ltd. in 2010 as a separate TSX Venture Exchange-listed company to make volumetric production payment transactions in the base metal and fossil fuel sectors, then bought it back in 2014. Sandstorm Gold graduated from the TSX Venture Exchange to the Toronto Stock Exchange and began listing shares on the New York Stock Exchange in 2012.
Wheaton Precious Metals Corp. is a Canadian multinational precious metals streaming company. It produces over 26 million ounces and sells over 29 million ounces of silver mined by other companies as a by-product of their main operations.
Thompson Creek Metals Company Inc. was a full cycle mining company with acquisition, exploration, development, and operation in North America. The corporate office was located in Denver, Colorado. The company primarily produced copper, gold, and molybdenum. Over its history, the Company evolved from being a major primary molybdenum producer to becoming a copper and gold mining company with the construction and development of the Mount Milligan mine and concentrator in British Columbia, Canada. Mount Milligan was Thompson Creek Metals principal operation and the company owned 100% of this property. The company also owned 100% of its Thompson Creek Mine in Idaho. Thompson Creek Metals owned 75% joint venture interest in two other properties, including its Endako Mine in British Columbia, and its Langeloth Metallurgical Facility (roaster) in Pennsylvania. Thompson Creek Metals had additional development projects, including the Berg property in British Columbia.
Royal Gold is one of the world's leading precious metals streaming and royalty companies engaged in the acquisition and management of precious metal streams, royalties and similar production-based interests. Royal Gold owns a large portfolio of producing, development, evaluation and exploration stage streams and royalties on properties located in some of the world's most prolific gold regions and operated by some of the most well-known companies in the mining industry.
Net Smelter Return (NSR) is the net revenue that the owner of a mining property receives from the sale of the mine's metal/non metal products less transportation and refining costs. As a royalty it refers to the fraction of net smelter return that a mine operator is obligated to pay the owner of the royalty agreement. The royalty is paid in variable or fixed payments based on sales revenue received by a mining operator in return for mining output. It is contingent only on the sales price and quantity of product sold.
The San Bartolomé mine is one of the largest silver mines in Bolivia and in the world. The mine is located in the south of the country in Potosí Department.
The mining industry of Madagascar is mostly on a small scale, centred mainly around remote locations with large mineral deposits. Mining potential is noted in industrial and metallic minerals, energy, precious and semi-precious stones, as well as ornamental stone. The mining sector was neglected by the government for decades prior to the mid-2000s. In 2013, the mining industry, a main source of foreign investment, was struggling due to "low metals prices and distrustful companies", attributed to a 2009 coup.
Osisko Gold Royalties Ltd is a Canadian company that holds royalties in gold, silver and diamond mines, principally in the form of net smelter returns and streams. The company also invests in mineral exploration companies in the form of purchases of shares. Like its predecessor company, Osisko Mining, it is headquartered in Montreal, Quebec, with shares listed on the Toronto Stock Exchange and the New York Stock Exchange.