WHAT IS STREAMING
Metal Streaming – purchasing all or a portion of a mines production for both an upfront payment and a fixed price (or fixed percentage) per ounce of metal delivered
◦ Mining Company – provides capital for a variety of purposes including expansion capital, debt refinancing, and project acquisition
◦ Streaming Company – purchasing the right to future production at a fixed cost offers investors leverage to gold/silver price movements, exploration/expansion upside, immediate cash flow and attractive returns through multiple expansion
WHY STREAMING IS BETTER
Value of future precious metal production in a mining company vs. streaming company
The market multiples of precious metals produced in a streaming company is greater than precious metal produced by a mining company because they trade at a higher multiple.
Metalla makes an initial payment to the mining company for the right to purchase the metal. Then, makes an additional fixed payment per ounce of gold/silver delivered, typically for the life of the mine.