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.
STREAMING PROCESS
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.
STREAMING VS. MINING COMPANY
| STREAMING | MINING EQUITY | |
| 100% Precious metals exposure | X | X |
| Fixed operating cost | X | |
| No capex | X | |
| Security | X | |
| Yield | X |
STREAMING VS. ETF/BULLION
| STREAMING | ETF/BULLION | |
| 100% Precious metals exposure | X | X |
| Leverage to Gold/Silver | X | |
| Exploration and expansion | X | |
| Acquistion growth opportunities | X | |
| Yield | X |
