Silver streaming

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Silver streaming is the term often used when a company makes an agreement with a mining company to purchase all or part of their silver production at a low, fixed, predetermined price to which both parties agree. The silver is usually a by-product of the mineral the mining company's business is based on (most silver is produced as a by-product of base metals).[1] The arrangement can be made through silver purchase agreements or precious metals agreements.[2] The transaction is considered mutually beneficial. The mining company gets much needed capital by immediately monetizing the non-core silver, while the company receiving the silver gets it without having to invest in exploration, development, maintenance.[3] Silver streaming companies have no control over the mines that produce their silver, meaning that when production falls short of expectations or is affected by political instability it must incur the losses itself; because of the lack of control over production, earnings are based entirely on the market price of silver.[4]

Barrick Gold, and Goldcorp are 2 mining companies that do business with silver streamers. Silver Wheaton Corporation is the world's largest silver streaming company.[5]

Key Capital Corporation is the first mining streaming corporation involved in Crowdfunding through a social lending platform produced by Red Rock Assets.[citation needed]

References

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