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The cost of stream financing for copper miners

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Report summary

Project financing through streaming and royalty contracts was fairly inconsequential in 2004. Since then these contracts have cumulatively injected US$10.3 billion into the mining sector. When considering mines affected by a streaming or NSR contract (roughly 5% of our copper mine coverage or 2Mlb) we conclude that at the C1 cash cost level the inclusion of streaming contracts results in a 15c/lb paid Cu increase in costs due to the lower net revenue received from precious metals.

What's included

This report contains

  • Document

    Price scenario analysis.xls

    XLS 75.00 KB

  • Document

    List of major streams and royalties.xls

    XLS 166.50 KB

  • Document

    The cost of stream financing for copper miners

    PDF 449.77 KB

  • Document

    The cost of stream financing for copper miners

    ZIP 517.21 KB

Table of contents

No table of contents specified

Tables and charts

This report includes 10 images and tables including:

Images

  • The cost of stream financing for copper miners: Image 1
  • Degree of contract leverage to metal price changes (Bull versus Bear case scenario)
  • Relationship between life of contract (LoC) yields and capital raised from 2004 until 2015
  • C1 cash cost sensitivity for mines affected by stream financing
  • C3 cost sensitivity for mines affected by streaming and royalty financing
  • Indexed price performance of the major stream/royalty financiers compared with copper and gold miners

Tables

  • Base case metal price assumptions
  • Bear case metal price assumptions
  • Bull case metal price assumptions
  • Valuations for 31 streaming and royalty contracts – valued under our base case scenario

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