Investors love licensing and streaming companies
Both new and experienced investors like the royalty and streaming companies. They offer capital for the costs incurred in building and operating a mine. In return, they receive royalties on everything the mine produces, or they get rights to a fixed amount of gold, silver, or another precious metal ("streaming"). In general, streaming agreements tend to focus on gold and silver.
The portfolios of licensing and streaming companies are diversified. This reduces the risk, as a large number of licensing and streaming agreements are usually combined in one company. And these often range from exploration projects to development projects to producing projects.
The operating risk is borne by the mining company. The mining company is also responsible for the exploration, for the construction of the mine or for the management of the daily operations. In return, the mining company receives funding. In the last ten years in particular, there has been an increased focus on royalty and streaming companies. Fees can be calculated in a variety of ways. Mostly, the agreements are based on Net Smelter Royalty (NSR) or Net Profit Interest (NPI).
As an investor, you should therefore also take a look at royalty and streaming companies. Here, Osisko Gold Royalties or GoldMining's own royalty company come into consideration.
GoldMining - https://www.youtube.com/watch?v=RWE053gmQ7A - owns a large portfolio of gold and gold-copper projects in North and South America. Its subsidiary is Gold Royalty Corp. which was founded by GoldMining.
Osisko Gold Royalties - https://www.youtube.com/watch?v=VOZAwoLV71s - is engaged in about 140 projects. Quarterly dividends are paid. The company can look forward to record sales and cash flows in 2020.
Latest corporate information and press releases from GoldMining (https://www.resource-capital.ch/en/companies/goldmining-inc/) and Osisko Gold Royalties (https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also