Precious metals streaming is a term for when a company makes an agreement with a mining company to purchase all or part of their

precious metal Precious metals are rare, naturally occurring metallic chemical elements of high economic value. Chemically, the precious metals tend to be less reactive than most elements (see noble metal). They are usually ductile and have a high lustre. ...

s production at a predetermined discounted price to which both parties agree. In return, streaming companies provide upfront financing for mining companies looking for capital. The precious metals defined by the agreement are usually a by-product of what the mining company's business is based on, typically base metals such as copper. The first known example of precious metals streaming was in 1987, relating to gold at the Goldstrike mine. Wheaton Precious Metals, Franco-Nevada, Royal Gold,

Osisko Mining The Osisko Mining Corporation (formerly Oban Mining Corporation) is a Canadian company that conducts mineral exploration work with a focus on seeking to develop a gold mine in Ontario or Quebec. The company adopted its name following the 2015 me ...

and

Sandstorm Gold Sandstorm Gold Ltd. (formerly Sandstorm Resources) is a Canadian company that provides funding to mining companies in exchange for royalties, principally in the form of net smelter returns and streams. The company focuses on precious metals but d ...

are the largest precious metals streaming companies. These streaming companies have no control over the mines that produce these materials, meaning that when production falls short of expectations or is affected by political instability, the streaming companies must incur the losses themselves. On the other hand, their investment is limited and the operation of a mine as well as its cost are the responsibility of the corresponding mining company. Earnings of the streaming companies are based on the market price of the minerals.

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Gold mining Silver mining {{Business-stub