Precious metals streaming
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 metals production at a predetermined price to which both parties agree. This material is usually a by-product of what the mining company's business is based on, typically base metals. 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 and Sandstorm Gold 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, it must incur the losses itself. Earnings are based entirely on the market price of the mineral.
