Although they currently make up only a small fraction (1-3%) of debt and equity financing, a new McKinsey study suggests that Royalties and Streaming financing deal flow is set to grow significantly over the next decade, expanding across different commodity markets and geographies. Gold and silver currently make up 96% of the market, while cobalt, palladium, and copper together make up the remaining 4%. Streaming and royalties, however, is now expanding into other metals like cobalt and nickel, which are bringing new investors to the mining industry on the back of the EV revolution and overall energy transition.
The panel starts with a discussion on the different growth strategies taken by each of the panellists and their companies. We look at competition in this space and how it is changing the landscape for doing deals.
The panel touches on portfolio diversification and note the need to focus on diversifying commodities, jurisdictions, lifecycle stage, and more, especially as a measure to spread your risk.
They look at deal making and due diligence and the importance of establishing a good network in the areas where you do business. They also look at the importance of local expertise.
The panel touches on issues such as how they return profits to shareholders, with strategies varying across the board.
Finally, the panel looks at ESG considerations, how they screen the companies they’re investing in, various community support programmes they get involved with, and finally climate issues and how they impact decision-making.
Steven Poulton, CEO, Altus Strategies
Julian Andrews, CEO & Managing Director, Deterra Royalties
David Awram, Senior Executive Vice President, Sandstorm Gold
Shaun Usmar, Founder, CEO & Director, Triple Flag Precious Metals