bullish
Mining Royalties & Streams: A Quick Primer
SUMMARY
- Mining royalties and streams are low-risk alternatives to investing directly in mining companies and commodities
- Royalties and streams have vastly outperformed gold miners over the last 20 years since they are not exposed to exploration risk, capex inflation, or dilution risk while boasting high EBITDA margins and ROIC
- Recent trends include a focus on battery metals, large-scale M&A, and increasing popularity due to poor equity prices among miners Royalties are typically structured as a percentage of the total production or total sales (commodity agnostic).
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