How do gold companies finance themselves? The global mining industry is very capital intensive and requires hundreds of millions to take a project from exploration to production. This means that companies must be good at raising capital to develop projects and create shareholder value. The four key sources of financing are;
– Equity financing; common shares & flow-through shares
– Internal funds
– Debt financing
– Alternative financing through royalty or streaming agreements
Skip ahead to the mining stage that interests you;
9:25 – Exploration Stage
28:50 – Evaluation Stage
47:15 – Development Stage
58:40 – Production Stage
In this video, I cover some important question related to the financial side of the mining industry.
– How do junior exploration companies finance themselves?
– What are royalty agreements? What is a Net smelter royalty?
– What are streaming agreements?
– What are the trade-offs between royalty and streaming agreements?
– What is the capital pool company program and how has it helped the mining industry?
– What are earn-in JVs and how can they help junior exploration companies?
For more information on this topic, consider the book, “How Gold Companies Finance Themselves: Financing options at various stages of development and production.” You can buy the book on Amazon at the link below;
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