Precious metal streaming provides exposure to the precious metal component of a mining operation as if it were a stand-alone operation, allowing Maverix to benefit from any production and exploration upside.
The upfront fixed cost of streaming and royalties reduces the future risks of ongoing capital and operating costs by offering our shareholders both capital and operating cost certainty. Maverix supports the financing of mine operations by providing advance cash which can be used to fund expansion, development or exploration, without having to get directly involved in the process. This leaves Maverix with the ability to hold a diverse asset base with no exposure to unexpected capital expenditures or mine operating costs, while retaining leverage to metal prices. Streams and royalties are very similar as they both provide commodity price exposure with reduced capital and operating cost risk. However, the main difference between streaming and royalties is that streams involve providing an advance payment in return for the delivery of a fixed amount of future precious metal production, whereas with a royalty the advance payment secures a future percentage of the gross revenue from the entire mining operation regardless of what metal is being produced and sold.