Silver Streaming Agreement

An upfront payment in exchange for the right to buy future silver production at a fixed low price.

Definition

A financing arrangement where a mining company receives upfront capital in exchange for the right to purchase a percentage of future silver production at a predetermined, below-market price. Streaming provides alternative financing while allowing companies to retain project ownership.

Why it matters

Streams fund construction without issuing shares, which is why developers reach for them. The cost is permanent: a share of the mine's best metal is sold cheaply for the life of the asset.

Where people go wrong

A stream looks like non-dilutive financing and behaves like a very long-dated liability. Check what share of by-product silver is committed before valuing that credit.

See also

  • By-Product Silver — Silver recovered as a secondary metal during the processing of ores primarily mined for other metals such as g…
  • Primary Silver Producer — A mining company where silver is the principal metal produced and accounts for the majority of revenue, as opp…
  • Capital Expenditure (CapEx) — The upfront costs required to build a mine, including equipment, infrastructure, and construction. CapEx is di…

More finance terms

Accredited InvestorAll-in Sustaining Cost (AISC)Capital Expenditure (CapEx)Flow-Through SharesInternal Rate of Return (IRR)Junior Mining CompanyNet Present Value (NPV)Operating Expenditure (OpEx)Payback PeriodPrecious Metals BasketPrivate PlacementRetail Investor
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