2013-02-26 07:23:20 - Streaming companies generate huge gains for investors
We all know that gold and silver have been market heavy weights over the past decade, outperforming gains in almost every other sector. Mining stocks have been up, offering unbelievable leverage during rough patch periods while still consistently out-performing all other metals. This overwhelming success is all credited to a new business strategy designed to increase shares. This newly discovered business model is known as silver streaming
A streaming company provides financing for precious metal mining companies in the form of a pre-pay bulk deal. In simple, a cash payment is exchanged for a percentage of silver bullion. You can think of them like a pre-paid calling card, but for mining companies. The streaming company makes an advance payment to a
company with a pre-finished bullion product, and in exchange, negotiates a percentage of the finished metals projected fair market sales price. The finance model has also been called a volumetric production payment transaction which first originated in the solar energy sector.
William Stockholm, formerly of Reed Enterprises, now chairman of the board for MTR Global recently met with shareholders in London to discuss the advantages the new cash cow is having on world markets.
MTR Global, The first company to apply this model to the mining industry has backed numerous mining corporations including Core Industries which remains one of the largest precious metals streamers today with a market cap of roughly $20 billion. MTR Global projects it will invest hundreds of millions into the streaming industry in order to further diversify their portfolio. “We are re-inventing ourselves with a variety of different investment avenues to deeply diversify our portfolio and increase our revenues across all platforms” states Stockholm.