Financing Options In The Mining Industry

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;

If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon!

For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories.

[BlockchainForVC]

It's been 6 years and I guess now you are the finance man. Thank you brother. This vid is timeless.

[ellazhao]

I'm so tired of ppl using definitions to explain definitions, your videos are very helpful. Love from China!

[BAMBAMBAM]

thank you this is the most detailed intro into financing for mining

[jiahuiyan]

Clear explanation on complex definitions, super easy to understand. Thank you vert much!

[victornyamu]

Step1: sell equity, do exploration
Step2: sign royalty deal to do evaluation
Step3: sign streaming deal to develop mine.
Step4: buy yatch in malta.✌

[samhall]

Brilliant! Incredibly helpful in visualizing cross the stage. Going to throw my hat into expiration and your video really put it all together. Thank you.

[isaac]

I wish I found this video sooner. Well done on your ability on illuminating us on how mining investment works.

[Maruwasa]

thanks for the lecture - much appreciated knowledge

[fdsdfful]

Great!!!. Thank you very much from Korea.

[AvtarDhillon]

Fantastic information absolutely wonderful thank you

[thaniacalysta]

Really really excellent...Thanks a lot..

[lilboyblue]

Your channel is great you earned a sub.

[kentheengineer]

The trick is financing before or being able to secure assets that staff can obtain Through liquidation in the event of bankruptcy

[Sinnoqrot]

Have you researched in Financing Options' tokenisations, and specifically tokenising NSR?

[waytopeacetv]

We partner with mining owner here in the Philippines, have different mining sites particularly in Mindanao. Different kinds of minerals, such as iron ore, silica, nickel, copper and gold can be extracted and We can acquire all the documents needed. But the problem is the legit buyer and investors. It is very difficult to look for a legit buyer and investor. That's the reality...

[himanshi]

Thnx
Vry well explained
U come up with good content n topics
Keep it up

[Kdot]

Can directors of a junior mining company secure their loans to the company with the properties? Will this make fund raising more difficult?

[fkaziz]

I have two export oriented profitable mining project in Pakistan, but I don’t know how to get funding for those projects or get into JV with end user. Can you please help?