ALTERNATIVE FORMS OF INVESTMENT
Rising resource prices open up more options for financing
The availability and types of funding for new mining projects is increasing as resource prices have improved, panel says
The availability and types of funding for new mining projects is increasing as resource prices have improved, according to speakers at a panel discussion on alternative forms of investment at the Mining Indaba. During the commodities downturn, smaller greenfields mining projects became impossible to finance because of banks’ unwillingness to invest and plummeting share prices. Julian Treger, a veteran activist investor and CEO of Anglo Pacific, said because of the recovery in prices in Anglo Pacific’s core portfolio, it was generating more cash and looking at new opportunities. The group extends funding in return for a percentage of revenue (royalties) or limited share of output (streaming). Rather than focusing only on near-production projects, it was committing some capital to large-scale, world-class projects that might not come into production for eight to 10 years. Treger said streaming had become more popular, in particular for precious metals. More protection clauses were com...
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