Mining investors such as Blackrock and Anglo Pacific seeking predictable returns and better cash flows are stepping into mine royalty agreements

Tom McKay

Mining investors such as Blackrock and Anglo Pacific seeking predictable returns and better cash flows are stepping into mine royalty agreements. These deals offer cash in exchange for a share of future revenues. For investors, a royalty deal means regular future payments and the ability to benefit from a rise in commodity prices, an increase in reserves or better production capacity. All with arguably less risk than a share investment and no exposure to pitfalls like poor dividends, or cost inflation. For miners, the advantage is a source of upfront cash with less dilution than through selling shares at depressed prices. (VIEW LINK)


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