Gold mine development provides growth potential for streaming companies - Maverix Metals
Steaming companies were the lifeblood of the mining sector as an important source of capital and although investment dollars are starting to flow again this sector will still play an important role for years to come according to one streaming executive.
In an interview with Kitco News, on the sidelines of the virtual Beaver Creek Precious Metals Summit, Ryan McIntyre, president of Maverix Metals said that streamers will play an important role as companies look to develop mines.
McIntyre added that in a rising gold and silver environment more companies are looking to push their projects to the development stage and that will require significant capital. He noted that although capital is flowing back into the sector, the need for new money continues to grow.
McIntyre said that the company sees potential to make a couple of deals in the second half of the year.
“As long as the gold price hangs in here, or it goes higher, I think you're very likely to get more projects moving forward,” he said. “There was so much psychological damage from the previous back end of the cycle that you really didn't have anyone believing in the price and you certainly didn't have anyone building any minds. We’re still in the very early innings of that changing.”
Maverix Metals is one of the new streaming companies to enter the sector but since 2016 it has managed to develop a portfolio of more than 100 royalty and streaming agreements. McIntyre said that about 85% of their revenue comes from projects in North America and Australia.
McIntyre said that when they are looking at projects, location is important. He added that countries with strong rule of law and a pedigree in mining are important when looking at investment opportunities.