Don’t Tell This CEO That Streaming Is The New Hedging

Streaming deals have made headlines, amounting to roughly $4 billion in 2015, but some analysts question whether the business model is beneficial to miners over the longer term. David Harquail, CEO of Franco-Nevada, joins Kitco News to comment on the matter and says these concerns may be overblown. ‘What we’re offering is the cheapest form of capital for a miner,’ he told Daniela Cambone at Gold Stock Analyst Investor Day, where he is a speaker. ‘If I were an investor in a company, I’d actually prefer the ones doing streaming or royalty deals because they’re trying to manage their equity dilution,’ he adds. Commenting on the gold market, Harquail said that although he is much more optimistic, the recent rally hasn’t gotten enough attention with investors. ‘It hasn’t made enough of the front pages yet,’ he says. ‘I don’t think it’s really gotten the attention outside of the normal followers of the industry.’ Kitco News, February 28, 2016. (show less)

Streaming deals have made headlines, amounting to roughly $4 billion in 2015, but some analysts question whether the business model is beneficial to miners over the longer term. David Harquail, CEO of Franco-Nevada, joins Kitco News to comment on the matter and says these concerns may be overblown. ‘What we’re offering is the cheapest form of capital for a miner,’ he told Daniela Cambone at Gold Stock Analyst Investor Day, where he is a speaker. ‘If I were an ... (read more)

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