A stream is a sale of production at a fixed discount for the life of a mine. Priced correctly it is a sensible instrument. Priced under pressure it transfers most of the upside to the financier permanently.
Read the tail
The economics rarely bite in the first three years. They bite when the mine extends, when the grade improves, or when the price rises, all of which accrue disproportionately to the counterparty.
The disclosure gap
Stream obligations are frequently discussed as financing and reported as revenue reduction. Investors deserve both figures in the same table.
