The streaming agreement is expected to be finalized by the end of November, Glencore said. The company said it would provide about 34% of the money generated by the Antamina mine in Peru, which corresponds to its stake in the mine. Silver Wheaton was at the forefront of the streaming concept more than a decade ago. Glencore said in September that about $2 billion of a $10 billion debt repayment plan it presented would come from the sale of assets that could include precious metal streaming transactions. What are the main benefits of metal streaming arrangements? A streaming transaction is a forward sale of a precious metal delivery calculated in reference to the underlying production in a given mine owned by the stream seller. Electricity is purchased by the investor who makes a prepayment (or a number of payments) to the producer against an agreed fixed price (plus inflation) per unit of production for the life of the mine or a specified and probably long period. Prepayment is often structured as a down payment. Indeed, the streaming agreement allows a mining company to monetize its future production before the start of production. The technical and scientific information contained in this press release on the Antapaccay project is based on information, documents published in the document entitled „Antapaccay Mining and Technical Information“ and dated from 10 February 2016, the document prepared by Compaa Minera Antapaccay S.A.
(„CMA“), owner and operator of the Antapaccay subsidiary and indirect Glencore project. , on the cmA website in www.glencoreperu.pe. Although the cumulative value of existing global streaming agreements is estimated at more than $9 billion, streaming remains a relatively new and underutilized form of financing outside the United States. Nevertheless, the number of Australian streaming transactions is expected to continue to increase, while traditional sources of financing remain difficult to obtain. To this end, the number of streaming companies entering the Australian market will also increase, while traditional royalty companies may attempt to expand their existing portfolios to streaming. Glencore owns 33.75 per cent of Compaa Minera Antamine (CMA), which owns and operates the Antamina mine. CMA did not participate in the agreement, Glencore said. Among the most recent streaming deals is the agreement, Anani Investments Limited (a wholly-based subsidiary of Glencore) with Silver Wheaton (Caymans) Ltd (a wholly-based subsidiary of Silver Wheaton Group) closed in 2015, saying Silver Wheaton agreed to pay $900 million to Anani Investments, in addition to paying 20% of the spot price per silver money. In exchange, Silver Wheaton receives 33.75% of the money produced up to the delivery of 140 million ounces and 22.50% of the silver production for the life of the mine.