CMS: Streaming could jump-start critical mineral finance, Smallwood says

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CMS: Streaming could jump-start critical mineral finance, Smallwood says
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Randy Smallwood, president and CEO of Wheaton Precious Metals, speaks at the Canadian Mining Symposium in London, U.K. in October 2023. Credit: The Northern Miner

The metals streaming financing model, which began in 2004, provides upfront capital to mining companies, enabling them to initiate and sustain operations. In return, the financiers secure the right to buy a portion of the future production at a predetermined price. Critical minerals include rare earth elements, lithium, cobalt, and others, considered indispensable to modern technology, clean energy solutions, and national security. The minerals are central to manufacturing high-tech devices, renewable energy technologies, electric vehicles, and various defence applications.

“On the development side, we’ve developed the early deposit model, which really works for a lot of these earlier stage projects,” Smallwood said. “We will supply some capital in advance of permits, in advance of feasibility.”.

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