Financing IdeaSandstorm Metals and Energies, which does base metal, bulk metal, and energy streaming deals, notes in a presentation that geothermal is one of the types of energy it is considering financing. Sandstorm would forward an amount of money for capex in exchange for a royalty (or the right to purchase the electricity at a specific price) on future production.
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Example, Sandstorm gives Ram 25 million dollars in exchange for a 15% gross overriding royalty on all future revenue for Geysers. Sandstorm gets a revenue stream of $3.2 million a year, with no responsibility for future capex, while Ram decreases the amount it needs to borrow from project finance lenders, saving millions in interest.
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Seems like a good solution for a capital intensive business that leads to steady revenues (with no commodity risk).
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Altius Minerals also has a lot of cash and is looking for royalty deals. It wanted to finance a hydro royalty deal so there is a precedent.