RE: RE: RE: RE: Any thoughts on volume grandich...That's a good point about positive feedback in the number and size of streaming deals, and one I have been making over on the SSL board. There are three ways a streamer's earnings can increase, above and beyond what is expected: An increase in the number of streams, an increase in resources from exploration, or an increase in the underlying commodity price.
What a lot of investors don't seem to realize is that all three of these are self-reinforcing: As you pointed out, as more streams are accumulated, earnings increase, allowing larger streaming deals and greater leverage in negotiation, as well as greater access to capital. As resources increase, streaming partners are in a better positon to drill for more, and if necessary, to increase the streamer's stake. And as the price of the commodity increases, the leverage also increases, since most or all of the increase goes directly to the bottom line.
In addition, each of these factors reinforces and amplifies the others. (For example, a rising commodity price creates more miners in need of capital and thus potentially more selective and lucrative streams, and allows existing miners to mine lower grades, thus increasing their resources.) So in calculating increases in future value one needs to multiply all these increases together, not simply add them.
At some point this aspect of the streaming business model is bound to be recognized by the market in a rapidly expanding FPE. To my knowledge, there is no other investment with this kind of growth self-generation, except maybe for the way banks create money out of thin air and then leverage it by repeatedly loaning it out. Unlike streaming, however, that should be illegal.