RE:RE:RE:RE:RE:Premier Gold Mines Announces Financing Arrangement with Yeah, I usually like being on the other side of streaming deals, because it seems to me they favour the streamer. OTOH, this is a gold mine. The silver is essentially a byproduct and the ongoing payments will cover the cost of recovering the silver, so giving up 12.5% of the silver for the life of the mine isn't that bad.
The gold part of the deal is really just pre-selling product at a preferred price. It's limited to 15 quarters, and is at a price that isn't horrible, so it isn't too bad either. Orion will do very well on it if the price of gold and silver rise significantly, but in that case, so will Premier.
And I agree completely with RocksandStuff about the life of the mine. I own stock in a small miner in Northern Ontario that has been running with two years of reserves ahead of them for 25 years. They need 2 years or so of lead time to plan the mine operations, but more than that means long drill holes that are unnecessarily expensive. The market, OTOH sees a mine that is on it's last legs, and its market cap reflects that. The price of Mercedes might be low exactly because of that. I'm assuming Ewen got a deal on this one.