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Commodity Price Leverage
And an Exploration
Upside With Less Risk

Precious Metal Streams

Precious metal streams are obtained by providing capital to project operators and explorers, by selling us a portion of their current or future precious metal production. The capital we provide is then used for funding exploration work, mine development, construction, or expansion. All without incurring dilution to their share structure or debt to their balance sheets.

What is a Precious
Metal Stream?

A precious metal stream a purchase agreement that provides an upfront capital payment for mine development in exchange for a percentage of gold output at a below-market cost, in most instances up to an 80% discount to the current commodity market price.

Metal stream acquisitions are often larger in size than royalty acquisitions, have more flexibility in the negotiation of terms and conditions, and generally provide both parties with tax advantages.

For example, the average cash cost per gold equivalent ounce (GEO) is $400 for Nevada based operating streaming Companies. This means streaming companies in Nevada are now netting a cash operating margin of more than $1,600 an ounce. Nevada Canyon would then sell what it receives from its partners at market prices and pockets the difference as profit.

This offers investors cost predictability, direct leverage to increasing precious metals prices and in a high-quality asset base within Nevada. This portion of our business model offers investors commodity price leverage and exploration upside but with a much lower risk profile than a traditional mining company.

Nevada Canyon has identified numerous gold and silver streaming opportunities, meaning it isn't tied to the performance of any one producer. Most importantly, streaming companies are instant beneficiaries of rising physical metal prices. Nevada Canyon estimates an initial funding in the range of $20M, would be sufficient in securing these initial identified precious metal streams.

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Stream / Royalty
Investment Process

NEVADA GOLD
CANYON
ENGAGEMENT

Exploration

Royalties Streaming

Development

Royalties Streaming

Production

Royalties Streaming

Nevada Canyon Gold Payment

PHASE OF PROJECT
DEVELOPMENT

Investment is typically in the form of a royalty, and may include a right to finance future project development
Investment proceeds are generally directed towards exploration or early project development activities

Investment is typically in the form of a stream, or a royalty with a right to finance further project development
Investment proceeds are generally directed towards project development activities

Investment is typically in the form of a stream
Investment proceeds are generally directed towards Production expansion, development of new projects, or other corporate requirements

Payment from Royalties:a right to a percentage of revenue or metals produced from the project after deducting specified costs, if any
Payment from Streaming: a right to purchase metal production at a predetermined price

Our Streaming
Model

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After identifying a potential opportunity, we use the production profile and reasonable commodity price assumption scenarios to map out expected cash flows over the life of the stream.

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Using the appropriate discount rate, future cash flows are discounted to determine the value of the stream if it were in our portfolio, which is the maximum price we’d be willing to pay.