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Convertibles, bank loans, development finance institutions, corporate bonds, strategic-partner financing, selling accounts receivables, senior facilities
Sales and lease back, fully divest / joint-venture, streaming and NSR, net profits interest (NPI), asset monetisation
3 alternative financing types to prioritise
Streaming / NSRs
This method could yield up to $1.4 trillion in secondary revenues over the next ten years. Accounting for feasibility considerations and discounting, this implies a ten-year potential global by-product stream value of up to $380 billion, of which gold (approximately $175 billion), copper (approximately $90 billion), and silver (approximately $26 billion) form the lion’s share.
Net Profits Interest
Mckinsey estimates an industry-wide EBITDA of approximately $7 trillion over the next ten years - approximately $5 trillion when factoring in discounting. Typical NPI agreements will not exceed around 10 percent of total profits: this suggests a discounted ten-year potential mining NPI value of up to $340 billion, after accounting for streaming potential and accounting for the same set of commodities considered to have streaming potential.
Asset Monetisation via JV/Sale of noncore assets
Ports, rail, and power are the most obvious assets for potential tolling in mining. Considering only those privately held assets that might qualify for non-debt financing, McKinsey estimates up to $55 billion in discounted ten-year toll values from ports and rail and a further $15 billion in financing potential for alternative energy projects (primarily solar power), for a total of some $70 billion. This could represent a considerable opportunity for infrastructure investors looking for lower-risk assets in the sector.