IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/87014.html
   My bibliography  Save this paper

Evaluating the Kemess Stream sold by Centerra Gold in 2018

Author

Listed:
  • Bell, Peter Newton

Abstract

In a streaming contract, a mining company sells future revenues derived from a mine. Typically, the mining company sells the revenue for a secondary metal rather than the primary economic driver of the project. This paper considers a particular stream known as the “Kemess Stream”, where a public company called Centerra Gold Inc. sold future silver production from the Kemess Project to a private financial company. The Kemess Stream represents a typical streaming contract and provides an instructive example as a modelling exercise. This paper shows how to calculate the economics of the stream in detail based on economic reports published by Centerra Gold and discusses general principles reflected in the deal terms.

Suggested Citation

  • Bell, Peter Newton, 2018. "Evaluating the Kemess Stream sold by Centerra Gold in 2018," MPRA Paper 87014, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:87014
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/87014/1/MPRA_paper_87014.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Bell, Peter Newton, 2014. "Effects of streaming loans for commodity producers," MPRA Paper 59818, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Engineering Economics; Mining; Streaming; Finance;

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • G00 - Financial Economics - - General - - - General
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:87014. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.