Lundin Gold sells silver stream to LunR Royalties in $490M deal
- •Plus, locking in a price for 12.2 million ounces of silver production provides some nice certainty.
- •For LunR Royalties, this seems like a solid acquisition, adding a significant silver stream to their portfolio.
- •With the current volatility in precious metals, securing long-term revenue streams from established producers is a pretty good play.
Hey everyone, just read this interesting piece about Lundin Gold selling a silver stream to LunR Royalties for $490M: https://www.mining.com/lundin-gold-sells-silver-stream-to-lunr-royalties-in-490m-deal/
My initial take is that this could be a smart move for Lundin Gold, especially as they're looking to pay down their debt. Selling off a silver stream allows them to free up capital without diluting equity, which is something I always look for in companies I hold for my retirement portfolio. Plus, locking in a price for 12.2 million ounces of silver production provides some nice certainty. I’ve seen similar strategic plays before, and while it sometimes means giving up future upside on that specific commodity, the immediate financial flexibility can be a huge benefit for growth or deleveraging. It reminds me a bit of when I was looking into some junior miners years ago who were doing similar deals to fund their initial exploration – totally different scale, of course, but the principle of derisking and getting capital without traditional debt or equity raises holds.
For LunR Royalties, this seems like a solid acquisition, adding a significant silver stream to their portfolio. With the current volatility in precious metals, securing long-term revenue streams from established producers is a pretty good play. What do you all think? Any other angles on this deal I might be missing? Curious to hear if anyone owns either of these in their portfolio and how this might impact your outlook.