|Nice piece on how gold royalty firms are making out. Talks about Ssl and Magellan briefly. |
Royalty firms could spur junior miner deal bonanza
Mon Jun 4, 2012 3:15am EDT
* Cash-rich royalty companies poised to strike new deals
* Equity market slump puts junior miners in a tough spot
* Developers, juniors, mid-tier miners all vying for funds
By Euan Rocha
TORONTO, June 3 (Reuters) - Royalty companies that raked in cash from strong precious metal prices in the last three years look poised to drive a wave of deal activity in the Canadian mining sector, especially among junior players hungry for financing.
These companies, which fund projects in return for a portion of future revenues, generated huge amounts of cash flow from existing deals as the price of gold and silver soared since the beginning of 2009.
Now, with the recent pullback in precious metal prices and slumping stock markets, they could be the saviors for small and mid-tier miners who are eager to grow but strapped for capital.
Etc etc etc