Yeah, it's a PR email from GlobalData. If you're smart, dear reader(s), you'll know that. I mean, look at the title! Christ.
Anyway ...
A number of alternative sources of finance, such as strategic investments, joint ventures and equity based fundraisings, are available to mining companies, but what do miners need to know before they take the plunge?
Okay, okay. Er ... 'This is out of order, boss!' Why? 'Kids shouldn't be doing finance.' What are you talking about?! 'Kids.' Yeah. 'And finance.' Jesus H. - !!! Miners, idiot! 'What?' Companies that dig stuff out of the ground. 'Oh. Oh, I see.'
Unbelievable.
Having said that ... in some countries. Never mind. You know what I mean.
Let's do this!
GlobalData's mining writer, Yoana Cholteeva speaks to Alexander Keepin, corporate finance partner at international law firm Bryan Cave Leighton Paisner, to find out more about these options and which ones are currently popular.
Hang on a minute! Someone speaks to someone else ... on my blog?! 'Now, that is out of order!' Shut up, Voice! Let me deal with it.
Alexander Keepin tells GlobalData: "Mining companies tend to use a few [finance] sources. There's commodity based finance, such as royalty finance metal streams offtakes pre-payments. They use sort of traditional debt finance, which can range from straightforward bank debt and project finance to equipment, leases, operating leases - those things together with any sort of corporate or convertible bonds. Then in addition, there is equity finance, which is typically through the equity capital markets or private capital or capital from private equity funds."
Okay. And Yoana?
"Another method is strategic investments and joint ventures and actually, we're seeing an uptick in the number of joint ventures at the moment, particularly joint ventures to fund early-stage development."
'That's Alex again, boss.' I know. It's all Alex, man. We were promised - or threatened with - Alex and Yoana, but ... I've been reading through the email, and Yoana has gone missing. 'A real shame, eh?' Not really, Voice. I don't want all these voices taking over my blog. I have enough trouble with you.
"We're seeing that more often companies are reaching out to sort of earlier stage, more greenfield projects and entering into joint ventures just to fund the development of those. Also, mining companies are increasingly looking at where they can raise capital protection, particularly through the more traditional routes of depth and equity. We've seen a number of Australian and Canadian companies looking to lift in London in order to access European investors as they seek to raise their equity finance."
'Who was that?!' Alex again. It's all Alex. And me, and you. 'But no Yoana! Where is she?!' I don't know.
"I think the key [when raising finance] is bearing in mind what your future capital requirements are likely to be and how this finance will impact on your ability to raise funding in the future. Particularly if a company has short term needs to finance, it's very important that they consider the impact that this funding will have on any sort of future fundraising, for example, for construction finance."
Okay, okay. Thank you, Alex.
Yoana is shy. Some people are like that. It's no big deal.
ENDS
...
Anything else? Yes. The best Dan Pena videos on YouTube are on the Create Quantum Wealth channel. Just so you know, kook(s).
I'm seriously going to cut out the personal stuff, music updates, etc. Maybe next week, I don't know.
Let's see how I feel BECAUSE ... my feelings change, you dig?
I had a bad day yesterday. But I was up at 5.20 this morning. I even slept with a lamp on all night. Not by choice. I just fell asleep, and then woke up, and didn't bother turning the light off. It doesn't matter. Get it through your thick head! Normality is over. It's finished. I'm sick of it. The rest of my life will be like this.
Not that you'll hear about it. No! From next week, probably ... just finance. Oh, and conceptual posts, sure. But they won't tell you anything, man. They're for me, not you. PRIVATE - !!!
I'll do another post later. I'll throw some music in, yes. Why not? For old times' sake.
Laters!
