Our Approach to Business
Numerous metals are produced by most mines. For instance, substantial amounts of gold and silver may also be produced by a copper mine, and substantial amounts of silver may also be produced by a lead-zinc mine. Generally speaking, a mine’s commercial focus is not on those by-product metals, and it may not be in a position to maximize the return from them.
In addition to giving investors some of the best sustainable margins in the sector, the streaming model enables mine operators to extract greater value from their by-product metals. DigiMetals Exchange buys a portion of the metals generated by a mine under the streaming model in exchange for an upfront payment and an additional payment upon delivery.
A streaming deal is advantageous to both sides.
Advantages of the Business Model
DigiMetals Exchange Owners
Cost predictability, which translates into direct leverage to possible increases in precious metal prices, is, in our opinion, the main advantage of streaming for DME's shareholders. The mining business has always been beset by inflationary cost pressures, which have reduced profit margins and increased capital and operational expenses for traditional miners. DME is able to generate among of the greatest cash operating margins in the mining sector because Wheaton's continuing operating costs are established at the time a stream is entered into at a predetermined delivery payment.
Shareholders of Mining Partners
While generating superior returns for our shareholders is our top priority at DME, the model's longevity depends on finding value for all parties participating in a streaming agreement. By unlocking the value of precious metals made by conventional miners, DME is able to accomplish this. Mining businesses can obtain a higher value for their by-product precious metals than what is reflected in the market by signing a streaming arrangement. These businesses can either utilize the profits to improve their balance sheet or use the upfront payment to continue expanding their main company through acquisitions, production expansions, or exploration.
Collaborations that Advantage Both Parties
