Aventine

No Warranties
All content, products and services on this site are provided to you “as is” without warranty of any kind either express or implied including, but not limited to, the title, non-infringement, security or accuracy.

No Investment Advice or Offers
Nothing in this site constitutes investment advice, a recommendation as to the suitability of any product or security, or an offer to sell or a solicitation of an offer to buy any investment. If you require investment advice you should contact a professional adviser.

Accuracy of Information
The information provided on this website is believed to be correct and, where applicable, was obtained from sources believed to be reliable. However, while all reasonable efforts have been made to ensure that the information on this website is accurate and up to date, no representations, warranties or guarantees are given as to the reliability, accuracy or completeness of information either on this website or on any other website referred to or accessed by hyperlink. No liability is accepted for any damage or loss, including but not limited to loss of profit whether direct, indirect or consequential, in respect of the use of this website or information contained herein. The contents of this website are subject to change without notice.

Sales Restrictions
The distribution of information contained in this website in certain countries may be restricted by law and, accordingly, persons who access it are required to inform themselves of and comply with any such restrictions. The information in this website does not constitute either an offer to sell, a solicitation, or an offer to buy in a jurisdiction in which this type of offer or solicitation is unlawful, or in which a person making such an offer or solicitation does not hold the necessary authorisation to do so. No warranties, express or implied, are given that the products, securities or services advertised on this website are available in your jurisdiction. Accordingly, if it is prohibited to advertise or make the products, securities or services available in your jurisdiction, or to you (by reason of nationality, residence or otherwise) such products, securities or services are not directed at you. Persons interested in making any investment or accepting any service detailed in this site should inform themselves as to (i) the legal requirements in their country of nationality, residence or domicile, (ii) any foreign exchange requirement which they may encounter and (iii) the income tax and other tax consequences which might be relevant to the acquisition, holding or disposal of any investment.

United States of America
None of the funds listed herein are registered in the United States under the Securities Act of 1933 or the Investment Company Act of 1940. In particular, none of the services or securities mentioned in this website are being offered in the United States or to US persons and units/shares of the investment funds listed herein may not be publicly sold, offered or delivered to US residents or US citizens.

Risk Warnings
Investment involves risk. The investments discussed in this website may not be suitable for all investors. Investors should make their own investment decisions based upon their own financial objectives and financial resources and, if in any doubt, should seek advice from an investment advisor. Past performance is not necessarily a guide to future performance, the value of investments and the income from them can go down as well as up so an investor may get back less than the amount originally invested. Where investment is made in currencies other than the investor’s base currency, the value of those investments, and any income from them, will be affected by movements in exchange rates. This effect could be unfavourable as well as favourable. Levels and bases for taxation may change.

Quoted returns are not guaranteed. The Fund Manager's strict application of risk parameters in no way offers a guarantee of capital growth or maintenance. Careful reference should be made to the further fund and product-specific risk factors which are laid out in the relevant material within this website. In particular, investors should read the Offering Memorandum, the Supplement, and the Application Form. Please refer to the “Risk Factors” section of the Offering Memorandum

Legislation or regulations in your home jurisdiction may prohibit you from investing into the Fund. The Fund Administrator reserves the right to make final determination on whether you are eligible for any products or services. Residents or nationals of certain jurisdictions may be subject to exchange controls and should seek independent advice before investing in the Fund. This website is not a personal recommendation and you should consider whether you can rely upon any opinion or statement contained in this document without seeking further advice tailored for your own circumstances. Neither the Fund Manager nor the Fund are able to provide any advice on the suitability of this investment or the impact on your tax position. Investors are advised to seek investment advice and personal tax advice from a suitably qualified financial professional adviser, lawyer, accountant or bank manager. Neither the Fund Manager nor the Fund can give any guarantee that tax relief or other tax benefits will be available, or that the current tax treatment of the Fund will remain unchanged in the future in the jurisdiction where the prospective investor is a resident or of which he/she is a citizen.

Forward Looking Information
Certain information on this site contains certain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date in which they are made. The words “believe” “expect” “hypothetical” “anticipate” “optimistic” “intend” “aim” “will” or similar expressions are intended to identify forward-looking statements, which speak only as of the date on which they are made. The Fund Manager and the Fund undertake no obligation to update publicly or revise any forward-looking statements.

Regulation
Obelisk Capital Management Limited is registered in the Cayman Islands and is licensed by the Cayman Islands Monetary Authority. Obelisk Global Fund SPC is registered in the Cayman Islands and is licensed by the Cayman Islands Monetary Authority as open-ended mutual fund that has been created and organized as a segregated portfolio company.

External Links
These links are being provided as a convenience and for informational purposes only. They should not be construed as an endorsement by Obelisk Global of the content or views of the linked materials. Obelisk Global bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

Website
We endeavour to maintain our online services but cannot guarantee that the services provided by this website will not be interrupted. We will seek to notify you, via the website and in advance, of any forecast disruptions. In addition, we cannot guarantee that any information you may download or copy will be error or virus free. We operate strict internal procedures regarding the integrity of data on this website. However, we will not be responsible or liable to you for any damages that may be caused to you as a result of using this website or for any damages third parties may cause to you or by your use of this website resulting from a breach of website security.
The entire content of this website is subject to copyright with all rights reserved. You may not copy reproduce, distribute, transmit (by electronic means or otherwise) or modify the contents in whole or in part without prior written permission.

Please indicate your acceptance of this disclaimer to continue to our website.

Gold Streaming

What is Gold Streaming?

The Obelisk Gold Focus Fund serves as a specialized financier, to help fund production and extraction of gold. Gold Streaming is a mine-financing method that allows the mine to gain financing from the Obelisk Gold Focus Fund in exchange for a royalty payment called a “stream”. A stream is a commitment for either a certain number of ounces of gold per year or a certain percentage of production on an annual basis from the mine. This royalty payment gives the Obelisk Gold Focus Fund the right to buy streams of gold from the mine at a pre-determined discount from the current spot price. In turn, the Obelisk Gold Focus Fund will sell the gold at the LME spot price.

Gold Streaming is a financing method that is used throughout the world in the mining industry. Royal Gold, Wheaton Precious Metals and Franco-Nevada are some of the biggest names in the mining sector that focus heavily on streaming precious metals. This model allows streaming companies to generate revenue regardless of world prices and still come out profitable.

Royal Gold (Nasdaq: RGLD) with a market capitalization rate of USD5.859 billion is the 21st largest mining company in the world. Receiving royalties for the past 20 years on numerous gold mines, Royal Gold currently holds interests in 38 active mining operations with principal mines including Pueblo Viejo (Dominican Republic), Andacollomine (Chile), Peñasquito (Mexico), and Mount Milligan (Canada).

In 2004, Wheaton Precious Metals (NYSE: WPM), formerly known as Silver Wheaton, was the first to use the streaming model for funding mine production. With a current market capitalization of USD8.15 billion, the company has streaming agreements for silver and gold in high-quality mines around the world. Producing 19,801 ounces of silver from its top 4 mines (San Dimas and Peñasquito mines in Mexico and Antamina and Constancia mines in Peru), and 10,578 ounces from its other mines, Wheaton Precious Metals had net earnings of USD204,378,000 in 2016 from silver specifically.

Franco-Nevada (NYSE: FNV) was founded in 1983 as the world’s first gold royalty company. The 24th largest mining company in the world, Franco-Nevada has a market capitalization of USD14.143 billion with 71% of total revenue coming from North America. As the world’s largest and most successful gold royalty company, 76% of Franco-Nevada’s revenue consisted of gold in 2016.

Characteristics of Streaming Companies

Lower cost structure - royalty companies that focus on streaming generally have a lower overall cost structure than traditional mining companies. The majority of capital is allocated towards product and administrative costs rather than being deployed into exploration or operations, lowering their overall financial obligations to a given project.

Smaller staff base - work involved with streaming is administrative focused and does not require staff to be at the site of the mine, therefore they generally have a small staff base.

High revenue per employee ratio – high revenue to low staff count results in a high revenue to employee ratio.

Lower risk profile - the lessened demand in overhead capital, smaller employee count, and predictable costs, royalty companies have an overall lower risk profile.

Scalable - streaming is scalable as allocation is proportionate to a mine’s production. An increase in capacity leads to an increase in production and profits.

Diversificiation - royalty companies have agreements with multiple mines thereby diversifying their asset base. Mines individually can have variable output in production over a given period of time. By purchasing from a pool of mines the royalty company can help reduce fluctuations in supply.

Gold Streaming vs. Traditional Mining

Asset Backed Product Yield

Traditional mining companies focus on exploration and extraction, of which both are capital and labor intensive practices. These higher start up costs result in a higher risk profile. Alternatively, streaming companies do not require a large upfront investment into projects because they act as a financial intermediary rather than a primary investor. Streaming allows for the prefinancing of the extracted assets only upon delivery of the gold. Capital flows from the streaming company are for product only as opposed to for financing operations.

Asset Backed By Physical Gold

Investment into traditional mining companies are backed by the asset (gold) of the mine itself, research and development for processes and capital acquisitions. Investment into streaming companies are backed by the rights to the actual physical gold that has already been extracted and refined to a state for which it can then be sold.

Predictability in Profits

Profits from traditional mining companies depend wholly on market prices for gold. Fluctuations in market prices directly impact the amount of profit or even loss that the company takes. On the other hand, streaming companies buy streams of gold at a fixed discount irrespective to the spot price, therefore their margins are uncorrelated to market price fluctuations.




Know Your Risk

Investment Involves Risk

The investments discussed in this website may not be suitable for all investors. Investors should make their own investment decisions based upon their own financial objectives and financial resources and, if in any doubt, should seek advice from an investment advisor. Past performance is not necessarily a guide to future performance, the value of investments and the income from them can go down as well as up.