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PCF Capital’s Liam Twigger, ANZ’s Megan Joyce, Perseus/Pilbara Minerals and Imdex director
Sally-Anne Layman, Macquarie Group’s Hayden Bairstow and Deloitte’s Nikki Ivory

spent on exploration you would normally Minerals Ltd and drilling services and “We need to show that we are better
find something, a lot of the deposits were technology company Imdex Ltd, believes users of the capital that we are given and
outcropping. Now, a lot of things have the days of the traditional exploration for me that means probably consolida-
gone below surface and until recently model may be broken and now was the tion to remove some of the overheads
we were using old techniques – doing time to push ahead with more consolida- out of the juniors,” Layman said.
the same thing and expecting a different tion at the junior end and a higher em- “Technology through data, the use of
result. If you want to get money into ex- brace of technology. data effectively and big data is going to
ploration you have to change the value Layman said tighter collaboration and be really critical in terms of having more
proposition,” Twigger said. cooperation with technology companies exploration success. There is so much
Sally-Anne Layman, non-executive was essential to improving exploration data out there and it has to be used
director at Perseus Mining Ltd, Pilbara success. wisely.”

As streaming and royalty companies nestle their way into the plus-30%, so they are getting an equity-style return plus they
Australian market, a leading banker has advised companies are sitting way in front of the shareholders and shareholders
to seek expert advice to ensure any deal delivers a favourable have to wait for a dividend,” PCF Capital managing director
outcome. Liam Twigger said.
“It is about making sure you get the structure right and “As soon as you get into production you start dribbling out
making sure you cap the royalty if you can and do some to the streamers and it is a very, very good model, but its
smart things so it is actually not as bad as giving away 30% window won’t be here forever. If you look at Saracen [Mineral
of your equity, for example. They can be structured and you Holdings Ltd], Northern Star [Resources Ltd], Evolution
probably need to get some expert advice on how to do that,” [Mining Ltd] they have bought existing mines and have
ANZ (WA) head of loans and specialised finance Megan picked up royalties, so there is a big negativity about another
Joyce said. royalty and a lot of the streamers have a royalty tapped on
Soft equity markets have been beneficial to streaming the end as well. There is a reasonable amount of negativity.”
companies in North America, but Australia’s resilience has Twigger said one or two really good streaming deals in
meant they have not penetrated that market yet. Australia would be needed to change attitudes down under.
Streaming deals are perceived as expensive by many “Then that will be part of that capital in how you fund
Australian miners, leading to a reluctance to get involved. yourself; equity, debt, mezzanine and streamers,” he said.
“The IRR the streams are getting are very high, potentially

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