At Nova, we are building a royalty and streaming company focused on copper and nickel – critical components of the clean energy supply chain, which underpin the global transition from fossil fuels to renewable energy.
Unlike copper or nickel mining companies, we do not explore for mineral deposits, develop projects, or operate mines. Instead, we are building a diversified portfolio of royalties and streams on high-quality, strategically important mines and mining projects.
The Royalty Model Advantage
We believe our business model provides investors a unique way to invest in the decarbonization of our planet. The figure below shows why. Royalties and streams give Nova copper and nickel price exposure, optionality on production and exploration upside, and diversification, while at the same time protecting us from any direct operating, carrying, exploration or development costs.
(1) Assessment based on clean energy investments not employing a royalty/streaming business model (e.g. lithium mining/processing, renewable energy power infrastructure, etc.).
How Nova Acquires Royalties and Streams
Nova acquirers royalties and streams in two main ways:
- We acquire existing royalties from 3rd party owners
- We structure new royalties and streams with mining companies
What is a Royalty?
A royalty is a contract that gives the owner of the royalty (e.g. Nova) the right to a certain percentage of future revenue from a mine in exchange for an upfront payment. Here’s an example of how a typical royalty transaction works when Nova buys an existing royalty from a royalty owner:
When Nova acquires a royalty directly from a mining company, the principle is the same, but the structure of the transaction changes. Here’s how it works:
What is a Stream?
A stream is a contract that gives the owner of the stream (e.g. Nova) the right to purchase a certain percentage of future production in exchange for an upfront payment and an additional payment on each delivery. Streams are normally focused on specific commodities (e.g. a copper stream on a copper-gold project). Here’s an example of how a copper stream on a polymetallic mine works: