Investors see opportunity as miners seek alternative finance

BANGALORE/LONDON (Reuters) - From fund giant BlackRock to activist shareholder Julian Treger, mining investors seeking predictable returns and better cash flows are stepping into mine finance. This has left alternative sources of financing - royalty deals, stake sales or debt that converts into shares - accounting for an increasingly significant proportion. Among the alternatives are mine royalty agreements - favored by BlackRock and the focus of UK-listed Anglo Pacific (APF.L), which Treger is now running. "The scarcity of capital today... has created a huge opportunity for non-traditional sources of finance," said Catherine Raw, portfolio manager for the BlackRock World Mining Trust (BRWM.L).



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