In the mining industry, financing models are evolving β and royalty structures have become a powerful alternative to traditional equity or debt.
One of the most widely used and valuable royalty types is the Net Smelter Return (NSR) royalty.
π At Oracle Holding, we specialize in acquiring and managing mining NSR royalties as part of our growing portfolio of mining royalty and streaming interests.
An NSR royalty is a contractual agreement that gives the royalty holder a percentage of the gross revenue from the sale of a mineβs product, minus certain processing and transportation costs.
Example:
A mine sells $100M worth of metal
After $10M in smelting/transportation costs, net revenue = $90M
A 2% NSR royalty earns $1.8M
This structure lets NSR holders earn revenue directly from production without taking on operational risks.
π° Predictable Cash Flow β Based on sales revenue, not profits (which can be volatile).
βοΈ No Operational Risk β Royalty holders donβt run the mine or pay for labor/equipment.
π Lower ESG and Liability Exposure β No direct environmental or regulatory obligations.
π Leverage to Commodity Prices β Revenue rises as metal prices increase.
π Scalable & Diversified β Multiple NSRs across projects and commodities spread risk.
Because of these advantages, NSR royalties are among the most sought-after royalty types in the mining finance sector.
| Type of Royalty | Based On | Risk Profile | Notes |
|---|---|---|---|
| NSR (Net Smelter Return) | Net revenue from sales after smelting/transport costs | Low | Most common and scalable |
| GRR (Gross Revenue Royalty) | Total revenue before any costs | Very Low | Paid earlier, less common |
| NPI (Net Profit Interest) | Mineβs profits after all expenses | Higher | Depends on operating performance |
| Streaming Agreement | Delivery of metal at fixed price | Moderate | Requires upfront capital commitment |
Many of the worldβs largest royalty companies are built on NSRs:
Franco-Nevada β Hundreds of NSR interests across gold, silver, and base metals
Royal Gold β Focused on NSR and NPI royalties
Sandstorm Gold β Growth-focused royalty and streaming firm
These companies have shown that NSR royalties provide consistent, long-term value regardless of mine ownership changes or operational costs.
Oracle Holding is building a portfolio of strategic NSR royalties across multiple commodities and regions. Our approach includes:
Securing early-stage NSRs during exploration and development phases
Prioritizing critical minerals such as copper, gold, vanadium, fluorspar, and rare earth elements
Partnering with responsible, ESG-compliant operators
Diversifying across jurisdictions and commodity cycles
By focusing on NSRs, Oracle Holding aims to deliver:
Long-term cash flow
Capital-efficient growth
Reduced risk and high scalability
π Demand for critical minerals is rising sharply
πΈ Mining companies increasingly use royalties to raise capital
π ESG-focused investors prefer NSR royalties for their low-risk, low-footprint profile
NSR royalties are becoming the cornerstone of modern mining finance, offering stable returns and resilience in volatile markets.
A mining NSR (Net Smelter Return) royalty is one of the most effective tools for building long-term value in the resource sector.
Oracle Holding is leveraging the power of NSR royalties to create a diversified, scalable, and sustainable portfolio β helping finance the next generation of critical mineral projects worldwide.
π Learn more about our royalty investments in the News & Insights section of Oracle Holding.