Royalty companies benefit strongly from high gold price
(PresseBox) - .
The strong gold price is good for gold companies and especially for gold royalty companies.
Many experts believe that the end of the road for the gold price has not yet been reached. Investors are looking for security in these times of crises, uncertainties and geopolitical squabbles. Gold serves as a hedge, as is generally known. And that s where royalty companies score points with their inherent special characteristics. Capital expenditures and operating costs for a mine lie with the mining companies, not the royalty companies. They provide the mining companies with money in return for a share of current or future gold production. Rising wage or energy costs also affect the mining companies, but not to the same extent the royalty companies, which can thus profit from the high gold price.
This is also evident when comparing the gold mining index (GDX) or the gold mining junior index (GDXJ) with the index that tracks the performance of 18 gold royalty companies (Precious Metals R&S index). Another plus for gold companies and royalty companies is, of course, a weak U.S. dollar. Long-term investors always have an eye on gold royalty companies, because they are seen as more calculable than conventional gold companies. The licenses, it should also be noted, are not always dependent on the current gold price. The design of the license and streaming terms is variable.
One royalty company focused on gold and copper in Canada is Osisko Gold Royalties - https://www.youtube.com/watch?v=ZCLwxAGmJ9M -. The year 2022 brought a total of more than 89,000 gold equivalent ounces for the company, a record amount. A good 175 royalty and precious metal off-takes are in Osisko Gold Royalties portfolio.
Gold Royalty, another company from this sector, can also be pleased about a particularly successful year in 2022. Record annual revenues even exceeded forecasts. Gold Royalty mainly owns net smelter return royalties relating to gold properties in North and South America.
Current corporate information and press releases from Gold Royalty (- https://www.resource-capital.ch/en/companies/gold-royalty-corp/ -) and Osisko Gold Royalties (- https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/ -).
In accordance with ?34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
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Datum: 31.01.2023 - 01:49 Uhr
Sprache: Deutsch
News-ID 675903
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