OR - Could Franco-Nevada See a 16% Rally Like Osisko Gold?
2023-03-24 05:47:00 ET
The stocks of Osisko Gold (NYSE: OR) and Franco-Nevada (NYSE: FNV) have both been moving higher of late. That's not shocking given the concerns about financial stability in the banking system, Both precious metals streaming and royalty companies. However, some important differences between these two companies help explain why Osisko's recent advance has been roughly twice as strong as Franco-Nevada's rise.
Mining for gold and other precious metals is an expensive and complex business, which is why neither Osisko nor Franco-Nevada tries to do it. Instead, they provide capital to gold miners in exchange for the right to buy gold at reduced prices in the future.
This also allows the companies to invest in larger portfolios of precious metals projects, since they can work with multiple miners. For example, Osisko has investments in more than 180 projects, while Franco-Nevada's list is even larger at 419. By comparison, most miners have only a handful of operating assets, if that.
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Could Franco-Nevada See a 16% Rally Like Osisko Gold?