ELYGF - Ely Gold Royalties: Valuation Still Remains An Issue

• Ely Gold Royalties was one of the worst performing gold stocks with a (-) 38% return after seeing several topping signals in late Q2.
• While the correction in stock has led to a slight improvement in the valuation, the stock's valuation still remains very lofty relative to its peers.
• Some might argue that forward sales estimates are a better way to value the company, but I would argue that these projections are optimistic in some cases.
• I continue to see better opportunities elsewhere in the sector, with more mature peers trading at less than half of Ely's revenue multiple with dividends in place.

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