GROY - Gold Royalty Corporation: Limited Margin Of Safety At Current Levels
- Gold Royalty Corporation announced the acquisition of two smaller royalty players this week, intending to acquire Abitibi Royalties and Golden Valley Mines.
- This deal, combined with the recent acquisition of Ely, has given Gold Royalty Corp a massive royalty portfolio, with 191 assets, with 6 currently generating revenue.
- While this is a major upgrade, Gold Royalty now trades at more than 50x forward revenue, a significant premium to the sector average even after factoring in its growth.
- In summary, I see no reason to chase the stock here at US$5.30 and a pro-forma market cap above $650 million, and I see this rally as an opportunity to book some profits.
For further details see:
Gold Royalty Corporation: Limited Margin Of Safety At Current Levels