KGC - Royal Gold: Key Royalty Additions Overshadowed By Weak Metals Prices

2023-03-12 01:44:10 ET

Summary

• Royal Gold is one of the few precious metals names in positive territory this year after the GDX has reversed sharply to negative year-to-date returns.
• The outperformance can be attributed to its superior business model to producers with increased diversification and insulation from rising operating costs/capital costs that have weighed on producers.
• The company had a busy year where it invested the most since 2015 and its portfolio is better for it, with increased diversification and higher exposure to Tier-1 jurisdictions.
• However, while I see RGLD stock as a solid buy-the-dip candidate & one of the better ways to get gold/silver exposure, the ideal buy zone for the stock looks to be $100.00.

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