SRL - Scully Royalty Ltd.: Looks Already Fully Priced
2025-03-18 10:11:40 ET
Summary
- Scully Royalty Ltd is a pure royalties play on the Scully Iron Ore mine, with a stable royalty stream and plans to double production.
- Tacora Resources, the mine operator, has restructured and is now well-capitalized, reducing the risk of non-payment of royalties.
- The global iron ore price, driven by China's economy, is the primary macroeconomic factor affecting royalty payments and stock valuation.
- Scully's stock price already reflects anticipated production increases, making Labrador Iron Ore a potentially better yield-focused investment in the same sector.
The company story's pretty good
The Scully Royalty Ltd ( SRL ) company is, as we might gather, a royalty company. It owns, more than anything else, a royalty on the Scully Iron Ore mine. 7% on mined iron ore from that mine plus 4.2% on shippings derived from tailings with a minimum of $3.25 million a year....
Scully Royalty Ltd.: Looks Already Fully Priced