SPOXF - Sprott: Leveraged Exposure To Gold With Limited Operational Risk
Investment Thesis
Gold is making all-time highs in many currencies and multi-year highs in U.S. Dollar, this translates into higher earnings for Sprott (OTCPK:SPOXF). The company recently announced the Q1 2020 AUM update of $10.6B and the continuation of buy-backs which will likely support the stock price some.
The closure of many gold mines and the potential risk of further mine closure makes Sprott an attractive alternative with similar return characteristics as gold miners, but without the same level of operational risk.
Figure 1 - Source: Katusa Research
Assets Under Management
Sprott will