2024-05-12 12:14:33 ET
Summary
- Royal Gold saw lower year-over-year GEO sales in Q1 with a softer H1 expected for several of its key royalty/streaming assets.
- However, we continue to see very positive developments across the portfolio at producing/development assets, and 2025/2026 are expected to be much stronger years.
- In this update, we’ll dig into RGLD's Q1 results, recent developments, and why higher prices look to be ahead for this low-risk and high-margin precious metals business.
The recent breakout in the gold price has helped the producers to claw back lost margins from the 2021-2023 period, but for the royalty/streaming companies that didn't suffer a hit to margins, the recent gains in gold, silver, and copper have already paved the way for further financial records. One of the beneficiaries of the recent move in precious metals (and copper) is Royal Gold ( RGLD ), the third-largest royalty/streaming company in the sector, with the bulk of its revenue coming from the prolific Battle Mountain-Eureka and Carlin Trends in Nevada. In fact, the company just came off announcing its 23rd consecutive annual dividend increase and more look to be in store with significant growth in annual gold-equivalent ounce [GEO] sales looking out to 2027 while several chunky development assets could start contributing near the end of this decade.
In this update, we'll dig into RGLD's Q1 results, recent developments, and why higher prices look to be ahead for this low-risk and high-margin precious metals business....
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Royal Gold: A Premier Way To Gain Exposure To Gold