- Scully Royalty's core asset is a revenue royalty on a Canadian iron ore mine.
- Both the mine's volume and pricing are improving, creating a favorable setup for 2021.
- There are, however, governance and legal risks with the company's conglomerate structure. These may be addressed in 2021.
- At the current valuation and iron ore price environment, SRL appears attractive despite the potential risks.
- There are a number of catalysts here including a potential maiden dividend, disposals, and attempts to improve liquidity.
For further details see:
Scully Royalty Could Rise Further On Iron Ore Volume Growth, Dividends And Disposals