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....

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