Royalty companies provide money to mining companies that own projects. In return, the royalty companies receive certain shares in current or future production or even shares in the company itself. This is a win-win situation for both. The royalty company has no operational risk, this lies with the mine operator. If the project is already producing, then the streaming company receives gold or silver deliveries. If a mining project is not yet in production, the price that the royalty company has to pay is naturally correspondingly favorable. If the price of gold rises, for example, or a mining company expands the project or makes new discoveries, the royalty company benefits. This is one of the levers that are lucrative for the royalty company.
Among the royalty and streaming companies, there are three heavyweights in the industry. However, smaller royalty companies can also post above-average returns, especially if they have growth or particularly profitable agreements. Osisko Gold Royalties – https://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/ -, for example, scores well here. The company has more than 180 royalties and streams, focused on North America. Included is a noteworthy five percent net smelter return royalty with respect to the largest gold mine (Malartic Mine) in Canada.
Investors get diversification with an investment in a royalty company that a single company cannot provide. Also active in the royalty industry is Gold Royalty – https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ -, this throughout the Americas. More than 200 royalties are in the portfolio. Many exploration opportunities exist in the underlying projects of this company as well.
Current corporate information and press releases from Gold Royalty (- https://www.resource-capital.ch/en/companies/gold-royalty-corp/ -) and Osisko Gold Royalties (- https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
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