Opportunities of the royalty companies
Royalty companies have a special business model with their streaming business. Roughly speaking, they are the financiers of mining companies that own projects. For the money that the mining companies receive, the royalty companies receive shares in current or future production. Often there are also shares in the mining companies. Both profit from this and the risk of the operative business lies with the mine owners.
The royalty companies include Osisko Gold Royalties. As Rainer Ruckteschler, Managing Director for Europe, recently explained in a video conference, the company has 12 years of experience. The company can also score points, compared to other royalty companies, because it does not have any oil and gas businesses in its portfolio.
More than 135 license and precious metal purchases help to make the company successful.
The investment in the Malartic Mine, an extremely important item in the portfolio, will continue to pay off for a long time to come. Because production of several million ounces of gold is expected over the next ten years.
A new royalty company has also just been established. GoldMining, which owns a large portfolio of gold and copper projects, has established its own gold-oriented royalty company. This is to include 14 royalties. Equipped with an immensely large resource base, the projects to which the royalties relate already exist in its own area. This is certainly a special model for investors. Because if you fluctuate between an investment in a gold company or in a royalty company, then GoldMining would be a good choice.
Recent company information and press releases from Osisko Gold Royalties (https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/) and GoldMining (https://www.resource-capital.ch/en/companies/goldmining-inc/).
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