The royalty companies - certainly not boring in the gold sector
Royalty companies earn their money differently than "normal" prospectors. As a licensing and streaming company, they have a lower risk. This is because they secure the right to future productions, usually by negotiating a certain percentage (NSR, net smelting yield) or even a certain sum. Often there are also so-called milestone payments, for example when a feasibility study is completed. Then payments are made to the royalty company.
The mining risk is borne by the partner companies. The royalty companies naturally benefit from rising precious metal prices. The same applies when partner companies make new discoveries or acquire new projects. There are also indices in which 11 royalty companies are integrated. In May and April there were 11 nice profits for all of them.
One of the royalty companies is Osisko Gold Royalties, which pays dividends. In the first quarter of 2020, revenues from royalties and streams increased and amounted to almost $38 million. This was achieved with a portfolio of over 135 licensing agreements and precious metal purchases related to North America.
Strong price movements can not only be made by the royalty companies, but of course also by the companies dedicated to gold exploration through gold projects. For example, Revival Gold. The growth-oriented gold company has the right to acquire a 100% interest in the Beartrack and nearby Arnett Gold Projects in Idaho. Gold has been produced here before.
Latest company information and press releases from 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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