Gold Without the Digging
Gold royalty stocks give you exposure to gold without the cost of mining it. The royalty owner advances capital once to secure a slice of a mine’s future revenue, and the operator funds the expensive work that follows. When gold prices rise, the royalty owner collects more from the same fixed asset, which is a big part of the appeal.
That is the argument Porter Stansberry makes in Royalty Riches, which he re-aired as “What Mini-Buffett is Buying Today.” The pitch: own the top line, skip the cost line, and let someone else break the rock.
The Three Names in the Promo
Three precious-metals royalty companies anchor the tease. Franco-Nevada, ticker FNV, is the largest at roughly $45.5 billion and carries the founding Goldstrike legend. Royal Gold, ticker RGLD, runs with just 39 employees and has raised its dividend for 25 consecutive years. Triple Flag Precious Metals, ticker TFPM, is the newcomer at about a decade old, 65 percent owned by Elliott Management, and holds 239 assets.
Each spreads its exposure across many mines, which is the real safety feature of the model. A single bad asset is a dent, not a disaster, as long as no one asset dominates. Our royalty companies guide explains that structure.
Gold Price Versus Company Price
Two different prices matter here. The gold price drives the royalty income, but the share price is what you pay for that income. On that front the names are not cheap: Franco-Nevada trades near 38 times trailing cash flow. Royalty owners can hibernate through weak commodity prices, still turning a profit, just a smaller one. We break down the picks one by one, starting with Franco-Nevada and Royal Gold.
Ready to see the research? Click here to access Porter Stansberry’s report.
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