Stock is making higher highs and higher lows in recent consolidation state, chart looks to me like a good spring before break out. Fundamental considerations are good as well: rising CAPEX is no issue here and rising gold price is translating into high leverage of royalty revenue.From the newly relaunced website:
"The Company’s royalty portfolio provides investors with a unique opportunity to capture value in the precious metals sector without incurring many of the risks associated with mine operations such as capital costs, operating costs, and environmental liabilities. The distinction between a royalty company and a mining company is very important in the current market environment where the costs to build and operate mines are rising significantly. "
Royal Gold Business Strategy
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"Royal Gold collaborates with mine operators, royalty owners and other business partners to acquire royalties and unlock their value. The key elements of our business strategy include:
Focus on Gold. Royal Gold will continue to be a precious metals investment vehicle focused on gold.
Royalty Business Model. Royal Gold’s lower risk business model is based on acquiring royalty interests in precious metals properties rather than engaging in costly and more complex mining operations.
Growth and Diversification. Royal Gold is determined to add to its broad base of precious metals royalties through accretive transactions, to further reduce risk and provide ample opportunity for organic growth within the portfolio.
Margin Enhancement. Royal Gold’s unique business model allows us to efficiently grow our royalty revenue without adding significant overhead costs.
Financial flexibility. Royal Gold’s position of liquidity allows us to compete for royalty acquisitions by means of a purchase, by providing financing, or by entering into a strategic exploration alliance in exchange for a royalty"
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