This is Lior Gantz, founder of WealthResearchGroup.com. In the past two years, we have profiled over SIX different alerts about companies, whose price has risen by over 200%! Today, I have a new one to share with you, a company with IMMENSE potential!
The company's IPO round raised funds at $5/share! In this round, self-made billionaire Eric Sprott, self-made billionaire Rob McEwen (one of the best gold entrepreneurs EVER) and other big institutions participated and put millions of their own money at risk. Some of them have THREE-YEAR lock-ups!
Today, shares trade around $3.00/share! This means the price would have TO gain 67%, just to go back to par.
On top of that, H.C. just issued a price target of $8.50, implying a 240% upside from here in the next 12 months!
Royalty and streaming is an entirely different way of capturing the upside of mining activity, and in many ways, it’s a de-risked form of exposure.
“Royalties” are basically just a payment to a royalty holder by a property owner or project operator. Royalties are typically based on a percentage of the minerals produced and the revenues or profits generated from the property.
Royalty companies don’t have to mine for the gold themselves – they can instead fund the best projects available, let other companies do the legwork, and potentially profit from the gold discoveries.
It’s a highly compelling business model, with distinct advantages. With royalty companies, you get exposure (often magnified) to commodity prices, fixed operating costs, no development or sustaining capital costs, exploration and expansion upside without the overhead typically associated with those activities, a diversified asset portfolio, and the ability to grow without a major increase in management.
If GROY received the same valuation metrics as its peers, its price would be double or triple today's, as you can see above!
A royalty and streaming business model provides greater diversification than typical mining companies. These companies typically hold a portfolio of diversified assets, while mining companies generally depend on one or a few key mines.
Besides, building a mine is very capital-intensive. A mining company could finance a mine construction by issuing shares, but the investors might not like this because it could cause the company’s shares to be diluted.
A royalty arrangement can eliminate the potential for share dilution while funding value-added projects. So, the benefits to the mining company are evident.
It’s a business model that allows the company to potentially generate revenues whether the gold price is rising or falling since royalty companies set fixed prices for mining output. As a result, it’s actually not unusual for the royalty names to outperform both the price of gold and gold miners.
The three royalties above are the crown jewel of the company's portfolio and the income, secured from them, is what makes GROY a world-class royalty business, destined to make its shareholders wealthy!
Research Gold Royalty Corp (GROY) Now!
Make sure to check out our special reports HERE!
Read their Investor Presentation
