Royal Gold poised for significant organic growth
The guest argued that Royal Gold is undervalued relative to its growth profile, with assets poised to make it nearly the size of Franco-Nevada within six years.
The argument
While Wheaton Precious Metals has the most immediate near-term growth, Royal Gold's five-year guidance excludes major assets like the highly profitable Hodmaden project, Glencore's Mara project option, and Barrick's Four Mile. Extending the horizon to six years reveals a massive growth profile with minimal capital outlay.
The thesis, stress-tested
✓ What validates it
- ✓First production or positive development updates from the Hodmaden project
- ✓Royal Gold exercising its option on Glencore's Mara project
▸ Risks discussed
- ▸Delays in the development of key underlying projects like Mara, Platreef, or Four Mile
- ▸Failure to convert the Hodmaden equity stake into a royalty/stream on favorable terms
Hear it yourself
"How do those types of companies like Royal Gold, Franco Nevada, Wheaton Precious, how do they play a role in your strategy compared to traditional miners? Yeah. Sure."
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