Analysts like gold-focused royalty firms

摘要

Royalty and streaming companies make good investments, argue Raymond James analysts Alex Terentiew and Ross Yakovlev in a recent note. The analysts, referring to both types of firms as royalty companies for simplicity, compared Royal Gold(TSX:RGL;NASDAQ:RGLD), Silver Wheaton (TSX: SLW; NYSE: SLW), Sandstorm Gold (TSX: SSL; NYSE-MKT: SAND) and Franco-Nevada (TSX: FNV; NYSE: FNV) to their gold-mining peers. And they found that the average price-to-earnings ratio was on average 50% higher for the royalty companies, concluding that these firms, in their view, deserve higher valuations for several reasons.