Canaccord sees 2023 as another mixed year for mining royalty firms

Elemental Royalty

04/04/2023 12:27

** Canaccord Genuity sees 2023 as another mixed year for
royalty firms after a mixed 2022
    ** The brokerage, however, sees total sector gold equivalent
ounces (GEO) increasing 20% by 2025 relative to 2022
    ** Metal royalty and streaming cos invest in mining projects
in exchange for a percentage of the revenue generated from the
production of minerals
    ** Shares of royalties as a group were down ~2%, on average,
significantly outperforming the -16% average drop for the miners
in 2022 - Canaccord
    ** Adds that Triple Flag was the best performer in 2022, up
15%, followed by Royal Gold, up 7%, while Franco-Nevada and
Osisko was down ~2%
    ** Royalty sector has minimal exposure to operating or
capital costs that miners have to contend with
    ** Wheaton Precious Metals  WPM.TO  and Osisko Gold
Royalties  OR.TO  are recommended as top royalty picks by CG 
        
 Company                                New PT      Old PT
 Wheaton Precious Metals  WPM.TO        C$75        C$67
 Franco-Nevada Corp  FNV.TO             C$214       C$202
 Sandstorm Gold Ltd  SSL.TO             C$10.50     C$10.25
 Altius Minerals Corp  ALS.TO           C$26.50     C$25.50
 Triple Flag Precious Metals  TFPM.TO   C$21.50     C$20
 Royal Gold Inc  RGLD.O                 $143        $142
 Osisko Gold Royalties  OR.TO           No change   C$25.50
 Elemental Altus Royalties  ELE.v       C$1.80      C$2.15
 
 (Reporting by Arshreet Singh in Bengaluru;)
 ((Arshreet.Singh@thomsonreuters.com))