Techdamentals
Sep 25, 3:31 PM
Royalty companies are the part of this sector most people don't understand, and they're the most interesting business model in it.
Franco-Nevada doesn't operate mines. It paid cash up front for the right to a percentage of production at a fixed low price. So when gold goes from
$2,000 to
$4,337, their revenue rises and their costs don't move at all.
No diesel inflation. No labor disputes. No cost overruns.
Completely different valuation profile from a producer, and it deserves a different multiple.
Educational tool, not advice. What it's worth:
techdamentals.com/v/FNV?ref=st
$FNV
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