This Royalty Company Is Quietly Crushing It

The growth potential of a big gold miner with way less risk

Readers of this newsletter’s Portfolio Updates might conclude that the most important companies on the recommended list are the handful of gold/silver explorers that show up in the “Company News” section week after week. But that’s not true. The best explorers are drilling like crazy and releasing results (it seems) every few days. And if they succeed they’re potential 5-or-10-baggers. But they’re lottery tickets rather than core holdings.

Meanwhile, the large royalty companies — which should form the bedrock of our personal holdings — hardly get a mention in most weekly updates. There’s a reason for this, and it’s a favorable one: They’ve built massive and varied income streams and are, with a single notable exception, just sitting back and counting their money. They don’t do a lot of media, so not everyone notices. But the checks keep coming and the cash keeps accumulating.

Another big advantage of the royalty/streamer business model is that hard times for the mining industry — like now — are great times for companies with available cash to step in and cut favorable royalty/streaming deals. So when miners are suffering a capital drought, the royalty/streamers do the deals that power them into the next decade. Here’s one that’s a must-own: