We’ve said it before but the royalty business is.. tough.
It’s not exactly like the junior mining industry itself. You aren’t going out and staking some claims, and maybe getting lucky with some good geology that pays off in your favor.
Instead you’re up against some of the best and brightest that the industry has to offer, trying to out-analyze and beat everyone else to the punch on what may be the next Cobre Panama or Canadian Malarctic mine. It’s a game of probabilities, risk, and ultimately, trust that a bunch of miners have the wherewithal to turn a piece of real estate in the middle of nowhere into a profitable mine.
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And then, assuming you take that risk and fund the right projects that actually make it to production, you have to trust that management knows their geology perfectly. So that you can provide guidance for your own investors on how your company will do next quarter.
And sometimes, that risk blows up in your face and you miss production guidance. But it doesn’t really matter anyways because the global economy is imploding, sending the value of precious metals sky high.
Kind of like what happened to Elemental Altus Royalties (TSXV: ELE) in 2024.
Lets dive in.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
