FNV – One company with Gold, Silver, Oil, and Gas “Royalty and Streaming” Investments

[Tom Nolan + 2,441]

While I do own more than a hundred mineral rights royalty titles for oil/gas regions, and often trade natural gas, I am also invested in the gold and silver market.

I want to bring up Franco-Nevada Corporation, because many people do not know that they also have oil and gas royalty holdings.

The world’s largest royalty and streaming company with a market cap of $25 billion, Franco-Nevada has outperformed gold bullion and gold equities in both bull markets and bear markets for the precious metals such as Gold and Silver.

Franco-Nevada, with very, very few employees, makes $3.5 million per employee annually.

Franco Nevada is debt free.  It uses its cash to reinvest and also to pay dividends.

FNV - Franco-Nevada Corporation - https://www.franco-nevada.com/Home/default.aspx

ROYALTY

A royalty is when a mining or oil company agrees to pay a certain part of its revenue, or a certain part of a subset of its revenue to the royalty's owner.  The owner has title to the minerals under the ground.  This title can be bought or sold or leased.

STREAMING

A stream is when the mining company actually sells physical metal to the holder of the streaming agreement.  A streaming agreement is made between an investment company like FNV and the miner.  FNV provides capital for a specified endeavor to the mining company for which in return, FNV gets a cut of the quantity of gold extracted at an agreed upon price.

If situations or problems develop, it is not uncommon for these agreements to be amended so that all parties benefit.

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I want to mention two good YouTube channels.

MiningStockEducation.com – Interviews with mining company owners.  - https://www.youtube.com/channel/UC9Xnap-g3EZuddiUeauMlNQ/videos

Jason Burack with “Wall Street For Main Street” YouTube Channel  - https://www.youtube.com/user/WallStForMainSt/videos

As an aside, if you like silver, I think “Aurcana Silver Corp” AUNFF is a good buy.

[Andrew Sun + 17]

Would you buy shares in FNV at current prices, which is around all-time-high? If not, what would you say is a good entry point?

Also, would you consider Wheaton Precious Metals, trading as WMP, a better buy at today's prices?

Edited September 2, 2020 by Andrew Sun

[Tom Nolan + 2,441]

On 9/2/2020 at 4:30 PM, Andrew Sun said:

Would you buy shares in FNV at current prices, which is around all-time-high? If not, what would you say is a good entry point?

Also, would you consider Wheaton Precious Metals, trading as WMP, a better buy at today's prices?

Spot on Andrew.  Wheaton is a good royalty and streaming company.  FNV has stalled in a range.  Some weeks ago, I sold much of FNV to buy puts in Natural Gas and to buy MTA (another royalty and streaming company).  MTA dropped into a dip appropriate for buying.  Like you, I would buy dips.   Later, I may buy more FNV depending upon the timing.  FNV typically stays in a range, even when gold prices drop.  I like that stability.

[Tom Nolan + 2,441]

Previously, I mentioned…

As an aside, if you like silver, I think “Aurcana Silver Corp” AUNFF is a good buy.

 

Per ounce, silver has been recently hovering around $26 or $27 per ounce.  

In July, it was near $18 per ounce.  When gold stably tops above $2,000 per ounce, I expect silver prices to climb.

David Morgan is probably the silver guru.  He does not put an hyperbole to it.  He gives some very balanced insight.  You will find him on many YouTube interviews. 

Silver price - https://tradingeconomics.com/commodity/silver

 

I own some Aurcana stock.  I thought I would share some things about it.

Owned by Aurcana, the Revenue-Virginius mine in Ouray, Colorado, USA is fully-permitted and will also be one of the lowest-cost silver producers in the world at only US$8/oz Ag (AISC) after byproduct credits.  That $8 cost is extremely good for a miner.  The profit margin could be intense.

The mine is not yet in operation.  The company had to get some primary funding first in order to implement the production.

 

AURCANA STOCK PRICE – AUNFF -  Be sure to see the stock price history.  I have already more than doubled my money.  https://finance.yahoo.com/quote/AUNFF?p=AUNFF

 

Anyway, I thought that I would share some information about this stock.

You do not have to be aware of how Bill Gates and others are manipulating the masses to understand silver. https://www.corbettreport.com/gates/  

 

[Andrew Sun + 17]

Thank you Tom for the tip on AUNFF and MTA. What you think of Pan American Silver?

Also, are there any copper streamers out there?

[Tom Nolan + 2,441]

1 hour ago, Andrew Sun said:

Thank you Tom for the tip on AUNFF and MTA. What you think of Pan American Silver?

Also, are there any copper streamers out there?

I don't know any copper streamers per se, but perhaps some of the royalty&streaming companies may have a piece of a copper mine.

I like any silver stock almost.  I owned little bit of Pan American, but eventually sold it.  Nothing that I know of is wrong with them though.  

I also owned AG First Majestic...bought and sold the highs & dips.  I don't own any now.  Their cost per ounce is higher than AUNFF by 2 to 4 dollars.   I like AUNFF because they are in a mining friendly area and in the U.S....and they have a great upside potential once production starts. 

I am a little concerned about the future.  A lot of countries and jurisdictions will likely be hurting for revenue.  It is anyone's guess if a country will try to nationalize mines or increase taxes on the precious metals production.  If gold and silver go way up, then likely some of these jurisdictions will really try to get some of that mining money.

Edited September 14, 2020 by Tom Nolan