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Friday, 12/15/2017 12:15:11 AM

Friday, December 15, 2017 12:15:11 AM

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3 Gold Stocks to Buy Even If Gold Doesn't Rise
Motley Fool December 14, 2017

1. Royal Gold

Royal Gold is what is known as a precious metals "streamer." It has royalty claims on gold, silver, copper, lead, and zinc at mines in over 20 countries -- but it doesn't own mines. In exchange for capital, mine owners give Royal Gold working interests in the production of precious minerals. This has led to some pretty hefty profit margins for the company, especially when compared to traditional miners like Barrick Gold and Yamana Gold:

Royal Gold has interests in 34 producing properties, 21 development-stage properties, and 131 exploration-stage properties scattered across Canada, the United States, the Dominican Republic, Mexico, Chile, Australia, and Africa.

Investors can expect solid growth from Royal Gold's interests. The company just recently began receiving copper deliveries from its Mount Milligan mine in Canada. Royal Gold's partner in the mine, Centerra Gold, Inc., also upped its production estimates for the mine as part of its third-quarter earnings release. The mine is a prime example of how Royal Gold operates: In exchange for just under $800 million, it has the right to 35% of all the gold and 18.75% of the copper for the life of the mine, at far-below-market rates. Also of note is that this particular mine has an estimated life of 22 years, thanks to over 2.1 billion pounds of copper and 5.8 million ounces of gold in proven and probable reserves.

Mount Milligan is just one example of the power of Royal Gold's business model, and its merits as a top gold stock.
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