Mining Sector Ideas

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Franco Nevada - >>> Where to Invest $5,000 Right Now
Make your money work for you with these great stock picks.


Motley Fool

by Neha Chamaria

11-14-20


https://www.fool.com/investing/2020/11/14/where-to-invest-5000-right-now/


This gold stock is minting money

Gold stocks are great investments when the markets are as volatile as they've been this year. While several gold miners are doing well, I like Franco-Nevada (NYSE:FNV) because of its business model.

Franco-Nevada isn't a miner; it's a streaming and royalty company that buys metals from miners at discounted prices in exchange for funding them upfront. That eliminates much of the cost and risk associated with mining, and the low purchase price means big margins for Franco-Nevada.

Earlier this month, Franco-Nevada reported a net earnings margin of 55% for its third quarter -- a record for the company. It added 25 new royalties in the quarter. It now expects its full-year gold equivalent ounces to come in at the higher end of its guidance range of 475,000-505,000. Revenue from energy assets should also be near the top of its predicted range of $60 million-$75 million.

With gold prices likely to remain firm, Franco-Nevada could continue to be one of the top-performing gold stocks.

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