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Bobwins

05/19/16 1:34 PM

#32397 RE: JustForFun7 #32387

The only one that hasn't been discussed is OR.to/OKSKF, which is Osisko Gold Royalties. Like all royalty companies, the working model is to buy streams of metals at low fixed prices in return for an upfront payment that usually helps finance the buildout of a mine or an expansion. The royalty company doesn't have to contribute any more capital, even if the mine is expanded in the future. Osisko has a couple of extra good royalties in the 5% range but like most royalties is not cheap.

Valued at ~1.73 billion for a forecast 37K oz of gold in 2016. BUT undervalued compared to the big boys, Royal Gold, FNV. Newer so has potential to build value as new mines come online. They are taking some chances that the big boys haven't. They have invested directly in some junior explorers like Oban Mining, OBM.to, which has had some good drill results. This is higher risk than just buying royalties but could build value quicker than just waiting for production.

FNV has dramatically outperformed OR.to since late last year because it is a go to name that more conservative investors use to jump on the gold bandwagon.

I actually bought warrants on OR.to or OR.WT.a. I don't know if there is a US equivalent for this warrant. Has a couple years to run so trying to get some leverage and play some catchup. Bought the warrants at 2.54 and they are around C$3 today.