Replies to post #160248 on Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

Some time ago you discussed RGLD ...do you have any opinions on it at this point and do you know if they hedge?..tia
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Hi Sam,
Royal Gold is not a producer per se. They derive their income through contractual royalty agreements with other mining companies who actually do the mining of the RLGD properties and pay RGLD royalties based on production as well as the PoG.

As such, RGLD does not hedge any production and fwiw, they have, at last count, less than a ten employees to keep track of things.

RGLD's profile from Yahoo:

MULTEX ABRIDGED BUSINESS SUMMARY
Royal Gold, Inc. is engaged in the acquisition and management of precious metals royalty interests. Royalty revenue is generated from mining operations in the United States and Argentina. The Company seeks to acquire existing royalties or to finance projects that are in production or near production in exchange for royalty interests. Royal Gold also explores and develops properties thought to contain precious metals and seek to obtain royalty and other carried ownership interests in these properties through the subsequent transfer of operating interests to other mining companies. Substantially all of the Company's revenues are and can be expected to be derived from royalty interests, rather than from mining operations it conducts. During the fiscal year ended June 30, 2003 (fiscal 2003), the Company focused on the acquisition of royalty interests, rather than the creation of royalty interests through exploration
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From one of my sub services from this weekend:



Royal Gold (NASDAQ: RGLD), for one, looks to have made a major peak early this year and to have successfully tested that peak during August-September. RGLD's relatively bearish chart is, we think, a result of its extreme over-valuation.

I hope this helps you.....

Fwiw, I'd be a buyer around $15 if offered the opportunity.
There are definitely other fish in the ocean of gold.

Good luck to you.

[Zeev Hed]

Not the best gold to play with. It is in danger of breaking further dow. I think that NEM in the $37/$38.5 area is better, and even DROOY in the $2.20 to $2.60 is better. Many good gold bugs on this thread should be able to help you on this. Gold is really not my "bag". In edit just reestablished the rest of the bu$$ position here at $26.35, call the whole position at $26.30 (I got some cheap stuff late Friday, but very little). There were few trades undr $26 earlier, but I did not have a bid in...tough luck.
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