Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) faced declining sales, though higher prices led to higher revenues. Osisko Gold Royalties Ltd. (OR:TSX;
More significantly, uncertainty surrounds its largest asset, the Cobre Panama copper mine, amid an ongoing dispute in Panama. The government previously banned new mining projects and called for a referendum on the Cobre Panama contract. Pan Altius MMidland Explorati Nova Royalty
While an electoral court ruled conditions were not met for a referendum, Congress voted to void the contract.
This jeopardizes Franco-Nevada's stream and First Quantum's ownership.
If nationalized, international arbitration would likely repay Franco's investment cost but not the full value. Ongoing volatility is expected, given Panama's unreliability.
After the sharp price decline, Franco is a Buy
Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE) announced leadership changes, including a new CEO and chairman.
While production met guidance, costs were higher.
The company sees assets advancing towards production, maintaining a strong project pipeline.
The appointment of a new CEO received a positive analyst response, given his industry experience. However, some uncertainty remains regarding strategic direction.
Hold for further clarification.
Although analysts described its results as ‘horrible’ and ‘brutal,’ Pan American Silver Corp.'s (PAAS:TSX; PAAS:NASDAQ) 3% production shortfall and 10% cost overrun were not severe.
Guidance was met at the low end. Higher costs stemmed from integration challenges, byproduct credits, and fuel prices. Debt repayment and asset sales have strengthened the balance sheet.
Moreover, the La Colorada skarn and potential Escobal restart offer production growth, positioning Pan American favorably long-term.
At a multi-year low, it remains a Strong Buy.
Altius Minerals Corp. (ALS:TSX.V) faced expected headwinds, including lower potash prices and a mine closure. Although earnings missed forecasts, equity holdings buoy the balance sheet.
Share buybacks provide the best capital allocation currently.
With positive asset developments anticipated, Altius offers value near its 52-week low.
It is a Strong Buy.
Midland Exploration Inc.'s (MD:TSX.V) early lithium assays on the Galinée property bode well, given partner Rio Tinto's lithium aspirations. Additional discoveries are encouraging.
Buy.
With the proxy deadline looming, Nova Royalty Corp. (NOVR:TSX.V) shareholders should vote favorably on the Metalla acquisition.
Specific stocks retaining Buy ratings including Nestle SA (NESN:VX; NSRGY:OTC), Hutchison Port Holdings Trust (HPHT:Singapore), Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX), Barrick Gold Corp. (ABX:TSX; GOLD:NYSE), Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), Lara Exploration Ltd. (LRA:TSX.V), and Orogen Royalties Inc. (OGN:TSX.V).
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Important Disclosures:
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Agnico Eagle Mines Ltd., Franco-Nevada Corp., Osisko Gold Royalties Ltd., Orogen Royalties Inc., Nova Rty Corp., Pan American Silver Corp., Fortuna Silver Mines Inc., Altius Minerals Corp., Midland Exploration Inc.,Barrick Gold Corp., and Lara Exploration Ltd.
- Adrian Day: I, or members of my immediate household or family, own securities of: All. My company has a financial relationship with: All. I determined which companies would be included in this article based on my research and understanding of the sector.
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