OR's Lost Royalty May Come Back Soon
Contributed Opinion

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OR Royalties (OR:TSX; OR:NYSE): the Yukon government announced the start of a sales process on the failed Eagle mine. Prior to a heap leach failure that led to the closure of the mine, the Eagle royalty represented about 9% of OR's revenue and 5% of its NAV.

A closing of the sales process is targeted for year-end, but companies will have to obtain the support of the local First Nations before the mine will be allowed to restart.

Nonetheless, given that OR wrote off its investment, this news represents potential upside for the company.

We are holding for now.

TOP BUYS this week include Nestle SA (NESN:VX; NSRGY:OTC), Altius Minerals Corp. (ALS:TSX), Midland Exploration Inc. (MD:TSX.V), Lara Exploration Ltd. (LRA:TSX.V), and Fox River Resources Corp. (FOX:CSE).

BDC TAX BREAK Somewhere in the "One Big Beautiful Act" is a change in how distributions from Business Development Companies are taxed. They now qualify for a reduced tax rate (technically the 20% pass-through treatment), reducing the effective tax from about 37% to 28.5%. BDC distributions sometimes include return of capital or after-tax income, so the rate on different components of the total distribution can vary. (It's all on your 1099.) We currently have two BDCs on our list: Ares Capital Corp. (ARCC:NASDAQ) and Gladstone Investment Corp. (GAIN: NASDAQ).

CROWDED TRADE? For three months in a row now, investment advisors have named gold stocks as "the most crowded trade," beating the "Magnificent 7," European stocks, Bitcoin, and other investments, according to a survey by Bank of America. In the May survey, 58% of respondents named gold stocks. With continuing outflows from both the GDX and GDXJ, with family offices having less than 1% of assets in gold, and of the Top 20 holdings of 322 large mutual funds, Newmont Corp. (NEM:NYSE) being named four times and Barrick Mining Corp. (ABX:TSX; B:NYSE) once, this hardly seems like a crowded trade. It appears there is a gap between what these people might think and what they are doing. At least if they don't own any gold stocks, they can't sell any!

WEBINAR WITH ROZENCWAJG Our guest on the next On the Move webinar with co-host Rich Checkan is the renowned commodity analyst Adam Rozencwajg of Goehring & Rozencwajg. The webinar is on Wednesday, July 16, at 7:00 pm. Mr. Rozencwajg knows as much about commodities as anyone I know, and this will be a wide-ranging discussion. We will look at the set-up for a secular commodity bull market; discuss his favorite resources; and, of course, look at gold and whether there is more ahead. Although it is complimentary, you need to register, which you can do here.