Royal Gold, Inc. acquires and manages precious metals royalties, metal streams, and similar interests in the United States, Canada, Chile, and Mexico. The company also holds royalty and stream interests in mines and projects in other countries, including Argentina, Australia, Bolivia, Brazil, Burkina Faso, the Dominican Republic, Finland, Ghana, Guatemala, Honduras, Macedonia, Nicaragua, Peru, Russia, Spain, and Tunisia. The company was founded in 1981 and is based in Denver, Colorado.
RGLD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RGLD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Royal Gold Inc ranked in the 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 35%. The most interesting components of our discounted cash flow analysis for Royal Gold Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 29.76; that's higher than 90.89% of US stocks in the Basic Materials sector that have positive free cash flow.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than merely 12.85% of the free cash flow producing stocks we're observing.
RGLD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 46.02% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RGLD, try SVM, NTIC, ESI, EMN, and MLM.
Sandstorm Gold Shares Hit On Chapada Shutdown Sandstorm Gold (SAND) shares have declined by 9.41% over the past three months after the company reported weak Q2 2020 financial results. On August 5, I said its shares would likely continue underperforming due to the weak quarter and a lack of positive...
Gold Mining Bull on Seeking Alpha | October 1, 2020
Kinross Gold Corp. is moving to secure additional supply for its Alaska gold operations by buying a controlling interest in the Peak Gold project from Royal Gold, Inc., and Contango Ore, Inc., for $125 million.
DENVER--(BUSINESS WIRE)--ROYAL GOLD, INC. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today that terms of a potential transaction currently under negotiation with Hindustan Zinc Limited and Sandstorm Gold Limited were inadvertently made public via our website. No agreement has been reached regarding such a transaction, and there can be no assurance such a transaction will be agreed upon or completed. Corporate Profile Royal Gold is a p