Royal Gold Inc. (RGLD:NASDAQ) reported preliminary streaming and royalty revenue, more or less in line with expectations, and on its way to achieving annual guidance. Royal also bought back $30 million of stock and repaid $200 million of debt, leaving $400 million drawn on its debt facility.
Buy.
Altius Minerals Corp. (ALS:TSX) said it expected attributable royalty revenue for the second quarter to come in at CA$30 million, up from the first quarter and above analyst expectations, led by strong results from the base metals and renewables.
Hold.
Free Reports:
Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) received results from Salobo when operate Vale reported 2Q results. Salobo represents 33% of Wheaton’s NAV, slightly less of revenue. This is as expected after softer results were reported from Antamina, Wheaton’s other large stream. (See Bulletin #1016.)
Buy.
Nestlé Reports on Track, With Sale of Water Business
Nestle SA (NESN:VX; NSRGY:OTC) said its new “real internal growth” strategy is delivery, with organic growth in the first half of 3.7%, led by emerging markets, on track towards its medium-term guidance. The company said it was prioritizing investment in leading brands and “sharpening our portfolio focus.”
Announced a new joint venture with Platinum Equity for its water business, which had been rumored for sale. The 50-59 jv, to be called Peranel, which will also include what Nestlé calls “premium beverages”, will be structured as an independent company with full authority to make investments and other decisions. The structure will allow more flexibility than with the water segment inside Nestlé. On closing, Nestlé will receive about $3.4 billion. The brands include Perrier and San Pellegrino.
Hold.
Barrick Investment May Help Orogen
Barrick Mining Corp. (ABX:TSX; B:NYSE) acquired, for CA$20.9 million, a 9.9% stake in Kingfisher Metals, which is to undertake a drill program on its Highway 37 project in British Columbia. Orogen Royalties Inc. (OGN:TSXV; OGNNF:OTC)holds a 1-3% royalty on the project, and Barrick’s involvement could see the project advance.
We are holding Barrick and looking to buy Orogen on pullbacks.
TOP BUYS this week include, in addition to above, Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), OR Royalties (OR:TSX; OR:NYSE), Fortuna Mining Corp. (FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE), Pan American Silver Corp. (PAAS:TSX; PAAS:NYSE), Lara Exploration Ltd. (LRA:TSX.V), and Kingsmen Creatives Ltd. (KMEN:SI).
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