"As the name suggests, Royal Gold (NASDAQ: RGLD) is a royalty company, one of the larger and longest-established of such companies, with a focus on gold," says resource exprt Adrian Day.

In his Global Analyst advisory, he explains, "In my view, the stock offers a combination of growth, low risk, and high potential." Here's his look at this "golden opportunity."

"In the past year, the company has acquired two significant royalty packages, the first last year from Barrick and more recently from Teck Cominco. The Barrick package includes approximately 70 royalties.

"Even before these acquisitions, it had a solid long-term growth record, in royalties and in revenues. Its pipeline is solid, including a royalty on the large Pensasquito mine of Goldcorp; when that ramps up in 2012, it will add about 25% to Royal's revenues.

Continue reading Royal Gold (RGLD): Royal play on gold royalties

Royal Gold (RGLD): Royal play on gold royalties originally appeared on BloggingStocks on Mon, 04 May 2009 12:40:00 EST. Please see our terms for use of feeds.

"Stocks are so low that the best are bound to attract bargain-hunters ... eventually," says Timothy Lutts. One such value he highlights in The Cabot Stock of the Month Report is Royal Gold (NASDAQ: RGLD).

He explains, "Royal Gold doesn't own any gold mines. It doesn't mine gold. It doesn't buy gold. And it doesn't sell gold. It simply owns the rights to royalties from a variety of precious metals producers."

"The major benefit of Royal Gold's approach to the gold business is that it involves no capital costs, no operating costs and no legal or environmental liabilities. The major drawback? Well, we haven't found it yet.

"Royal Gold is not large. It has annual revenues of just $69 million and 34 million shares outstanding. However, Royal Gold is the biggest company in the world that derives its revenues solely from precious metal royalties.

Continue reading Royal Gold (RGLD): Investing in gold royalties

Royal Gold (RGLD): Investing in gold royalties originally appeared on BloggingStocks on Thu, 12 Mar 2009 13:20:00 EST. Please see our terms for use of feeds.