Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Weak Prices, Operational Uncertainties Pressuring Royal Gold

As a primarily precious metals royalty company, Royal Gold (NASDAQ:RGLD) would have more than enough trouble just from the freefall in gold prices over the last fifteen months. Making matters worse, a significant percentage of Royal Gold's value and future revenue streams are tied to projects like Thompson Creek's (TC) Mt. Milligan and Barrick Gold's (NYSE:ABX) Pascua-Lama that are facing some real stress and uncertainty.

With that, Royal Gold is another precious metals stock that is trading well below past valuation norms, currently trading around $45 per share. There is definitely potential downside in these shares, as my estimates of NAV would slide below $40/share at $1,000 gold and below $30 at gold prices of...

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