The Valuation Dilemma in the Royalty Space
It seems that royalty and streaming companies are destined to be "overvalued," at least on a quantitative basis. Way back in February I wrote an article in which I calculated in the value of Sandstorm Gold's (NYSEMKT:SAND) discounted cash-flow and argued that shareholders were pricing in an optimistic scenario. A smart commentator replied that I would not be able to get the shares at the fair value on a DCF basis because the market prices in various improvements such as the use of cash-flow to finance additional royalty and streaming deals as well as the potential for resource expansion (a royalty and some streams cover a land package, and so if...
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