The most exciting category of gold companies at the moment are „royalty firms.“ Because they are currently in the most exciting phase of their business! However, the stock market has not yet recognized this situation, as the harvest will only come in the future – and most investors do not look that far ahead. A big mistake, which fortunately you do not make.

Royalty companies do not own or operate their own mines and explorations.

Shareholders do not have to worry about exploration progress, equipment, permits or production costs. Royalty companies are highly specialized financiers for the mining sector.

Ideal business phase for royalty companies in the gold sector They make financing deals with mining companies that urgently need money to build or operate their gold and silver mines. The deals work like this: A royalty company gives a small mining company, for example, $5 million to develop a new mining project.

In return, the royalty company receives a predetermined share of the future gold production for a fixed period. At a predetermined price per ounce. This purchase price is often significantly below the current gold and silver price. This is the interest and risk premium for the financing.

For example, if the royalty deal is made at a purchase price of $1,000 per ounce, the royalty company will receive gold in the future worth $1,000 per ounce. It doesn’t matter if the current price per ounce is at $1,900 or $2,900. This allows royalty companies to make huge profits in gold bull markets.

Royalty companies: Now is the time to sow for golden times! The secret to success for the best royalty companies are the advantageous deals with gold explorers in need of money. Many gold mining companies need fresh capital to develop their mining projects, bring them into production, or successfully complete their expansion.

But in today’s credit environment, financing in the traditional credit market is hardly possible for explorers and small junior producers. The traditional finance industry is still hesitant to invest in commodity companies. However, who is willing to make financing and investments in the precious metals sector due to their expertise, even in the current market environment? The royalty companies.

Now is literally their golden hour. The supply of financing options is low and the demand is high. Currently, royalty companies can participate in gold and silver projects with particularly advantageous deals at a very low cost, laying the foundation for extreme profit leaps in the coming years.

In conclusion: This is also the best phase to buy royalty stocks. For the stock service Taipan, we have recommended one of the leading royalty companies in the gold sector for purchase. The company is already involved in 23 producing mining projects and is therefore highly profitable. But with secured credit lines of over $410 million, there is now a lot of cash in the bank for new investments. The perfect starting position.