RE:Signalgeorgemarch wrote: I've been watching for years how junior miners trade relative to Franco Nevada. FNV is moving closer to all time highes. Signal for huge move coming for juniors including Fortuna???
Gold royalty companies are essentially banks that specialize in financing mines with very attractive loan terms....give us part of your revenue.....even if it goes up.. Dont know why the miners go for this kind of thing. Why dont they just get regular financing by issuing bonds etc. Anyway I'm no expert in why this is seen as the way to go.
However, dont see the royalty companies as being a leading indicator for the miners. If inflation keeps eating away thier profit margins they aren't going anywhere unless we have a big spike in the gold price