Royal Gold Inc. (NYSE:
RGLD) is one of the
best precious metals stocks to buy now. On September 11, Royal Gold stated that Centerra Gold Inc.’s (NYSE:CGAU) updated pre-feasibility study (PFS) for the Mount Milligan mine in British Columbia extends the operation’s life by roughly 10 years, to 2045. The study confirms substantially higher gold and copper reserves, improved throughput potential, and a more efficient permitting process.
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Mount Milligan remains Royal Gold’s largest streaming asset, and the extension significantly increases the mine’s contribution to long-term cash flows. The company owns the right to purchase 35% of the payable gold and 18.75% of the payable copper produced from this mine.
On the announcement, Bill Heissenbuttel, President and CEO of Royal Gold, stated:
“Our Cost Support Agreement with Centerra, entered into in early 2024, was designed to help Centerra unlock the potential of the large resource at Mount Milligan and add long term value for each company’s stakeholders, which is clearly demonstrated with the results of this study. Mount Milligan is our largest stream interest and we have recovered over 150% of our advance stream deposit to date. With the mine life expected to continue for another 20 years and the potential for further extensions, Royal Gold has another significant interest on a long-life mine in a stable and mining-friendly jurisdiction.”
Wall Street analysts’ response following the results was positive. Carey MacRury, an analyst at Canaccord Genuity, reiterated a Buy rating on the stock on September 12, and raised the price target from $217 to $237, implying an upside of approximately 24%. Earlier, on September 10, RBC Capital analyst Josh Wolfson had also raised his price target from $200 to $230, while maintaining his Buy rating.
Royal Gold Inc. (NYSE: RGLD) is a precious metals streaming and royalty company that owns interests in several mines.
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Disclosure: None. This article is originally published at
Insider Monkey.
