Royal Gold Inc – Metals Stock To Buy
Metal stocks are among the highest gainers over the past six months or so. Steel stocks are still continuing their strong run as of June 2021. Some other metal stocks seem to be taking a breather. Precious metals like gold also had a good run in the period post the pandemic-led crash of March 2020. However, after hitting a high in August 2020, gold prices seem to be consolidating. If you are looking to buy metal stock now, then the first thing coming to mind would be steel stocks. However, you might want to consider looking at companies like Royal Gold. Precious metals could be an interesting niche to consider, and Royal Gold is the world’s leading gold royalty and streams company. The company is based in Denver, Colorado but has a presence across multiple continents and interests in several mines.
Royal Gold Releases Q32021 Earnings Results
Royal Gold released its third-quarter 2021 earnings results on May 6th, 2021. Total stream revenue went down from $97 million in Q32020 to $95 million. On the other hand, royalty revenue rose from $38.9 million in Q32020 to $47.2 million. Total revenue for the company grew from $136 million to $142 million year on year. Net income per share on a diluted basis also rose from $0.59 in Q32020 to $0.82. Royal Gold CEO William Heissenbuttel said that the company had repaid the outstanding balance on its credit facility, and it now has access to the entire $1 billion credit limit. He also added that Royal Gold has paid down $50 million on its revolving credit facility and had a net cash position of $220 million as of Q32020. Royal Gold might be a candidate for metals stock to buy at this moment.
Royal Gold’s stock closed at $114.02 on June 29th, 2021. The stock has doubled over the past decade. It was trading at a P/E ratio of 27.7 as of June 29th, 2021. The stock has gained nearly 4.3% over the previous ten days.