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Gold Stocks Watch: Earnings Season Brings Volatility
Contributed Opinion

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Adrian Day Global Analyst Adrian Day notes that recent earnings reports from gold and precious metals companies reflected lower production and higher costs amid macroeconomic uncertainty. However, strong balance sheets position leading royalty companies to acquire assets.

Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) faced declining sales, though higher prices led to higher revenues. Osisko Gold Royalties Ltd. (OR:TSX; 

More significantly, uncertainty surrounds its largest asset, the Cobre Panama copper mine, amid an ongoing dispute in Panama. The government previously banned new mining projects and called for a referendum on the Cobre Panama contract. Pan  Altius MMidland Explorati Nova Royalty 

While an electoral court ruled conditions were not met for a referendum, Congress voted to void the contract.

This jeopardizes Franco-Nevada's stream and First Quantum's ownership.

If nationalized, international arbitration would likely repay Franco's investment cost but not the full value. Ongoing volatility is expected, given Panama's unreliability.

After the sharp price decline, Franco is a Buy

Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE)  announced leadership changes, including a new CEO and chairman.

While production met guidance, costs were higher.

The company sees assets advancing towards production, maintaining a strong project pipeline.

The appointment of a new CEO received a positive analyst response, given his industry experience. However, some uncertainty remains regarding strategic direction.

Hold for further clarification.

Although analysts described its results as ‘horrible’ and ‘brutal,’ Pan American Silver Corp.'s (PAAS:TSX; PAAS:NASDAQ) 3% production shortfall and 10% cost overrun were not severe.

Guidance was met at the low end. Higher costs stemmed from integration challenges, byproduct credits, and fuel prices. Debt repayment and asset sales have strengthened the balance sheet.

Moreover, the La Colorada skarn and potential Escobal restart offer production growth, positioning Pan American favorably long-term.

At a multi-year low, it remains a Strong Buy.

Altius Minerals Corp. (ALS:TSX.V) faced expected headwinds, including lower potash prices and a mine closure. Although earnings missed forecasts, equity holdings buoy the balance sheet.

Share buybacks provide the best capital allocation currently.

With positive asset developments anticipated, Altius offers value near its 52-week low.

It is a Strong Buy.

Midland Exploration Inc.'s (MD:TSX.V) early lithium assays on the Galinée property bode well, given partner Rio Tinto's lithium aspirations. Additional discoveries are encouraging.


With the proxy deadline looming, Nova Royalty Corp. (NOVR:TSX.V) shareholders should vote favorably on the Metalla acquisition.

Specific stocks retaining Buy ratings including Nestle SA (NESN:VX; NSRGY:OTC), Hutchison Port Holdings Trust (HPHT:Singapore), Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX)Barrick Gold Corp. (ABX:TSX; GOLD:NYSE), Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE)Lara Exploration Ltd. (LRA:TSX.V)and Orogen Royalties Inc. (OGN:TSX.V).

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Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Agnico Eagle Mines Ltd., Franco-Nevada Corp., Osisko Gold Royalties Ltd., Orogen Royalties Inc., Nova Rty Corp., Pan American Silver Corp., Fortuna Silver Mines Inc., Altius Minerals Corp., Midland Exploration Inc.,Barrick Gold Corp., and Lara Exploration Ltd.
  2. Adrian Day: I, or members of my immediate household or family, own securities of: All. My company has a financial relationship with: All. I determined which companies would be included in this article based on my research and understanding of the sector.
  3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
  4.  This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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Adrian Day Disclosures

Adrian Day’s Global Analyst is distributed for $990 per year by Investment Consultants International, Ltd., P.O. Box 6644, Annapolis, MD 21401. (410) 224-8885. Publisher: Adrian Day. Owner: Investment Consultants International, Ltd. Staff may have positions in securities discussed herein. Adrian Day is also President of Global Strategic Management (GSM), a registered investment advisor, and a separate company from this service. In his capacity as GSM president, Adrian Day may be buying or selling for clients securities recommended herein concurrently, before or after recommendations herein, and may be acting for clients in a manner contrary to recommendations herein. This is not a solicitation for GSM. Views herein are the editor’s opinion and not fact. All information is believed to be correct, but its accuracy cannot be guaranteed. The owner and editor are not responsible for errors and omissions. © 2023. Adrian Day’s Global Analyst. Information and advice herein are intended purely for the subscriber’s own account. Under no circumstances may any part of a Global Analyst e-mail be copied or distributed without prior written permission of the editor. Given the nature of this service, we will pursue any violations aggressively.

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