>>23771128ELE, RGLD and GROY have favourable valuations compared to other midtier/largecap royalty companies. They all have good royalty portfolios too so it's not like they don't have the same longer term upside as other higher valued roycos. ALS, TFPM and OR are just great companies period. I like that ALS and ELE are big on royalty generation through exploration, that's a unique competitive advantage in the royalty sector. ALS has a very diversified portfolio, not much gold but rather a broad mix of potash, iron ore, gold, base metals and renewables, a highlight is that one potash mine in their royalty portfolio has over 100 year life of mine, and they recently created a lot of value with their exploration-generated Silicon royalty sale. Careful with GROY — while they are cheap, they like to acquire royalties by dilution as they're the smallest of the bunch above and still growing.
ELE has over 200 royalties (16 operating, 34 advanced), gets 21,000-25,000GEOs in 2026 after EMX merger — US$1B EV; 1.1x P/NAV
GROY has over 250 royalties (7 operating, 13 advanced), guides 6,000-7,000GEOs for 2025 with estimated growth to 23,000-29,000GEOs in 2029 — US$920M EV; 1x P/NAV
RGLD has almost 400 royalties (82 operating, 44 advanced), gets >300,000GEOs in 2026 after the Sandstorm acquisition — US$19B EV; 1.6x P/NAV
FNV has 434 royalties (120 operating, 38 advanced), guides 495,000-525,000GEOs in 2025, aside from new royalties coming online, Cobre Panama if restarted could increase that by 175,000GEOs to about 700,000GEOs — US$40B EV; 2.2x P/NAV
In conclusion FNV still compares very favorably to RGLD, GROY and ELE taking into account the differences in scale and quality, but I believe RGLD should trade closer to its two major peers at 2x P/NAV instead of its 1.6x midtier valuation, and I also believe ELE deserves a valuation closer to its midtier peers at around 1.5-1.6x P/NAV instead of its junior valuation at 1x. GROY will grow and compound.
