/biz/ - Business & Finance

Royalty Streaming Companies -
We don't discuss these enough. Investing in individual mines carries a lot of risk, so why not buy stock in royalty streaming companies. They loan money to development projects, or active mines for a cut of metal, product or profit. I invested in Empress Royalty (yes, I know the CEO is woman), but Rick Rule just invested $2 million, so that gives me some confidence there is room to grow, and based on their portfolio of precious metal mines, there is room for reasonable growth.

A second company I am still evaluating is Electric Royalties where the invest in lithium, vanadium, manganese, tin, graphite, cobalt, nickel, and copper. And, with Tesla and several other new electric car companies and the big existing automakers investing heavily in the electric car market, it seems like there is going to be a significant increase in EV battery manufacturing for new cars and for replacement batteries.

So, why not let the royalty companies do all the DD and build a diversified portfolio then buy the stock in the royalty companies? There are already numerous precious metal royalty companies with stock prices from about $30 to $100+, so these are well developed and the potential for 2x-10x are with the new companies.