To those investing in the gold sector, they saw the news.
And while gold may battle resistance bands at that level before its expected break higher, investors are already making moves to take advantage of companies positioned to benefit the most from increases in the bullion price. That's where GROY can outpace competitors. That's especially true with GROY having formidable cash balances, no debt, and a growing portfolio of assets.
Moreover, if the past two weeks are any indication of what to expect in the coming weeks, investors taking advantage of GROY prices at these levels could be in store for appreciable gains into the end of the year. Why? Because GROY completed a series of acquisitions that can be transformative to its growth.
Better still, in addition to its acquisitions, GROY secured a revolving credit line of up to
Actually, valuations are already appreciating. Since the start of September, GROY's share price has been higher by roughly 23% to
Adding Substantial Accretive Value
Foremost, GROY just got substantially larger as an enterprise. A large part of its transformation started last month after completing its strategic business combination with
That deal is a big one and almost immediately transformed GROY into a leading
Earlier this month, GROY announced it closed on its planned acquisitions of
GROY immediately gets Abitibi's royalties on various parts of the Canadian Malartic mining complex. And more than a substantial revenue contributor, it adds diversification to the portfolio. The deal with Abitibi brings to GROY a 3% NSR royalty on Odyssey,
The Canadian Malartic mine, owned by
More Opportunities Underground
Even better for the long-term, Agnico and Yamana are developing an underground mine at Odyssey after identifying additional underground deposits. Estimates suggest that the additional Odyssey deposit contains measured, indicated, and inferred resources of nearly 2 million toz gold. That's in addition to the estimated 6 million toz of gold situated at
Still, there's more to like. GROY also acquired
Further, GROY gets
Now to the best part. Considering what GROY owns today, a sum of its parts indicates that a more appropriate valuation of assets should be closer to the
Keep this in mind, too. With six of GROY's properties located in the world-class Canadian Malartic mine, having cash and marketable securities of roughly
Of course, revenues are what will drive share prices higher. GROY is delivering in that respect.
Maximizing Near-Term Revenue Potential
The acquisition of Abitibi and
Thus, while the stock is trading nicely higher, it's anticipated that the accretive nature of these acquisitions will soon become more reflective in GROY's share price. The lag is understandable, especially with the number of new assets to evaluate. Hence, investors shouldn't be discouraged by the lack of a gap higher. In fact, they may be encouraged that the expected end result of the detailed analysis will support higher prices in time.
Better yet, those reports are already getting published. According to its breakdown,
Hence, despite the stock's bullish performance thus far in September, as a growth stock in a sector expected to see significant interest in the coming weeks, further appreciation is likely. And with updates on revenues and portfolio reserves expected later this year, the bullish sentiment for GROY can intensify along with the expectations of a strong metals markets well into next year.
Indeed, September set up GROY for potentially exponential growth in the coming quarters. The better news is that the backdrop of higher inflation and rising bond yields supports that GROY can maximize its interests sooner rather than later. And with an up to
Further, as investors digest the transformative moves made by GROY during the past sixty days, the sum of the parts from its multi-party acquisition won't be ignored for long. Thus, catching some near-term volatility can be an excellent way to capture value as that analysis takes place. Remember, too, GROY will be headlines driven. And with inflation data now getting hot, investors can benefit from a combination of assets and gold prices. That's a win-win proposition.
Moreover, despite the political rhetoric that can spin economic data, the "peoples" inflation, including food and energy, is rising quickly. And while the Fed can battle the data, they are running out of arrows in the quiver to keep a lid on inflation much longer. Hence, expect savvy investors to be ahead of the inflation trade. While inflation is bad news for consumers, it can translate to excellent news for investors focused on gold-stock opportunities.
And with
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