Royalty companies are the trump card

Diversification is the big advantage of royalty companies, i.e., the combination of risks and opportunities.

– Advertisement/Advertising – This article appears on behalf of Gold Royalty Corp., OR Royalties Inc., companies with which SRC swiss resource capital AG has paid IR consulting agreements. Creator: SRC swiss resource capital AG · Author: Ingrid Heinritzi · First published: 12.09.2025, 02:35 p.m. Europe/Berlin

Franco-Nevada Mining Corporation Limited was founded in 1986 as the first royalty company. Today, it remains one of the leading gold-focused royalty and streaming companies with a vast portfolio of assets. In addition, there are now a number of other royalty companies that are characterized by successful corporate development and are of interest to investors. Mining companies need financing. This is where royalty companies come in, receiving streams (e.g., a certain amount of precious metals) and license fees in return. The mining risk lies almost entirely with the mining companies.

If costs rise, this does not usually affect the royalty company. If a mining company is able to expand its production or if the raw materials in the ground become more valuable, for example due to a higher gold price, the royalty companies benefit from this without having to do anything. This is because the license revenues usually relate to a specific land parcel. Sometimes royalty companies also receive shares in the mining company. This makes the business relationship between the mining company and the royalty company a win-win situation for both parties.

And the more investments a royalty company has, the greater the diversification. If one mining company is not so successful, other holdings can compensate for this. This creates value for investors who are broadly diversified with their investment in a royalty company. It is particularly advantageous when royalty companies such as Gold Royalty or OR Royalties focus on two promising commodities, namely gold and copper.

OR Royalties – https://www.commodity-tv.com/ondemand/companies/profil/or-royalties-inc/ – focuses on gold, silver, and copper, with Canada, Australia, and the US being the focus of its holdings and royalties.

Gold Royalty – https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ – concentrates on gold properties in North and South America.

Current company information and press releases from OR Royalties (- https://www.resource-capital.ch/en/companies/or-royalties-inc/ -) and Gold Royalty (- https://www.resource-capital.ch/en/companies/gold-royalty-corp/ -).

Sources:

https://www.aktiencheck.de/kolumnen/Artikel-Royalty_Unternehmen_als_Chance_fuer_Anleger-16428676;

https://www.franco-nevada.com/Home/default.aspx

In accordance with Section 85 of the German Securities Trading Act (WpHG) in conjunction with Article 20 of Regulation (EU) 2016/958 (MAR), we hereby disclose that authors/employees/affiliated companies of SRC swiss resource capital AG may hold positions (long/short) in issuers discussed. Remuneration/relationship: IR contracts/advertorial: Own positions (author): none; SRC net position: less than 0.5%; issuer’s stake in SRC ≥ 5%: no. Update policy: no obligation to update. No guarantee for the translation into German. Only the English version of this news release is authoritative.

Disclaimer: The information provided does not constitute any form of recommendation or advice. We expressly draw attention to the risks involved in securities trading. No liability can be accepted for any damage arising from the use of this blog. We would like to point out that shares and, in particular, warrant investments are generally associated with risk. The total loss of the capital invested cannot be ruled out. All information and sources are carefully researched. However, no guarantee is given for the accuracy of all content. Despite the utmost care, I expressly reserve the right to errors, particularly with regard to figures and prices. The information contained herein comes from sources that are considered reliable, but does not claim to be accurate or complete. Due to court rulings, the content of linked external sites is also our responsibility (e.g., Hamburg Regional Court, in its ruling of May 12, 1998 – 312 O 85/98), as long as we do not expressly distance ourselves from them. Despite careful content control, I assume no liability for the content of linked external sites. The respective operators are solely responsible for their content. The disclaimer of SRC swiss resource capital AG, which is available at https://www.resource-capital.ch/de/disclaimer-agb/, applies additionally.