Investment bank Jefferies has upgraded Royal Gold Inc (NASDAQ:RGLD) to a Buy rating, boosting its price target by 16%, from $154 to $178. The bank sees compelling growth potential from the streaming and royalty business leader for precious metals.
According to Jefferies analysts, Royal Gold could see a 10% hike in year-over-year sales, accompanied by growth from mines across the Americas. The largest contributions come from North America (40% of total revenue), followed by South America (35%) and Africa (25%). Royal Gold’s unique business model ensures growth without substantial capital expenditures, as operator-funded expansions increase production.
Key growth catalysts include optimization and expansion at major mining operations. Highlights include increased throughput at the Mount Milligan mine in Canada and the ongoing ramp-up at the Barrick Gold‘s Pueblo Viejo mine in the Dominican …
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