Royal Gold (RGLD) Gains on Higher Gold Prices & New Mine Projects

On Dec 28, we issued an updated research report on Royal Gold, Inc. RGLD. The company is expected to benefit from the rally in gold prices and the ramping up of new projects. Focus on acquisitions and new business investments, aided by a strong balance sheet, bodes well. However, the pandemic-induced suspension of mining operations might impact the company's results in the forthcoming quarters.

Higher Gold Prices to Drive Top Line

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Gold continues to be the most significant revenue driver for Royal Gold and accounted for 75% of its total revenues in the fiscal first quarter. Gold prices have rallied 23.4% so far this year, fueled by the coronavirus pandemic. Going forward, the combination of lower mined gold supply and higher demand, and geopolitical tensions are likely to boost prices. This bodes well for Royal Gold.