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Franco-Nevada Corporation (FNV)
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Agnico Eagle Mines Limited (AEM)
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iShares S&P/TSX Global Gold Index ETF (XGD)
Q: Franco Nevada is my only gold holding. Down ~15% on it. I want to add more to gold, should i add more to FNV or is there a better gold stock you like more? How is FNV priced in terms of P/E or whatever ratios you think are most relevant and how does that look vs peers?
I was thinking just the actual gold ETF, but i think a miner would have more torque iuf gold prices rise. I like the royalty model
I was thinking just the actual gold ETF, but i think a miner would have more torque iuf gold prices rise. I like the royalty model
5i Research Answer:
Royalty companies tend to have higher P/E ratios, as operational and other risks are less than miners. P/E is 38X, compared with historical multiples of 39X to 70X. Its royalty on FM's mine in Panama (closed now) has not helped its performance. We consider it OK today for gold exposure. We agree stocks will have more torque than bullion in a rally. XGD may be of interest for a general gold stock ETF. AEM can also be suggested as a complement to FNV. We would rather add a different security than more FNV if only to further diversify.