Eoin Treacy's view

Pierre Lassonde is one of the most distinguished negotiators in the mining sector. As he points out this is a favourable time for royalty streaming companies to increase their shareholdings. 

Franco Nevada has both oil and gold streaming rights and spent more than four years ranging. The US listing has been consolidating in the region of the upper side of that range for the last few weeks and firmed today. A clear downward dynamic would be required to question current scope for additional upside. 

Royal Gold accelerated to its January low near $23 and rallied impressively over the last seven weeks to push back above the 200-day MA. It’s becoming increasing overbought in the short-term, but a clear downward dynamic would be required to check momentum. 

Sandstorm Gold is a smaller royalty streamer that invests in late stage development mines so it has not yet begun to stream income. The share broke back above its trend mean last week to break the 18-month progression of lower rally highs. 

Silver Wheaton is benefitting from renewed interest in the silver market and broke back above its MA three weeks ago. 

Elsewhere in the royalty streaming sector, UK listed Anglo Pacific has royalty streaming rights on some of Rio Tinto and BHP Billiton’s Australian coal mines. Coal is a troubled sector with increasing supply and deteriorating demand but the question is whether the 85% decline has already priced this news in. The yield of approximately 15% suggests the pay-out will be cut again when it is announced on the 26th, but it is unlikely to be removed. The share has stabilised near 50p and is testing the upper side of the three-month range but will need to break out to confirm a return to demand dominance beyond the short term.