Introduction

A paid subscriber sent me a message a while back saying: “As a suggestion, many times when I read articles about investments, they are usually about cheap companies, which is great, but it would also be interesting to know when a company stops being cheap and it is time to get out”. And I thought it was a great suggestion, particularly because at the end of May I sold a big position I had in a gold royalty company.

So, I decided to write a report about how I value royalty companies in the precious metals industry and why I decided to sell Orogen Royalties at the end of May. I do confess that I probably sold it too early and the stock probably has some potential upside from here, but I didn´t feel comfortable holding any longer at these valuations. However, I was happy with a more than 140% gain and the possibility of deploying that capital towards my top pick Manolete Partners.

It is a pity I did not get a chance to write about Orogen before I sold it. However, I decided instead to write about the picks I have a higher conviction in such as Manolete Partners, Ero Copper, Aurion Resources, Goliath Resources or Generation Mining.

Summary

· In this report I will go through why I sold all my shares of Orogen Royalties, both in my personal account and through an account I manage, at the end of May.

· The firm has a producing asset (Ermitaño 2% NSR) and an exceptional development asset called Expanded Silicon (1% NSR), which holds a mineral resource of 13.3 million ounces of oxide gold through the Silicon and Merlin deposits.

· Ermitaño is operated by First Majestic Silver and Expanded Silicon is owned by AngloGold Ashanti. Both top quality operators.

· In the report I will also point out how I value royalty firms and what I look for in precious metals royalty companies.

Link to full report on my free blog on Substack, no need to subscribe, its free:

https://open.substack.com/pub/albertoag/p/how-i-approach-the-valuation-of-precious?r=3hhq06&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true

Disclaimer: I assume no liability for any and all of your actions, whether derived out of or in connection with this information or elsewhere, and you hereby warrant and represent that any and all actions that you take or that you may take at a later date in connection with this information shall remain your sole responsibility and, in case, I shall not be held liable for any such actions.