[edit] I did not see the point in holding it further. So I took an outstanding profit and moved on.
Great Bear Royalties (GBRR.V/GBRBF) bought by Royal Gold (RGLD)
On an otherwise nasty opening for my portfolio this week, the IRA is actually in the green because the best short-term case has happened for GBRR.V (GTBAF), one of the few gold stocks I decided to hold regardless of sector view or its own down-trending chart. As noted along the way in NFTRH, I decided to hold it despite the chart because it was a royalty on a future high quality gold mine and because it could get taken out at any time.
Royal Gold is taking out the royalty on Great Bear’s (now Kinross’s) Dixie project. Great Bear was bought by KGC last year to the tune of a great profit (realized as I decided not to hold KGC). Personal thanks (and those of any NFTRH subscribers who’ve benefited) go to Scott (former gold fund manager) and Michael (geologist) for impressing upon me the fundamentals and valuation of this project.
On that note, I believe Michael had an ultimate valuation for the royalty that is significantly higher than today’s take-out price, even after a 48% rise in the stock. That’ fine. I have to assume the discount is due to the ‘way out there’ time frame for production in the future. A smart long-term move by Royal Gold.
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Congrats. I need one of these…
Always good when they come on a day when you’re getting blasted on everything else (except for Nat Gas). I was prepared for this to take years. They’d have probably gotten a much better price in years. But no complaints here.