Franco Nevada stock is down on political risk in Panama
When is a lower risk (relative to miners) royalty company at risk? Well in this case, when politics get involved and shuts down one of its mining streams (First Quantum is the operator) affecting a large percentage of its royalty/streaming revenue (according to a news blurb I read). At least it’s large for any single stream.
Panama?? No thank you.
That’s a lot of volume barfing Franco Nevada stock today.
So Gary, why again have do you generally avoid most of LatAm and political complexities (RIO.V, cough cough… ) as best you can? Because I abhor politicians in general, and now to find out they can even materially affect a quality royalty company (with too many eggs in this one Panamanian basket) I try to make doubly sure I know what I hold and why I hold it (no position in FNV, but it would have been one for consideration).
As for Franco Nevada stock, I’ll let it settle and put in on a way back burner for now (never saying never, depending on incoming information). But aside from that, I am more interested in gold miners than their richer valued, normally lower risk royalty brethren. Gold miners also obviously not doing business in tough political environs.
Have I mentioned I abhor political risk? *
* I get it. Just being in the market is RISK. But FNV having too many eggs in Panama is not something I care for.
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed market updates and NFTRH+ dynamic updates and chart/trade setup ideas. Subscribe by Credit Card or PayPal using a link on the right sidebar (if using a mobile device you may need to scroll down) or see all options and more info. Keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter@NFTRHgt.
Now you will remember why you had reservations about SSRM
I think you are right!