Raymond James Affirms Why Royal Gold, Inc. (RGLD) is one of the Best Gold Mining Companies to Buy

Royal Gold, Inc. (NASDAQ:RGLD) is one of the best gold mining companies to buy with high upside potential. On April 1, Raymond James reiterated an Outperform rating on Royal Gold, Inc. (NASDAQ:RGLD) and raised the price target to $350 from $345.

According to analysts at the research firm, Royal Gold’s robust royalty and streaming business model provides investors with exposure to high-margin metal sales. That’s evidenced by the company’s impressive 87% gross profit margin, which indicates an efficient model. The research firm also touted the company’s high-quality diversified asset base in a lower-risk jurisdiction.

Royal Gold maintains leverage to commodity pricing and exploration optionality through a string of royalty and streaming agreements. In addition, the company can mitigate downside risk given its limited exposure to operating and capital costs. It also boasts a solid, flexible balance sheet capable of supporting future investments and dividend growth.

Royal Gold, Inc. (NASDAQ:RGLD) is a precious metals streaming and royalty company that acquires and manages streams, royalties, and similar production-based interests. Focused on gold, it finances mining projects in exchange for the right to purchase metals (gold, silver, copper, nickel) produced at a set price, without operating the mines.

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