Which Royalty and Streaming Companies Could Be Rerated in 2018?
Royalty and streaming mining companies (RING)(SIL) have business models that are considered quite conservative because they don’t own mines. Among the four major streaming companies we’ll discuss in this part of our series, Franco-Nevada (FNV) has the highest forward EV-to-EBITDA multiple of 22.8x. This multiple implies a premium of 25.8% to its peers, which seems justified given FNV’s superior growth profile, strong balance sheet, and diversified production base.