New Trade for April 3rd, 2023

Gold logged its highest monthly gain since July 2020 in March and may be primed to continue on its upward path in April. The spot price for the precious metal has been trying to push above the $2000 mark, and traders think that’s precisely where it’s headed. Options traders see gold reaching $2040 per ounce by mid-April, as indicated in data collected by CNBC that shows bullish calls on the SPDR Gold Trust (GLD) for this timeframe are outpacing bearish puts by more than 2X.

In what seems to be a stagflation world where the dollar has peaked, gold could continue to gain appeal. Whether you’re looking to turn a quick profit or seeking somewhere to ride out the storm, today’s featured ticker is a unique gold investment that both short-term-minded, and long-term-minded investors should appreciate.  

Stansberry Research:

Gold is SOARING – here’s what you need to do

Everything is lining up perfectly for a historic gold bull run. One gold expert says he’s found the best way to get in, for less than $10.​

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Franco-Nevada Corp. (NYSE: FNV) is a gold-focused royalty company with additional interests in silver, platinum, oil, and other resource assets. They have a diversified portfolio of 112 producing assets, 42 advanced assets (not yet producing), and 250 exploration-stage mining properties.

With a global recession seemingly on the horizon, it’s a comfort to shareholders that FNV has zero debt, $2 billion in available capital, and is generating operating cash flow at a rate of $1 billion per year. Thanks to its low-risk/high-margin business model, it’s also largely immune to cost inflation. 

Franco-Nevada actively manages its portfolio to maintain a diversity of revenue sources. However, the majority of its stakes are still in gold. In Q3, 77% of revenues were earned from precious metals, with the other 23% mostly coming from energy assets. Their revenue is expected to remain more significant than 75% precious metals through 2025.  

In March, FNV reported better-than-expected fourth-quarter 2022 financial results. It posted earnings of $0.86 per share, with revenue of $320.4 million, surpassing consensus estimates of $0.85 per share on revenue estimates of $286.2 million. In the last month of trading action, shares of FNV stock have advanced by 9%.

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