Royalty companies do not take on operating, environmental, labour or other risks and thus tend to be valued at a much higher multiple than producers. OGN has more than doubled this year, with new royalties, status updates on developing assets, and the sector's gains. The Q2 was also good. There is only one Bay Street analyst on the stock, so we would not put a lot of faith into any target price. For now, it is a sector and momentum play, and could go higher, certainly. There has been some recent insider buying (net, six months). It has a very revenue and earnings base, and is in 'growth' mode. Thus, we would put far less emphasis on profitability/valuation metrics. Its future will depend on the success of its royalty portfolio, which does look decent.
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