March 15, 2018 / 11:11 AM / a year ago

BUZZ-Royal Gold: Raymond James upgrades to 'outperform'

** Raymond James upgrades precious metals company to ‘outperform’ from ‘market perform’; Raises PT by $8 to $98

** RGLD’s royalty/streaming business model offers high-margin metal sales to investors that can be increased with minimal G&A expenses - analyst Brian MacArthur

** Company has a high-quality, diversified asset base in lower risk jurisdictions, as well as a flexible balance sheet to support future investments and a growing dividend - MacArthur

** 2019 first half to be hurt by production issues at Mt. Milligan, but even with negative impact expect y/y growth in 2019 from Rainy River, Cortez Crossroads and Penasquito mines - Brokerage

** Late Dec, mill processing operations at Centerra Gold’s Mt. Milligan mine, in which RGLD holds a streaming interest, was temporarily suspended due to lack of sufficient water resources

** 9 of 14 brokerages rate stock “buy” or higher, 5 “hold”; Median PT $97, up by $2 in 3 months

** Up to Wednesday’s close, stock had risen ~2 pct this year; RGLD rose 29.6 pct last year (Reporting by Anirban Paul)

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