Instead of mining metals or producing oil or natural gas, royalty
companies generate cash by earning revenue streams on the production of
natural resources.
This business model means royalty companies don't have the same
risks and expenses producers have. Because they don't spend money to
explore or produce, royalty companies are also shielded from swings in
the prices of commodities... and they generate massive profit margins.
In short, royalty companies allow investors to participate in the
natural resource sector with far less risk than buying producers and
they have big upside potential. (more)
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