/biz/ - Business & Finance

>>54853464
Certainly margins matter. When your net margin is higher you need less of an increase in revenues to get a higher increase in earnings. Net margin = earnings / revenue. Higher margins also means that the business doesn't get fucked in the ass if commodities went down for a while. With high margins there is lots of room to go down. Low margins of course offer more upside when the market is favorable because it matters a lot for an unprofitable company's valuation to suddenly turn profitable.

>Built in growth? I don't know about that. While I haven't looked into these companies really I'm guessing if they stopped doing new deals, revenue would start dropping very soon and keep dropping until 0 at some point.
You are guessing wrong. You're utterly mistaken my brother! These companies have made dozens, sometimes hundreds of royalty deals, many of them during sector lows at cheap prices. Most of these royalties are in either the exploration or the development phase. Some of them are in an advanced stage nearing first production. Osisko has:
>large royalties on Canadian Malartic which Agnico Eagle is ramping up aggressively for at least the next five years and which is likely to produce +1Moz Au a year for literally decades to come
>royalties on Lamaque, being ramped up by Eldorado Gold
>roalties on Casino which is being developed by Rio Tinto and Western Copper
>royalties on Cariboo and Tintic, being developed by Osisko Development
>royalties on Windfall, soon to begin production
>royalties on Tocatinzinho, will begin production in Q1 2024
>royalties on the massive new lithium discoveries being explored by PMET and BRW (totally surprised even OR's management but that's part and parcel of owning royalties... you get free upside like that)
>many more

I've tried telling you before that these companies literally get free growth but you just seem to persist in assuming otherwise despite evidence to the contrary. If this doesn't convince you I don't know what will

>>53663489
On the three year chart of silver. Three major lower highs, the latest of which was $24.23 on 9 Jan 2023. Previous lower high was $26.11 on 7 Mar 2022. And the previous lower high from there was $27.88 on 31 May 2022. These are all lower highs over a fairly long timeframe which have not been exceeded again afterward. Sufficient enough to call a bearish trend in my opinion, but if you see a bullish trend or a reversal to the bearish trend forming then you are free to share your view as well
>>53663575
That's a whole lot of words none of which dispute that we are in a bearish trend.