Opinions David Burrows
Franco-Nevada Corp.FNV.TOHOLDOct 17, 2016
David BurrowsStock price when the opinion was issued
As of Jun 08, 2026. Market Open.
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Precious metals should be in every portfolio as an insurance policy. It's a diversifier. His position today is that he's trimmed back his gold position dramatically by reducing names. For example, AEM was a 10% holding but today it's at 6%.
Gold hasn't performed over the last 35 days, but it did its job over the last 2 years. He'd be a buyer today. His clients should be at 10% for the insurance component; today they're not quite there at 8%. The equity component is about 7%. So 8 + 7 = 15% in golds today. His gold plays are AEM and FNV.
Lyle SteinTrimmed a bit in January to bring his overweight position in line. May have to do that again if it keeps running. For new clients, would only buy a half position. Benefiting from currency debasement discussions.
Darren SissonsIt is a great company. It has no debt and buys royalties. He is surprised it went up so much and feels it is probably not sustainable. He wouldn't add at this point. Hasn't trimmed either but getting close.
Darren Sissons
Really likes the precious metals sector, and we're in very early stages despite big moves. Right now, sector is consolidating. As a streamer, not the most leveraged to gold prices. But it's the safest and most consistent (along with WPM). Great company.
Trading above all the moving averages, which are moving higher. Pullback is probably an opportunity, most likely over the next 2 weeks. Good dividend grower over time. See his Top Picks.
It ranks 226. You could hold it but there are better opportunities in gold if it is heading to $4000, and better risk adjusted returns in other stocks.
In general the silver vs gold ratio has been bad but is turning the corner. There are no silver stocks in their top 25 'OK to buy list'
Gold's done well. She typically doesn't invest in commodity sectors. If you want gold exposure, one preference has always been FNV because of its royalty structure. This means you don't have to worry too much about operating costs of the underlying mine. Performed very well long-term over the cycle.
Gold has benefited from all the uncertainty. Valuation very rich. If you already own it, would've appreciated significantly; so it can provide a source of capital to recycle into things more undervalued. Gold hit all-time high this morning; he doesn't have a price target. Gold price highly correlated to volatility; so if things calm down, that price will moderate.
Likes it, but don't chase here.
They don't take on production and environmental risks, being a royalty company. They just cash the cheques, but their valuation has always been high. They took a big hit when their Panama gold operation was shut down; maybe that mine will reopen. Is in a volatile sector. Great balance sheet and history. Likes it and the sector now.
They buy the profit streams from miners; they don't own the mines. No debt and lots of cash. When the mining metals cycle is cheap, FNV will buy royalty streams cheaply. When the cycle improves, profits and cash levels will rise. A Canadian national champion.
Darren SissonsGold is almost like an insurance policy. Good diversifier. Should be a good, long-term hedge. Deposits have become harder to find.
He prefers the business model of the royalty companies like FNV or WPM. As well, they operate counter-cyclically -- give money when gold prices are low and harvest when prices are high. Always looks expensive, but it's expensive for a reason.
Still suffering the shut-down of the Panama mine, though new discussions may arise about it. FNV has no debt. Arbitration could happen. Once Panama is back on line, FNV shares will resume their climb. He bought this just after the Panama situation. He's happy to hold this long term.
There has been technical damage in golds in the last 2.5 months as the US$ has firmed up a little. The sector has seen deterioration in breadth, so lots of stocks have broken down quite badly. If you had to own one, this is the one you would want to own. It is really a royalty stream, which is pretty attractive. You are getting a yield, and it will grow over time. Gold is probably into some support here. If it is going to rally, it is going to rally from here.