Mike S. Newton, CIM FCSI Franco-Nevada Corp. FNV-T PAST TOP PICK May 22, 2020

Is a great way to get exposure to gold without taking too much risk. Best balance sheet, assets, management etc. Don't need to take risky bets in lower end of the market. Great way to get returns for the long term investor. 

Optionality for copper mine in Panama to be restarted; if it does, could see a sharp snapback in shares. Gold rally has helped all their gold royalty streams.

The bellwether gold stock globally. Great range of assets. Very good balance sheet. Spectacular corporate culture. If you don't own it, you should. Expects a settlement in Panama, and the stock would rerate.

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.

Gold 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.

His go-to name for a streamer, but he owns no gold right now as valuations have risen so much.

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.

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.

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.

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.