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Gold Royalty Valuations Have Contracted, RBC Says

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Valuations of gold royalty companies have contracted especially for mid/small cap companies including Triple Flag Precious Metals (TFPM.TO) and OR Royalties (OR.TO), RBC Capital Markets said Wednesday.

OR's shares trade at the lowest valuation across the royalty group and a larger discount to historical valuation levels, RBC said.

The market value of larger cap royalty companies including Wheaton Precious Metals (WPM.TO) and Franco-Nevada (FNV.TO) valuation has been more resilient, according to RBC.

Meanwhile, valuations of senior producers including Agnico Eagle (AEM.TO) have converged.

Barrick's (ABX.TO) shares have begun to outperform peers following its positive first-quarter results, resumption of its buyback program, and potential upside from its planned initial public offering in North America.

Price: $42.55, Change: $-1.09, Percent Change: -2.50%

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