Loading ...Royal Gold
There has always been at least One PM Stock you could count on to hold up under Pressure
A Royalty Company with Institutional backing
A Safe Harbour in Stormy Seas
RGLD
Alas ..even the mighty has succumbed to this mind numbing PM Miners Bear
This is a pretty clear breakdown
With gusto…a large Head and Shoulders neckline taken out with a hard GAP down !
Not only is this ominous for the whole PM Complex but the Price objective for this pattern is
$2 (Two) . Impossible ? Yea for sure…or ?
That´s an important chart. Interestingly, 2 was its bottom back in 2000. That PO is like when I posted Barrick a few days ago and questioned its PO of zero :).
they may be forced to right off their Rubican Minerals exposure…approx $100 million payment to Rubicon for the royalty, funded by bank debt, plus the asset value on the balance sheet. Say $200 million all up. What a disaster for RGLD. They deserve it anyway, as the Rubican project, Phoenix mine, never had a feasibility study done on it. Now they find the mineralisation is not a high enough grade to make it economic, as its underground mining at 4 gms per ton. Any geo could worth his salt would have told them at 4gms underground narrow veining…forget it…just burning money. The same mistakes over and over…I have seen this many times. They end up burning their shareholders and in this case RGLD also.