The biggest problem with gold mining stocks is that mining is inherently expensive and complicated. Rising prices for diesel fuel, heavy machinery, labor, explosives, and energy directly eat into mining companies' operating margins. Many of the top gold mines in the world are in areas with unstable governments, which adds complications as well, and a single strike or political conflict at one key site can severely dampen a company's earnings. Gold streaming companies such as Franco-Nevada (NYSE: FNV) benefit from rising gold prices without the headaches of actually producing gold. Franco-Nevada provides upfront funding to mining companies to build or expand a mine, and in return, it receives a percentage of the mine's revenue, known as a royalty, or the right to purchase a portion of the mine's gold production at a pre-agreed-upon discounted price, known as a stream.
CryptoAlerta — análise de criptomoedas e mercado em tempo real