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Consolidated Rock Holding Company

Consolidated Rock Holding Company

Consolidated Rock - Investment Holding Company of Sultan Ameerali

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Royalty Report: Check the OR

January 15, 2023

All things being equal, I’d rather invest in a royalty or patent business. Much simpler to cash a cheque than dig something out of the ground so it’s a sub-sector I track pretty closely. If you need convincing this is a nice ramble on valuing royalties I’ll be saving for future reference.

Sailfish and Sandstorm

Whatever you think of the delivery, Mark Turner’s IKN blog does a good job documenting the history of Sailfish Royalty’s silver asset and extrapolating the likely returns.

He also goes through the latest quarter from Sandstorm Gold in detail. Most useful for me was the historical context of how badly management has allocated capital. 

Osisko Gold Royalties

The Sandstorm analysis confirmed the consensus valuation of Sandstorm and Osisko Gold Royalties, a stock I dumped because they couldn’t sit still and cash their royalty cheques. I really wanted to like CEO Sandeep Singh and his plan to close the valuation gap with Franco, Royal Gold and Wheaton by buying back shares and streamlining the company’s assets.

Too many value investors think they get points for difficulty. If you're one-stop shopping for gold exposure, step over the 1-foot bar and buy $OR.TO
– Production growth
– Cheap valuation
– Clean financials
– CEO looking to close the valuation gap
I think $OR blows past the ATH

— Sultan Ameerali (@SultanAmeerali) June 4, 2021

But I ultimately learned that you can’t judge management by what they say, only by what they do. Particularly when they do it over and over.

Lesson learned. Never trust the management of an Osisko company to keep their word. Finished blowing out all my $OR.TO stock: Minimal profit and lots of opportunity cost. I don't believe management cares at all about closing the valuation gap and making accretive transactions. https://t.co/foq5b9VTLb

— Sultan Ameerali (@SultanAmeerali) March 18, 2022

Historical missteps are reflected in the long-term stock price.

The performance of OR is even more disappointing considering the other company that started life with a Malartic royalty dropped into its lap was Abitibi Royalty. Abitibi was one of the best performing stocks on the TSX for years before it was taken out by Gold Royalty last year. Abitibi followed a simple plan of returning cash to shareholders and not shooting itself in the nuts with a staple gun every few years by pursuing some convoluted deal.

Osisko may succeed in changing hearts and minds eventually, but I’ll be watching from the sidelines this time.

Listings

Empress Royalty upgraded its US listing to be 35% less shitty. What isn’t shitty is the performance of the stock since announcing, and closing, a private placement last year.

Vox Royalty rang the bell at the Nasdaq and now has a full US listing under the ticker VOXR.

Filed Under: Investment Ideas Tagged With: commodities, EMPR.V, Empress Royalty, FISH.V, Gold, OR.TO, Osisko Royalties, Royalties, Sailfish Royalties, Sandstorm Gold, SSL.TO, Vox Royalty, VOXR

Recent Posts

  • Mid-year review: Metals and Mining Positions
  • Carbon Streaming cash box
  • Interesting links: June 2025

Recent Tweets

Sultan Ameerali Follow

Investor. Don’t buy any stock because I mentioned it. Boxer, award-winning reporter, author in a different life. Ex-BNN, 680News, CTV News etc

SultanAmeerali
sultanameerali Sultan Ameerali @sultanameerali ·
3 Jul

Central Bank Gold Builds (Recent Years)

China 🇨🇳
+2,270 t since 2000, steady buying in 2025 | FX diversification

Russia 🇷🇺
+2,000 t over 20 years | Sanctions hedge

India 🇮🇳
+520 t since 2009 | Reserve diversification

Poland 🇵🇱
+~90 t in 2024 | Fiscal stability…

Sultan Ameerali @SultanAmeerali

“While gold's day-to-day moves are still largely driven by the news cycle, the overall backdrop looks supportive.”

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pete__panda 🅿🅴🆃🅴 @pete__panda ·
3 Jul

Copper is hot!

Meanwhile....

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sultanameerali Sultan Ameerali @sultanameerali ·
3 Jul

“While gold's day-to-day moves are still largely driven by the news cycle, the overall backdrop looks supportive.”

Reuters Energy and Commodities @ReutersCommods

Gold and its miners may enjoy a 'critical mineral' upgrade - column by @ClydeCommods https://www.reuters.com/markets/commodities/gold-its-miners-may-enjoy-critical-mineral-upgrade-2025-07-03/

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__jhm Jack Morton @__jhm ·
2 Jul

Eagle Gold Mine, 2024 Heap Leach Failure Independent Report; an accumulation of operational issues, not design

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sultanameerali Sultan Ameerali @sultanameerali ·
3 Jul

And then there’s today’s run in $RMCO.
A good day for disagreeable brown guys and their royalty stocks.

Sultan Ameerali @SultanAmeerali

Today’s deal with Summit is a good outcome for Eagle Royalties shareholders and it came together quickly. Outside of the Banyan royalties, everything else inside $ER.CN was marginal junk.

Holding for now, but expect to sell into the coming liquidity with at least a double.

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Recent

  • Mid-year review: Metals and Mining Positions June 29, 2025
  • Carbon Streaming cash box June 29, 2025
  • Interesting links: June 2025 June 29, 2025

Recent

  • Mid-year review: Metals and Mining Positions
  • Carbon Streaming cash box
  • Interesting links: June 2025

Categories

  • Substack Newsletter
  • Mining Stock Education Interview – April 2025
  • TD Direct Investing Webinar
  • Mining Stock Education Interview – Aug 2023
  • Andy Millette Interview
  • Globe B2B Marketing Panel
  • Seeking Alpha

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