This is the last article in a series where I examine the historical returns of specific segments of gold and silver-producing companies to understand which company has outperformed historically, as well as which CEO and leadership team has performed well versus others.

The last article I wrote covered the

Source: Created by the author using data from Yahoo Finance

Here is the breakdown of each company by size or market cap:

  1. Sandstorm Gold (SAND)
  2. Osisko Gold Royalties (OR)
  3. Maverix Metals (MMX)
  4. Ely Gold Royalties (OTCQX:ELYGF)

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Source: Created by the author using data from Yahoo Finance

Here are the top four rankings over a 1-year time horizon:

  1. Ely Gold Royalties
  2. EMX Royalty Corp. (EMX)
  3. Sandstorm Gold
  4. Metalla Royalty & Streaming (MTA)

To comment, you’ll see Ely Gold Royalties outperform throughout multiple time frames. Several years ago, the company transitioned its business model from a gold producer to the royalty streaming model. During the past several years, it has quietly built a portfolio of mining claims and royalty streams. I believe the market just recently discovered the potential value in its portfolio. So, although Ely Gold will potentially continue to outperform the broader market, I just want readers to understand that the company has had a fantastic run, and this type of continued performance shouldn’t be expected. For some perspective, only 6-12 months ago, Ely Gold was an unknown penny stock and has transitioned to a stock trading above $1.

Source: Created by the author using data from Yahoo Finance

Here are the top four rankings over a 3-year time horizon:

  1. Ely Gold Royalties
  2. Sandstorm Gold
  3. EMX Royalty Corp.
  4. Abitibi Royalties (OTC:ATBYF)

Source: Created by the author using data from Yahoo Finance

Here are the top four rankings over a 5-year time horizon:

  1. Ely Gold Royalties
  2. Abitibi Royalties
  3. EMX Royalty Corp.
  4. Sandstorm Gold

Source: Created by the author using data from Yahoo Finance

The only company with price data I felt comfortable using was Sandstorm Gold.

Source: Created by the author using data from Yahoo Finance

Here are the top four rankings from the combined rankings, even though there is a lot of data missing.

  1. Ely Gold Royalties
  2. Abitibi Royalties
  3. EMX Royalty Corp.
  4. Sandstorm Gold

Source: Created by the author using data from Bloomberg

Here are the top four CEO rankings by tenure:

  1. Sean Roosen – Osisko Gold
  2. Ian Ball – Abitibi Royalties
  3. Nolan Watson – Sandstorm Gold
  4. Brett Heath – Metalla Royalty & Streaming

Source: Created by the author using data from Yahoo Finance

Since each CEO has had different tenures, the total return can be misleading. See the CEO annualized return chart below for a more normalized comparison.

Source: Created by the author using data from Yahoo Finance

Here are the top four CEO rankings:

  1. Trey Wasser – Ely Gold Royalties
  2. Ian Ball – Abitibi Royalties
  3. Brett Heath – Metalla Royalty & Streaming
  4. David Cole – EMX Royalty Corp.

Conclusion

Many of the small-cap royalty companies haven’t been around long enough to have data over the 10-year time horizon. However, I believe we have enough data to determine which ones may outperform others in the future. The companies that appear the most interesting to me are Ely Gold, Abitibi Royalties, EMX Royalty Corp., Metalla Royalty & Streaming, and Sandstorm Gold. I may write more about these in the future to understand them better.

As you may already know, I’ve written a little bit about Ely Gold and have been a shareholder since March 2020. I originally bought Ely Gold based on valuation, the unknowns in its relatively large asset portfolio, and from watching Trey Wasser and some of the interviews he conducted on YouTube. Since the stock has moved up aggressively since then, I remain a holder based on what I believe will continue to be good leadership from Trey and his team.

Similar to the large-cap space, I think the superior value that royalty streaming companies create will continue to cause each of these companies to perform well, especially in a rising gold price environment.

If I’m correct and the next few years resemble a period like the Great Depression, then gold prices could continue to rise. If that’s the case, these small-cap companies will be potential acquisition targets for the large-cap players whose cash flows will increase substantially.

If you want to check my work, you can see my spreadsheet here. Let me know if you see something that is incorrect, and I will be happy to update it.

Small-Cap Royalty Streaming Companies Spreadsheet

Other Historical Performance Articles

  1. Large-Cap Gold Companies
  2. Junior Gold Companies
  3. Silver Mining Companies
  4. Large-Cap Royalty Streaming Companies

Disclosure: I am/we are long ELYGF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: OR and MMX pay a regular dividend that was not factored into this analysis. This analysis was done using the opening price in July for each corresponding time frame.

The author of this article is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. The author of this article expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.