Image Source: UnsplashThe business model gives the companies exposure to higher gold prices, but at far lower risk than the mining companies incur since they do not have to deal with the myriad problems that arise in mining. They are not completely without risk, however. This was exemplified a year ago when Panama shut the Cobre Panama mine on which Franco held a stream. It was its largest asset, contributing almost 20% of the company’s revenue and representing 15% of its NAV. Though Franco was not responsible for ongoing costs, it did mean a lack of revenue, and the stock price fell sharply. 
Franco-Nevada Corp. (FNV)
 Following other, far less significant issues at other of its large assets during the second quarter, Franco is now trading at close to its lowest valuation multiples since it went public. However, the company is rock solid, with $1.3 billion in cash, no debt, and a $1 billion line of credit.It also has revenue from over 100 different assets and nearly 400 royalties on undeveloped mines. The company will survive.Plus, Panama’s new president José Mulino has stated that he wants the Cobre Panama mine to re-open. He also said the government would focus on the mine’s future soon after other priorities have been decided. When operational, the $6 billion mine employed over 40,000 people and represented about 5% of the country’s GDP. After a one-year closure, Panama’s credit ratings have been downgraded and the budget has a hole that Cobre Panama could fill, meaning the mine will likely reopen at some point. Importantly, Franco has written off its investment, so any resumption of the mine is all upside to Franco. Franco has the best management, the most solid balance sheet, and the most diversified asset base of any of the streamers. The mine problems give you an opportunity to buy this blue-chip gold company at reasonable prices.More By This Author:Top Picks For 2025: Skye BioscienceTop Picks For 2025: Skeena ResourcesTop Picks For 2025: MicroStrategy