John Mackey, CEO of Whole Foods Market (NASDAQ: WFM), an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Online and other low-frill banks have popped up before and the big banks have been just fine. While there might be some pain in the short term, in the long term I wouldn’t be worried about bank stocks. With significant cash and resources, the banks will be more than formidable opponents for Amazon. Big banks aren’t going to sit by and give up their strong positions in the industry. Although they might be reactive, we’ve seen companies like RBC adapt and provide more mobile-friendly apps and solutions to customers. While they might help innovate services and change the industry, banks will adapt. I wouldn’t be concerned about Amazon or any other big tech company trying to get into financial services. It’s mortgages and big businesses that draw a lot of revenue for banks, not chequing accounts from frugal consumers, and so the latter might be a small casualty for a company like RBC that did more than $43 billion in net revenue over the past four quarters. The short answer is clearly yes, that big tech companies could definitely grab market share away from big banks, but the question is whether it will be enough to make much of a dent in RBC’s financials. The challenge is to convince customers that the data won’t be misused and will be adequately protected as data scandals have been plaguing the industry over the past few year, and the concerns are definitely front and centre today. The big play could be for millennials and younger tech-savvy consumers that are more focused on flexibility and price and would have an easier time trusting a company like Amazon. With the big chartered banks in Canada offering their consumers a strong sense of safety, it will be hard to pry customers away from that level of comfort. South of the border, however, where there are more banking options, there could be a lot of merit to McKay’s concerns.Ī company like Amazon (NASDAQ: AMZN) with all its resources and data could strategically undercut the cost of financial services, and big banks could feel the pain. It’s an area where the big banks have been a bit lacking, and for good reason: there’s not a whole lot of competition, especially in Canada. The reality is that tech companies do know a lot about customers and can definitely use that data to their advantage. We think that's smart.'įollow Michael McCrae on Twitter: Kitco Mining on Twitter: coverage of Deutsche Goldmesse was sponsored by Defiance Silver.Royal Bank of Canada (TSX:RY)(NYSE:RY) CEO Dave McKay made headlines this week when he expressed concern over big tech companies getting involved in financial services.Īt a conference in New York, McKay stated, “They are getting between us and the moments of truth of our customers, and currently what they do with that is they sell that insight back to us in the form of search and advertising and other perspectives, and they earn a certain amount of economic rent.” We've always been unabashed about our desire to be exposed to copper and base metals.

I know that that investors in the past have focused on gold royalty companies. We love being exposed across the metal space. Royalty and streaming companies have been enjoying an upswing due protection from rising energy costs, which has been hurting miner's margins.ĮMX Royalty has a mix of metals in its portfolio Caserones is copper-molybdenum mine in Chile. He also highlighted the Caserones' 0.7335% net smelter royalty stream.

We're very pleased to see that we expect annualized after-tax income from there around $12 million per year,' said Cole. 'We expect cash to start flowing after they cross the 10,000 ounce threshold then our 10% royalty kicks in. Production at Gediktepe is expected to commence in early 2022. In May Cole spoke to Kitco at the Deutsche Goldmesse conference in Frankfurt, Germany.ĮMX Royalty (NYSE American: EMX CVE:EMX) had income of $12.4 million in 2021, up from $7.2 million the year prior.Ĭole is anticipating EMX's Gediktepe and Yenipazar royalties, part of the company's SSR royalty portfolio. (Kitco News) - Streams in Chile and Turkey are expected to give EMX Royalty a lift, said company CEO David Cole.

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