Sandstorm Gold Royalties (TSX:SSL) - Positioned for 30%+ Production Growth & Debt Reduction
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- Опубліковано 18 вер 2023
- Interview with Nolan Peterson, CEO of Sandstorm Gold Royalties (TSX:SSL, NYSE:SAND)
Our previous interviews: • Sandstorm Gold Royalti... . and • Sandstorm Gold (SSL) -...
Recording date: 18th September 2023
Sandstorm Gold President and CEO Nolan Watson provided an update on the streaming company's strategy in an interview at the Denver Gold Forum conference. Watson noted Sandstorm plans to be "boring" over the next couple of years, focusing on paying down debt and waiting for four key assets to reach production.
Watson sees volatility declining in Sandstorm's share price with major shareholders who had been selling down now mostly cleared out. Going forward, trading should be more fundamentals-driven. Institutional investors remain bullish on gold given high interest rates and see an upside if rates start falling.
On the macro outlook, Watson believes central banks are supporting the institutional liquidation of gold, resulting in significant net buying. He sees gold emerging as a viable alternative reserve currency to the U.S. dollar over time as countries push for de-dollarization.
Sandstorm expects to produce around 95,000 gold equivalent ounces in 2022. With no additional acquisitions, four assets under construction are slated to drive production to around 125,000 ounces by 2027, representing over 30% growth. These include Equinox Gold's Greenstone mine in Canada, Ivanhoe's Platreef mine in South Africa, Barrick's Robertson mine at Cortez in Nevada, and Houndé in Burkina Faso.
Given high interest rates, Sandstorm plans no major acquisitions in the near term. The focus is on paying down debt taken on to fund recent deals. Watson may look to sell non-core assets to accelerate debt repayment. Once debt is reduced, Sandstorm has locked in an option to acquire a $225 million stream from Glencore's Mara project.
In summary, Sandstorm offers stable growing cash flow leverage to the gold price from a diversified portfolio of world-class mines. With no equity issuances needed, investors can position for pending production growth through a period of debt reduction and anticipated sector upside.
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Good Interview! Buying down the debt, that bought some great assets, should be the top priority! Buying back shares comes second, when debt gets below $350/375 mil, as Nolan has said in more recent interviews. Great cash flow, esp. at these higher gold prices.
The $ is destiny
Please let's get a bit bored this year!
Why is with Sandstorm that mostly the malcontents bother to post comments? I guess the more patient among us aren't so inclined to post? "Silent majority"
Now down 13% in just one month and approaching $4.50. A far cry from the prior $10. This coy trades like a junior explorer. And like a junior explorer never stops diluting.
Who likes an anchor for a stock price? Better increase dividend to sweeten BORING! Nobody likes sitting on dead money as the goal posts keep getting moved back.
I prefer shares buy back than dividends wich are taxed.
Standing in a park randomly interviewing dudes who happen to wander by - "Hey you .......". Cool.
I bet none of the people he listened to said they wanted more dilution.
You can't determine if Sandstorm diluted shareholders until the cash flows from the purchased assets are less than, equal to or greater than the economic value of the shares issued. Ex.: you issue five shares at $5 for $25 to buy a royalty but over the next ten years, the royalty pays out $60. How is that "dilutive."?
@@johnchew503 118m shares in 2015 are now 300m shares in 2023. The share price is currently half of what it previously was (when the gold price was much lower).
@@robertdagge200 None of the 26 employees receive a Hair-Cut ....this is a Life Style Company!
Sandstorm Gold shareholders… all feel like lied to lovers,always another deal another coming share dilution around the corner…1% yield 🤢really wow🤬they only gave that recently because of guilt for the many many years of shareholder dilution.
Speak for yourself mate LOL
This stock is going to $0 guaranteed