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SANDSTORM GOLD LIMITEDSS

SANDSTORM GOLD LIMITED

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Sandstorm Gold Ltd. BullishSandstorm Gold ( NYSE:SAND ) stands to gain significantly from the surge in gold prices. Despite accruing substantial debt to acquire new assets in 2022, currently bearing interest rates of 7-8%, this has cause downward pressure on the company's stock . However, the recent appreciation in gold prices offers a silver lining, enabling quicker debt repayment and initiating a buyback program. This overlooks the possibility that falling interest rates could substantially ease debt repayment obligations. Furthermore, the newly acquired assets promise additional revenue streams, bolstering debt repayment capabilities and buyback initiatives. Investing in Sandstorm Gold can be viewed as a leveraged play on gold, potentially yielding higher returns compared to holding physical gold alone. Yet, it's crucial to note that any downturn in gold prices could spell trouble for the company's share price, exacerbating its debt concerns. In essence, Sandstorm Gold resembles a low-cost, at-the-money call option on gold. The blue arrows marked my entry points and 4.72 is my avarge price/share.
NLong
by Marcos_Camacho
1
Gold royalty streamers oversoldAs a group, gold royalty streaming companies reacted negatively to the drop in gold price on February 13, 2024. This movement was triggered by US CPI for February printing slightly higher than expected by consensus, on the index and also MoM and YoY readings. Reaction was an immediate spike in TVC:DXY and commensurate selloff in FX_IDC:EURUSD . This dragged risk assets down, with equities markets getting hit. TVC:GOLD also lost more than 1% in lockstep reaction. The opportunity here is in the unwind of yesterday's outsized movement amongst the gold royalty streaming companies as a group. While some have performed better than others over the past year, they were all punished on this move. Typical drawdown was 10% on the day . For consideration: A) a short term buy of one of these names and holding to pre-CPI price level, or B) a longer term entry for those with a bullish view on gold and appetite for leveraged exposure and desire for dividend income.
TLong
by StrobeT
1