SAND
💰 Sandstorm Gold is a royalty company that finances gold mining projects in exchange for a percentage of future production.
🛡️ This model reduces exposure to operational costs and risks associated with traditional mining companies.
💎 The company focuses on projects with potential for future exploration and increased production.
✨ Sandstorm Gold is managed by a skilled CEO who prioritizes long-term value creation.
@emeritoquintana:
“There are already established companies like Franco Nevada, quite expensive, but it is seen that the evolution is the evolution of the miners is bad, the evolution of gold is superior, and the evolution of Franco Nevada, for example, is superior to that of gold because you have the exposure to the price of gold, but in the long term, that discount matters more, that intrinsic discount in each royalty operation is as if they were buying ounces of gold 15% cheaper next year and 15 more the next one and the next one. So, although the price of gold drops a lot, in the end, you get profitability simply because of that passage of time, because of patience. And there is a specific company called Sandstorm Gold, which is the one we have, and another, which is a royalty company managed by a very good CEO who develops a system that was not only royalties or helps to develop but is called streaming in which you buy the ounces of gold at a minimum price, and then some cash is given to the company in the following years, and this is a bit more complicated for that time. It is the same idea. So, this is a well-managed company with someone who knows in this sector and who focuses on what we talked about before of optionality because when you buy a royalty on an area that is not yet being mined, but everything in the exploration company, everything that is found in the mine later also takes you had a royalty. So, if you find something later, explore, there are more ounces, you also take a royalty. So, these people focus on projects in which there is good positive functionality of future exploration. You have to have more patience for it, but the benefit can be much greater, and they make good deals. They were criticized a lot because they bought instead of a royalty shares of a mine in a specific mine. The market did not like it much, but seeing their explanation that it is seen that it is intelligent, that it is opportunistic, and that it is a very specific, very special mine in which although legally it is not a royalty or streaming contract in practice, it is not such a special mine that there is no sensitivity to the increase in costs and there is exposure to the rise in the price of gold is bought very cheap with a very good internal profitability, and surely in the future, it will become a royalty or streaming contract. And this company simply with the royalties it has now will be arriving cash and will be generating cash, increasing its money until in a few years they will have the cash practically what can capitalize now six hundred and so many million dollars. So, they are very cheap, but most likely, with the passage of the years, all that money will be used to buy new royalties and to continue growing. So, it is a good opportunity.”
Watch the exact part of the video where Emerito talks about Sandstorm Gold here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on Sandstorm Gold (SAND) at the following link. SAND stock.
