SAND
🤔 Sandstorm Gold is presented as a classic example of a good business (royalty model) potentially hampered by management that tries to be too clever instead of staying put.
📉 Historical analysis reveals significant under-delivery on production guidance, with targets predicted years ago still not met, raising concerns about management’s execution and forecasting.
💡 Despite recent price increases linked to gold, the stock hasn’t reached previous highs, suggesting the market may still be discounting management’s past performance and capital allocation decisions.
@Academiadeinversion:
“Sandstorm, obviously, is rising. It’s impossible for it not to rise with this, but well, still, worse was difficult. I mean, look at the last few years, and it’s not even at highs. It was at 13-something in 2020, also at 11 in 2022, in 2021, and now it’s at 10.67, with gold tripling and being a royalty company, mind you. Worse is impossible. Well, someone there, it’s incredible, isn’t it? No, the story is worth it. I mean, really, the story of Sandstorm is worth a lot. I did it, taking all the notes when I was in university, I took all the annual reports year by year and learned the company’s history deal by deal, and you learn a lot about the royalty business and especially what not to do. Because, I say, for me, Sandstorm is the typical textbook example, but textbook, of a good business and typical management that thinks it’s very smart, that doesn’t know how to stay still, that thinks it’s very smart, so it makes deals because it thinks it’s very smart, and they screw up instead of staying put. It’s the typical company that if you fired everyone, the stock would rise, there would be an automatic re-rate. Because they pulled some screenshots, taking old reports, that the expected production, the guidance there is, I think for 2027, is what they predicted, I don’t know if it was in 2015, to have in 2020, and they will barely reach it in 2027, or I don’t know if it was like that, but it was something outrageous like that, in terms of the under-delivery there has been.”
Watch the exact part of the video where @Academiadeinversion talks about Sandstorm Gold Ltd. here:
Watch the video on YouTube
Read more articles analyzing Sandstorm Gold Ltd. (SAND) at the following link. SAND stock.
