Mar. 31, 2016 11:20 AM ET| About: Sandstorm Gold Ltd. (SAND), Includes: AUY, LGCUF, TCK
Summary
1 Everyone knows gold has been crushed since 2012, and along with it, gold stocks have been slammed.
2 Sandstorm's streaming model has led to the company and the stock getting crushed, but the concerns for the future are overblown.
3 2015 was a year of pain but I discuss how 2016 is the dawn of a new age thanks to 30 new streams/deals that were made.
4 I discuss financial results.
Everyone knows gold has been crushed since 2012, and along with it, gold stocks have been slammed. My favorite gold play for the next few years continues to be Sandstorm Gold (NYSEMKT:SAND). The name is controversial. I get that. This is because the streaming model has taken a beating with gold prices plummeting. But I continue to like this model of doing business. The company made a lot of key moves in 2015 and of course secured a deal with Teck Resources (NYSE:TCK). That move will be accretive for future revenues. Let us not forget the deal with Yamana Gold (NYSE:AUY), which I think is going to really work out well. Make no mistake 2015 was a year of transition, and really of survival. But the stock is up 50% from the lows. And it could move higher should gold regain steam this year. It's been a good few months for precious metals so we shall see.
Source: Thinkstock
Let us not forget that Sandstorm has also been branching out into other streams besides gold, and continues to have nice royalty deals in place. It has learned that diversity is a way to protect its future. As far as trading is concerned, the name has presented excellent trading opportunities, as well as a chance to accumulate the stock at various points throughout the last year. You may recall, back in February 2015, I said it was the time to start accumulating the stock, especially on big dips. Well, at the time, the stock was at $3.00, and is up about 8% from there, but this was not before falling into the low $2 range which gave us accumulation opportunities. Despite the weakness in gold prices, which may continue in the short term, this is one stock in the sector I want to own. And as such, I have held on. That said, the company is seeing reduced revenues stemming from a lower gold price, but is securing new reliable streams, tightening its lending practices and will be growing attributable production as time moves on. It has been several months since I checked in on the stock, and so I would like to discuss the company's performance and where I see it going.
Cradit By"http://seekingalpha.com/article/3962282-sandstorm-2016-new-dawn:
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