Jay Taylor, in the Jan. 13, 2015, edition of Gold, Energy & Tech Stocks, refreshes his buy of Sandstorm Gold Ltd., recently $4.78. Mr. Taylor said buy eight times between June 19, 2009, and Nov. 14, 2014, at prices ranging from 44 cents to $13.50 (the stock rolled back 1:5 on May 9, 2012). Assuming a $1,000 investment for each of the eight buys, the $8,000 position is now worth $8,795. Mr. Taylor says Sandstorm fits the bill as a low-risk/high-return play on gold. Through its gold streaming model, the company has the contractual right to buy set amounts of gold from multiple mines at a fixed price during the life of mine. That price is usually low, notes the editor, because it is derived from costs at the time of mine construction. Therefore, as the price of gold rises and the mines expand, Sandstorm can enjoy increasing profits and cash flow without putting up any additional capital. At current levels, and with more mines under streaming deals set to begin production, Mr. Taylor says Sandstorm is definitely one of his favourite producers. The stock remains a buy.
© 2024 Canjex Publishing Ltd. All rights reserved.