TSX:SSL - Post Discussion
Post by
loonietunes on Jun 30, 2021 9:38am
Stockwatch In the news
Globe says Sandstorm Gold lowered to "underperform"
2021-06-30 09:12 ET - In the News
The Globe and Mail reports in its Wednesday, June 30, edition that RBC Dominion Securities analyst Josh Wolfson has lowered Sandstorm Gold ($7.34) to "underperform" from a "sector perform" (all figures U.S.). The Globe's David Leeder writes in the Eye On Equities column that Mr. Wolfson cut his share target by $1 to $7. Analysts on average target the shares at $10.21. While Mr. Wolfson sees Sandstorm's Hod Maden project in Turkey as "a high quality development opportunity that could generate material growth longer-term, balanced by unique risks and a disproportionate future contribution" he expects a decline in Sandstorm's production from its royalty asset base. Mr. Wolfson says in note: "We anticipate mine life extension across Sandstorm Gold's portfolio. However, production declines are a near-term risk at three key assets -- Santa Elena as non-royalty ore displaces mill feed, Chapada as mill operations may experience downtime to facilitate an expansion, and Cerro Moro as grade declines -- which combined comprise 50 per cent of production. Depletion is also a near-term risk at smaller non-core assets, such as Karma and Bracemac-Mcleod, which combined are 10 per cent of production."
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