Sandstorm Gold Ltd (C:SSL)
Shares Issued 331,700,071
Last Close 11/29/2011 $1.33
Tuesday November 29 2011 - In the News
Jay Taylor, in the Nov. 21, 2011, edition of Gold, Energy & Tech Stocks, refreshes his buy of Sandstorm Gold Ltd., recently $1.28. Mr. Taylor said buy four times from June 19, 2009, to Aug. 17, 2011, at prices ranging from 44 cents to $1.40. Assuming an investment of $1,000 for each buy, the $4,000 investment is now worth $7,052. Sandstorm Gold finances junior resource companies with advanced gold projects, in return for royalties. The royalties are in the form of gold, a percentage of the companies' production, sold to Sandstorm at cost. Now, Sandstorm is starting to reap the benefits of its financing-for-royalty deals. In the third quarter, it earned $4.4-million (U.S.), an increase of 90 per cent over last year's third quarter. Mr. Taylor says $4.4-million (U.S.) may not seem like much, especially since the company has 331 million shares outstanding, but the earnings are bound to increase as more of Sandstorm's debtors bring their gold projects to production. He also explains that Sandstorm had to issue many shares in the beginning so it could finance its target gold projects. The newsletter editor says buy Sandstorm, a "sweet deal" that is now hitting "the sweet spot of its business model."