SANDSTORM GOLD -- ehemals --Sandstorm Resources (Seite 26)

[trobs]

Antwort auf Beitrag Nr.: 52.807.813 von trobs am 11.07.16 17:10:34

Zitat von trobs: Soweit ich Nolan verstanden hatte, steht diese Dividende NICHT unmittelbar bevor, man überlegt aber nach einer gewissen "Festigung" sich dieses Themas anzunehmen. Das Geld aus der Platzierung wir entweder für Neuaquisitionen oder vielleicht - wahrscheinlicher - den Schuldenabbau eingesetzt.

@ tntxrxwelle



Why is Sandstorm diluting shareholders here? The company says it plans on reducing the balance of its revolving credit facility. The funds are also for the acquisition of streams and royalties and for general working capital, according to the release.

Why does Sandstorm want to reduce its debt? At the end of the first quarter, the company had just $5.3 million in cash (as well as $52.7 million in investments), compared to $77 million in debt on its revolving credit facility. This equity raise likely means Sandstorm will pay off a portion of this balance to reduce its debt and its interest expense. In Q1, this interest expense amounted to $.9 million. The company's debt is subject to fairly high interest rates (LIBOR plus 3-4.25% per annum), and the debt matures in July 2019.

Now, I'd like to make it clear that Sandstorm Gold can easily manage its debt, so it didn't absolutely need to do this financing for that reason. At $1,200 gold, Sandstorm is projected to bring in well over $40 million in after-tax cash flow in 2017, rising to $53 million by 2019, according to the company.

Meanwhile, Sandstorm estimates its interest expense is $2.6 million per year, according to its presentation. It is earning more in interest than that ($3.3 million per year) just from its equity and debt investments.

However, CEO Nolan Watson is a bit debt-averse, and followers of the company may know this already. For example, check out this interview with Kitco back in March 2016. This isn't the first time I've heard him say something along these lines:

"There's this question of what portion of a capital structure of a company should be permanent in the form of debt? I believe that is zero.

I believe debt should be used for mining companies who can't control the price that they sell their commodity at. It should be used solely as a tool temporarily to make strategic acquisitions... we don't plan on having debt as a permanent part of our capital structure."

Sandstorm also clearly states in its corporate presentation that it plans to use the majority of its free cash flow to pay down debt this year.

Now, readers should remember the only reason the company is in debt in the first place is because it completed a blockbuster streaming agreement with Yamana Gold (NYSE:AUY) back in October 2015. The deal cost $149 million, and Sandstorm drew fully on its $110 revolving credit facility to help pay for it.

Looking back, this was a really wise move to use debt instead of equity to complete the deal, as the stock was trading at just $2.69 per share at the time. So, Sandstorm drew on its revolving credit facility, has paid down the balance a bit since then, and has now raised equity at higher prices to pay down another portion of the debt. It's not a bad move by any means, as the dilution to shareholders would have been much more significant had Sandstorm opted for equity at the time.

Of course, there's always the chance the company will use a good amount of this financing to complete a royalty/stream acquisition. However, I don't think investors should expect another huge deal. Instead, I would expect a small "optionality" type of deal, where Sandstorm purchases a royalty on an exploration project - a type of deal that could pay off huge over time with higher gold prices.

This type of deal may be similar to the one completed in January with Teck Resources (NYSE:TCK), when Sandstorm acquired 56 royalties for $22 million, but I think it would likely be smaller in size.

Here's the bottom line: Sandstorm raising equity here will hurt the share price in the short term (it already has, as shares are down nearly 10% from Monday) and raise the share count to nearly 150 million. However, the deal will allow Sandstorm to reduce its debt and its financing risk, and hopefully, the company also has an acquisition up its sleeve.

The company also picked a pretty decent time to issue new shares, as the stock is up more than double from its January 2016 lows of $2 per share. My plan remains the same: add shares of Sandstorm on any pullbacks.

http://seekingalpha.com/article/3985079-sandstorm-gold-dilut…

[KMST]

Sandstorm Gold Ltd (TSE:SSL) had its target price hoisted by equities research analysts at Canaccord Genuity from C$6.50 to C$8.00 in a research report issued to clients and investors on Tuesday. Canaccord Genuity’s price objective would indicate a potential upside of 18.52% from the stock’s current price.

[trobs]

Antwort auf Beitrag Nr.: 52.806.457 von tntxrxwelle am 11.07.16 14:08:05

Soweit ich Nolan verstanden hatte, steht diese Dividende NICHT unmittelbar bevor, man überlegt aber nach einer gewissen "Festigung" sich dieses Themas anzunehmen. Das Geld aus der Platzierung wir entweder für Neuaquisitionen oder vielleicht - wahrscheinlicher - den Schuldenabbau eingesetzt.

[KMST]

scheinbar nicht, kurs stimmt seitdem.

[tntxrxwelle]

Antwort auf Beitrag Nr.: 52.802.254 von trobs am 10.07.16 15:55:50

Am 27.06. ein placement und ein paar Tage später über Dividenden labern ?
Niemand ein Problem damit ?

[KMST]

Antwort auf Beitrag Nr.: 52.803.004 von trobs am 10.07.16 19:45:41

da könnte etwas passieren. in einem interview hat roy von bitgold dazu etwas gesagt.
man würde dazu in verhandlungen mit mehreren kanadischen goldmajors und streamern sein

[trobs]

Antwort auf Beitrag Nr.: 52.802.914 von KMST am 10.07.16 19:22:15

Hatte mich ehrlich gesagt schon gefragt wie diese physische Auslieferung vonstatten gehen soll, das wäre ein Ausweg...bei FM gab es damals, glaube in 2011 oder 2012, ähnliche Pläne für eine physische Dividende, die sich aber leider aufgrund des Umfeldes in Luft auflöste.

[KMST]

Antwort auf Beitrag Nr.: 52.802.254 von trobs am 10.07.16 15:55:50

ich hoffe sie gehen eine partnerschaft mit bitgold/goldmoney ein und sie überweisen die dividenten über diese plattform

[trobs]

- We should start paying a dividend soon
- We might pay in gold, investors can choose
- Nolan sees AISC of miners rise because of high grading which took/takes place
- 50% growth till 2021
- wants to go on diversifying, find good aquisitions

[trobs]

Raymond James Resumes Coverage
Globe says Kaip rates Sandstorm Gold "outperform"
Sandstorm Gold Ltd (2) (C:SSL)
Shares Issued 150,164,352
Last Close 7/7/2016 $6.12
Friday July 8 2016 - In the News
The Globe and Mail reports in its Friday edition that Raymond James analyst Phil Russo says Sandstorm Gold continues to make progress at becoming a stronger, more diverse company. The Globe's David Leeder writes that Mr. Russo resumed coverage of the stock following the closing of its $57.5-million (U.S.) equity financing with an "outperform" rating. Mr. Russo boosted his share target to $7.25 (Canadian) from $6.75 (Canadian). Analysts on average target the shares at $6.88 (Canadian). Mr. Russo is forecasting a 50-per-cent increase in cash flow from 2016 to 2019 due to recently acquired cash flow streams being realized. Mr. Russo says in a note: "The financing provides the company the needed balance sheet flexibility to pursue further potential acquisitions in the mold of those recently acquired over the last 12 months. Those acquisitions have been favourably received by the market and seen a restoration in sentiment towards the name. Coupled with some of its streams falling into stronger hands through sector M&A, the investment case for Sandstorm continues to strengthen, in our view." BMO analyst Andrew Kaip maintained a "market perform" rating with a target of $5.50 (U.S.), up from $5 (U.S.).
© 2016 Canjex Publishing Ltd.

Read more at http://www.stockhouse.com/companies/bullboard/sand/sandstorm…