SANDSTORM GOLD -- ehemals --Sandstorm Resources - Älteste Beiträge zuerst (Seite 80)

[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…

[tntxrxwelle]

Antwort auf Beitrag Nr.: 52.824.115 von trobs am 13.07.16 13:17:50

Wofür das -m.E. überflüssige- placement ursprünglich war, ist mir schon klar. Hatte auch nicht den Grund, "plötzlich" die Verbindlichkeiten zurückzuführen, sondern weil der Kurs so schön war und ohne finanziellen Spielraum ist das Streamergeschäft für Aktionäre und Management zu langweilig.

Geld ist Geld, ob nun zur Kreditrückführung oder Dividende. Kurz gesagt: Man hat mal schnell den Abgriff am gelaufenen Goldaktienmarkt genutzt, um ein paar Aktien auf den Markt zu schmeissen. Aus Managementsich durchaus ein plausibler Zug. Ob man als Aktionär bei dieser Attitude glücklich wird, ist wieder eine andere Frage.

[trobs]

Sandstorm Q2: What To Expect

...

In the first quarter, Sandstorm produced 11,381 gold ounces at an average realized gold price of $1,176 per ounce; this led to revenue of $13.4 million and operating cash flow of $9.7 million (operating margins of 72.3%).

With 12,500 ounces of gold sold this quarter at a gold price of $1,300 per ounce, investors can expect approximately $16.2 million in revenue and $11.7 million in operating cash flow. However, keep in mind that these are just estimates - the company's average realized gold price may actually be lower (or higher) than this figure depending on when the company realized its gold sales (the price of gold has traded between $1,220 - $1,360 this quarter). The company's realized production may also be higher or lower, depending on the timing of deliveries.

...

http://seekingalpha.com/article/3988199-sandstorm-q2-expect

[trobs]

Sandstorm 2q16 financials

It's what happened after the close of 2q16 that's the most interesting. This bullet point from the NR:

Subsequent to quarter end, Sandstorm completed an equity financing for aggregate gross proceeds of $57.5 million. Upon closing of the financing, the majority of the net proceeds were used to reduce the balance of the Company's revolving credit facility. As a result, the Company currently has no bank debt and the entire $110 million revolving credit facility remains available for acquisition purposes.


As at 4q15, long-term bank debt stood at U$83.5m. Now it's all gone. I'm impressed.

http://www.newswire.ca/news-releases/sandstorm-gold-announce…

[trobs]

....Subsequent to quarter end, Sandstorm completed an equity financing for aggregate gross proceeds of $57.5 million. Upon closing of the financing, the majority of the net proceeds were used to reduce the balance of the Company's revolving credit facility. As a result, the Company currently has no bank debt and the entire $110 million revolving credit facility remains available for acquisition purposes....

http://www.newswire.ca/news-releases/sandstorm-gold-announce…

[KMST]

Sandstorm's President & CEO Nolan Watson remarked, "During the first half of 2016, Sandstorm has added 55 royalties to the Company's asset base, and has generated $18.4 million in net income and $18.6 million in cash flow from operations. We have used the operating cash flow and the proceeds from our recent equity raise to pay our debt down to zero and we now have over $110 million in available capital to pursue acquisitions. There are a wide range of deals that we are working on presently, from small deals on exploration stage assets to large transactions on cash flowing mines."

[KMST]

schöne rally, endlich hat SAND den rückstand aufgeholt und sie sind mit abstand der am besten laufende streamer dieses jahr.

auch hier bin ich jetzt ein stück über +100% vorne

[trobs]

Nolan:

20%+ growth between now and 2019

50% FCF growth between now and 2021, where 100% of that growth is already paid for

a dramatically better growth/risk profile than a mining company

because everything is already paid for, 100% of our FCF is available to add to that 50% growth profile

[trobs]

8/4/16
Mo Sandstorm

It's trading like a buyout target.

Probably due to the fact that its lack of debt has made it into a buyout target.

http://incakolanews.blogspot.de/2016/08/mo-sandstorm.html

[trobs]

Aus dem oben angeführten Interview:

We are going to do new deals over the next 5 years, so the actual growth should be well in excess...

If we didn´t double the size of the company over the next 5 years, I´d be surprised.... .

We are at a point right now where we recognize that we should pay a dividend soon and we are going to become a dividend paying company eventually... and we´re just trying to find the right time.

....we wanna use gold as a currency in our day to day operations (Nolan reminds listeners of sandstorm´s part in bitgold).....sinngemäß: maybe, we give investors the choice: money or dividend in gold