Sandstorm Gold (
SAND
) stands to gain significantly from the surge in gold prices. Despite accruing substantial debt to acquire new assets in 2022, currently bearing interest rates of 7-8%, this has cause downward pressure on the company's stock . However, the recent appreciation in gold prices offers a silver lining, enabling quicker debt repayment and initiating a buyback program.
This overlooks the possibility that falling interest rates could substantially ease debt repayment obligations.
Furthermore, the newly acquired assets promise additional revenue streams, bolstering debt repayment capabilities and buyback initiatives. Investing in Sandstorm Gold can be viewed as a leveraged play on gold, potentially yielding higher returns compared to holding physical gold alone. Yet, it's crucial to note that any downturn in gold prices could spell trouble for the company's share price, exacerbating its debt concerns.
In essence, Sandstorm Gold resembles a low-cost, at-the-money call option on gold.
The blue arrows marked my entry points and 4.72 is my avarge price/share.
SAND
) stands to gain significantly from the surge in gold prices. Despite accruing substantial debt to acquire new assets in 2022, currently bearing interest rates of 7-8%, this has cause downward pressure on the company's stock . However, the recent appreciation in gold prices offers a silver lining, enabling quicker debt repayment and initiating a buyback program. This overlooks the possibility that falling interest rates could substantially ease debt repayment obligations.
Furthermore, the newly acquired assets promise additional revenue streams, bolstering debt repayment capabilities and buyback initiatives. Investing in Sandstorm Gold can be viewed as a leveraged play on gold, potentially yielding higher returns compared to holding physical gold alone. Yet, it's crucial to note that any downturn in gold prices could spell trouble for the company's share price, exacerbating its debt concerns.
In essence, Sandstorm Gold resembles a low-cost, at-the-money call option on gold.
The blue arrows marked my entry points and 4.72 is my avarge price/share.