Sandstorm Gold ( NYSE: SAND ) -4.7% in Wednesday's trading despite winning an upgrade to Outperform from Market Perform with a C$9 price target at BMO Capital, as gold futures settled at a two-week low well below $1,800/oz.
BMO's Rene Cartier said he views Sandstorm ( SAND ) as "the go-to name" among middle-market royalty and streaming companies, after the company's BaseCore and Nomad acquisitions "significantly increased its scale, enhanced its diversification, and added a number of long-life assets to its portfolio."
Sandstorm's ( SAND ) leverage will be elevated and may limit larger near-term deal flow or dividend increases, but Cartier said deleveraging appears manageable with potential options for accelerated repayment.
Cartier also noted Sandstorm's ( SAND ) guidance highlights production growth from 80K-85K gold equivalent oz in 2022 to 155K GEOs in 2023, with the potential to exceed the target depending on the advancement of certain projects.
Sandstorm Gold ( SAND ) recently reported better than expected Q2 GAAP earnings as well as quarterly records for net income, revenues and production .
For further details see:
Sandstorm raised at BMO after 'transformative' acquisitions