Sandstorm Gold: National Bank's 'Outperform' Rating and C$10.75 Price Target
Thursday, Nov 28, 2024 11:21 am ET
3min read Sandstorm Gold Ltd. (SAND.TO) has received a positive outlook from National Bank of Canada (NBC), with an 'Outperform' rating and a C$10.75 price target. This bullish assessment reflects the company's strong fundamentals, strategic acquisitions, and potential for growth in the precious metals sector.
NBC analyst S. Nagle estimates that Sandstorm Gold will post earnings per share (EPS) of C$0.06 for Q3 2024, up from their previous estimate of C$0.04. The consensus estimate for Sandstorm Gold's full-year earnings is C$0.23 per share. These positive earnings expectations are supported by the company's recent financial performance, which included EPS of C$0.04 in Q2 2024, beating the consensus estimate of C$0.03.
One of the key factors behind Sandstorm Gold's strong performance is its diversified portfolio of royalties and streams. With over 230 royalties and streams, of which 41 are currently producing, Sandstorm Gold generates steady cash flows from its operations. This diversification reduces the company's exposure to individual mine-specific risks and ensures consistent revenue streams.
Additionally, Sandstorm Gold's strategic acquisitions have played a significant role in its growth. In 2017, the company acquired the Antamina royalty, and in 2020, it acquired the Aurizona royalty. These strategic moves have expanded Sandstorm Gold's portfolio and contributed to its revenue growth.
Sandstorm Gold's low-cost production and efficient operations also contribute to its robust earnings and valuation. The company's streamlined production profile and efficient use of resources result in a low cost structure, enabling it to maintain profitability even in challenging market conditions.
Another attractive aspect of Sandstorm Gold is its consistent dividend payouts. The company pays a quarterly dividend of $0.02, representing a $0.08 dividend on an annualized basis and a yield of ∞. Sandstorm Gold's payout ratio is currently 57.14%, indicating a sustainable and growing dividend.
Investors may be attracted to Sandstorm Gold due to its strong earnings growth, consistent dividend payouts, and the positive outlook from analysts like NBC. As earnings and dividends continue to grow, Sandstorm Gold's stock price may follow suit, making it an attractive option for those seeking exposure to the gold mining sector.
In conclusion, Sandstorm Gold's 'Outperform' rating and C$10.75 price target at National Bank of Canada reflect the company's strong fundamentals, strategic acquisitions, and potential for growth in the precious metals sector. With a diversified portfolio of royalties, low-cost production, and consistent dividends, Sandstorm Gold is well-positioned to deliver long-term value to its shareholders.
NBC analyst S. Nagle estimates that Sandstorm Gold will post earnings per share (EPS) of C$0.06 for Q3 2024, up from their previous estimate of C$0.04. The consensus estimate for Sandstorm Gold's full-year earnings is C$0.23 per share. These positive earnings expectations are supported by the company's recent financial performance, which included EPS of C$0.04 in Q2 2024, beating the consensus estimate of C$0.03.
One of the key factors behind Sandstorm Gold's strong performance is its diversified portfolio of royalties and streams. With over 230 royalties and streams, of which 41 are currently producing, Sandstorm Gold generates steady cash flows from its operations. This diversification reduces the company's exposure to individual mine-specific risks and ensures consistent revenue streams.
Additionally, Sandstorm Gold's strategic acquisitions have played a significant role in its growth. In 2017, the company acquired the Antamina royalty, and in 2020, it acquired the Aurizona royalty. These strategic moves have expanded Sandstorm Gold's portfolio and contributed to its revenue growth.
Sandstorm Gold's low-cost production and efficient operations also contribute to its robust earnings and valuation. The company's streamlined production profile and efficient use of resources result in a low cost structure, enabling it to maintain profitability even in challenging market conditions.
Another attractive aspect of Sandstorm Gold is its consistent dividend payouts. The company pays a quarterly dividend of $0.02, representing a $0.08 dividend on an annualized basis and a yield of ∞. Sandstorm Gold's payout ratio is currently 57.14%, indicating a sustainable and growing dividend.
Investors may be attracted to Sandstorm Gold due to its strong earnings growth, consistent dividend payouts, and the positive outlook from analysts like NBC. As earnings and dividends continue to grow, Sandstorm Gold's stock price may follow suit, making it an attractive option for those seeking exposure to the gold mining sector.
In conclusion, Sandstorm Gold's 'Outperform' rating and C$10.75 price target at National Bank of Canada reflect the company's strong fundamentals, strategic acquisitions, and potential for growth in the precious metals sector. With a diversified portfolio of royalties, low-cost production, and consistent dividends, Sandstorm Gold is well-positioned to deliver long-term value to its shareholders.
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