Sandstorm Gold Ltd (SSL)

[SsMurry]

Negative Impact for SSL.

Some recent analysis from Daniel Earle shows negative impact from SSL.

Sandstorm's quarterly results were a slight positive from Daniel Earle's perspective, with the company reporting higher attributable ounces sold from its royalties and the financial results were roughly in line with both his estimates and consensus.

More important than the Q3/14 financial results, in Daniel Earle's view, was the 2017 guidance cut to 45 koz (down from 60 koz previously), due to the concern at Aurizona; Sandstorm is now assuming no attributable production from Aurizona in 2017.

Additionally, Luna Gold reported its Q3/14 financial results after-market yesterday; the company tightened 2014 guidance again and mining activity will be reduced from February 2015 onwards, according to the company.

Luna also announced all non-essential capital programs have been halted, includes the tailings dam raise, completion of Work Packages 1 and 2 of the Phase 1 expansion and refurbishment of mining equipment.

Daniel Earle has lowered his 12-month target price to C$4.25 from C$6.00 and he maintains his HOLD recommendation.