Sandstorm Gold Ltd (SAND)

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PRICE TARGET OF 15.75. I FOR ONE AM EXPECTING A HIGHER PRICE BY END OF 2013---BUT WILL BE HAPPY WITH 15.75
i AM EXPECTING MORE STREAMERS TO BE ADDED.

Sandstorm Gold
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RSSTwitterSandstorm Gold finances gold mining projects through an arrangement called gold streaming. A gold stream involves Sandstorm making an upfront payment to a mining partner that is in need of capital to build their mine, refinance their obligations, complete an acquisition or for various other reasons. In exchange for that upfront payment, Sandstorm receives a contract which stipulates the purchase of a certain percentage of the gold produced from the mine, for the life of the mine, at a fixed per unit cost.

.Full Sandstorm Gold profile here
inShare.0 Sandstorm Gold kept at strong buy by Casimir Capital on expected $50 mln operating cash flow this year
20th Feb 2013, 2:49 pm by Deborah Bacal
Casimir Capital analyst Eric Winmill trimmed his price target and maintained his strong buy rating on Sandstorm Gold Wednesday, incorporating the gold company's fourth quarter results, 2013 outlook and new metal stream agreements.
Casimir Capital analyst Eric Winmill trimmed his price target and maintained his strong buy rating on Sandstorm Gold (CVE:SSL) Wednesday, incorporating the gold company's fourth quarter results, 2013 outlook and new metal stream agreements.

The analyst notes that the timing of sales prompted a fourth quarter miss, with the company's cash flow per share of 9 cents below Casimir's estimate of 14 cents due to lower-than-expected gold production.

Sandstorm produced 7,243 ounces and Casimir estimated 9,510 ounces.

Fourth quarter earnings per share, on the other hand, beat the broker's views, as results were boosted by a $5.6 million non-cash gain on the buyback of the Black Fox gold stream by Brigus in the fourth quarter last year.

The company also provided 2013 guidance, with gold equivalent production expected in the range of 33,000 to 40,000 ounces.

Meanwhile, Sandstorm last week announced a $55 million metals purchase agreement with Entree Gold (TSE:ETG). The deal consists of a $40 million metal purchase agreement on Entree's Mongolia properties, a $10 million private placement and a $5 million 0.4% net smelter return purchase on the Ann Mason project in Nevada.

At the same time, Premier Royalty, in which Sandstormn holds a 60% stake, announced the acquisition of a net smelter return portfolio from Yamana Gold (TSE:YRI) for $9 million in cash and $1.1 million in share and warrant consideration.

"We have updated our model following these announcements. The net effect of the changes prompts a decrease to our NAV, EPS and CFPS estimates for 2013 and 2014, mostly as a result of added conservatism to bring our production forecasts in-line with management estimates," Winmill writes.

As a result, the broker trimmed its price target on the company to $15.75 from $16.50 previously.

The analyst concludes: "We continue to favour Sandstorm's approach with a gold-focused strategy, diversified portfolio, and insulation from rising capital and operating costs.

"In the near term, Sandstorm's existing portfolio assets are reaching critical mass and we forecast over $50mm in operating cash flow this year (at $1,800/oz Au). We expect additional gold streams to continue to be added in future."