Sandstorm Gold Ltd (NYSE:SAND)

10000000146

This is a small precious metals royalty company looking for growth. More risky than the well established names in this category, like Franco-Nevada, Royal Gold or Wheaton, but also with more upside potential if the gold price resumes its uptrend.

It owns a portfolio of 201 royalties, with 24 of them being mines currently in production and 21 projects in development. The remaining royalties are projects still in the exploration phase. Overall, it's a well diversified portfolio for a company this size.

A peculiarity is that Sandstorm Gold is not a pure royalty company as this time, since it purchased a direct 30% ownership of the high-grade gold project Hod Maden in Turkey. This brings some execution risk that investors in royalty companies try to avoid, but also an excellent potential for growth to be achieved by 2023 or 2024 if the project does not suffer any unexpected delay.

The Fed is likely to engage in Yield Curve Control (YCC) policies in a not distant future, when nominal yields rise to dangerous levels. Suppression of nominal yields will drive real yields further into negative territory, boosting precious metals prices.