This is a very promising sign, and a reflection of Sandstorm's strong capital position in the face of falling gold prices. We have not seen many gold companies in a position to buy back their own shares, and many have been issuing shares as they attempt to stay alive or finance projects that banks want no part of in the face of falling gold prices. Furthermore, we often see stock buyback programs initiated near market highs - not lows - as is evidenced by the aggressive programs we've seen of late.
Investors will recall that I argued that the market is valuing Sandstorm more as a gold junior than as a royalty/streaming company. While it is riskier than your typical gold royalty/streaming company, many of the company's royalties and streams provide a solid cash flow stream - the more speculative assets in the portfolio are being given very little value.
When the market turns, Sandstorm will likely command the premium it once did, considering the fact that royalty/streaming companies have a unique advantage over their mining company counterparts - low, stable costs.
With this in mind, and considering the company's current valuation and its large cash/equivalent position ($91 million as of the end of Q3), this may be a good time to consider getting long the stock.
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