Today Sandstorm Gold (SAND), one of my favorite streaming companies, announced production figures for 2017. Here is the chart showing historic figures:
source: Simple Digressions
The picture is clear – there is steady growth at Sandstorm. Each year the company adds new streaming / royalty contracts and lifts up the amount of gold equivalents delivered.
However, let us look at the company’s sales from a short – term perspective (two years). Here is the appropriate chart:
source: Simple Digressions
Well, now the picture is not that bright – since the first quarter of 2017 the sales have been going down (look at the red arrow).
What is the takeaway for investors? Well, I would not bother too much about the short-term perspective. Precious metals mines do not deliver the same or only higher amounts of gold and silver each quarter – sometimes production goes down for a while. It is the long-term perspective that counts so…relax. Sandstorm is on the right track.
