Tuesday March 24, 2015 10:55 AM
After Sandstorm Gold Ltd.’s (TSX:SSL)$56.8 million acquisition of IAMGOLD Corp.’s diamond royalty stream from the Diavik diamond mine, announced yesterday, analysts at CIBC see the deal as accretive for Sandstorm. After factoring in the acquisition, Sandstorm has roughly $40 million in cash and $100 million available under its revolving credit facility,” they say. “Considering recent management commentary, we expect the company to remain active of the acquisition front.” They add “ the Diavik mine royalty acquisition provides Sandstorm immediate exposure to a stable cash flowing asset, in a safe jurisdiction, run by a world-class operator in Rio Tinto, and improves the company’s attributable gold production profile with the top-end of 2015 guidance representing a 12% Y/Y growth (previously a decrease of 2%).”
By Alex Létourneau of Kitco News aletourneau@kitco.com
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