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- Sandstorm Gold Ltd.
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Overview
Company Summary
Sandstorm Gold Ltd. is a Canadian-based gold royalty and streaming company. It operates on a unique business model where it acquires gold streams or royalties from mining companies in exchange for upfront financing or cash payments. These mining companies benefit from Sandstorm's financial support, while Sandstorm earns the rights to a percentage of the future gold production at a predetermined price.
Rather than engaging in direct exploration and mining activities, Sandstorm focuses on providing capital to mining companies in the early stages of the mining process. In return, the company receives a "stream" which entitles it to purchase a fixed amount of gold, typically at a reduced price, or a "royalty" where it receives a percentage of the gold production.
By investing in a diverse portfolio of mining assets across the globe, Sandstorm mitigates the risk associated with any specific mine or region. This business model allows Sandstorm to benefit from the potential upside of successful mining operations without assuming the operational and financial risks typically associated with mining companies.
Sandstorm Gold has established itself as one of the leading companies in the precious metals streaming industry. It has investments in numerous gold projects globally, including in countries like Canada, Mexico, Brazil, the United States, and others. The company provides a vital source of financing for mining companies, allowing them to advance their exploration and development projects.
Overall, Sandstorm Gold Ltd. plays a crucial role in the precious metals industry by providing capital to mining companies in exchange for future gold production, allowing both parties to benefit from the potential success of mining operations.