10 Best Gold Royalty and Small-Cap Gold Stocks to Buy

3. Sandstorm Gold Ltd. (NYSE:SAND)

Number of Hedge Fund Investors: 18

Market Capitalization as of December 23: $1.60 Billion

Sandstorm Gold Ltd. (NYSE:SAND) is a Canadian gold royalty and streaming company headquartered in Vancouver. The company focuses on acquiring royalties and metal purchase agreements from advanced-stage mining companies worldwide. Through its business model, Sandstorm Gold Ltd. (NYSE:SAND) provides upfront payments to mining companies in exchange for a percentage of their future production or revenue. As of September 2024, the company holds a diverse portfolio of 243 royalties and streams, including 41 producing mines.

Sandstorm Gold Ltd. (NYSE:SAND) places a strong emphasis on key development assets such as the Greenstone Gold Mine, Platreef, Hod Maden, and the Robertson Deposit at the Cortez Complex. Operated by Equinox, the Greenstone Gold Mine has an average throughput of 20,000 tons per day, which represents 76% of its designed capacity. As Greenstone continues to ramp up production, it is anticipated to significantly enhance Sandstorm Gold Ltd.’s (NYSE:SAND) gold equivalent production. Similarly, Platreef, a project under development by Ivanhoe Mines, is set to become one of the world’s largest and lowest-cost producers of platinum group metals (PGMs) and gold. Once Phase 2 of Platreef becomes operational, it is expected to contribute approximately 10,000 ounces of gold annually to Sandstorm Gold Ltd. (NYSE:SAND), with the potential to increase to 15,000–20,000 ounces annually during Phase 3.

Sandstorm Gold Ltd. (NYSE:SAND) maintains a disciplined approach to capital allocation, prioritizing debt repayment and selective share repurchases. During Q3, the company repaid $9 million in debt, with this momentum increasing in Q4 as an additional $10 million was repaid in the first five weeks. As of November 8, the company’s debt has been reduced to $369 million, with further reductions expected. By lowering its debt levels, Sandstorm Gold Ltd. (NYSE:SAND) aims to strengthen its balance sheet and enhance its financial flexibility.