A Brighter Way
to Invest in Gold
Hundreds of Royalty Assets in a Single Investment
You want exposure to gold but are looking for better returns. And investing in gold mines feels too risky. What about a gold investment that reduces the risk of mining stocks while typically outperforming the gold price?
Sandstorm Gold Royalties holds a portfolio of 229 royalties on mines around the world. We don’t operate the mines, limiting exposure to common operational risks. Our stringent due diligence process allows us to select some of the best mines in the world, providing stable cashflow and more exploration upside than any other gold royalty company. Less risk and more upside? Now that’s a bright idea.
Similar to a music royalty, a gold royalty is simply a contract that gives the owner (i.e. a gold royalty company) rights to a portion of the final product. This can be a percentage of revenue or actual gold production (called a "stream"). Gold royalty companies pay an upfront sum for royalty rights and use these contracts to finance mining companies in need of capital. Since royalties typically cover the life of a mine, gold royalty companies benefit from the exploration upside that may extend the life of the mine and increase the amount of revenue (or gold) they receive from the mine at no additional cost.
When gold is discovered on a property, there are a number of stages that it must go through before it can become a cash-flowing mine. The process is often time-intensive and requires a lot of upfront capital.
Mining companies use various exploration techniques like rock sampling, geological mapping, and drilling on the property. Technical studies are completed to determine if the gold deposit could be a viable mine.
If the exploration studies indicate the potential for an economical mine, the project moves into development. Construction requires lots of capital, which can be partially funded through a royalty or stream financing.
Once construction is complete, the project moves into production to begin producing gold. If the mining company used a royalty to fund development, they begin making payments to the royalty owner.
A royalty owner receives payment as a percentage of the revenue from the mine. A stream agreement holder receives a percentage of gold production at a pre-determined discount, then sells the gold at market price.
Whether you're new to investing or a long-term shareholder, we're happy to connect with you and answer any questions. You can contact us directly or browse some Frequently Asked Questions to get you started.