'When people can see the end, gold typically starts ripping' - Sandstorm Gold CEO Nolan Watson
Gold is just getting started, said Sandstorm Gold Royalty CEO Nolan Watson.
On Wednesday Watson spoke to Kitco at the Vancouver Resource Investment Conference. Sandstorm Gold Royalty (TSX: SSL) is a precious metal streaming and royalty company.
In May Sandstorm announced it was acquiring Nomad Royalty, as well as nine royalties and one stream from BaseCore Metals, for total consideration of $1.1 billion. With the close of the transactions, Sandstorm said it is increasing its 2022 production guidance to between 80,000 and 85,000 gold equivalent ounces and to 155,000 gold equivalent ounces by 2025.
The day Kitco talked to Watson markets sold off sharply with the S&P 500 down 4%, its worst one-day decline since June 2020. The same week the GDXJ was at a 52-week low. Watson called the recent market drop "brutal" but past cycles should benefit precious metal miners.
"There's definitely been a massive sell-off in the precious metals equity space. It's been brutal quite frankly, but you kind of expect it. Historically...at the very beginning of a rate-hike cycle, you see gold start pulling back, and then once you get about halfway through that rate-hike cycle people realize 'OK, I can see the end,'" said Watson. "Gold's really good at looking forward 12 months and when people can see the end, gold typically starts ripping."
Kitco Mining special coverage of the Vancouver Resource Investment Conference is brought to you by First Gold Mining.