BMO Resumes Coverage On Sandstorm Gold With A Price Target Raise

BMO raised the price target of Sandstorm Gold Ltd SAND shares to $5.50 from $5 after resuming coverage with a Market Perform rating.

BMO had a period of research restriction related to the company's previously announced bought deal public offering of 12.9 million shares (including the over-allotment) at a price of $4.45 per share for gross proceeds of $57.5 million.

Sandstorm intends to use proceeds to strengthen its balance sheet and improve its long-term liquidity position by reducing the balance on its revolving credit facility.

At the end of first quarter, Sandstorm reported a net debt position of $72 million, while the company can borrow up to $110 million on its revolving credit facility.

Separately, the company announced that it has sold approximately 12,500 attributable gold equivalent ounces during the second quarter of 2016. Sandstorm is expected to release its detailed financial results for the second quarter in early August 2016.

At time of writing, shares of Sandstorm Gold fell 5.36 percent to $4.77.