Alcoa Inc (AA), Barrick Gold Corporation (USA) (ABX) & More: Stock Loses Luster Along With Gold

Still a glittering opportunity?
While virtually every name in the precious metal fell yesterday in line with gold’s percentage drop, or worse, gold streamer Sandstorm Gold really took it on the chin, falling more than 8% despite reporting a few days earlier a sharp jump in proven and probable reserves at its Aurizona Gold Mine in Brazil. It represents one of the streamer’s best opportunities for the future, as it has the opportunity to buy 17% of the gold produced for the life of mine at $400 an ounce on an inflation-adjusted basis.

Like the miners it partners with, Sandstorm enjoyed a huge run-up in its stock price, only to have it come crashing down around it as gold prices tumbled. Shares are down 46% from their 52-week high and have lost more than 30% year to date. Because it’s a streamer, though, and not a miner, it incurs less risk than they do, even as it’s highly dependent on its partners to come through and fulfill their agreements. If they run into regulatory or other problems as Barrick Gold Corporation (USA) (NYSE:ABX) has, Sandstorm will feel the effects just as much.

Regardless, it seems Sandstorm should still be able to ride out the storm in gold, and the dramatic decline in its stock may prove an attractive entry point for investors.

The article Aloca’s Stock Loses Luster Along With Gold originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey owns shares of Alcoa. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.