RE: RE: RE: RE: Great News I am sure no leak came from Sandstorm managment. These guys are first class and there have been many deals in the past when the market was surprised by the deal.
The difficulty is there are other partners and lawyers etc that get involved when a deal is finalized. If some big players get wind of something that will benefit SND but be seen as a negative for a partner they can sell shares in the partner and buy SND. That is a dangerous game though as insider trades are clearly illegal and SAND is now on the New York exchange and they are much more vigilant about insider activity. That said SND is not yet there. That said a lot of these deals involve both partners.
I bough more on the news and am surprised but not discouraged in the slightest that the price is slightly lower this morning. SSL would have rocketed upward on a new stream but the market is much more skeptical of these out of favour resources like copper, met coal, etc.
Speaking of met coal, if any of you gamblers in the SND warrants want to invest in another gamble that has a very good chance of paying off handsomely consider Novadx NDX.V (sandstorms met coal streaming partner). Their shares are selling for $0.025 - $0.03 down from a high of 30 cents this year and over 60 cents last year. Yes SSL got a heck of a deal with NDX therefore NDX gets less of the profit but if you agree with Nolan Watson that NDX now has the financial strength to survive than I would say this is an easy 5-10 bagger with a chance for far more if the stars allign and met coal price soars in the next 5 years (certainly possible - it`s happened before). I only bought a few thousand $$ worth as it`s a gamble but I think I have at least a 60% chance of a 5 bagger and less than 40% chance of it going bust.
Now back to this recent deal. Copper has much stronger fundamentals than most base metals going forward. Many copper stocks are firmly moving off their lows for the year. This latest deal is a home run for SND IMO. Those on the DON board are understandably frustrated as they now have less profit going forward as they expected. That said this is a good deal for them compared to raising money by issuing shares. I see this as similar to the Collosus deal (except copper is less exciting than Palladium) as we have a significant deal with a partner that is surely going to production in a relatively short span of time. This extra money from SND and SSL means Donner has sufficient capital to get the mine up and running. Once the mine is operating SND will have significant cash flow from this stream. This stream right now is the company maker and we just increased it significantly for very little cash from SND AND Donner no longer can buy back half the stream. I boosted my holdings significantly on this news. Now my holdings in SND are half the weight of my holdings in SSL as I see far less risk in SND going forward.