GREY:STTYF - Post by User
Post by
unlimited_awon Nov 04, 2012 11:51am
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Post# 20560321
In the news
In the news https://resourceinvestingnews.com/45152-3-stocks-big-moves-sandstorm-metals-emperor-oil-manitok-energy.html
Shares of Sandstorm Metals & Energy (TSXV:SND) were among the most actively traded on Friday and Monday, crossing their 52-week high this week. The company released no news, but a Bloomberg Businessweek article outlining the company’s strategy stirred investor interest in the company.
Businessweek reported that the company, which enters into commodity purchase agreements with firms that have advanced-stage operating projects, could have found a “lucrative niche.”
Nolan Watson, chief executive of Sandstorm Metals & Energy, cofounded Sandstorm Gold (TSXV:SSL) before forming Sandstorm Metals. Sandstorm Gold buys bullion from mining companies in streaming deals “that pay in advance for a percentage of output at a discounted fixed price.” The company then “sells the gold to reap the spread between the purchase price and the spot price.”
Sandstorm Metals & Energy applies the same financing model for firms in the oil, gas and non-precious metals sectors.
“I firmly believe [Sandstorm Metals & Energy] will be the larger of the two entities in the long run just because the space is so much larger,” Watson told Businessweek. “The companies are bigger, the mines are bigger, there’s more of them and we’re going to take advantage of that.”
Paradigm Research initiated coverage of shares of Sandstorm Metals last week with a “speculative buy” rating. Two analysts currently rate the company a “hold,” according to Reuters.
More than 3.1 million shares of Sandstorm Metals changed hands on Monday, following a volume of more than 3.5 million on Friday. The shares closed at C$0.50 on Monday, up from Friday’s close of $0.48. The company’s shares were up 8 percent on Tuesday at $0.54.