GREY:STTYF - Post by User
Post by
Melruneon Sep 03, 2013 9:55pm
557 Views
Post# 21716339
SND exchange a 13M$/year copper stream for a 2.4% NSR (1.8M$/year)???
SND exchange a 13M$/year copper stream for a 2.4% NSR (1.8M$/year)???
Hi all,
Just wanted to know if I'm doing the math correctly.
SND stream if Donner would not have default:
12-14M$/year
SND NSR part: 2.4%.
According to the technical report, assuming total Glencore revenue at 496M$, that result into
around 11.9M$ for SND or about 1.8M$ cash flow per year.
How can this deal be good for SND? It is clear that Glencore had the upper hand but to convert down the cash flow to about 1/10 of what was initially expected, I'm left wondering if I'm misunderstanding the whole thing.
I just don't understand why this deal is better than taking over the JV...
The sister company Sandstorm gold had the money to chip in... And SND could have return a large part of the cash flow to make it a deal that would have make sense for both SSL and SND shareholders.