Sandstorm Metals & Energy Ltd STTYF

NOVADX UPDATE...........

[Kewl2]

Novadx Announces Full Commercial Production at Rosa Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2012) - Novadx Ventures Corp. (TSX VENTURE:NDX) -

Highlights:

• Full commercial production reached in December 2011.
• Net revenues of ~$2M after payment of Sandstorm coal stream.
• Higher contract prices negotiated for 2012 coal production

https://www.marketwire.com/press-release/novadx-announces-full-commercial-production-at-rosa-mine-tsx-venture-ndx-1608587.htm

Novadx Ventures Corp. ("Novadx" or the "Company") is pleased to announce that during December 2011, the Company moved to full commercial production at the Rosa Mine.

Since the commencement of full production in December, the wash plant at the Rosa Mine has produced approximately 13,800 tons of coal, which were sold at an average price of $166 per ton to customers in the coking coal and activated carbon industries. Total coal sales over this period were approximately $2.3 million yielding net revenues for coal sales of approximately $2 million to Novadx after payment relating to the Sandstorm Metals and Energy Ltd. coal stream agreement.

Novadx CEO Neil MacDonald commented, "We are pleased that the Rosa Mine and wash plant are beginning to operate at our commercial production target of 120,000 tons per year of clean coal. As we expected, our Rosa wash plant is producing a high quality product and we have recently negotiated higher contract prices for our coal in 2012. Accordingly, we anticipate our average selling price moving towards $180 per ton in this calendar quarter. We are continuing to look for ways to improve mine and wash plant efficiencies with the goal of exceeding our targets."

more at above link...............

[rborhi]

I like what SND is doing, but fully diluted they have almost 500,000,000 shares which disturbs me.

[Kewl2]

rborhi - IMO -- you have to look at share issuances for both SSL and SND in a totally different manner from regular mining companies. I view these as effectively "non-dilutive" because the value realized in any share offering is invested (essentially) 100% into net new commodity stream deals. This business methodology is not the same as a regular mining company where the proceeds

[Margret]

Sandstorm Gold has almost same number of shares fully diluted. The absolute number of shares does not matter, it's the total market capitalization that matters (number of shares times share price). That is what the company is valued at. At $120 million, SND is several times cheaper than Sandstorm Gold and other streaming companies. He's assuming all the warrants get exercised. If they get

[Kewl2]

Margret - your comments are bang-on. It would add that during 2011 our SND SP was "driven down" from $.85/share to $.38/share - a reduction of over 50% -- at the same time   as SND HAS Cash/Cashflow guarantees that are equal to 110% of todays  market cap. SND should be the "poster boy" for a low/zero risk investment during these

[Margret]

First stream to go to full production. Is that good news or bad news or HUGE news? Announcement is by Novadx and not Sandstorm itself, not yet anyway. This message board is way early ahead of the trend.    

[nig123]

whereas royal coal is in critical condition right now, borderline busted, does anyone know if the royal fiasco has been factored into our current share price. I know we have first rights to a lot / most of royals assest, but is lost production factored in ?

[elmothefearless]

Yes / Yes

[Margret]

I would think royal coal is factored in when Sandstorm shares are priced at _below_ it's cash on hand and cash guarantees. Sandstorm is diversified so it isn't the end of the world. For a small percent investment and senior security, Sandstorm could end up owning the entire company. But if royal issues shares to get 5 million as the restructure intended, they would be ok and royal has deal