Sandstorm Metals & Energy Ltd STTYF

Payback two years

[unlimited_aw]

Production:
1,000 tonne per day
320 days a year
= 320,000 tonne a year

Grades:
Palladium 4 g/t

Output:
Palladium 320,000 * 4 / 31.1 * 35% (Sandstorms share) = 14,400 ounces

Current prices:
Palladium $ 675

Ongoing payment:
Palladium $ 100

Revenue stream per year:
Palladium 14,400 * (675 - 100) = $ 8,3 million
Total Sandstorm Metals & Energy $ 8,3 million (payback two years)

[elmothefearless]

I ran the same calculation and got similar numbers.  I used 350 operating days and 3 g/t.  Anyway, our methodology is correct.   CSI will buy back 50% of the SND stream, almost guaranteed.  Still, that leaves us with a $5.25 million investment that could earn $4 million / year for over 10 years.

[gopats]

Great news for both companies but materially better for SND given its smaller market cap etc.  How SSL could go up 7.6% with a market cap of 935 million and SND only go up 14% with a market cap of 87.5 million on this deal is beyond me.  Especially if you consider SSL has been rising over the last few weeks in anticipation and SND was wallowing.  Market has always been slow on the

[Metalschic]

I agree with what you are saying.  I like the deal, esp the diversitiy with pt.  I would still like to several pure silver streams, because now we can't say that SSL isn't only a pure gold streaming company anymore.  ;)   I was a buyer of SND today as well, but I'm holding my 2014/2015 warrants, as there is still massive upside to the warrants.  I was

[elmothefearless]

Thinking more, there are a couple of things we need to take into consideration:   1. Palladium recovers are estimated at 80%, so reduce cash flow by 20%, or ~$1.6 million, i.e. ~$6.7 million / year   2. It is virtually guaranteed CSI will repurchase 50% of the stream, so reduce our cash flow to ~$3.35 million / year   So, to sum up, we purchased ~$3.3 million cash flow / annum for