Sandstorm Metals & Energy Ltd STTYF

NSR and 8%

[Thundersole]

We are turning into a royality company.

[bob4977]

At least Colossus is not a dead loss like the coal deals have been so far. Royalties are not that much different than streams so I am fine with that. The hit we take comes from the likelihood that the royalty will not produce anywhere near enough income to us that the stream would have.The market already gave SND a haircut on the Colossus deal so salvaging some money out of CSI is a bonus for

[bargainhunts]

Surely the 8% equity stake alone is potentially worth more than SND's current market cap? 

[Thundersole]

I wouldn't think so that would mean that CSI has a market cap of $475 million. SND's current market cap is $38 million, 12.5*38,000,000=475,000,000. Not even close.

[bargainhunts]

I may have overstated that. But assuming they can recapitalize the mine under new management and it is up and running, in a few years from now that stake is potentially quite valuable. I emphasize the word potential. Given the tiny size of our current market cap it could be very material. That's what I meant to say. Obviously I would have preferred the original stream, but this is not the

[Thundersole]

Agree that there will be more value in a couple years. Time = Money, that is the equation.

[fruitvale3067]

Does anyone have any idea what the NSR could bring in annual cash flow? A month ago I seen an article naming the largest gold deposits. Serria Palada was estimated to contain approx. 2,300,000 ounces of gold. I can't say what the estimates for Paladium or Platinum are. Now todays press release says a 0.4 % Smelter royalty. I'm assuming thats for gold, platinum, and paladium. Kind of tough

[bob4977]

The revenue for SND is about $1.2 million per year from the .4% NSR. I heard figures of about 200,000 oz gold, 30,000 oz platinum and 20,000 oz palladium on an annual basis. I just averaged that out to 240,000 gold equivalent oz per year multiplied by $1250 as the price per oz and then multiplying that by .4% and you get roughly $1.2 million. What that tells me is we get some income out of the

[maypeters]

Hi Bob, If CSI ever comes into production - the approxmiately 8% of shares will definitly be worth something.  Let us hope for the best out of the total mess - it is a real wonder where the $60 million raised few months ago went.  GLTA

[bargainhunts]

So if we look a couple of years out, assuming Serra Pelada gets up and running the cash flows from our two NSRs (Serra Pelada and Donner) will still only be 4-6 million, maybe 5-7 mn at best. Not enough to build up a sizeable cash chest to invest in new streams - for several years. We just have to hope they can extract some value from Gordon Creek and perhaps the 8% CSI stake in the meantime. As