RE: RE: RE: Any thoughts on volume If we raised $50 million, there is a lot of leverage, and I think it would support a higher stock price.
Yes, that's a stunning point about streamers generally. At a gold miner, $50M in the bank is maybe worth $50-$70M (depending what they use it for - capex, acquisition, etc); at an exploreco that $50M is worth nearly nothing since it could just get spent on extravagant salaries and dead-end exploration.
But $50M in the hands of a streamer should automatically be valued at 2-4x that, right? After all, all they have to do is sign a streaming deal.
Also, I was wondering more generally about valuing streams. E.g., if SSL earns $X on a gold stream in one year, that money is going to be plowed back into buying more streams, isn't it? Which will have a higher value than the money spent, right? So how do you do a NPV cash-flow calculation for a stream when the future incoming cash itself gets multiplied in buying more streams, whose future incoming cash then gets multiplied buying more streams the next year, and so on?
I think this is the secret behind the rich valuations of the streamers. Everyone seems to think they're all valued too richly, but maybe they don't understand that the money they're making is just going to keep multiplying till either there's increased competition or the metal prices collapse. And good luck with either of those ever happening.