RE: RE: Sandstorm Gold Acquires Gold Stream From M correct me if I'm wrong, but 8250 ounces (assuming 55k ounces/yr) at $1700, minus $500 cash cost is $1200 profit/ounce. 8250 ounces x $1200 = $9.9 million/yr return.
I agree that Mutiny will most likely purchase 1/2 the stream before the term is up, which will leave SSL with 7.5% after 2-3 years of production.
One other thing we must keep in mind is that gold will in all likelihood be much higher than $1700/ounce once this stream is starting to ramp up. Then you're looking at 7.5% (for FREE after initial couple years gold deliveries and $25 buyback by Mutiny) of $2500? $3000? higher?
And as Watson has proven time and time again, virtually every stream they have purchased has expanded beyond the initial estimates substantially.
Nice stream.