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Sandstorm Metals & Energy Ltd STTYF



GREY:STTYF - Post by User

Comment by elmothefearlesson Jan 28, 2013 12:19pm
383 Views
Post# 20900023

RE: RE: $15M available for one more stream

RE: RE: $15M available for one more stream

Some of those numbers you quoted are not accurate.  For example you estimate $1-2 million in cash flow this year.  We will earn $1-2 million from our TBD investment, $1-2 million from NDX if they get the placement done, and Donner should earn about 5.5 million lb's x $2.80 = $15 million.

 

So all together we are probably looking at somewhere between $15 - $18 million in cash flow after G+A.

 

You are right that we have $15 million left for a deal, but of that $15 million we have subscribed for $7 million shares of NDX, but we also get $6 million cash back from TER, so no impact to your assessment.

 

So, currently, we have $15 million available for a deal, then $15 million available for another deal if we pay SSL back in equity, and we will earn another $15 - $18 million for another deal over the next year.

 

If the stock gets rerated to $0.75 or higher by July I would expect us to pay in equity because we would be trading a lot closer to fair value... around 10-12x forward cash flows.

 

So ultimately we have enough for 3 small deals ($15 million each), two medium deals ($20 million each), or one big deal ($30 - $40 million).

 

imho, not as bleak as you've made it sound

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