Sandstorm Metals & Energy Ltd STTYF

RE:RE:RE:RE:RE:...

[zentrarianNZ]

There are other ways that Sandstorm Gold can support M&E apart from outright infusions of capital, which would not look good at all to Gold investors. They are already leaning heavily on the synergy option, for example, otherwise SG wouldn't have thrown a palladium bone to SM&E. (Remember, like platinum, Pd is also a precious metal, so SG had every right to keep it for itself.) Also there's the recent CNZ deal, which should benefit SM&E more than SG. All this is good because - as I have pointed out - so far the only remotely successful deals on the M&E side have been dual deals with SG. (This fact doesn't bode well for Watson's claim that someday "Cinder-ella" will be bigger than "Gold-ilocks", but then it's still early days.)

Nonetheless, it's safe to say that remerging the two companies is not in their playbook, and probably never will be. Not only because it would be an admission of failure of M&E streaming as a viable business model, but more importantly because it would sabotage the premium SG enjoys as a 100% PM streaming company, which is, of course, the primary reason SM&E was spun out in the first place. Not that I think it's going to happen, but Watson would probably let SM&E sink before he would let it climb into SG's lifeboat and jeopardize them both. (The recent movie "Life of Pi" comes to mind here.)