Sandstrom Management Not Selective Enough
I think the management team at Sandstorm Gold is not being selective enough in it's gold steam decisions and is going too fast too soon. If you have lots of companies in need of capital, you should be careful to only pick the "best of the best", even if it means passing on some decent plays. Why cut a streaming deal with a microcap company like Mutiny? Why cut a deal for a gold stream in Mongolia? These guys are behaving like kids in a candy store - grabbing up lots of stuff in a short period of time, then getting home and realizing that some of the stuff tastes bad. The downside to the price of gold continuing to trade at $1,300 or less is that the companies SSL has streams with may not be able to deliver on expected production because their margins are too thin.