RE:Sandstrom Management Not Selective EnoughTo be fair,management signed the Mutiny deal expecting Mutiny to be able to close a bank financing package. If gold prices hadn't gotten clobbered, I believe everyone involved had every reason to believe that the financing would have closed. Understanding the risk to Mutiny if that package failed to close, Sandstorm structured the agreement so that less than 25% of the total investment would be paid up front.
Mongolia is a different story, but then again, one data point doesn't really prove the "kid in a candy store" theory.
Management's strategy of buying NSRs is a low-risk way to lock up attractive land packages for potential streaming deals when markets improve. NSRs "run with the land," so they stay in place even in the event of bankruptcy by the land owner. Because of the minimal upfront capital involved, timeline to production is less important. I prefer management to spend $50M now locking up quality projects that could ultimately pave the way for putting $500M to work when Sandstorm has the ability to raise equity at accretive valuations.