Sandstorm Metals & Energy Ltd STTYF

RE:RE:RE:RE:Dnever H reply

[carinthian]

Hi!


I am not sure how the rights between Donner, Glencore Xstrata and SND are divided? If Donner defaults on the cash calls to Glencore Xstrata then as far as I know Glencore Xstrata has the right to cover any shortfall from Donners share of production? Is it then that way that if Doner cannot pay cash SND get's the right to step in and pay cash and Glencore Xstrata has the right to buy SND and SSL out with 49mio?

And in case SND has to pay cash that exceeds the current amount in the treasury SSL is unlikely to step in as investors made it quite clear to management that they do not like to see such arrangements in the future as gatlintrades answered to me when I put the same thought up.

I am no specialist but personally I guess the best would be if Donner does not default because Sandstorm might be able to pay for the full 35% which could maybe double expected cash flow from this but as you said it seems very unlikely that Glencore Xstrata won't pay 49mio for a cash flow of 20-25 over at least 4 maybe 7+ years? At least then there would be no need to further dilute. Or maybe Glencore Xstrata wants to have a partner like SND thinking long term and expecting more deals in the future? ;-)

I have no idea what this thing is worth but IF they get 40mio. cash from this the company would be priced around cash (40mio/33,3 = 1,20) getting 2 streams and 1 royalty for free. And free seems to be a reasonable price in my eyes. Anyway I guess it would be better if Donner does make it to the end of the rainbow, mine life can be extended and we get 10-12 mio a year flowing for the years to come. And when DON is doing ok I hope that our shares will gain some worth too which could give us additional money selling them.

So maximum of 6 more weeks to wait for the proposed conference call as the new presentation does not give a lot of new information. :-)

And as always: Just my personal thoughts. DYODD

carinthian