Sandstorm Metals & Energy Ltd STTYF

RE:RE:Where do we go from here

[zentrarianNZ]

I assume you guys are joking about a dividend, because at this stage of SM&E's evolution (or even of SG's) that would be a tacit admission of a failure of the business model. I would sooner expect a liquidation than a dividend. In any case they would amount to pretty much the same thing, as SM&E would no longer have the means to grow itself beyond its present size, which it's difficult to call impressive.

The fact is that it's hard to see a viable alternative to dilution in the short to mid-term, if the company is going to get itself out of the doldrums. I think most would agree at this point that spinning-out SM&E was a bit premature, looking at it with the benefit of hindsight. Perhaps there is a way to fold the company back into SAND without imparing the latter's status as a pure PM streaming company, while preserving the opportunity for a sort of "do-over" at some more opportune time. I'm not sure what benefits this would accrue to either company, though, since they already share administration costs and Gold's finances are presumably off-limits to M&E.

At some point there is going to be a rush into commodities that will push SND past critical mass, but there are likely to be a lot more failed companies in the meantime. It seems to me that SM&E could wind up joining them if it can't manage to find the sweet spot between those juniors without the need for help and those with little else but hope.