Sandstorm Metals & Energy Ltd STTYF

RE:Classic case of

[MidasMulligan]

I don't think that a merger with SSL would be acceptable to SSL shareholders or the management. They wanted to have SSL a separate entity precisely because gold streaming companies typically enjoy a higher valuation... and SSL has been criticized even when they made back-to-back deals with SND in the past...

I think that the most sensible thing to do would be to finish the sale of coal assets, sort out GDN a CSI and use the cash to buy some new streams/royalties. According to the last conference call this seems to be the preferred course of action... If the management didn't want to issue new shares at 2-3 USD, it doesn't seems plausible that they would dilute current shareholders at current price... Last time Nolan said that he would rather wait, collect some cash and continue that way. Maybe they would be willing to issue new shares at a higher price.

Management expected to have around 10 mil. USD in cash shortly and taking into consideration the situation with CSI, the number could be a little higher, depending on the sale price of CSI (maybe around 4 mil. USD or more, if they could sell CSI for at least 50 mil. USD...). Let's say that they would be able to rise 15 mil. USD within a year. That should be enough for at least one medium sized stream (CZN?) or a few quality royalties...

I don't think that they would even consider liquidation, there is no reason for that...