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Sandstorm Gold Ltd T.SSL

Alternate Symbol(s):  SAND

Sandstorm Gold Ltd. is a Canada-based precious metals-focused streaming and royalty company. The Company is focused on acquiring royalties and gold and other metals. The Company holds a portfolio of over 230 royalties, of which 41 of the underlying mines are producing. Its segments include Antamina, Aurizona, Blyvoor, Bonikro, Caserones, Cerro Moro, Chapada, Fruta del Norte, Hounde, Mercedes, Vale Royalties, and others. Antamina open-pit copper mine located in the Andes Mountain range of Peru, approximately 270 kilometers (km) north of Lima. Aurizona mine is in Brazil. The Blyvoor gold mine is located on the Witwatersrand gold belt, South Africa. The Bonikro gold mine is located in Cote d’Ivoire. Caserones open pit mine is in the Atacama region of Chile. Chapada mine is located 270 km northwest of Brasilia in Goias State, Brazil. Mercedes gold-silver mine in Sonora, Mexico. Black Fox mine and Froome mine are located in Ontario, Canada.


TSX:SSL - Post by User

Bullboard Posts
Comment by Ethanbrodie123on Mar 24, 2015 6:32pm
291 Views
Post# 23556978

RE:CIBC opinion - Says acquisition accretive to shareholders

RE:CIBC opinion - Says acquisition accretive to shareholdersright, but the warrants are a big kicker.. it really is also dillutive to the rest of shareholders so on a per share basis (you can take it to the bank that they will exercise on their warrants-- obviously sandstorm gold will be higher than 4.50 in 5 years!!) it is actually less than 7-8 million per year when you factor that in.. It is ovbiously a form a financing and we then will get more cash but its at a level where it puts a benchmark on where the shareprice management believes is fair, which i was very surprised.. I"m surprised they did not do half of those warrants is at 4.50 for a year maybe 2, and a 6.50-7.00 warrants for year 3-4.. obviously the cash flow will end up putting  sandstorm well over the 4.50 mark in a year or so.. I think this was a bit of a "gift" which kind of ticks me off as a shareolder.. i bet it would tick off shareholders that got in at 10.00 or over!!! wow I would be mad at this "gift" I just don't see how this deal warrants the warrants.. its a fair trade to have your money back in about 8 years with a mine.. there is still risk. from mining and pricing of diamonds.. its just the way it is... I dunno, I guess i'm no expert like cibc.. If there is a side benefit to this, then great, but I just don't see it.. The only thing i see as a potential is the mine life might be extended beyond the current timelines.. The one positive is it does give us more cash flow and makes this stock more "predictable"  So, daytraders might have more fun with this now.. including myself as i'm long but also wekk/month trade and sometimes day trade.. 
Bullboard Posts