Heading for the coffee can?I've been a fan of Sandstorm Gold since the early innings (June 2011) but I long ago took them out of my core portfolio and moved them to the spec category. Now I have to say they may be on their way to the "coffee can", which is where I put my few highly speculative bets. I probably should have sold and gone home like most of the other early posters here, but at this point SAND is such a small percentage of my portfolio that it seems a shame not to wait and see how this game turns out.
Despite the collosal mistake of Collosus and the unfortunate experience with Luna and Sandstorm M&E, Sandstorm's management could still be seen as being very sharp in terms of understanding the mining business, and more than competent in negotiating deals. But IMO they are sorely lacking in appreciation of the wider economic picture, particularly in terms of political risk.
This deal may indeed have a lot of good aspects and could turn out to be a home run at the end of the day. But it seems to me just as likely to be striking out in the bottom of the ninth. With so many smaller miners on the ropes in safe jurisdictions like Canada, Mexico and the U.S., one has to wonder why they are allowing themselves to be tempted into venturing into Argentina, a political minefield if there ever was one. The winds may be blowing in their direction today, but they could just as easily change tomorrow.
I really thought that after Mongolia they were going to stick with the game plan and stop swinging for the fences.