Is this the beginning of a new trend? Besides the obvious issues dillution and the share price, I'm trying to think of what this surprising deal means for streaming companies. If we look at what has happened in the past couple of years, streaming deals have been extremely rare (the focus has been on royalties), especially the smaller ones that would fit sandstorm's profile. I do not follow FNV, but I also own shares in Silver Wheaton and the only deals they've made are massive deals with producing mines from the majors.
I wonder if this actually is the start of a new trend - whereby streamers use their minority shareholding rather than cash in exchange for streams.
Short-term I agree that the effects on the share price are disappointing, but looking at the assets of the company it looks like the rewards will come in the next decade. Just think about what the share price will look like when both Mariana and Mongolia are producing. And by then a few other royalties will also be in production.
And this is likely to coincide with a much higher gold price. Who knows what the share price will look like if gold goes to $1800 again when this two big mines (and a few smaller ones from streaming deals) are producing.
Personally, while I also get frustrated when the share price does not grow, but I'm also mindful that this is a long-term game. I am in my 40s and I don't mind waiting. I look at the 2011 bull and think about what my portfolio will be worth when the next one comes (because it will). The main challenge by then will be having the guts to sell and not be too greedy!
GLTA