Sandstorm Metals & Energy Ltd STTYF

Why the big sell-off?

[oooshiny]

Two deals announced this morning... should be GOOD news, no?

Anticipating a share issue?

[parapooper]

30% dilution for a few million cash flow in a couple of years is a pretty crappy deal. Depending on your view on future copper prices it's quite questionable the NPV of what they are buying is higher than what they are paying. If they don't think they can get a better deal than that within the next few years by diluting 30% then why are they even in this business? Didn't the CEO give

[greenandgold]

I think the copper stream is a great deal. 1) Sandstorm might only be spending about $17 million (they're getting about $3 million worth of Donner Metals shares). 2) Bracemac-McLeod is going to definitely going to be a mine because of low costs, infrastructure and a huge, well-funded operator. No risk of losing their investment. There are many copper mines (Copper Fox

[oooshiny]

I missed the part about the equity offering on my first pass.  I understand the drop now - it's not just anticipation of a share issue, it's notification of a share issue.  Need more DD on my part...

[ZeroZero]

The dilution is not a good.  SND is already almost at 230 million shares.  It is nothuge but it is not small either.  It would be harder and harder for the shares to climbif the management continues to dilute the float.