Sandstorm Metals & Energy Ltd STTYF

Cash on hand

[elmothefearless]

Cash on hand at 9/30/12 of $37 million. We're going to ignore all receivables and other potential sources of working capital (i.e. investments).

$7 million is due to TBD sometime in 2013.

$15 million is payable to Colossus (SSL, actually) in a years time.

$7 million is being invested in Black Paw Coal (the new NDX).

$9 million is being advanced to Donner ($2 million in the forming of a revolving credit facility, $7 million in increasing our % of ownership in the stream).

Thus total outflows over the next year are $39 million.

Sooooooooooooooooooooooooooooo, any new deals will have to be financed with existing cash flows, or a placement.

Nolan says (here: https://www.internationalresourcejournal.com/E-MAG/2012/Nov/IRJ.php) that in the next 24 months he has plans for more deals involving copper, zinc, lead, and oil and gas. No more coal, thankfully :)

Cross our fingers and hope for the warrants not to be exercised... then for our price to rip through $0.70 in the new year.

[maypeters]

The last ")" seems to have come as part of the link leading to an error in the ip address. Nolan says (here:https://www.internationalresourcejournal.com/E-MAG/2012/Nov/IRJ.php that in the next 24 months he has plans for more deals involving copper, zinc, lead, and oil and gas. No more coal, thankfully :) Read more at https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0

[carinthian]

Hi Elmo! Any thoughts to the 15m options at 0,48 (=7,2m $$$)? Would pay nice for the TBD amount? Greetings from Austria! carinthian  

[unlimited_aw]

Elmo, nice summary, but do I see a contradiction here ? You cross your fingers and hope for the warrants not to be exercised, but know on the other hand that no new streams can be bought with the current cash position and thus a placement is needed. A placement at current levels is far worse than having warrants exercised.

[denisonod]

Elmo, Don't forget, the $15M payable to SSL for the Colossus stream can be in cash, SND stock, or some combination.  A lot depends upon the price of SND when the payment is due.  If it is well north of .70, then I can see using some shares.  If it is the current range, then they may have to use cash or they could have SSL carry them for another year, or less.  My point is

[wordless]

With the share price where it is now, getting the warrants exercised and raising cash at $0.70 without the expensive underwriting, legal and accounting fees that would go with issuing a new PP, sounds great to me. 

[elmothefearless]

Well, I said that I hope the warrants aren't exercised b/c $110 is too much money.  Nolan can do great things with $30 - $40 million plus the $15 million from cash flow in 2013.  The 2-3 deals he'd get done would get this thing well over $1.00 and significantly reduce the dilution from having warrants exercised.   I said that I hope the warrants aren't exercised, but

[DayOfReckoning]

Yes. The current bid/ask on the warrants supports this view.    I thnik they die on the vine.

[denisonod]

SND has to increase by 25% to get to the warrant strike price.  With six week remaining, chances are slim; however, they are not out of the question.  For two years, i have been rooting for a price in the mid .60s.  This would be idea and then seen a pop well above .70 in Q1.  GL        

[jake999]

I think it will take some input from Nolan , maybe another deal of some sort before Dec. 15  for the warrants to be in the money , unless of course the USD dives and copper etc. start climbing. 

[rintin]

Its interesting that a company who issued warrants now want them expire worthless. It may be in the interest of some shareholders but certainly not to the shareholders who bought these warrants in good faith and still hold them.

[jake999]

If I'm not mistaken, warrants are issued during a share placement to add incentive to buy the shares close to market prices.  "the shareholders who bought these warrants in good faith"   I hope also knowing the exercise date and strike price and risk of being out of the money.     

[rintin]

No

[rintin]

Not much incentive if they let them expire by holding back on some announcements to make it happen . Not saying they'll do it but.......

[bob4977]

Rintin, I believe the comments from SND were to the effect that they had no intention to extend the warrants as that would give benefit to certain shareholders to the detriment of other shareholders. If you own these expiring warrants you would want them extended. If SND were to extend these warrants for another year and the price was to go up to $1.20 in that time, the warrant holders would be

[zentrarianNZ]

Legitimate companies issue warrants for many reasons: To guage investor interest, to raise the company's profile in the market, to reduce costs of issuing new equity, and especially, as a bonus to shareholders willing to invest in a new issue, which is why they are usually offered in conjunction with ordinary shares as a "sweetener." (After which they are often traded separately in

[gopats]

rintin, The warrants of SND were issued with an issue of shares as an extra incentive to those participating in the share offering.  Warrants always come with a strike price and an expiry date.  EVERYONE that buys warrants needs to know what the strike price and expiry date are.  To buy out of the money warrants on the open market is always a risk.  For you to make money the

[witek]

gopats wrote: "The safer gamble IMO is buying one of SNDs beat down streaming partners.  This week I bought a little more NDX.VN for $0.02 in my RRSP account.  60-70% chance of a 10 bagger with reasonable chance of a hundred bagger and 30% chance I loose it all." Safer gamble is buying SND beaten down streaming partners? I made the same mistake myself by buying Royal Coal

[elmothefearless]

Yeah I'm suffering along with you gopats.  I picked up a really small position in NDX at $0.0325 / share.  What first got me interested was the fact that Nolan will have put in up to $40 million into this investment.  We all (obviously) agree that Nolan is a pretty smart guy, and that is a lot of money.  I read the NI 43-101 for NDX and their all in cash cost is $150.  

[gopats]

Elmo I wouldn't call my investment in NDX a suffering :)  I only invest a small percentage of my portfolio in lottery stocks.  I am just saying I see that investment as less of a gamble than the SND warrants.  I see SND as a very safe investment just not the warrants. The warrants are a gamble that I have decided does not have the risk reward that I look for in these type of