Sandstorm Metals & Energy Ltd STTYF

The future of Sandstorm Metals

[materialsgirl]

A few days ago I expressed the opinion that a royalty company such as Sandstorm Metals could not go bankrupt.

I continue with that opinion and here is another one.

In theory, on paper, SND cannot go wrong. With a diversified portfolio, there can be an odd calamity but on balance the show goes on BUT

In reality I am beginning to think that the company may go out of business and refund money to shareholders.  Why  so?  I am beginning to think that small royalties in coal, oil, iron ore, etc may not work.  The only companies is the Sandstorm space that look for money are in dire straights and the failure rate of these may be enough to wipe out the gains on the good ones.  Sandstorm could still continue and survive but why bother.  If you are just paying a quarter to get back a quarter or even 30 cents the return on investment is not sufficient to manage the whole operation.

My opinion now is that Sandstorm Metals will just give up this sideshow (for Sandstorm Gold).  The other option would be to do bigger deals;  $50m, $100m etc with bigger safer companies.  But again why bother?  You can get better multiples and more cachet doing deals in gold, silver or precious metals.

Betcha

 

Mat

[doomz78]

I dont think that your vision for this company is the same as Nolan Watsons.  You are speculating for the sake of speculating.  I know less having read your article about Sandstorm Energy and Metals. 

[cloudrunner]

What are you talking about going bankrupt etc, "sideshow" ??? You are having a conversation out loud on a BB with yourself and no-one else is participating. Note to (your)self... think more, speak (type) less.

[elmothefearless]

I agree that SND has only done deals with companies that are desperate for cash, but I disagree that these are the only companies that, going forward, SND can do deals with.  SLW began as a way to arbitrage out the premium that silver companies traded at relative to gold companies.  If I recall correctly golds were trading around 1.0 x NAV and silver companies were about 2.0 x NAV.  

[pictgroup]

excellent post Elmo.  matgirl is expressing legitimate concern but i agree the value proposition remains intact if revamped to target byproduct or complimentary streaming deals with larger operators.  reduce operational risk, still play the streaming leverage space.  that said, gold price vs coal & gas depression was really the primary dictator of SND vs SSL

[bob4977]

I have a different opinion of the Entree deal. All I have seen are rumours of a problem. If you think that SND was dumb enough to lend money to a company when they were on the cusp of having their mining liscence taken away then you should run for the exits and sell your SSL on the way out as well. The big money does not seem to think this is a major problem so I would just relax a bit. I have a