Sandstorm Metals & Energy Ltd STTYF

novadx stream

[andyxXx]

That is also my big question. Almost everything in the annual report was expected, except this impairment. Which scenario is behind this impairment:

1. Novadx stream is written-off and the money has gone.
2. Nolan wants to be on the safe side and made this impairment. Maybe in some years the stream will start and we make some money.

What do you think? Elmo what is your opinion?

[steelsjh]

  Impairment is a complex accounting issue. I would say both issues you noted above are behind the issue as impairment is only recognized when the recoverable amount (higher of fair value - cost to sell or value in use) is below book value.  This would "Novadx stream is written-off and the money is gone".    Recall, that the write off is only from an accounting

[bob4977]

I am a little choked that SND spent money on the NDX asset while they were waiting for NDX to raise more cash. The good news is that natural gas is now above $4. No idea if it will stay there for long but it does make the economics of coal a little better. My worry right now is TBD. You would think that their share price would hold up better with the improving nat gas story but they are tanking

[rjy]

Ya, isn't Novadx finished or does the company still have legs to keeping going? From what I've read about Novadx is that they have amazing assets and have about 30 years of coal production. If we could get this going it would contribute to cashflow big time

[bob4977]

The Novadex coal is still there. We would need someone with the money to buy us out or at least start the mine. I think you need higher coal prices for that. Bob