Sandstorm Metals & Energy Ltd STTYF

Classic case of

[materialsgirl]

Sometimes the macro strategy is excellent but the devil is always in the detail.  the macro strategy for SND was good. But the process for selecting where to put the money and the conditions they accepted have all turned out to be terrible.  They clearly went in too early into companies that were too small.  They also did not judge management properly in some cases.

The concept of buying royalties in minerals other than precious metals is still 100% valid.   SND is better prepared than any other organization to execute in the future.

SND has no debt and no significant ongoing expenses.  This is positive.  They also have very little cash  or cash flow to fund new royalties so it looks like a sleeper for the rest of the decade.

Possibilities include

1  merge with SSL.  This seems likely.  SSL may not like it but SND might be only 7% or 8% of the new more efficient entity

2 sell royalties and liquidate (unlikely as there is no buyer)

3  do a large public offering to get cash into the treasury.  40 million shares at $1 would create a new platform.  Opportunities to use this money would be plentiful.

4  staying the course for 5+ years and hope that something may happen with Colossus or some other asset

There seems to be no near term trigger to raise the share price by much 

Just my 2 cents worth

Mat

[MidasMulligan]

I don't think that a merger with SSL would be acceptable to SSL shareholders or the management. They wanted to have SSL a separate entity precisely because gold streaming companies typically enjoy a higher valuation... and SSL has been criticized even when they made back-to-back deals with SND in the past... I think that the most sensible thing to do would be to finish the sale of coal assets

[materialsgirl]

Mulligan;  Your reasoning seems sound.  The only point I would make is that it is unlikely that the CSI royalty will return much cash over the next several years.  They might give up the royalty altogether in return for 50% or some other share of the outstanding shares. They would then have to wait  12 to 48 months for the mine to stabilise before the shares could be sold at a

[gwalker]

They might give up the royalty altogether in return for 50% or some other share of the outstanding shares. No way they would do that. Their business is streaming not trading a stream for shares. Market would shoot them for that.