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Mining Companies / Stocks
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TOPIC: Sandstorm Gold
#21342
Re: Sandstorm Gold 1 Year, 10 Months ago Karma: 69
Have y'all seen this? There is an interview with Sandstorms CEO on P 18.
Sandstorm rates 1st on the tsx.v. (their rating system)
www.pwc.com/en_CA/ca/junior-mining-headq...rmine-2012-11-en.pdf
Brian Boutilier
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Gender: Male Brian Boutilier Location: Henderson harbor NY Birthday: 11/04
Last Edit: 2012/12/26 10:32 By Brian Boutilier.
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#21343
Re: Sandstorm Gold 1 Year, 10 Months ago Karma: 263
Debsyl, when a "mining company" (more or less) can be successful in this environment (when DOZENS) of excellent companies are floundering that says quite a lot about Sandstorm's quality -- but also an indication that the Company has been effectively marketed.

Recall what I've observed about Endeavour Silver: a very good company, but where they have really "outperformed" their rivals is in getting market coverage and support.

Don't "hate" Sandstorm because they've been successful, and/or because they were recommended by Cramer (lol). No one can ALWAYS be wrong...

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#21346
Re: Sandstorm Gold 1 Year, 10 Months ago Karma: 218
Jeff, Brian,

Appreciate the input on this "exchange"-

Thank You
Earl

Nolan Watson

Right now, here in Vancouver, depending on who you believe, we have somewhere between 900 to 1000 publicly traded mining companies. I wouldn't be surprised that, over the next 2 or 3 years, 200 or 300 of those go out of business.

Sean Bellamy McNulty


That is interesting, as the commodity prices are still high but the capital isn't there to fund these guys.

Nolan Watson

The capital is not there.
Earl
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#22057
Re: Sandstorm Gold 1 Year, 8 Months ago Karma: 218
finance.yahoo.com/marketupdate/inplay#sand



Sandstorm Gold announces metal credit purchase agreement with Entree Gold (EGI)
(SAND) 53.40 : Co announced that it has entered into a $55 million financing package with Entree Gold (EGI) which includes a $40 million production based metal credit purchase agreement, a CAD10 million private placement and a $5 million net smelter returns royalty. Sandstorm has agreed to purchase metal credits equivalent to 25.7% or 33.8% of Entree's 20% share of the gold and silver by-products produced from the Heruga and Hugo North Extension deposits, respectively. The deposits are on the Entree - Oyu Tolgoi LLC joint venture property in Mongolia which forms part of the world-class Oyu Tolgoi copper mining complex. Sandstorm will pay an upfront cash deposit of $35 million to Entree and ongoing payments equal to the lesser of the prevailing market price and $220 per ounce of gold and US$5 per ounce of silver until ~ 8.6 million ounces of gold and 40.3 million ounces of silver have been produced from the joint venture property. Thereafter, the purchase price will increase to the lesser of the prevailing market price of $500 per ounce of gold and US$10 per ounce of silver.
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#22066
Re: Sandstorm Gold 1 Year, 8 Months ago Karma: 263
Earl wrote:
finance.yahoo.com/marketupdate/inplay#sand



Sandstorm Gold announces metal credit purchase agreement with Entree Gold (EGI)
(SAND) 53.40 : Co announced that it has entered into a $55 million financing package with Entree Gold (EGI) which includes a $40 million production based metal credit purchase agreement, a CAD10 million private placement and a $5 million net smelter returns royalty. Sandstorm has agreed to purchase metal credits equivalent to 25.7% or 33.8% of Entree's 20% share of the gold and silver by-products produced from the Heruga and Hugo North Extension deposits, respectively. The deposits are on the Entree - Oyu Tolgoi LLC joint venture property in Mongolia which forms part of the world-class Oyu Tolgoi copper mining complex. Sandstorm will pay an upfront cash deposit of $35 million to Entree and ongoing payments equal to the lesser of the prevailing market price and $220 per ounce of gold and US$5 per ounce of silver until ~ 8.6 million ounces of gold and 40.3 million ounces of silver have been produced from the joint venture property. Thereafter, the purchase price will increase to the lesser of the prevailing market price of $500 per ounce of gold and US$10 per ounce of silver.



And once again a general reminder on why this company is such a good "story". Not only has it performed well for its shareholders; but these purchase agreements for "gold streams" from these junior miners has become one of the BEST/CHEAPEST sources of capital for these miners. Thus we see something DIFFERENT taking place with Sandstorm which we have not seen with its larger, silver cousin: Silver Wheaton.

Typically, these metal-stream wholesalers by secondary production from these mining companies. In other words, most of Silver Wheaton's "silver streams" have been purchased from gold miners, or copper miners, or lead/zinc miners.

But see what Sandstorm is now doing. These junior miners are being flat-out RAPED by bankers when they try to obtain financing -- because of the absurd/manipulated share prices at which these companies trade.

In walks Sandstorm into the boardrooms of these junior miners; offering to pay a FAIR (wholesale) price for the future production of these junior miners. The junior miners obtain affordable capital, their SHAREHOLDERS avoid being raped by the banksters (again) -- and of course Sandstorm and their own shareholders prosper too.

This is simply WIN/WIN/WIN -- and a nice change of pace from the raping-and-pillaging we normally witness in this sector...


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#22068
Re: Sandstorm Gold 1 Year, 8 Months ago Karma: 263
P.S. For more experienced investors; let me remind you that WARRANTS for Sandstorm Gold are also trading...on Canadian exchanges. I'm not sure if the warrants are available on any U.S. exchanges.

www.sandstormgold.com/investors/warrant_info/

However, for those of you with access to Canadian exchanges; I wanted to remind people that warrants are a somewhat risky/somewhat tricky way to significantly improve your earnings potential with any particular company.

A "warrant" is very similar to an "option". It give the warrant-holder the RIGHT to purchase a share of (in this case) Sandstorm at a FIXED PRICE. Because warrants always trade at a fraction of the actual "share price"; warrants leverage the share price of these miners in the same way that bullion prices (are supposed to) leverage these miners.

The difference here is that this "leverage" IS always present with (successful) warrant issues.

HOW do people choose warrants?

1) Look for SAFE, established companies.
2) Look for "long-life warrants" -- i.e. issues with SEVERAL years of life remaining in the option period.

You MUST only select warrants which meet BOTH of these criteria; and if you do so then warrants cease being a "risky gamble" -- and instead become a reasonable choice for a PORTION of your investor dollars.

In the case of Sandstorm; there are actually THREE issues of warrants currently trading:


TSX: SSL.WT -- priced at $3; expires April 2014
TSX: SSL.WT.A -- priced at $5; expires in October 2015
TSX: SSL.WT.B -- priced at $14; expires in September 2017

I'm actually holding some of the original series of warrants; BUT I bought them a couple of years ago -- and so I've had time for them to appreciate in value (best case), or (WORST CASE) this gives a company time to recover from any "sudden plunges" in the sector. And we know all about "sudden plunges". Lol!!!

So for anyone potentially interested in putting some of their Sandstorm dollars into warrants; I would NOT recommend purchasing the original series any longer. One year (plus) is NOT a safe time-horizon to make a warrant purchase. Even the "A" series warrants would represent about the MINIMUM "life span" I would consider as safe for purchasing warrants: close to 3 years.

Of course we also see how the pricing works. The OLDER warrants are much cheaper because at the time they were created the company traded at much lower levels. For example the original series of warrants were issued with the Company trading at well under $2/share.

So ideally you want to invest in a Company's warrants at the EARLIEST stage where they seem to represent a "safe investment" -- and thus be able to buy into the cheapest warrants.

Note that only a small percentage of companies have warrants which actually trade on exchanges; so this option will NOT be available with most of your potential investments here.

Jeff Nielson
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#22213
Re: Sandstorm Gold 1 Year, 8 Months ago Karma: 218

Sandstorm Gold Announces Fourth Quarter and Annual Results


finance.yahoo.com/news/sandstorm-gold-an...arter-020000941.html

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb 18, 2013) - Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (SSL.TO)(NYSE MKT:SAND) is pleased to announce its results for the fourth quarter and year ended December 31, 2012 (all figures in U.S. dollars).

Fourth Quarter Highlights (3 Months)

Gold sales totaled 7,243 ounces.
Operating cash flow was $6.5 million.
Average cash cost per ounce1 was $410 resulting in cash operating margins2 of $1,305 per ounce.
Net income was $7.4 million.
Entered into a gold streaming agreement with Munity Gold Inc. to purchase 15% of the life of mine gold produced from the Deflector Mine.

2012 Highlights (12 Months)

Gold sales totaled 33,514 ounces, an increase of 81% over 2011.
Record operating cash flow of $37.6 million.
Average cash cost per ounce1 was $356 resulting in cash operating margins2 of $1,313.
Net income of $21.9 million.
Acquired a 2.5% net smelter returns ("NSR") royalty on the Coringa gold project and a 1% NSR on the Cuiú Cuiú gold project from Magellan Minerals Ltd.
Acquired a 2.4% NSR royalty on the Mt. Hamilton gold project from Solitario Exploration & Royalty Corp.
Metanor Resources Inc. obtained approval for commercial production at the Bachelor Lake Mine.
The Company''s common shares began trading on the NYSE MKT LLC under the symbol SAND.
Completed an equity financing for aggregate gross proceeds of CAD$150.1 million.
Entered into a gold stream agreement with Colossus Minerals Inc. to purchase 1.5% of the gold and 35% of the platinum produced from the Serra Pelada Mine.

"I am happy to report that we met our 2012 guidance and had a strong year in terms of gold production and cash flow," said Sandstorm President and CEO Nolan Watson. "We added value for our shareholders by completing two gold streams and three gold royalty deals during the year and intend to continue to deploy our cash into accretive gold stream opportunities."

Outlook

Sandstorm''s forecasted attributable production for 2013 is 33,000 to 40,000 gold equivalent ounces coming from seven active mines. Attributable production is expected to increase to approximately 70,000 gold equivalent ounces by 2016 from the Company''s current portfolio of gold streams.

The Company''s Management''s Discussion and Analysis (MD&A) and Financial Statements for the fourth quarter and annual results will become accessible on the Company''s website and will be posted on SEDAR at www.sedar.com. The Company has also completed a Form 40F filing with the SEC which will be posted on EDGAR at www.sec.gov/edgar.shtml. Shareholders can request a hard copy of the MD&A and Financial Statements by emailing info@sandstormltd.com.
Earl
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#22219
Re: Sandstorm Gold 1 Year, 8 Months ago Karma: 263
Earl, I wanted to point to a specific part of the quarterly results/annual report (apart from the fact that the overall numbers should be pleasing to shareholders):

Average cash cost per ounce was $410 resulting in cash operating margins of $1,305 per ounce.

Note how when the Company describes its results they don't sound much different from a "normal mining company". The only BIG difference are no numbers about "tonnages" or "recovery rates". In other words, they've KEPT the nice part of the business model (leveraging bullion prices); but eliminated (directly) the risky/difficult part: actually (finding and) mining the ore.

However; where Sandstorm loses DIRECT "risk" in its operations, it acquires some indirect risk -- it relies on these feeder companies to meet their OWN production targets. But here again, we see why these "production stream" companies represent safer investments, and are thus very amenable for newer investors.

Because Sandstorm takes production from MANY different mines (and mining companies); a production disruption with any one mine/company has only a relatively small impact on Sandstorm's overall performance.

And note the VERY healthy profit-margins. By buying FUTURE production-streams at discounted, wholesale prices; one can make a very nice living. And as I've pointed out in a few recent replies to Earl's posts; the Company "gives back" to the mining community by being (at the moment) the most-reasonable source of FUNDING for these mining companies.

Jeff Nielson
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#22574
Sandstorm Gold CEO interviewed 1 Year, 7 Months ago Karma: 263
While one has to hold their nose given the SOURCE of this interview (lol); there were several interesting things about this interview, beginning with the fact that I was surprised how young the CEO was (lol). But he (or she) could be 12 years old and if he's doing good/smart things then that's all that matters to me -- as a shareholder or analyst.

You'll note that he expresses some "bearish" views over the "medium term", and when pinned-down on that (naturally) he suggested a time-frame of "12 to 18 months". Obviously I was a little disappointed to hear that level of pessimism.

On the other hand, having followed these companies as an investor for many years now; I understand that management has a duty to act/think/speak in a "conservative" manner. If he truly believed that things would turn in 6 months or less...but then the current depression (in the sector) continued for another 18 months, then he risks losing credibility with shareholders AND getting them angry.

But if you lay out a "worst-case scenario" ahead of time, and then things turn out better than that; then that's very similar to the game of "managing expectations" played by the propaganda machine. The difference is that there is no "nefarious purpose" here, just an executive from a well-run company who doesn't want to risk creating expectations which may not be realized.




www.kitco.com/news/video/show/PDAC-2013/...istory-Sandstorm-CEO
Jeff Nielson
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#22577
Re: Sandstorm Gold CEO interviewed 1 Year, 7 Months ago Karma: 218
Jeff, Brian,

seekingalpha.com/article/1077661-sandsto...g-alpha?source=yahoo
from DEC/21/2012

Appreciate the input on this "exchange"-

Thank You
Earl

Nolan Watson

Right now, here in Vancouver, depending on who you believe, we have somewhere between 900 to 1000 publicly traded mining companies. I wouldn't be surprised that, over the next 2 or 3 years, 200 or 300 of those go out of business.

Sean Bellamy McNulty

That is interesting, as the commodity prices are still high but the capital isn't there to fund these guys.

Nolan Watson

The capital is not there.
Earl
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Posts: 1876
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