Gold Miners and Financial Challenges

By valentinoamoro, August 21, 2012

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

Thought I’d share this with the community – especially given the focus here on SandStorm Gold (they’ve also been in the news lately).

http://business.financialpost.com/2012/07/24/miners-forced-to-get-creative-as-traditional-financing-sources-dry-up/

While all of this seems to be to be great news for SandStorm over the long term (especially with gold prices holding steady – unlike coal and gas!), it does provide an insight into why Sandstorm is not signing as many deals as I thought they would – seems like alternative financing (assuming Sandstorm is one of many firms providing financing to a miner) is falling apart.

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5 Comments on " Gold Miners and Financial Challenges"

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Travis Johnson, Stock Gumshoe
Admin
4453
August 21, 2012 3:12 pm

Interesting, thanks — good perspective from Watson.

john arnold
Guest
0
john arnold
August 22, 2012 11:12 pm

Travis, now that SAND is NYSE listed, has run up considerably in price, and has arranged alternative financing, what’s your thinking on purchasing stock vis a vis warrants and call options. Thanks so much.

JB McMunn
Guest
0
JB McMunn
August 24, 2012 10:15 am

Did everyone enjoy getting hosed by the “bought deal” financing?

flyfisher
Irregular
0
August 26, 2012 12:24 am

JB, you are too short-sighted. How do you think Franco-Nevada and Silver Wheaton got their money to purchase most of their streaming/royalty deals? Read this post on Stockhouse by a poster called NaturalResources (I think I counted 7 bought deal financing each): http://www.stockhouse.com/bullboards/MessageDetail.aspx?p=0&m=31422382&l=0&r=0&s=ssl&t=LIST

SAND now has 250+ M for streaming deals and I would make a wager that they will close considerably higher by the end of the year after one or more deals are announced.

flyfisher
Irregular
0
August 26, 2012 10:31 am

Sorry that should be $200+ million

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