Gold, Royalties and Brazilian Credit Cards

by Travis Johnson, Stock Gumshoe | November 2, 2012 11:23 pm

A look at new and old royalty companies and a checkup on some old ideas for the Irregulars

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Source URL: https://www.stockgumshoe.com/2012/11/gold-royalties-and-brazilian-credit-cards/


7 responses to “Gold, Royalties and Brazilian Credit Cards”

  1. armitage says:

    As usual a great streaming analysis, thanks.
    Have you looked at Eurasian Minerals (EMXX)? It’s been touted lately by the Wall Street Daily guys as a European streamer to watch.

  2. meg53132 says:

    Too late to buy Sandstorm?

  3. Sandstorm just bought the almost-controlling interest in Premier Royalty from the founding partner Premier Gold, it looks like they’re planning to use them as a junior partner to buy tiny royalties that aren’t worth the time of Nolan Watson and the gang (Premier has jumped up since getting officially formed last month, but is still a tenth the size of Sandstorm Gold). I’m thinking of nibbling at some Premier warrants (NSR.WT in Canada), I think the Sandstorm relationship will be good for Premier’s funding prospects as they grow … but the warrants are only good for another 20 months or so and are pretty pricey right now, in my opinion. The “arrangement warrants”, which look like they might end up being the NSR.WT.A warrants, aren’t trading as far as I can tell. Perhaps they will eventually. This would be extremely speculative and it’s still tough to get a handle on the valuation. Ticker for Premier is now NSR in Toronto.

    Here’s the announcement from Premier Gold: http://finance.yahoo.com/news/premier-gold-announces-sale-shares-140000879.html
    And from Sandstorm: http://finance.yahoo.com/news/sandstorm-gold-announces-acquisition-common-140000105.html

    This ends up being about a $70 million investment from Sandstorm, which gets them some cash-flowing royalties and a “farm team” of little royalties and relationships that can be built. I can’t help but still thinking that Premier’s a little expensive, but, as we’ve seen from Sandstorm’s meteoric growth over a few years, little guys can grow fast if they make good deals and a few of their deals work out very well … and, of course, if gold goes up in price nicely. Should be interesting to keep an eye on them.

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