Small Bullion Royalty Play in Trouble
by Travis Johnson, Stock Gumshoe | June 25, 2013 4:58 pm
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Source URL: https://www.stockgumshoe.com/2013/06/small-bullion-royalty-play-in-trouble/
Travis, thanks for your reply on the above.
But specifically, what about the Sandstorm Warrants A and B which still have two and three years respectively to run? Any comment/consolation on those two? :o)
Much appreciated.
THE SENTIMENT COULD NOT BE WORSE IN THE GOLD & SILVER COMPLEX-PERSONALLY I AM LOOKING TO BUY DETOUR GOLD & SAND-AS SOON AS I THINK THEY HAVE BOTTOMED-WHICH IMO SHOULD BE WITHIN THE NEXT FEW MONTHS
Any additional insight into SAND would be appreciated, as I too am puzzled that the royalty companies have fallen equally to the junior miners… I haven’t seen a reasonable explanation of this, and looking over SAND’s most recently quarterly report don’t see a reason to think they are in danger of going out of business. In fact, most of their royalties seem to require a payment in the $450 per oz range – is the concern primarily that a number of the mines will reduce/cease operation due to the low price of gold?
Sand is on the same boat but not with the Jr’s they have to ride the wakes of the big boats even they don’t have one, they have management you have stops. I do not think swing trading is in there game but I do believe that they now how it works. Time is on you side but there will be a lot of talk that everybody is an expert. You can always take the hit and just wait for a limit fill order you will miss some when it pop’s but gtc will always get you back in the game as long as you keep enough to cover, you don’t want to have to read about it and then sell and wait to have the cash to get back in . I don’t think that there dividend is on track like Nolan said back in January that it would be a 1 1/2 to 3 year before they played to divy game, but I don’t think they are going away either. Now Obama is back on the global warming with Warrens oil train the Canada Pipeline is anybody’s game and it is just not black gold. But waiting does make winners no body in particular but there there.
Personally I have been picking up more SAND at every 10% drop, so have quite a lot of shares (for me!) currently! They have plenty of cash onhand, and markets like these should be the perfect storm to negotiate new deals with cash strapped smaller miners. Combine that with the super experienced management, and I see little further downside. Even if gold (and therefore SAND) drop some more, it just means they can make even better deals. Cheers!
Ben,
My biggest problem is that this very good management team has made a lot of mistakes with it’s sister company SM&E. I must admit I too have been a big fan of Nolan and company but they have given me a reason to doubt them with the current condition of almost all of their streaming partners with SM&E.
I understand they are two different companies but they do have the same management team and business model.
If gold does well in the future, SAND will do well. If it drops another 20% SAND will have a difficult time keeping some of their streams alive in my opinion.
BTW, I had more than 50K shares at one time of SAND but I was sold out with my trailing stop when they were near the top. It’s a wait and see for me now. I’m not worried about buying near the bottom 10% or selling near the top 10%. I’m happy with the 80% in between. Good luck to everyone. JB