“The Next Royal Gold” Revealed

By Travis Johnson, Stock Gumshoe, March 24, 2010

I was going to hold off on writing about this teaser until Friday and cover it just for the Irregulars in the Friday File because it’s a tiny stock and I’ll very likely be influencing the price by writing about it for this larger group today — but I’ve gotten so many questions in just the last couple hours that it seems disingenuous to hold off when I’ve got the answer all ready for you. There’s such a push behind the shares thanks to this Phase 1 Investor ad that I want to remind you to be careful, if the stock pops today there’s no reason why it can’t come right back down again. It’s already up a few percentage points this morning when most other gold stocks are down by an equal amount, and that’s before the vast horde of Gumshoe readers gets wind of it.

The tease is in an advertisement for Phase 1 from Stansberry, which is their most expensive newsletter (normally $5,000, “on sale” for $3,000), and the letter they use when they want to recommend a micro-cap stock — in the past Phase 1 has typically been a tech and biotech newsletter, but they’ve also often used it for these kinds of “top secret” mining stocks and other less liquid ideas. And it’s under a couple new editors now, they’ve brought in their new small-cap guy, Frank Curzio, and their biotech guy Dr. George Huang to helm the newsletter (not sure what happened to Rob Fannon, the former editor). I just checked over at Stock Gumshoe Reviews, and we’ve seen several comments on Phase 1 but, to be fair, It looks like most of the comments are more broadly about Stansberry & Associates and a few of those folks probably haven’t subscribed to that actual letter.

So this teaser is all about a little gold company, a stock that Porter Stansberry and his folks apparently think can be the “next Royal Gold” — which, if true, would make it a “no brainer” investment. Royal Gold (RGLD) looks pretty good even now, with their large portfolio of gold mine royalties that keep the money rolling in with very little risk (I’ve been thinking about re-investing in Royal Gold myself, though I don’t currently own shares and, per my rules, won’t be buying it within three days of writing you this note) — but if you could have bought the shares years ago, before everyone knew they would become a big, stable royalty company, you’d obviously be better off.

Here’s how they put it in the ad:

“On April 5, 2010:

The NEXT Royal Gold?

“The last time this happened, early investors had an opportunity to make a fortune – more than 179,000%. Now, one small team of researchers seems to think it’s happening again. They just flew to Toronto to investigate firsthand.”

The April 5 bit is for a conference call that they’ll be holding for Phase 1 subscribers to discuss this investment with a few of their sources and editors — and I’m sure they’ll be able to tell you a lot more about the company than your friendly neighborhood Stock Gumshoe … but at least I can use my uncanny super powers to read the rest of the clues and tell you which company it is.

The ad then goes into some history on the royalty companies, and why the idea of another Royal Gold is so tantalizing — they mention the three main existing royalty firms, the granddaddy Franco-Nevada, Royal Gold, and Silver Wheaton, all of which have had massive runs in their share price since inception — thanks to the investing model in part, I suppose, but thanks in even larger part to the huge price increases that many commodities have seen in recent years. Just FYI, Royal Gold is almost entirely gold-focused, Silver Wheaton is entirely silver focused, and Franco-Nevada has a wide range of commodity royalties, including metals and energy.

The idea for this particular stock pick apparently came in to them from one of their researchers/contacts, who they give the code name “Patton.”

“The way PATTON tells it…

“He was pouring through 43-101’s, when he came across a rather unusual paper trail. It started with a document published by one of the largest and most successful gold producers in the world…

“And it ended at the accounting department of a tiny Canadian company he’d never heard of before…

“Now, there are more than 386 mining and exploration companies in Canada alone. PATTON knows many of these personally. The ones he hasn’t met with… you’d better believe he’s studied their geological and financial data.

“For PATTON to encounter an unfamiliar mining company is strange indeed.

“Why Have I Never Heard of this Before…?”

“If this tiny company is such a potential blockbuster, then why has it received virtually zero publicity and press to date? Two reasons…

“Part of this is because the U.S. Government doesn’t like Canadian resource companies. Why? Because they play by a different playbook than the one the Feds would have them comply with. For better or worse, history proves it’s in no one’s best interest to flout the wishes of the Federal Government.

“The second reason? This company is ridiculously small.

“What does this have to do with anything?

“Simple: Mutual funds and other large financial institutions can only invest in companies when they reach a certain size. In a sense, they’re legally prohibited from investing in tiny companies – their charters prohibit it.

“Since mainstream financial media such as the Wall Street Journal only cover companies their readers own – namely the larger blue chips and ETFs most big funds own and run – you’ll likely never hear about tiny Canadian companies like the “Next Royal Gold.”

“Even more odd, the document revealed that this large gold producer was contractually obligated to pay a portion of the profits on one of its largest producing Canadian gold mines to this tiny, unknown mining company…

“A mining royalty?

“Paid to an obscure penny stock by one of the world’s largest blue chip gold companies?

“Now PATTON was deeply intrigued.

“He called us up… and told us about the paper trail he’d uncovered… and that he ‘may have found the next Royal Gold.'”

And they go on to build up the excitement by telling us in several different ways that this is a company that you’ve never heard of, it’s not covered in the media, and you couldn’t find it even if you wanted to … which, of course, is half the reason I’m writing about the stock right now: I can’t resist a challenge.

“I’m nearly certain you won’t find this company anywhere in the Wall Street Journal, Barrons, Investor’s Business Daily, New York Times, or any other mainstream source for financial information.

“We know, because we’ve checked a database containing 4,943 published sources –newspapers, periodicals, and academic journals.

“Not a single mention.

“This was a great start.

“Why?

“Because when the whole world knows about an opportunity, it’s usually not a good one. Not everyone can get rich. It just doesn’t work that way. “

Hmm, OK, well then let me apologize in advance for sharing this opportunity with the whole world. Or at least, the part of the world that’s intelligent, witty, and beautiful enough to be reading this article. But they lay it on a bit thicker than that …

“When Royal Gold was just starting out, you couldn’t tell it was a gold royalty firm. It was disguised as an exploration company. Even after its first royalty deal, you couldn’t tell it apart from the hundreds of regular explorers out there…

“There was no big press release from the company announcing the shift. There was no big story in the Wall Street Journal.

“Heck, by the time it was big enough for folks in the mainstream press to start caring about… the stock had already risen thousands of percentage points.

“Today, it’s the same case with this tiny company – the ‘next Royal Gold.’

“You see, there’s no way to screen for royalty companies. And even if you’re specifically searching for them, the proof you might need is likely buried deep in their books.”

And then we get into the only specific clues in the ad. They tell us that part of the secret to Royal Gold’s success was that they were initially focused on Nevada, and still get a lot of their revenue from Nevada mines — and Nevada was a great place to explore for gold … and this stock is apparently focused on the ‘New Nevada’:

“As gold-rich as Nevada might be… there’s a new region the Fraser Institute’s mining survey ranks even higher…

“It’s an area of Canada that’s got more gold… and is even friendlier to gold companies than Nevada.

“Where is the ‘New Nevada?’

“For decades, geologists have known there was a ton of gold resting in this region. For starters, 90% of the subsoil is made up of Precambrian rocks. This is a strong geological indicator of gold.

“Even more so… there’s a massive, 200-mile sedimentary belt running east-to-west across this region. This is fertile ground for huge gold deposits.

“And gold companies have been drilling holes here for a long time – over 473 at last count. But they kept coming up with nothing. 200 miles is, after all, a large area.

“As it turned out, they were drilling in the wrong spots…

“The tiny company we found – the ‘Next Royal Gold’ – and its exploration partners have found the sweet spot in ‘New Nevada.’ They’ve struck it rich with a 3.15 mn ounce discovery… and are actively looking for more. With twenty potential deals established in this region, the ‘Next Royal Gold’ could make a fortune in royalties if anyone of them generates gold…

“It’s where the ‘Next Royal Gold’ – the tiny company we’ve been talking about – has been quietly signing new projects.

“These guys hit pay-dirt with their first royalty agreement:

“A 3.15 million ounce Gold discovery – nearly twice the size of Royal Gold’s first major royalty contract.

“It’s the reason this tiny company is swimming in cash right now. They get a 3% cut of any gold produced from this monster deposit.

“In fact, this find was so huge – such a sure thing – they’ve been receiving what are known as “advance royalty payments.”

“In short, the large player who bought them out (one of the largest gold companies in the world), wanted this deposit so bad they agreed to start paying royalties even before the mine went on line.

“$100,000 a month since April ’09.”

And later on, the ad teases us that this company is sitting on $30 million in cash.

They do put in a quick paragraph or two about the risks as well …

“Chances are good the ‘Next Royal Gold’ will become just that – the next biggest gold royalty company… and make you a once in a generation fortune in the process.

“One more thing to bear in mind…

“It probably goes without saying, but we probably ought to say it anyway:

“As confident as we are about this recommendation, it is still, at its core, a calculated speculation. You can always lose money on an investment. If this were a sure thing – if there were no risk involved – the potential reward would not be so absurdly high.”

OK, that last paragraph should be something that pops up in your head for any recommendation you read about here or elsewhere — so they get credit for actually spelling it out.

And that’s pretty much all we hear by way of clues — did you catch the little details in there? $100,000 per month since April of last year, $30 million in cash, and a gold mine with 3.15 million ounces? That will have to do for the Thinkolator today — this stock is …

Virginia Mines (VGQ in Toronto, VGMNF on the pink sheets — click here for a free trend analysis on Virginia Mines from MarketClub, one of my advertising partners)

And yes, just as a quick reminder, THIS STOCK IS TINY — there are about 30 million shares outstanding, and the current price is about C$6, so that’s a market cap of under $200 million and it trades in low volume, often less than $100,000 worth of these shares will trade in a given day. If even one percent of Stock Gumshoe readers rush out and place market orders right now, the stock could go crazy even on a day like this, when the sector is down and gold prices are dropping.

So that said, why do I think this is Virginia Mines, and what do we know about them?

Virginia Mines agreed to a deal with Goldcorp back in 2005 to develop the Eleonore Mine in Quebec (and yes, Quebec is that “next Nevada,”often referred to as the most mining-friendly jurisdiction around, and home to a number of impressive discoveries). The mine currently has a “measured and indicated” gold resource of 3.15 million ounces. And the royalty deal gives Virginia Mines advanced royalty payments of $100,000 per month (and has since April 2009), and the royalty is a rather lucrative looking one — they get bonuses to the royalty percentage as the price of gold goes up and as the production climbs, so if this turns out to be a large and long-lived mine Virginia will make out very well, indeed. The current details of the royalty are listed in this press release from last month, and while the royalty is not currently at 3% the company does say that “the royalty is highly enhanced with the current gold price and the new resource calculation suggests that Virginia’s royalty could reach a value of over 3% NSR.” So that’s close enough.

Virginia Mines is one of a dozen or so “prospect generator” companies that have gotten a fair amount of attention in recent years, including from S&A researchers. The general model is that they acquire underexplored mining concessions or land, or stake their own discoveries, and then put in enough money to explore and define the potential that another company gets interested. Then they partner with that other company, usually selling off a controlling interest in the resource in exchange for their partner putting in the big exploration dollars and some participation on the potential upside, often through a production royalty (ie, a percentage of the mine’s output if it ever gets developed) or through a continued partial ownership of the joint venture.

The bad thing about a prospect generator is that they give up a lot of the upside of potential huge discoveries — they aren’t likely to discover a gold resource and develop it themselves and get 10,000% returns in a matter of a few years, which is the dream of many junior mining stock investors. But they also are much less likely to dilute their owners into oblivion as they desperately raise money to explore or develop a risky mine — or go bankrupt and disappear when their discoveries don’t pan out, or when their discovery turns out to be impossible to mine.

Prospect generators rely on the occasional big win, too — Virginia Mines did hit it big with this Eleonore mine and would be doing far worse without it — but they tend not to “bet the company” on each potential mine, and they usually have reassuring balance sheets with plenty of cash and, if they’re big enough, a diversified portfolio of joint ventures that have the potential to pan out and drive them to nice long-term profitability — and they also often focus on a relatively small geographic area where they’ve built up some big land holdings or a particular local expertise. They’re “steady eddies” compared to most of the junior explorers.

Virginia Mines is focused, as I noted, on Quebec — with most of their land holdings and projects up fairly near James Bay in the northern part of the province, and they are spending their own money to continue exploring and identifying potential resources in the same general area. The Eleonore royalty is certainly the “big deal” for Virginia, but they have several other joint venture partners exploring properties on which Virginia holds a royalty interest, (not all are gold exploration projects). You can see a map of their projects here on the Virginia Mines site.

I haven’t yet dug into Virginia’s filings in great detail, but they do have a good chunk of cash (they claim a current $43 million in “working capital” and no debt) and that Goldcorp royalty that promises future inflows (though the Eleonore mine isn’t guaranteed to be built or to become a blockbuster mine — Goldcorp is apparently planning to release a pre-feasibility study of the proposed mine soon, and has been spending money on the project … promising, but not guaranteed), and they do have those other royalties on not-yet-developed mines that may be worth something eventually.

If you’d like to read up on prospect generators, including Virginia Mines, Brent Cook published a nice little article that summarizes a handful of them last year [pdf file] and commented on some similar companies in The Gold Report back in August. Stansberry’s own Matt Badiali also mentioned Virginia Mines a couple times in recent years when he got on a “prospect generator” kick, including this note about the big boost from Eleonore back in 2007 and a broader interview last year about some other gold stocks, and Adrian Day wrote just last week about Virginia Mines being a “high conviction” idea.

I personally own Altius Minerals, another prospect generator which I’ve written about several times for the Irregulars (they seem a bit more mature and hold more cash), and I’m certainly intrigued by Virginia Mines — among a few of the other firms in this group that I plan to look at in more detail in the future — but I haven’t scoured through their books to see what the prime opportunities or worries might be beyond the Goldcorp royalty. If you’ve got an opinion on Virginia Mines or their competitors, feel free to let us know with a comment below.

And if you’ve had the good (or bad) fortune of being a Phase 1 Investor subscriber, let us know which it was by sharing your thoughts over at Stock Gumshoe Reviews. Thanks!

Full disclosure: As noted above, I own shares of Altius Minerals. I also have limit buy orders in for additional Altius shares that could possibly be triggered in the next few days. I am not invested in any of the other stocks mentioned above, and other than those existing orders for Altius shares I will not trade in the shares of any company mentioned (or alter my existing orders) for at least three days per my rules.

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56 Comments on "“The Next Royal Gold” Revealed"

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Andre
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Andre
March 24, 2010 5:55 pm

I couldn’t believe the stock you talked about was virginia gold. Painful remember for me. I had shares way back in 1997 when the stock was at 0.75 I sold it in 2002 for 1.14. After that they discover Eleonor. It went all the way to 15.00 and i think it split after. Bad memories for me

Martin
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Martin
March 24, 2010 6:05 pm
When I first read the Headline I thought, "could someone else have found this Hidden Gem" also. I also noticed this quote, """I personally own Altius Minerals"""". I don't know if you are a reader of the Stockhouse message boards, but if so you may recall a poster named "topshelfstuff", during the approx 18 months run-up from about 3 – 4 to 30. In fact the only reason I happened to find this one is because of Altius. Altius holds a piece of Rambler, so I had Rambler on my Watch List, never owned it, just wanted to keep track… Read more »
Gravity Switch
Admin
11
March 24, 2010 6:45 pm

Looks like there were some reasonably willing sellers of VGQ with gold and other miners generally dropping today, volume is 5-10X normal for the day so far but the shares are "only" up 5%.

Gravity Switch
Admin
11
March 24, 2010 7:55 pm

Good points. In that Brent Cook article I linked to above he indicates that the value of the royalty might be between $55-90 million (this was last April, when gold was around $900).

Mace
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Mace
March 24, 2010 8:42 pm

Travis I beg you please no more gold stocks. More oil and biotech. please no more gold.

John
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John
March 24, 2010 6:46 pm
Back of envelop estimate of royalty for Eleonore – 5m oz Au, $1000/oz, 3% nsr = $150million. PV is much less since mine life might be about 10-15 years. As for other JV's, odds are most will not find anything economic. Virginia seems to have good management, a number of prospects, and reasonable cash on hand. But to make big returns on this, they will have to make another major discovery. It's tough to estimate the odds without knowing a lot more about their prospects than they publicly reveal, but 1 in 10 odds (that any are successful) would be… Read more »
Laddington
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Laddington
March 25, 2010 1:12 am

It's nice hearing about Gold–pls don't ignore the mining and basic materiels sectors. Really feel that they will prove to be very strong in the future.

thinker70
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thinker70
March 25, 2010 2:19 am
I find it rather surprising that anyone would be profiling Virginia Mines as the next Royal Gold considering how long they have been around and their current share price, need to have a more in-depth look before deciding on the merits. What I can sat is that I spent quite a bit of time at the PDAC Show in Toronto earlier this month talking too the principals of SANDSTORM mentioned earlier and was more than favourably impressed with these enterprising young men who were formerly with Silver Wheaton. I believe they have perfected, and will carry to a new level,… Read more »
2ho noze
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2ho noze
March 25, 2010 12:17 pm

ty case in point i bght toreador trgl for 25cents was very proud when is sold for one dollar lo and behold one yr.later thje stock was 40bucks p.s.

Desmadre
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Desmadre
March 25, 2010 4:12 pm

I am a subscriber to Phase 1 and cannot find anything like what you are talking about! I love your website and now it seems you are getting Phase 1 information before subscribers! Is it time to cancel Phase 1 and subscribe to your "Irregulars"?
The last thing I got from Phase 1 was for March, and it was for Magellan Petroleum MPET. Virginia does not appear under their Resource Development & Mining section. I will send them an enquiry.

JStone
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JStone
March 25, 2010 11:46 am

Virginia moved what, 5% yesterday? Up about 1% today at the moment. Given the low volume of shares, I’d have expected more movement if this stock was being heavily advertised.

Dan
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Dan
March 26, 2010 1:51 am

Martin, Jeff & Thinker70, I appreciate Sandstorms and Silver Wheaton’s way of aquiring new business; one needs to be aware of the coming silver shortage http://www.investmentrarities.com/ted_butler_comentary02-16-10.shtml and the comments for public hearing at U.S. Commodity Futures Trading Commission today 25 Mar, on commodity metals at this link https://marketforceanalysis.com/index_assets/CFTC%20HEARING%20ON%20METALS%20MARKETS.pdf as it refers to metals. This will impact future pricing. Its my belief that we shall see higher prices with the better leverage in silver and stocks with SVM old management team like Sandstorm shall do better than the metal pricing. Travis you do a fandamtastic job. Thank you…

Martin
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Martin
March 26, 2010 6:41 pm
The release of the Warrants is a Plus, not just for SandStorm, any stock. It removes an Overhang that some can play with. In this case with SandStorm its important to know that these Warrants will NOT effect the Outstanding Shares, since these Warrants were already included. The Warrants that remain active are Trade-able, and at quite a Discount. This isn't my opinion, its a fact per the Canadian Warrants Board. When SNDXF moved up to a Tier 1 Listing this made it possible, for the first time, for a US Investor to invest in the Warrants too. The Warrant… Read more »
darin
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March 27, 2010 6:43 pm

Thank you i really appreciate your diligence and insight. very helpfull.
http://www.ogdenvalleyrealty.com

Markus
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Markus
March 29, 2010 3:34 am

Travis – keep the gold info coming – we are now part of the Un-united States of Obama and if he continues to get his way we will see Gold skyrocket and the dollar crash!

You do a great job!!!

Tim M
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Tim M
April 1, 2010 2:49 am
2 Royalty Companies? – Stansberry wrote,3-30-10, in daily comments on airing of "next Royal Gold" "On April 5, you're invited to join our top resource analyst (Matt Badiali) and Rick Rule in a meeting with two mining industry CEOs. These men both head startup royalty/hoarding companies. They're following the same proven strategies that have made vast fortunes for precious metals investors over the last two decades. I'm confident they'll do it again." Could one company be Golden Predator Royalty & Dev. Corp..? The CEO has track record building & selling $1.8 billion uranium company. They have recent royalty with Barrick… Read more »
Tim M
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Tim M
April 1, 2010 5:52 pm
On Royal Gold – one gold adviser with an expensive 3 figure paid subscription I belong to and greatly respect exects Royal Gold earnings to go from $2.00 roughly to $5.25 roughly by late 2011. Much of the increase coming this year. At 20 times earnings thats over $100.00 a share without the gold price going anywhere. Go figure if gold moves up some this year and next. I suspect Royal might be good for 2-6 times more current price over the next couple of years and this does not include future unknown deals.
keith
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keith
April 2, 2010 8:26 pm

What l don't understand is how can a stock trading at $7.00 go up 179,000 percent let alone 1000 percent? Wouldn't the share price knock Berkshire Hathaway out of the water?

Vic
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April 3, 2010 10:36 pm

Well Berkshire Hathaway is for the 50 – 75 pct of your money you want to keep relatively safe in an unsafe world. Speculation is minimal risk. You would be risking a LOT to put all your money on one stock like these potential big winners. The operative word is "potential". And that is why there are horse races. Some will lose! I like the looks of this sandstorm play though .. taking care of entry pricing for a modest stake.

STEIN
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STEIN
April 6, 2010 1:56 am

I would just like to comment on the tendency to miss a huge run up after selling a stock at a profit, and watching it fly past your sale price. If you are aware that the stock is trending higher, why miss the run up? Why not jump back on board?

Bill
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Bill
April 6, 2010 2:35 pm

So what happened to the presentation yesterday by Stansberry regarding Virginia Mines? Price dropped today.

brian
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brian
May 14, 2010 5:26 pm

First, thanks for what you do I really enjoy your work.
Have you ever written of or heard of Chariot Oil and Gas or any other Namibian deep shore prospective oil plays. I researched and purchased a small stake in char.l (trades in London) recently and other than the public information from the companies involved I haven't found a lot of research.
Thanks, Brian

brian
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brian
May 14, 2010 11:11 pm
The super-continent "Pangea" separated 250 mm years ago and left billions of barrels of deepwater oil for Petrobras off coastal Brazil, the other side of the drift is west africa's Namibia. Namibia's coast has barely been touched. It's also been compared to the North Sea. Chariot has some blocks locked up and signed a farmout agreement w/ Petrobras. They've identified a working petroleum system, oil slicks and have 3D seismic that they are using to look for other partners. I'm not mentioning numbers but prospective resource is quite large. Jim Rogers is always saying "no one is finding any oil… Read more »
Col
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Col
July 3, 2010 10:42 am

What about Phase1 New thing, the offshore, underwater gold. Anyone know who that could be? Apparently trading around $1.50 a share?

Video is here, would be cool to work it out before the 8th July:
http://www.stansberryresearch.com/pro/1006DILGOLV

Joan Lynch
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July 3, 2010 12:53 pm

I've been reading this groups work for a long time. I have tried several of their subscriptions. Maybe it's my bad luck but when I try their recommendations the recommendations end up loosing money. Therefore I do not try any more of their newsletters. I also wonder about the offshore, underwater gold trading less than $1.50. I don't ant to try their Phase 1 for $3,,000 with a $300 cancellation fee after my bad luck with their subscriptions. I also wonder about the underwater gold for less than $1.50 a share. Anyone know?

spreadtrader
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spreadtrader
July 3, 2010 1:42 pm

The Gumshoe Irregulars already know……….but it really isn't worth knowing (and it certainly isn't worth $3,000).

Suck some suds this weekend.

Phil Pendleton
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Phil Pendleton
July 3, 2010 10:17 pm

I am new to this site; first post. I also saw this teaser ad and did a search. I think that the stock may be Nautilus Minerals. CA:NUS closed yesterday at $1.76 up .26. Seems as if the move is starting.

GoofyGold
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GoofyGold
June 15, 2011 3:28 pm

The new "next Royal Gold" is being teased again now, a year later. It sounds a lot better than Virginia, I think maybe its Sandstorm Gold which is up in Canada. They have six gold royalty deals and four are producing.

jimeee
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jimeee
June 15, 2011 10:26 pm

I received this tease too and would be interested in knowing which company it is and and it's stock symbol and a Gumshoe take on it…

WZ1982
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WZ1982
June 17, 2011 2:36 am

I believe the new "the next royal gold" is:

SandStorm Gold (PINK:SDXXF, SNDXF, SNXXF)

Too bad my broker Zecco, can't handle this pink sheet. Today is June 17, they will have a webminar at June 21. If I could by it now at around $0.585 after the webminar every body would buy it and push the price up. Too bad. 🙁

Any deep discount online broker that provide toronto exchange + pink sheet?

Regards,

skyview
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skyview
June 18, 2011 11:40 am

Just for information. Universal Power was touted by someone. (see Brian above) It was exchanged for HRP.CA. Chariot oil & gas is OIGLF if anyone wants to look further.

Josh
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Josh
June 18, 2011 10:31 pm

I love how the gumshoe spanks SIA every time. I bought into the initial low price advisory newsletter, but (thanks to the Gumshoe) I've passed on all of the End of America marketing blitzes. His stance on how government spending/debt may impact us may not be that far off base, but the constant stream of "the Next Royal Gold" opportunities at discounted prices are for the birds.

Lukester
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Lukester
June 19, 2011 3:49 pm

I seem to recall Gummy mentioning that he owns Sandstorm? Have been watching it demonstrate notable relative strength in the recent weeks’ declining markets.

Donna
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Donna
June 20, 2011 12:08 pm

Does anyone take pride in their work anymore or is all just for money and damn the little sucker investor, or the country etc. .Pride is dead and gone and just Greed reigns supreme? Such a shame, then it really is the end of America. My dad and my grandfather used a handshake to seal a deal, can you imagine that today?? God help us.. well now that is passe too!
A very confusing world and not very positive, our poor children, no where to run

T1 Cloud Provider
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0
June 20, 2011 12:27 pm

StockGumshoe posted a new article on the free website that names the company at http://stockgumshoe.com/2011/06/how-to-put-one-mi

donna
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donna
June 20, 2011 12:54 pm

Thank you Provider–I put dat tip in my hat and hope in my pocket

Gravity Switch
Admin
11
March 24, 2010 6:00 pm

Andre, I think we've all got experiences like that … missing those huge runs is emotionally more difficult than owning a stock that gets cut in half on bad news, it seems, regardless of the fact that the cold, emotionless investor should be delighted with that 60% return you got. The ones that pain me most currently are Baidu and Tencent, but there are too many "sold too early's" to name. Of course, I try to conveniently forget all the stocks I bought that were just plain terrible…

Tate
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Tate
March 24, 2010 9:09 pm

Casey International speculator has been pushing this stock for several years, so it's no hidden gem or other BS that the Next Royal Gold article claims. If you look at the resource and know about gold stocks, it becomes a no brainer that the $6.00 price now on ;the stock is a premium for the resource amount. Casey by the way, has a hold on the stock.!

Gravity Switch
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March 24, 2010 6:28 pm

Interesting one, thanks for sharing. And a good illustration of the difference between the Silver Wheaton model and the more traditional royalty model.

Jeff
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Jeff
March 25, 2010 12:40 am

Martin How do you interprete the shares and warrants becoming released ? [ Sandstorm will commence trading as a Tier 1 issuer on March 23, 2010. As a result of the graduation to Tier 1 issuer status, an aggregate of 5,592,000 Sandstorm common shares and 4,428,000 warrants (expiring April 22, 2010 with an exercise price of $0.195 CAD) currently held in escrow will be released ] Enter text right here!

Devin
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Devin
March 25, 2010 6:13 am

You better start looking pretty hard at a few of these, The way that the PIGSS of the European Union are handeling their finances gold might be the only safe bet by the end of the year.

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11
March 25, 2010 5:18 pm

According to the ads I saw, this was supposed to be something they'd announce on April 5 in their conference call. Assuming I'm right, of course.

Jimenez
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Jimenez
March 29, 2010 10:38 pm

MPET was discussed by Frank Curzio in the S&A "Off the Record" back in Nov 2009 issue. Sandstorm is not new either. It was discussed briefly in the "Off the Record, Feb 2010 issue by a guest analyst named John Doody. Between Stock Gumshoe (free), S&A Off the Record($600/yr) , Weber Global Report ($189/yr), I think I'm covered for my investment needs.

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11
March 25, 2010 5:22 pm
I would, too — I can't usually tell for sure how heavily something is being advertised, but I judge it based on the number of questions I get about an ad … maybe this one hit fewer folks in a test, and I just happened to get a lot of those particular folks emailing me. It's all relative, too, and the gold miners and gold stocks were all down quite a bit at the same time. If I'm right about Virginia Mines, and I don't see how another company could match those clues, they also weren't planning on having their… Read more »
Martin
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Martin
March 26, 2010 7:00 pm
Thinker70, Just so your updated, you said "They already have 3",….they have 4 now. It was the 4th, with Rambler, how I first heard of SNDXF, SandStorm. They seem to have flown under the screens…anyhow, here's the Rambler deal: Mar 04, 2010 Sandstorm Resources Acquires Gold Stream From Rambler Metals & Mining Plc Rambler Metals & Mining US$20M Gold Sale Agreement With Sandstorm Resources 3/4/2010 8:01:18 AM – Market Wire LONDON, UNITED KINGDOM, Mar 4, 2010 (Marketwire via COMTEX News Network) — Rambler Metals & Mining PLC ('Rambler'), (TSX VENTURE:RAB), (AIM:RMM) is pleased to announce that it has entered into… Read more »
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Admin
11
April 6, 2010 4:13 pm

Other stocks have gone up by similar percentage amounts over long periods of time — but unlike Berkshire, they split their shares along the way. Not that I think Virginia Mines will perform like that, of course.

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11
April 6, 2010 4:15 pm

Don't know, but it wouldn't be surprising, as per other teasers we've seen tied to a specific date, to see the stock rise on the rumor and expectation and sell on the news. I'm wondering if they also mentioned Altius Minerals in that call, since those shares are again getting a solid bid today. (I still own Altius, for full disclosure)

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11
May 14, 2010 10:34 pm

Thanks! And sorry, I've never even heard the name and know nothing about Namibian oil … Should i learn?

Bruce
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Bruce
May 16, 2010 7:36 pm

Universal Power (UNX/UPWRF) has some prospective blocks offshore Namibia as well. Byron King has been on about this one for a while. Enjoy reading all the posts and thanks to Gumshoe for his insights. – Bruce

T1 Cloud Provider
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June 17, 2011 9:38 am

I know that Scottrade can handle SNDXF for a $7 online commission.

Tim
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Tim
June 17, 2011 4:51 pm

I fully agree that the new "Next Royal Gold" is Sandstorm Gold, listed as SNDXF on the Pink Sheets. From what I was able to find through my own research, that is the only one that fits the bill. Also, refer to this article: http://goldstocksdaily.com/2011/03/04/sandstorm-r

@WZ1982, a Fidelity account can access the OTC markets and trade for $7.95/trade. I believe Scottrade can do the same for $7.00/trade.

Chris Berry
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Chris Berry
July 24, 2011 6:44 pm

You've got it. I bought in at $1.29 on 6/27 and it's now at $1.61

Edward
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Edward
June 17, 2011 11:37 pm

hello sir, i love you site and what you do, but i think you got this particular one wrong, S&A are currently teasing the next royal gold again, and the info yoy printed about the tease over a year ago is the same info they are using to tease with right now. the problem is they are saying the stock is trading right at a dollar a share, and Virginia mining is trading for over 8 dollars a share. will you please comment on this and punch it all in to the thinkolator again. thank you and best regards. Edward

CHRIS
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CHRIS
June 18, 2011 10:45 am

PER THE S/A TEASER.
RON PAUL HAS IT IN HIS JUST RELEASED PORTFOLIO.
SAND STORM IS NOT LISTED.

skyview
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skyview
June 18, 2011 11:43 am

UPWRF was exchanged for HRP.CA

Tim
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Tim
June 18, 2011 1:58 pm
I just reviewed Ron Paul's posted portfolio. I have not yet had the chance to watch the new S/A teaser, yet. However, as it is my anniversary today, I'll have to get back to you on that one. =) This I did want to say: at a quick glance at stock prices and corporate websites, not one of those companies mentioned in Dr. Paul's portfolio fits the description of being a stock "near $1.00" (only a few are close), nor contains management members who fit the bill like Sandstorm. CEO Nolan Watson and Executive VP David Awram were both former… Read more »
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