Gold Miners and Financial Challenges

By valentinoamoro, August 21, 2012

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.

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.

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Raymond CrawfordJB McMunnjohn arnoldTravis Johnson, Stock Gumshoe Recent comment authors

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Travis Johnson, Stock Gumshoe
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πŸ‘12502

Interesting, thanks — good perspective from Watson.

john arnold
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john arnold

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.

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JB McMunn
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JB McMunn

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

flyfisher
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πŸ‘0

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.

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flyfisher
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Sorry that should be $200+ million