Good idea TSL, Sandstorm has become one of my top faves, and with somewhat more of a long-term attitude than miners who are subject to operational issues and politics and all the various risks that fill pages of SEC forms ... Lassonde and Schulich proved this model with Franco/Euro-Nevada years ago, it can be a game for the patient because of their need for huge financing up front, means they need to print reams of sharepaper that can make their market sloppy for extended periods ... upside is that it's clean high gearing to gold prices, without ongoing costs to speak of, minimal g&a once they've got their deals made, and they hardly need to keep the lights on in the office, just have cheques sent straight to the bank
Hat tip to onepath, from whom i first heard of ssl last summer, he may have heard of it from another SIer, don't know
It's been a test of patience in the .40s through fall and winter, now appears to be trading a lot around double that level, just guessing but i expect selling is coming from people and institutions who took down financings, maybe to roll some of it back into new shares on the next one ... because of the financing dynamics, it's not likely to give wild gains in any short term, on the other hand it'll likely have floors under it at various levels, this is the way fn.to worked in the early days if memory serves, fairly steady moves like a well-planned staircase ... but then quite responsive to moves in gold as well, overlaid on the basic structure
How long will it stay independent, is the thing ... anybody know management's attitude toward the possibility of being swallowed by the current Franco or Royal Gold? |
