Hi TSL - I am still sold on the Sandstorm story as well. Today I stocked up on Sandstorm SSL warrants. SNXXF = SSL-WT.V .C36 CENTS.
I see this as a high-leverage way to play gold bullion this fall. they have fixed costs and a high probability of becoming a great cash flow machine, just like silver wheaton. In fact the ceo of sandstorm, nolan watson, was the cfo at silver wheaton and is on the board of gold wheaton. so i think he does have a lot of credibility.
These warrants have a longer life than usual, are good until April 23, 2014. The strike is denominated in u.s. dollars at 60 cents. Unlike with some of the other cheap gold warrants we are playing with on this site, this one has no cap on it, meaning that if sandstorm runs, the warrant runs right along with it until the year 2014.
They are in the money today by three u.s. cents.
I paid the equiv of c36 cents for the warrants. they've always been 'expensive' and so it may look a little silly that i am paying well over half the price of the stock for the warrant.
i figure it will look smarter when Sandstorm starts reporting some cash flow.
Three of their four gold mining investments are to generate positive cash flow this year. the fourth is Rambler Mining's Ming mine which is copper with gold credits and which is to start producing in late 2011.
In that case, Sandstorm is entitled to the first 125,000 ounces of gold with no additional outlay. Just like it sounds, no additional outlay means they won't be paying $350 or $400 per ounce when the gold starts getting poured...
if the market starts warming up to this stock again, folks will be talking about that future windfall. |
