SSL, NSR, CAPT
Did you anticipate Sandstorm Gold Royalties aka SSL buying Nomad Royalty aka NSR? Me either. Judging by how the two stocks traded in the wake of the announcement El Marketo thinks NSR shareholders got the better of the deal.
But maybe not, because that's not the only deal SSL announced today. Besides spending $C755M for NSR's portfolio, mostly precious metals royalties and streams, SSL is also spending $C525M to buy the Basecore portfolio, mostly related to copper royalties and streams. As well, SSL is trading one of the NPI's it acquired to Horizon Copper in exchange for a royalty on Anamina, $50M cash, shares, and a $105M debenture.
It will be hard to evaluate the eventual impact of this complex deal until a few years have gone by. As a holder of both SSL and NSR shares, I am going to withhold judgment for now.
Message 33827133
ca.finance.yahoo.com
FWIW, TD put out a new analysts report regarding the SSL transactions. They saw the impact as Mixed, keeping SSL at Buy with a target of $13. While liking the increased diversification and guidance, they also comment that, to paraphrase, even their highly-paid professionals will take some time to fully evaluate the potential impacts of this deal.
It's a shame for Capitan Mining aka CAPT that they put out their latest PR in the middle of a downturn for PM stocks. It contains the results of 5 more holes from the Jesus Maria silver Zone on their Cruz de Plata (formerly Penoles) prospect in Durango, Mexico. Four of the holes were stepouts, 2 each extending the minerlaization on either end of the zone, while the other was an infill hole testing the high grade silver shoot in the middle of the zone. It was the latter that generated the headline intercept of 1.5M of 2406 g/t AuEq within 16.8M of 332 g/t AuEq. I was a little skeptical when they started in on this drill programme but it looks like they might be on to something, particularly if they can define other nearby deposits on the property.
Message 33827150
And a few updates from the IKN newsletter, which goes into much more detail on these and related issues.
Anti-mining Petro looks more and more set to become the new President of Colombia.
The Peru Mining Ministry is descending into chaos but it's unlikely the President won't last much longer in office.
Ecuador's pro-mining President completed his first year in office under great pressure and is unlikely to be able to get much of his agenda implemented.
Bottom line, stay away from Ecuador and Colombia and stick with Peru, Chile, and parts of Argentina. Brazil will join the latter once Lula replaces Barsinolo. |
