I love royalty companies, and Sandstorm Gold is a relatively new one (SNDXF.PK in the U.S., SSL.V in Canada). I already own some, but bought more recently after hearing that it will be promoted on a rather popular service in the near future. The YAHOO message board for Sandstorm has a message titled "Sandstorm Corporate Due Diligence" that, if you dig down into it, gives some intriguing hints about this.
Good luck, but DYODD and don't bitch at me if it doesn't work out :~)
I have recently bought some also for long term. Some of the management is from SLW and is using the same streaming business plan for AU.
Does anyone play the Sandstorm Gold SNXXF.pk warrents? They expire 04/23/2014.
Anyone have information on these?
I have a bunch of them. They went down yesterday to .55. They had been trading up because the commons were doing really well but never came near to volume on the commons. First thing this am I noticed they were trading more than the commons and I'd never seen that before. At 10am over 1 million warrants traded.
Sandstorm Gold, new name for Sandstorm Resouces ltd.Nolan watson pres./ceo.named to Caldwells 40 under 40 list.Sandstorm Gold mkt cap about 300 mill+streaming agreements with Luna gold,Silvercrest mines,Santa fe gold corp,Rambler metals and mining plc,Brigus gold,Metanor resources.A streaming company ie. like Slw.life of mine agreements for 12 to 20% of production at 400-500 usd./ounce etc.There is also a sister company Sandstorm metals and energy nolan ceo/ pres.There has been good news lately results from Luna and permitting at Rambler.TSX.V has two series of warrants listed ssl.wt and ssl.wt.a Different expirey dates and exersize prices differentiate the two series.SSL.WT exercise price .60 usd buys one share on or before April 23 2014.SSL.WT.A exercise price 1.00 usd buys one share on or before Oct 19 2015. I like them,I own them,underwater currently, but I will accumulate. Search "Canadian warrants" for an excellent source for info Note of caution expirey dates must be adhered to closely my goldcorp warrants expired last month they stopped trading at noon, I placed my sell order at 2 pm I lost 1200 usd.-SmackaUselfinahead!!!!
Thanks for the props on my thread on the Yahoo board! Drumrgirl, was the one who first posted about the Peter Krauth, editor of Global Resource Alert info.
Oddly, your post here came up on my google alert for Sandstorm! Crazy! :) It's good to see our little gem being noticed and good to see you here! :)
While the hype from the Stansberry letter was fun, I'm actually glad that it didn't transpire, as we do not need a huge run on the pps. What we do want to see is a nice steady growth, with moderate pullbacks for consolidation, without any major gapping in the pps, for the next leg up.
For those who don't know, there was a post made yesterday on the yahoo board, by a poster named, lissadellfarm, who discovered that Sandstorm will be added to the Russell Global index! That's huge homerun for us, as we gain more exposure. :)
Link for that is here: http://www.russell.com/indexes/tools-resources/reconstitution/reconstitution-changes.asp
Good Luck Everyone! :)
I own the shares but I've never played warrants because I'm not familiar with them. Can you explain why they would be a good alternative to the shares? I'm familiar with how options work though.
By buying Sandstorm warrants, you have the option of converting your warrants, 1 warrant for 1 share of Sandstorm common stock at anytime between the time you buy them and I believe it's April 2014 for .60 cents.
Example: So, say that you bought 5000 warrants today for .57 each. Later on when Sandstorm stock is trading north of $25 per share, you decide to excercise your warrants for common shares at .60. So, in reality you just spent $1.17 for each share that's now worth $25 each for the 5000 shares.
Total Spent after buying 5000 warrants and exercising them is $5850
Gross gains after you excercise your 5000 warrants @ $25 per share (example), $125,000
Net Gains is $119, 150, before taxes...... I hope I got that right.... :)
Here is a link: http://www.investorpoint.com/stock/SNXXF-Sandstorm+Gold+Ltd%252E+Warrants+Expiring+04232014/
Good Luck To All :)
One has to be very careful with warrant expiry. When I first got interested in warrants i read somewhere that you need to give yourself I think it was three trading days and watch out for bank holidays etc.
You will not be able to sell the warrants as warrants when they get close to their expiry date so they are not suitable for RRSP's or TFSA's as you will need to buy the shares.
If my logic is off here let me know as the bold paragraph was just my own take.
I was so tempted when almost 4million warrants were sold on Friday all for .55 but the stock I wanted to sell was in my TFSA and I thought it too risky.
I have 30000 warrants in my trading account. I will need access to $18000 in order to convert to the commons. I have a big bunch of the commons as well so if push comes to shove I can always sell some of the commons but for myself I wouldn't just have the warrants.
Blue,
What would you recommend in terms of a common share / warrant ratio. Esp, for those who has not purchased warrants before.
I bought 2k the other day, as it was my first time buying warrants.
I'm holding quite a bit of commons and then the 2k of the warrants.
Thanks! :)
I have no advice. It depends on your investing style. This is my first foray into warrants also.
http://caps.fool.com/Blogs/royalties-vs-streaming/477264?source=itxsitmot0000001&lidx=1
Some info on Sandstorm that is old but good.
I only have a couple of stocks. Before I narrowed my focus I had 10-12 but I found I would make a gain but then lose it all on another. I also have near and far goals so my other stock Orko belongs in the near category and Sandstorm is for 2014+
Good luck with your investing.
My advice: You can like a stock but don't fall in love with it and if it starts to head south while its peers are up look really closely at what's happening.
I'm a firm believer in long term holds but if it looks like it's heading way lower than my average price I'm out. It's easy to buy but selling is a lot harder.
@TnC
This is from long_sand on the Yahoo Message board.
"I have been following Sandstorm for some time and I love their Management and Business Model. Nolan is a shareholder's dream. I am glad to have found this message board and only wish that I would have found it earlier. Anyways, let me get to the point of this topic:
I am a U.S. resident and I currently own both Sandstorm Gold and the Warrants on the PINK sheets (SNDXF and SNXXF). I was recently curious as to how I would go about exercising my 2014 warrants if/when I decided to do so. I contacted Sandstorm directly to receive a copy of the Warrant Indenture and Warrant Certificate. Interestingly enough, there is a legend that is applicable to U.S. Residents. Long story short, it restricts U.S. Residents from exercising the warrants UNLESS the common shares being issued have been registered under the U.S. securities act.
At this time, SNDXF is being traded OTC and obviously not registered under the U.S. securities act. So, it seems to me that U.S. Residents should be careful with this warrant play. I did, however, confirm with Sandstorm when I spoke with them that they have intentions of listing on U.S. Major Exchange, but this is not for another 12-18 months. So, if this happens prior to 2014, I think we are okay. Of course, many people holding the Warrant play (SNXXF) probably don't actually have the intention of exercising these warrants but rather selling the warrant itself when it is very much in the money.
Anyone with experience holding foreign warrants on the pink sheets - I am curious for some feedback on this one. If I am completely off here, I would love some more information. I can send the Warrant Indenture / Certificate for review.
All that being said, I am still VERY long on this company and its brother, Metals & Energy. I would just like to get some more input on the warrants before I increase my exposure. "
I'm in Canada so does not apply but I've heard a few times about the American listing which will provide rocket fuel to this stock.
Another article on Sandstorm from seeking alpha:http://seekingalpha.com/article/276761-precious-metal-royalties-sandstorm-s-transformation-begins
Lots of articles on Nolan and Sandstorm.
No time now but I'll post later.
The article answers the question below.
“Why has no one written about the 91% returns and the 60% leverage generated by the long-term warrants offered by a select few miners and royalty companies in 2010?”
http://www.munknee.com/2011/06/buying-gold-silver-company-warrants-is-ea...
Thanks for that - I learnt that as a US investor, I can't exercise the warrants because Sandstorm is not listed on an American exchange. So I will not be purchasing the warrants.
Most people don't exercise their warrants anyway. Just buy them for the leverage and sell them before the exercise date.
I am an authority on commodity related long-term warrants and have written many articles on the subject (I seem to be the only one doing so) over the past 7/8 years. I have developed 2 proprietary indexes - the Gold and Silver Warrants index (GSWI) and the broader Commodity-related Company Warrants Index (CCWI). You can get all the details here:
1. The “Secret” World of Gold & Silver Company Warrants http://www.munknee.com/2011/05/the-secret-world-of-gold-silver-company-warrants/
2. Gold & Silver Warrants Index (GSWI) Update http://www.munknee.com/2011/06/gold-silver-warrants-index-gswi-update/
3. Buying Gold & Silver Company Warrants is Easy & Profitable – Here’s How (and Why!) http://www.munknee.com/2011/06/buying-gold-silver-company-warrants-is-easy-profitable-%e2%80%93-here%e2%80%99s-how-and-why/
Enjoy and profit.
I've been intrigued by warrants in the mining companies for awhile and never really was able to find out much definitively. I do know they have the ability to swing wildly in price both ways and some of them seem way undervalued. I hope to be able to dabble in these at some point.
I'm not sure but it seems that they only trade on the TSX and maybe not the U.S. markets. I'm probably wrong on that so your info. is appreciated.
David Morgan hinted at a company in his free e-mail that he was very bullish on.
A quick google on the key phrases led to Sandstorm - they appear to be well liked due to repeating the business model that they were involved in a Silver Wheaton which was of course very successful!
I will definitely be adding some to my portfolio!!
Has anyone from the US opened a Canadian Broker to trade warrants on junior miners or can any Canadians recommend a broker that has US customers?
I'm looking into converting some of my plummeting USD to CAD, loosing money via the exchange rate and trading warrants with a CAD broker. I already did this in my "Global Trading" Etrade account and bought directly on the TSX and V exchanges. The account only allows common shares to be traded.
FYI, Etrade has the following: "Trade online in 6 global markets including Canada, France, Germany, Hong Kong, Japan, and the UK"
A week ago I needed some money so I sold 2/3 of my commons and bought approximately 2/3 more warrants. The warrants are up 30% in just a week. I admit I was lucky to get them so cheap. Because everyone was so anxious to purchase the commons the warrants lagged that day, Now with my three accounts I have an equal amount of shares and warrants.
Just because you trade in the US doesn't mean you can't buy the warrants. Right now you can always sell them as warrants and by the time they come due Sandstorm will have a US listing.
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