Sandstorm Gold ready to pop?

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Blue Sky
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Sandstorm/Metanor

Quiet day so I was doing a bit of research on Sandstorm.  I reread the Wyatt Research report and although very positive he mentioned the caveat that SG was on the pink sheets therefore very risky.  Well all stocks are risky but they are only on the pinks in the US but they are on Tier 1 on the TSX.Vwhich is a whole different ballgame.  I also noticed that they were showing  a .03 per share profit while a stock like TRX  which I used to own back in the day and made great money when it gave me an 8 bagger after listing on the AMEX has a -.05 per share yet trades for 3.74 almost three times as much.  Once we get on the NYSE which is the plan I believe we can expect a big jump as many big players will not buy the pk.'s or even TSX.V stocks.

I never answered your Q. on whether I had the metals and energy and the answer is no.  I have a lot of SG commons and warrants, probably too much but i'm comfortable with it and I only have a few stocks and don't want more.  I love property and had to sell most of mine years ago so I just bought a winter home and I wouldn't mind another summer home so that if I decide I want a smaller property I will sell my farm.

Blue Sky
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Sandstorm traces path of Gold

On Oct. 25th BNN market call part 2 featuring James West commented on how much he liked Sandstorm.  Nolan Watson garners huge respect in the investment world.

With all due respect to Spenser the title of this forum is misleading as Sandstorm is not a popping kind of company.  It's the kind of company you buy on dips commons and warrants and keep for at least 3 to 4 years and you could possibly get a 10 bagger but patience is everything.

Next year when it's listed on an American exchange and not just pk's we will see a pop.

Blue Sky
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Warrants up big time.

I just 2 finger typed a long post on why warrants are up 10% today and lost it.  Will try later.

Stoxxman
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Always live Sandstorm

http://pennystockjournal.blogspot.com/2011/08/sandstorm-gold-ltd-sslv.html 

Pages%2Bfrom%2BSSLPresentation.jpg Sandstorm Gold Ltd. - SSL.v is a growth focused resource based company that seeks to complete gold purchase agreements with gold mining companies that have advanced stage development projects or operating mines.
imagesCAXVE3J0.jpg
shutter
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Vancouver, British Columbia,

Vancouver, British Columbia, November 9, 2011 -- Sandstorm Gold Ltd. ("Sandstorm" or "the Company") (TSX-V: SSL) has released its unaudited results for the third quarter ended September 30, 2011 (all figures in U.S. dollars).

Third Quarter Highlights
 

  • Record operating cash flow of $8.6 million, a 223% increase from the previous quarter
  • Record gold sales of 5,561 ounces, a 50% increase from the previous quarter
  • Net earnings were $4.4 million, a 90% increase from the previous quarter
  • The Company completed a gold stream with Donner Metals Ltd. to purchase 17.5% of the life of mine gold produced from the Bracemac-McLeod development project at $350 per ounce
  • Gold production reached feasibility levels at both the Aurizona Mine and the Santa Elena Mine
  • Significant progress has been made on the development of the Ming Mine, which is expected to begin operating by early 2012

"A significant ramp up in gold production at multiple mines together with an all-time high average realized gold price has resulted in exceptionally strong operating cash flows for Sandstorm," said President and CEO Nolan Watson. "With our cash on hand and robust future operating cash flows, we are well positioned to continue to grow the company through the acquisition of additional gold streams."   

 

Blue Sky
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Fabulous 3rd Q. results

This is probably why the warrants have been so strong the last few days.  At exactly 1.57 pm the manipulators tried their darndest to bring the commons down knowing full well what was coming.  If you're not in this stock yet there is time but the worm hole beckons.

Blue Sky
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Post from Main re warrants

http://www.tfmetalsreport.com/comment/84683#comment-84683

agauinvest
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Conference Call

Nolan sounds positively giddy!

Blue Sky
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Conference Call

I missed the CC so if anybody can give a synopsis of the main points it would be greatly appreciated.  Both commons and warrants took off after so it must have been good.

T
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The chart

The chart is looking pretty good ..... and its  looking  ( to me ) like it is  evolving into a settling down,  into spring lows around the 1 dollar area as the next  chance for a bargain.  It definitely did Not drop down into my target low of 84 cents. in october.

I think I could buy some .   at 1 dollar . If we get some kind of big sell off in first quarter 2012.

Imagine owning SLW at 1 dollar.   or is that too grandiose...

agauinvest
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Conference Call

@Blue Sky:

The tone of the conference call was the most significant.  Like I said, Nolan seemed giddy for a CFO/CEO type.  He summarized the numbers and outlooks for the streams that aren't yet online, and seemed optimistic relative to the two that are running behind, noting that one just needs to get electricity fed yet, and that the structure is basically done.  The big thing is that when he was projecting numbers in the future through 2014, he came right out and said that, to be honest, they may be or will be revising the numbers upward. 

He then turned it over for more detailed discussion of results, but that pretty much consisted of a reading of parts of the press release and the 10-Q. 

Questions:  there were not very many people asking questions, so I don't think there were very many big-firm analysts or funds on the call.

agauinvest
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Forgot to add re:CC

He gave a much longer estimate of what he expects the life of the mines to be now than I remember from previous releases; I think he said on average could be 20 years, but I wasn't listening as well as I should have, because that was an answer in response to a badly worded question.  He might have said 15 to 20 years.

Blue Sky
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Thanks agauinvest

http://www.snwebcastcenter.com/event/?event_id=2361.#

Link to conference call.  Takes about 30 mins. and well worth the time.

Nolan sounded like his normal self to me but then I've listened to him several times.  It seemed that all of the questions came from analysts/brokerages and they certainly know the company well.

Thanks for your prompt response and good luck with your investments.

Blue Sky
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More positive mention of Sandstorm on BNN

http://watch.bnn.ca/#clip566814

Blue Sky
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Sandstorm Streams Making the news

This past week the current streams from Sandstorm keep making news.

Silver Crest up .23 today with over 2million volume.

Metanor and Luna also in the news.

Sandstorm Gold a safe place to be in troubled times for miners.

Blue Sky
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Another good article on Sandstorm

http://goldstockguru.com/two-gold-stocks-worth-holding-long-term/

especially worth noting is how much of their own money Watson and Awram have invested.

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New Article from Seeking Alpha

http://seekingalpha.com/article/311761-sandstorm-gold-reaching-critical-mass

again Kewl from Stockhouse for your excellent research.

Blue Sky
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Jay Taylor recommends Sanstorm in The Gold Report

TGR: What other smaller gold and silver miners are you interested in.

JT: My favorite might be Sandstorm Gold Ltd. (SSL:TSX.V), which is a royalty play. It has one of the best looking charts in a horrible market. Sandstorm provides the capital to get companies into production and then it gets a royalty. It usually gets the chance to buy maybe 15% or 20% of a project's production for the life of that project at cost. It has several properties that are producing now. Its projects are getting bigger and production is growing. This is a company that's going to continue to earn more and more very rapidly. There are fewer risks involved in this model than if it was an operator, too.

TGR: Its production forecast for this year is from 16–18 thousand ounces (Koz). However, that will increase to more than 50 Koz by 2014. That's certainly strong growth.
JT: The gold price, where it is relative to the cost of mining and the expansion of production, means that earnings are going to grow very rapidly, if not exponentially.

TGR: Do you think that too many royalty plays kill the goose?
JT: That could be the case. With increased competition, they might be paying too much for the deals that they strike. However, I'm not concerned about that with Sandstorm at this point. Royalty plays, like Sandstorm, Silver Wheaton Corp. (SLW:TSX; SLW:NYSE), Royal Gold Inc. (RGL:TSX; RGLD:NASDAQ) and others, generally sell at much higher multiples than mining companies because there's less risk involved. An operator can have any number of things go wrong and have to put in more capital to get things moving again.
TGR: It's more of a matter of vetting these projects and being sure the geological model works and the metallurgy is good.

JT: Yes. I have a high regard for the management of Sandstorm. They're really sharp. They get involved in projects that have enormous upside potential. It's not just the ounces that might be in a bankable feasibility study. They look at the exploration potential and the expansion of production, too.

 

Blue Sky
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More good news for Sandstorm

http://www.sandstormgold.com/s/NewsReleases.asp?ReportID=999999999,495248&ReportIDRef=63SL04NH1VNXB

With a streamer like this you are protected by variances in the price of gold.

Win Win.

Blue Sky
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Good article on Warrants

http://www.theaureport.com/pub/na/11957

This was posted by MrC on the Stockhouse board.

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