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speedybure (< 20)

Sandstorm(s) Updated

Recs

10

March 21, 2013 – Comments (3) | RELATED TICKERS: SAND , SLW , STTYF.DL

Since my last update, quite a bit has happened for both companies;

Sandstorm Gold

2013) 2013 Production growth will be very mild, picking up in Q4. Remeber, Sandstorm has to replace the lost production from the Black Fox stream being reduced from 12% to 8%. Luckily increased production from Black Fox as well as Aurizona should mitigate a good portion of that. Mitigating the rest and driving what production growth Sandstorm will see in 2013 will be Backelor Lake and Bracemac-Mcleod to a lesser extent. While cornerstone asset Serra Pelada will commence production in 2H 2013, it will only begin to make a material impact on attributable production in 2014.

Production estimate (2012) ~ 43,500 oz.;s

2014) 2014 Production growth will be driven primarily by Serra Pelada and the St. Elena Expansion. Other growth drivers include a full yr at Bachelor Lake and possibly some production from Deflector. (Mutiny has changed the mine plane whereby mill throughput will be increased to the extent it can produce 80,000 - 100,000, up from the originial forecast of 50-55,000 oz.'s.

Production Estimate (2014) - 58,000 oz.'s

2015 - Serra Pelada will have its first full yr proucing Au, Pt and Pd at capacity as well as Mutiny ramping up toward capacity. Mt. Hamilton will also contribute to growth in 2015.

2015 Production - 76,000 AuEq oz.'s

2016) Phase II (which will likely be undertaken will be complete), which will increase attributable production 16-20k. Mt. Hamilton, Coringa and possibly Cuiu Cuiu will further add to growth.

2016 Production - 101,000 AuEq oz.'s

Sandstorm Metals & Energy -

Trimming the fat - Over the last year Sandstorm M&E has trimmed the fat it was carrying, notably restructuring the Rex and Rosa stream and more recently the Terrex stream. This provides Sandstorm with some extra cash to deploy for its next deal on top of the robust cash balance it currently has. From the looks of it, Sandstorm has learned its lesson in investing in marginal projects as the most recent stream acquisitions are of much higher quality.

Bracemac-Mcleod - Sandstorm will see this cornerstone asset commence production in the next month, ramping up over the coarse of the year. Attributable copper production from Bracemac should make Sandstorm cash flow positive for the first time starting in Q3, if not Q4. Once fully ramped up and accounting for Sandstorm increasing its 17.5% stream to 24.5%, attributable production should be roughly 6.6m lbs - 7m lbs Cu at $1/lb.

Gordon Creek - Sandstorm is already recognizing cash flow (albeit small) generation from Gordon Creek, which will increase over the course of this yr and reach full production in Q1 (Q2 at the latest) 2014. Gordon creek provides extreme leverage to the price of natural gas so it will become a significant asset as we see the price of natural gas rise over time.

Serra Pelada - A second cornerstone asset acquired in 2012 for a mere $15m (payable later this yr). This was an exceptional acquisiton, however due to Colossus initially skipping a 43-101, we don't know the production numbers (although using analyst estimates avg grade implies avg annual production between 50-70k oz.;s.  

3 Comments – Post Your Own

#1) On March 21, 2013 at 5:53 PM, Option1307 (30.16) wrote:

STTYF has been looking awfully attractive lately, thanks for the quick update!

 

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#2) On March 30, 2013 at 8:21 AM, skypilot2005 (< 20) wrote:

Speedy,

Thanks, for all you do.  I read everything you write on The Web.

Have you looked at Americas Bullion Royalty formerly Golden Predator & Silver Predator?

http://www.aubullion.com/

Americas Bullion Royalty Corp. controls a royalty package of 32 North America properties including several deeded royalties totaling over 100,000 acres in Nevada, Wyoming, Oregon and Mexico including Midway Gold Corp.'s Pan and Gold Rock deposits. These properties are predominantly leased out to mineral production, development and exploration companies to provide royalty revenue. In 2012, the royalty portfolio generated $799,762 in revenue and this is expected to increase as key projects begin to come on line. Subsequent royalty revenue is anticipated to experience acceleration as early as 2014 as several of these projects begin to advance towards production.

Americas Bullion’s royalty portfolio, remains unique in the mineral development industry due to the nature of the Gross Production Royalties, which were acquired from the Lyle F. Campbell Trust (LCFT) in 2008 for USD $4.1 mm, that cover specific projects moving towards production, the ability to receive payment in gold or cash and the absence of buy-back provisions affecting any of the royalties.

http://www.aubullion.com/Taylor.html

Americas Bullion owns approximately 18% of Silver Predator's issued and outstanding shares.

http://www.silverpredator.com/

http://www.silverpredator.com/documents/Silver-Predator-Corp-Presentation-03-2013.pdf

Corporate Presentation

March 2013

Thanks,

Sky

I initiated starter positions in both this quarter. 

I like “streamers” here.  The Sandstorms are my 2 largest holdings out of + 60 positions.

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#3) On March 30, 2013 at 9:17 PM, tdonb (< 20) wrote:

Also see TMFDeej rec for STTYF: http://caps.fool.com/Blogs/sandstorm-metals-and-energy-a/809667 

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