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The Answer to the Question that Everyone has About Sandstorm Metals & Energy

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March 29, 2013 – Comments (6) | RELATED TICKERS: STTYF

The million dollar question when it comes to Sandstorm Metals & Energy (STTYF) is when will the company start receiving revenue from the various investments it has made in mining and drilling projects. I have seen a number of what I believe are overly optimistic estimates on this subject over the past several months.

Many people seem to believe that drilling will begin on the company's Bracemac-McLeod any day now. After doing extensive research on the subject I have come up with what I believe is the most realistic, accurate estimate of when this project will begin generating cash for Sandstorm. I posted an interview with the CEO of the company that Sandstorm provided funding to for this project, Normand Champigny of Donner Metals. I just came across another, longer interview with him where he provides the most detailed timeline on the project that I have seen.

According to Mr. Champigny drilling at Bracemac-McLeod will commence in Mid-May with actual revenue starting to come in from copper mined from the project starting 90 days after that. This means that STTYF might begin to see cash generated from this project in Q3 of this year, but more likely in Q4. I suspect that this is a little later than many other investors believe. Once the cash begins rolling in from this project I have a feeling that STTYF's share price will begin to increase, perhaps significantly. 

Fastforward to the 10:00 mark of this video if you aren't interested in watching the whole thing for the key piece of information. 

 http://m.youtube.com/#/watch?v=TNbFI7cPHg4&desktop_uri=%2Fwatch%3Fv%3DTNbFI7cPHg4

Embedding the video is a little tricky on the iPad, so use the link.

Jason 

6 Comments – Post Your Own

#1) On March 29, 2013 at 6:18 PM, TMFDeej (99.45) wrote:

Yet more Sandstorm M & E News:

 Thunderbird Issues Shares to Sandstorm

 http://www.marketwatch.com/story/thunderbird-issues-shares-to-sandstorm-2013-03-28-181733144

 Jason 

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#2) On March 29, 2013 at 8:02 PM, TMFDeej (99.45) wrote:

Wow even more investing news.

 Colossus Minerals Provides Development Update and Announces the Addition of J. Alberto Arias to the Board of Directors

 http://www.colossusminerals.com/English/Investors/News-Releases/News-Releases-Details/2013/Colossus-Minerals-Provides-Development-Update-and-Announces-the-Addition-of-J-Alberto-Arias-to-the-Board-of-Directors/default.aspx

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#3) On March 31, 2013 at 5:35 PM, Option1307 (29.91) wrote:

Deej your work on STTYF has been second to none, keep up the good work!
I don't really see any holes in your research. I've basically come to the same conclusions as you on my own. Thanks for posting the donner metals video, I think that provides the most accurate description of their mine and thus positive cash flow to sandstorm which seems to me most likely quarter 4 2013.
I have to say that while donner metals does seem confident that things will go smoothly, there is still risk in my opinion. Nothing tends to go according to plan with these smaller mining companies. I want to believe their management in their timeline, however I won't hold my breath or bet the bank on this occurring.
As I've stated before I am a shareholder in STTYF and do believe they will ultimately be successful. Currently I have a smallish position, ~1-1.5% of my portfolio. 
I been debating a lot recently whether or not to make this a larger position as they seem to have a lot of approaching catalysts in their corner. I still have not decided one way or another.
I guess I'm not convinced donner metals will start production according too their current timeline and sandstorm may not receive any cash until say early 2014. Again ultimately I think they will receive cash from this mine but it may take longer than expected. 
Second, as I've said earlier betting on sandstorm is basically just a bet on Nolan Watson. Can he do it again?? I think so but thats not a certainty. 
I do think everything is going to work out for sandstorm in the long run, and I do believe that this will be a multi bagger in a few years. That is why I am a shareholder. 
With all that being said I still think this is a pretty speculative pick and wouldn't want to bet too heavy on this. Right now I think I am going to hold off on purchasing any more shares. I think there is plenty of time before cash starts flowing into sandstorm and I think the overall market is a little hot right now. I would look to add to my position if there is an overall market pullback in the next few months.
Thanks again deej, you are one of the top Fools around these days!

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#4) On March 31, 2013 at 9:02 PM, TMFDeej (99.45) wrote:

Thanks Option.  I have never been a metals or mining guy in investing, so I have been enjoying learning a lot on the subject. Hopefully it will come in handy here and in future investments. 

You're absolutely right. When it comes to mining there's always risk. That's why I've been trying to be somewhat conservative in my timeframe and assessment of Sandstorm's investments. I like Bracemac-McLeod because at least the company is working on an existing mine with very compitant partners. I don't know nearly as much about Colossus or Thunderbird yet. If only there was more hours in the day ;).

i completely agree with you about position size. As much research as I have done on STTYF and as much upside as it has if they turn out to be the intelligent alligators (ha iPad typo, but I'm leaving it because I like it) of capital, I feel compelled to limit the size of my investment here as well. I'm bigger than you are into it on a percentage basis, but it is probably half the ice of my bigger positions.

I also not see the shares moing muh until the mine starts operating, or more likely cash starts flowing in, so we have one time.

Thanks a lot for the kind words. The Internet is a funny place here people often say mean things in rude ways to people that they would never say in real life. I'm glad that there's positive people like you here at CAPS.

Jason or Deej, whichever you prefer. 

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#5) On April 01, 2013 at 8:51 PM, Option1307 (29.91) wrote:

Thanks a lot for the kind words. The Internet is a funny place here people often say mean things in rude ways to people that they would never say in real life. I'm glad that there's positive people like you here at CAPS.

I've been around the Fool for a long time and have seen a lot of the negativity that you mention. I will say there tends to be less of it here than other internet places but it still is present. I don't understand it, you gain nothing from acting like this and ceratinly don't gain any investment ideas etc.

Jason or Deej, whichever you prefer.

My real name is also Jason...So by default I refer to you as Deej to keep us striaght in my mind ha ha

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#6) On April 17, 2013 at 5:45 PM, Option1307 (29.91) wrote:

Picked up some more shares today Deej, happy buying!

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