Successfully reported this slideshow.
INVESTING IN MINING

CAN BE HAZARDOUS
TO YOUR HEALTH
“Quick, what's the world's worst
investment sector?”
“Airlines? Autos? Biotech? Give up? Junior mining
is way worse. Airli...
Cyclicality of the
Mining Industry

WE ARE
HERE
Case Study
Market Cap

$

80,000,000

NAV

$

100,000,000

Shares: 80 Million

Value of Equity

Investor Ownership:

$

10...
VALUE OF EQUITY

$8.0 M

$3.0 M

$2.5 M

$1.9 M

SHARES

109 M
SHARES

88 M
SHARES

80 M

$0.38

YEAR 1

YEAR 2

$0.31

YE...
VALUE OF EQUITY

$8.0 M

$3.0 M
62%

$2.5 M

$1.9 M

SHARES

109 M
SHARES

88 M
SHARES

80 M

$0.38

YEAR 1

YEAR 2

$0.31...
VALUE OF EQUITY

$8.0 M

$3.0 M

$2.5 M

$1.9 M

$2.5 M

$1.9 M

SHARES

109 M

SHARES

101 M
SHARES

80 M

$0.31

YEAR 1
...
VALUE OF EQUITY

$8.0 M

$3.0 M

$2.4 M

$1.9 M

SHARES

128 M
SHARES

101 M
SHARES

80 M

$0.25

YEAR 1

YEAR 2

YEAR 3

...
VALUE OF EQUITY

$8.0 M

$3.0 M

$2.4 M

$1.9 M
SHARES

161 M

SHARES

128 M
SHARES

101 M
SHARES

80 M

YEAR 1

YEAR 2

Y...
Company A
Stock Chart

P

R

A
EC
Company B
Stock Chart

P

R

A
EC
VALUE OF EQUITY

$8.0 M

$3.0 M

$2.4 M

$1.9 M
SHARES

161 M

SHARES

128 M
SHARES

101 M
SHARES

80 M

YEAR 1

YEAR 2

Y...
$8.0 M

$3.0 M

$0

$0

YEAR 1

YEAR 2

YEAR 3

YEAR 4
65% of studied companies in
the junior mining sector,
have no cashflow and more
debt than cash.
Cyclicality of the
Mining Industry

WE ARE
HERE
Cyclicality of the
Mining Industry

WE ARE
HERE
Prediction:
The mining industry will
have record equity issuances
in underline number of
shares in 2014.
Benefits of Royalties
& Streaming
Avoids
equity dilution

100%

More accretive
to NAV per share

Avoids diluting
secondary ...
What Sandstorm is
Looking for
Potential for low cost
operations
Exploration Upside
Political stability
APPEAL

TO INVESTORS
Nolan Watson, Sandstorm Gold: Finance innovation: Creating growth opportunities with streaming finance models
Upcoming SlideShare
Loading in …5
×

Nolan Watson, Sandstorm Gold: Finance innovation: Creating growth opportunities with streaming finance models

1,208 views

Published on

Nolan Watson, Sandstorm Gold: Finance innovation: Creating growth opportunities with streaming finance models, presented at Mines and Money Australia 2013, Melbourne

Published in: Business, Technology
  • Be the first to comment

Nolan Watson, Sandstorm Gold: Finance innovation: Creating growth opportunities with streaming finance models

  1. 1. INVESTING IN MINING CAN BE HAZARDOUS TO YOUR HEALTH
  2. 2. “Quick, what's the world's worst investment sector?” “Airlines? Autos? Biotech? Give up? Junior mining is way worse. Airlines limp on for years in quasi-bankruptcy—so do autos. A few companies like Toyota even do well. Biotech companies sometimes find something interesting. Even if your junior mining company finds something, you still will probably lose money.” —Adventures in Capitalism, 2010
  3. 3. Cyclicality of the Mining Industry WE ARE HERE
  4. 4. Case Study Market Cap $ 80,000,000 NAV $ 100,000,000 Shares: 80 Million Value of Equity Investor Ownership: $ 10% 8,000,000
  5. 5. VALUE OF EQUITY $8.0 M $3.0 M $2.5 M $1.9 M SHARES 109 M SHARES 88 M SHARES 80 M $0.38 YEAR 1 YEAR 2 $0.31 YEAR 3 $0.25 YEAR 4
  6. 6. VALUE OF EQUITY $8.0 M $3.0 M 62% $2.5 M $1.9 M SHARES 109 M SHARES 88 M SHARES 80 M $0.38 YEAR 1 YEAR 2 $0.31 YEAR 3 $0.25 YEAR 4
  7. 7. VALUE OF EQUITY $8.0 M $3.0 M $2.5 M $1.9 M $2.5 M $1.9 M SHARES 109 M SHARES 101 M SHARES 80 M $0.31 YEAR 1 YEAR 2 YEAR 3 $0.25 YEAR 4
  8. 8. VALUE OF EQUITY $8.0 M $3.0 M $2.4 M $1.9 M SHARES 128 M SHARES 101 M SHARES 80 M $0.25 YEAR 1 YEAR 2 YEAR 3 YEAR 4
  9. 9. VALUE OF EQUITY $8.0 M $3.0 M $2.4 M $1.9 M SHARES 161 M SHARES 128 M SHARES 101 M SHARES 80 M YEAR 1 YEAR 2 YEAR 3 YEAR 4
  10. 10. Company A Stock Chart P R A EC
  11. 11. Company B Stock Chart P R A EC
  12. 12. VALUE OF EQUITY $8.0 M $3.0 M $2.4 M $1.9 M SHARES 161 M SHARES 128 M SHARES 101 M SHARES 80 M YEAR 1 YEAR 2 YEAR 3 YEAR 4
  13. 13. $8.0 M $3.0 M $0 $0 YEAR 1 YEAR 2 YEAR 3 YEAR 4
  14. 14. 65% of studied companies in the junior mining sector, have no cashflow and more debt than cash.
  15. 15. Cyclicality of the Mining Industry WE ARE HERE
  16. 16. Cyclicality of the Mining Industry WE ARE HERE
  17. 17. Prediction: The mining industry will have record equity issuances in underline number of shares in 2014.
  18. 18. Benefits of Royalties & Streaming Avoids equity dilution 100% More accretive to NAV per share Avoids diluting secondary projects Can be completed quickly
  19. 19. What Sandstorm is Looking for Potential for low cost operations Exploration Upside Political stability
  20. 20. APPEAL TO INVESTORS

×