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Investing in the Mining Industry: Insiders view
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thegameoflife Offline
Sparrow

Posts: 61
Joined: Oct 2010
Reputation: 3
Post: #12
RE: Investing in the Mining Industry: Insiders view
Although I usually don't give out specific companies when I talk with friends and family I see a huge opportunity in Sandstorm Gold (SSL) developing. It has gone on a crazy ride since I bought in a year ago but the company has so much going for it.

- You are basically getting top notch management (former CEO of Silver Wheaton which grew a company from $3.00/share to almost $40.00 in less than 5 years) to choose the companies/mines to invest in for you.
- The company is a streaming company so there is actually no mining. Think of it as a bank that only lends money to mining companies in exchange for a percentage of the gold mined at a low fixed cost (usually around $500.00). No mining means less operational risk
- Insiders own 20%+ of the stock. As many of you are aware, insider ownership is a very bullish signal.
- No debt. Very rarely do companies run with no debt but that is exactly what Sandstorm is doing at the moment. Having no debt means more of the companies revenues (top line) are profit (bottom line). It is also nice knowing that the company will be able to survive in a deflationary environment like 2008.

I highly suggest looking into this company for precious metals exposure as I feel the risk/reward profile far exceeds most companies. If you have any further questions on SSL or investing in general feel free to fire me a PM.

FULL DISCLOSURE: I own a significant amount of SSL-V in my TFSA
03-05-2012 01:55 AM
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RE: Investing in the Mining Industry: Insiders view - thegameoflife - 03-05-2012 01:55 AM

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