Sandstorm Gold Ltd. (SSL.TO)

Highly liquid at $1-billion market cap. Generating free cash flow and one of the only royalty plays where streamers show growth, driven by a gold asset in Turkey that should come in in 2022-3. This should generate a lot of free cash flow. (no dividend, Analysts' price target: $8.02)

It is a classic case of a company doing everything right after a halting start. This is a superlative deposit in the control of a good young management team. A couple of years out this stock will go much higher. (Analysts’ target: $7.96).

Sprott owns a lot of this, and in the right circumstances they’d be buying more. This is one of the smaller royalty companies. They had some operational mistakes in the last decade, but believes they have corrected those mistakes. He sees a cash flow continuing to increase. Likes the deal team in place and he likes the balance sheet.

Going back 3 years, we had an incredible bull market in gold. All sorts of properties that probably shouldn’t have gone into production, went into production. Huge amounts of money got spent in the industry with not really an internal rate of return. The whole gold sector has bounced back. This one is a whole mixed bag, and to go into all those projects that they acquired at the height of the bull market, there are some real question marks.

This is a gold streamer. Good management and they can definitely execute. If you don’t want to have the volatility of the producers, this is one you could own.

A gold streaming company where they buy gold from the producers at a prefixed price. Good management team. Low risk asset base. Tripped up when one investment went bankrupt. This company ended up owning the mine. Good asset if the mine actually works. Caused some investors to exit. Doubts they will plan to operate this mine, and will hopefully sell it to someone who will put it back into production. They need to do a very strong low risk deal, and restore some of the confidence in the marketplace. Trading at close to 1X what it is worth, and the free cash flow is 6%-7%.

They may have some challenges. He is bearish on the asset. Based on worries about the emerging markets.

One of his favorites. Junior mining companies are on their knees. They get percentage of metal production in return for financing. Any operating cost increases are not borne by these guys. They have a war chest to take advantage of opportunities.

(A Top Pick Oct 17/12. Down 59.13%.) Very clever company and you have to take a long-term view of their Mongolian interests. Did an interesting deal in taking out a royalty streaming company with cash. You have to be patient.

With the uncertainty of the gold space, she would tend to gravitate towards higher-quality names such as Franco-Nevada (FNV-T). The last couple of deals they have done have caused some investors to step back.

(A Top Pick September 18/12. Down 49.77%.) Last year this was around $7-$8 and got to almost $14. He got stopped out at $12 (Up 9.8%).