Sandstorm Gold Ltd.

SSL-T

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%).

(A Top Pick October 17/12. Down 50.59%.) Gold stocks went down which is probably not as bad as it might have been as it had been one of the very best performers. He took some profits on the way up but still holds some. This is a gold streaming company and its in Colossus Minerals (CSI-T) which has had to apply more money to its operations in Mongolia.

(Market Call Minute.) Very interesting company. He would like to own it but doesn’t have enough confidence in the company.

(Top Pick Jul 11/12, Down 27.27%) He is currently short. Bought long, then switched to short later after they did a deal he didn’t like as it was a style drift.

Likes these people. Shook him up a bit by going into Mongolia which is having some difficulty with the authorities. This is a nine-year project. Just heard that Colossus, one of their projects, has come amiss a little bit on their production plans and will need more money.

Likes at these levels. Junior mining sector has not been the place to be in the past little while. Given that they focus on royalty companies, he feels that this is a place to be. Bought another royalty company from Premier Gold (PG-T). Some of their assets are attractive. Feels gold is basing out here. Once risk appetite comes back for Junior golds, this one should participate as well. He prefers Franco Nevada (FNV-T).

(Market Call Minute) Great royalty company without some of the risks.

(Top Pick Jun 15/12, Down 19.20%) He did very well when he got out.

Sandstorm Gold (SSL-T) or Silver Wheaton (SLW-T)? Depends on your risk profile. This one is a smaller cap royalty play and with Silver Wheaton, you are really going with a larger cap that plays with the bigger companies.. Sandstorm is a lot riskier as their royalty deals are more with the junior mining companies.

(A Top Pick June 11/12. Up 3.12%.) Sold her holdings.

Still likes the company and its management. Was a little uneasy when they decided to go on the Mongolian merry-go-round. Apparently the wrong Mongolian department stamped a paper for their partner Entrée Gold. Expects this will get resolved but you have to wonder when it goes into production.

They don’t have impacts of cash costs to worry about. It is a royalty company. Has come under a lot of pressure in the last month or so. Mongolian government took away the right to a property they invested in. Thinks it will take a year to get their cash back from the deal.

Royalty streaming companies are the only things that have moved higher in the last 2.5 years. Every once in a while there will be a deal that goes a little amiss but this is a decent name. Thinks it is a brilliant business model and one of the few things that is making money. Would be very interesting to look at now.

Gold streaming companies have held onto their value very well, which is really helped in this environment. There are going to be risky dealings when you are dealing in places like Mongolia so he doesn’t own this one. If you own, he would switch to another one such as Silver Wheaton (SLW-T).

Gold is under pressure because price has been falling over past couple of days. Chart is not too encouraging. Support around $11 and you might want to get into it about there but you want to stay away from gold.

A breakout above the price channel and then it came back down, which it usually will. If it goes below $11.50, if will go right down to the lower trend line of the price channel.

Everything is looking up. Continue to meet their targets in terms of new streaming deals the same as they had with Colossus (CSI-T). Has outperformed the sector over the last 2 years by a very wide margin. Thinks the underlying producers have now priced in the operating risks for the most part so he is warming up on the underlying producers such as Argonaut (AR-T). (See Top Picks.)

Good valuation. Highly skilled management. Foremost junior gold streaming company in Canada and he thinks it’s just going to carry on up. There has been a nice correction to take advantage of if you don’t own it. One of his favourites in the gold sector.

Royalty stream company. Investors have exposure to gold and a fairly good visibility to their cost structure, and therefore profitability of the company.

Most gold stocks sold off. He is turning bullish on the US dollar. If you own a gold stock, reduce into the rallies. We are still in an uptrend. It has not been violated.

Sept and Oct gold producers were strongest in the market. Given the shift over the last couple of weeks, the higher beta sectors have been the playground of the hedge funds. He pulled in his horns on the golds and sold this one over the last couple of days. Long-only investors are not really engaged.

Gold royalty company. Finally got hit because it started to trade at twice the net asset value.

Just did a streaming deal with Colossus Minerals (CSI-T) for gold and platinum. Has been a great performer. All the royalty gold and streaming companies have done exceptionally well in this market because they don’t have the increased CapX. A growing company.

All the moving averages are in the right place. Some of the indicators are low so we know that it has not got into an overbought level. There’s no good reason not to buy but he’d rather wait for a pullback, but you may not get a pullback. You could use a stop loss of $13 and the next one would be $11.

Royalty companies are great. Believes this one has more thrust than some of the larger ones. Can easily raise money and go higher.

Silver has done very well. Has a much shorter window then gold. Historically gold does much better after the US election. He would wait until after the election on both gold and silver.

Really likes the royalty structure in investing in precious metals. Rarely does a gold company come into production on budget and on time. Just raised $150 million, which gives them liquidity to do additional deals. They’ll grow their share of production from 35,000 ounces this year to about 65,000 by 2014.

Recently closed a deal to raise $150 million. A gold streamer which definitely performs much better than the producers but he prefers the producers as they will have much more leverage going forward. His company doesn't follow this one but some clients own a little bit. Has just got listed on the NYSE, which will be very good for them as there are not that many choices of gold there.