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Green & Gold Fund

BUY Recommendation : Sandstorm Metals and Energy LTD (STTYF). Green & Gold Fund. Key Investment Points. Historically successful management Unique business model Highly undervalued Strong technical indicators Timing = OPPORTUNISTIC Competitors  next to none!. Industry Overview.

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Green & Gold Fund

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  1. BUY Recommendation: Sandstorm Metals and Energy LTD (STTYF) Green & Gold Fund

  2. Key Investment Points • Historically successful management • Unique business model • Highly undervalued • Strong technical indicators • Timing = OPPORTUNISTIC • Competitors  next to none!

  3. Industry Overview “The Mining sector comprises establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. The term mining is used in the broad sense to include quarrying, well operations, beneficiating (e.g., crushing, screening, washing, and flotation), and other preparation customarily performed at the mine site, or as a part of mining activity.” THE DEPARTMENT OF LABOR --Bureau of Statistics--

  4. Industry Overview • Strong yet volatile outlook for metals/mining industry • Current focus  continued growth through expanded production. • The demand for metals/energy faces no foreseeable threats. • Mining = incredibly capital intensive  difficult MKT entry • Only a handful of blue chip companies have the means to reach production.

  5. Industry Overview • E&P(exploration and production) miners are often weeded out altogether. • The potential profits for these “junior miners” are rarely realized. • Projects that lack funding are abandoned INCLUDING many with fundamentally sound operational strategies. • Against this economic setting, Sandstorm has spotted what it hopes to be a MORE than just “golden” opportunity.

  6. Success with Sandstorm Gold • 02/02/12 Original purchase at $1.43/ share • 05/09/12  5:1 Reverse stock split • Adjusted Cost Basis $7.15 • 57.2% return over 9 months • 82.7% annualized return

  7. Unchartered, yet familiar… ( exploration and production Business Model Refined Management Streaming Method Corporate Structure Industry Dynamics • DIVERSIFIED STREAMING • Copper • Palladium • Natural Gas • Coal • Oil Gold Streaming ONLY

  8. Commodity Streaming

  9. Commodity Streaming “A Sandstorm investment maximizes investment potential while minimizing downside risks.” (taken from SAND Buy Presentation)

  10. Is this the right time? • YES  right time = right now!! • Steady upward trend • Moving averages in ideal positions respective to one another and to price • Volume rising comfortably with price indicating growing trading/investment activity within Sandstorm Metals & Energy

  11. Steady Uptrend (30-45 degrees) 45º 30º

  12. Moving Averages

  13. Undervalued, but why? • We are looking for “broken stocks” rather than “broken companies”. In this situation we have the following : • Strong Management • Proven Business Model • Quality Investor Relations • Strong Balance Sheet • Financial Liquidity But… Markers of a fundamentally sound company PERCEPTION of the avg investor an early stage company dabbling in a historically volatile industry!!!

  14. Investment Information 2 Year Price Graph

  15. SWOT Analysis

  16. Portfolio Placement / Recommendation • Sector : Industrials & Materials • Industry Group: Investment Company • Current Holdings: GE, XYL, SAND, UPS • Target Sector Allocation: 8.23% • Current Sector Allocation: 11.89% , $19,431.16 • BUY 20,000 shares of STTYF at a limit price of $.50 ($10,000, approx. 2% of portfolio) • Holding Period/Exit Strategy: 2-3 years; consider selling if stock splits and reaches estimated peak, if price falls below $.30, or if fundamentals change dramatically

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