Current valuation11 May 2017 15:53
Based on current exchange rate (.78 pounds to dollar), current Sandstorm share price (approx $3.50) the price of our Mariana shares is currently 99p (approximately) a discount of just over 10% since the offer due largely to the decline of the Sandstorm shareprice.
However, Sandstorm may have bottom out now and if you look at its share price over the last 12 months from a technical point of view you could argue it hit a double bottom at $3.22 on the 4th May. It may return to around $4.50 post deal particularly if news has been held back and $5 is a real possibility. In this scenario, there may be a fairly quick 40 to 45% gain on the shares allocated post deal making the deal sit a little more comfortably with us.
I appreciate this is very speculative, but the issue with Marlana was always the fact it has a minority interest and is to a large extent reliant on Lidya. Also to all sense and purposes it is a one track pony for now with none of the other assets amounting to much (forget the spin about Argentina and Ergama is still unproven). At least with Sandstorm you are getting a more diversified, liquid proposition. I was tempted to vote no but currently undecided although I suspect this is academic unless another offer comes along.
They have to report Sandstorms offer so the timing is not in their control and that is the frustration for me! At least it will flush another offer out if there is one out. If there is not, well a profit is a profit and it's not inconceivable that Sandstorm could double over the next 12 months when you look at past share performance and also the upside at Hot Maden as more results become known.
Holding for now, but watching Sandstorm share price with interest and dollar rate!
Good luck all shareholders its been a bumpy ride!