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Financing Gold Mines Through Gold Streaming

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    Sandstorm Gold CEO Nolan Watson on the company’s financing of new gold mines.

  • Duration 4:00
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Is -- call party -- like you can't believe -- our next CEO he runs sandstorm gold it made its New York Stock Exchange debut this morning.

The Canadian based company specializing in finance and gold mines in need of capital.

And then getting money back in how much gold is actually mind.

At just 33 years -- take a shot of him because he's only 33 sandstorms CEO and president know what Watson is one of being youngest of the business.

It all business really joining us in the first on Fox Business interview first of all congratulations -- what's that like for Canadian company in a Canadian guy.

To watch on the New York Stock Exchange today.

-- and exciting experience for us for shareholders.

And the US markets are just so large and and they're fantastic deal to raise capital and it's it's great press.

Gold streaming when I saw that might might ears pricked up because I thought to myself now I can figure wrap up that is what I want -- explain how you make money off gold streaming and how it actually works for you.

That's what we do is we give money to mining companies upfront on day one.

So they can go build their -- what we get back is a percentage of their production.

At a fixed price so for example right now we're buying gold at 400 dollars an ounce and -- fixed price contracts.

We're selling it at 1620 announce -- propping up the spread.

We tire contracts the expiration upsides that we get more gold than what -- pay for what you want to give an average mind that says help us sandstorm we need some money just to start drilling and digging.

We've done a lot of contracts at different -- -- about as -- -- four million dollars per contract we've done upwards of close to sixty million dollars per contract.

We're looking contracts right now they're a 10200 million dollars you're put up banks for minor -- -- we will -- -- the -- where do you get your money.

So being a public company we get our capital from the equity capital markets -- -- and -- by the way he's up.

5% today so you're getting a lot more than than perhaps just to 2% rise here and then you say that these miners.

We will front is this money we get a percentage back at a fixed rate -- what happens if the price of gold starts to skyrocketed between the time that you struck the deal on the time that you you get reception of the actual gold.

And we buy that fixed price and we get to salad and even higher price that we make even have a better way absolutely fallen apart as a self that.

Where we really make Germany the expiration upsides we've done deals where a -- -- -- 500000 ounces over its whole life.

Am -- going to produce 5000006 million ounces and we don't have for -- What about the current atmosphere overall whether it's the eurozone troubles -- what's going on with us we know we've Ben Bernanke are fed chief that hasn't you he's got a meeting at the end of August he may were announced some type of quantitative easing part three may be what about the current atmosphere makes you believe that gold prices will jump higher.

I think it.

The current environment from a macroeconomic perspective governments around the world and got themselves into positions -- the only way out -- printing money -- may not be this month or next month it's gonna be eventually.

And that's gonna drug price to go higher the problem right now is that also drives inflation.

So mining companies are accessing their costs go up more than the increases in the price of gold -- the sales from we don't have those cost increases.

George Soros and John Paulson to billionaires have just released.

They're thirteen F filings that indicate what they've been spending and they've been pouring a tonne of money into the spdr ETF the gold.

Exchange traded fund.

-- tell me why your stock SA and if those guys are the Smart money why should I do what they're doing them instead of putting it into your stock.

Yes if you -- -- take a long term bet on gold buying as -- actually a good thing to do but it gold doesn't go up you don't make any money.

Whereas with sandstorm if there's expiration outside the mine gold doesn't need to go up -- -- to make -- money.

Thirty for what important that we do business at 811 what -- -- nearly 33 now.

But -- -- as a lifeguard but tonight first out of business was -- -- -- of the CA's student and in mergers and acquisitions and when I was -- 26 years old that was CFO of a multi billion dollar company just jumped down and never looked back -- congratulations thank you.

Got a New York Stock Exchange stocky is -- -- box and that sandstorm gold CEO and president good luck thanks for him.

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