Ivey Publishing

Product Details

Sandstorm Metals & Energy
Product Number:
9B13N014
Publication Date:
06/04/2013
Revised Date:
06/04/2013
Length:
12 pages (6 pages of text)
Product Type:
Case (Library)
Source:
Ivey
A buy-side analyst for an investment company that has a company-specific, fundamentals-based investing philosophy is considering whether to include a small-cap Canadian company engaged in commodity streaming contracts in the mining sector as a significant investment. The analyst must first learn what commodity streaming involves to better understand whether the company has a viable business model. He also has to research the copper and natural gas industry outlooks. He must then develop a net asset value model to determine an appropriate valuation for the company.
Learning Objective:
  • To provide details on commodity streaming contracts (novel financing tools in the mining sector) and to examine these contracts using option theory.
  • To discuss the pros and cons of different contracts, including consideration of moral hazard effects.
  • To determine how a net asset value (discounted cash flow) firm valuation can be obtained.
Issues:
Disciplines:
Finance,  International
Industries:
Mining, Quarrying, and Oil and Gas Extraction
Setting:
Canada, 2013
Intended Audience:
MBA/Postgraduate
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download
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