A buy-side analyst for an investment company that has a business-unique, fundamentals-based investing philosophy is contemplating whether to include a small cap Canadian company participated in commodity streaming contracts in the mining sector as a significant investment.
The analyst must learn what commodity streaming demands to better understand whether the company has a feasible business model. He also has to study natural gas sector outlooks and the copper.
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 advantages and disadvantages of different contracts, including consideration of moral hazard effects.
Sandstorm Metals & Energy case study solution
Publication Date: 06/04/2013
This is just an excerpt. This case is about Finance
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