"Its a bit fishy how they made the deal and then [this] news came out soon after."  - doomz78

Yes, and I'm afraid this is going to be just the beginning of a very long fish story. As I commented in my last post: "Sandstorm is on the very bottom of the food chain on this one and swimming with sharks." And that in a nutshell has been the problem for me with this deal from the outset. It's not simply that the political risk is so high. If it was a straightforward deal in other respects, you could make an argument that the reward more than counterbalances the risk. (For me personally, NO amount of reward would suffice because the risk is simply over my threshold of tolerance.)

The bigger problem is that - unlike virtually all of Sandstorm's other deals - the Sandstorm/Entree/Turquoise Hill/OTLLC/Rio Tinto/Mongolian agreement is anything but straightforward. Despite all its carefully-worded options and "guarantees," Sandstorm has relatively little power in this very crowded boat and is likely to be the chum thrown overboard at the first sign of anything going wrong. And with years and years to go before we reel in anything to brag about, there's a lot of time for things to go wrong. Heck, the sharks are already circling and we've barely gotten out of port.

If anyone is in doubt about the murky waters Sandstorm was sailing into here, go back and reread the posts of Countrygent, a longtime follower of the Oyu Tolgoi saga. Even in a best case scenario, one could see that this trip was likely to give investors a bad case of seasickness. At the end of the day, if not necessarily a misallocation of capital, almost certainly a misallocation of time and management resources for a ship that prides itself on having such a small crew and overhead. (Don't even think about the potential legal costs on the horizon.)

Because this is very obviously now going to be a one-off fishing expedition, I'm far from throwing my shares overboard. But the bottom line is that Sandstorm is far too small and virtuous a company to be involved in this kind of feeding frenzy. Hopefully, we'll get out with all our limbs intact, with (or without) having hooked the Big One we went in for. And maybe another good fish story to tell in our old age.

"The fish sees the bait, not the hook. A man sees not the danger, only the profit." - Mongolian proverb