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Follow the Young, Smart Money in Mining

September 25, 2012 | About:

Any investor in the mining industry will tell you that management is the most important resource in the world. The mining industry is rife with old grizzled veterans that will say just about anything in order to raise capital. Thus, it is worthwhile to pay attention to a young CEO that is receiving a lot of attention in mining circles.

Nolan Watson, CEO of the Sandstorm Companies (SAND), is only 33 years old and he's now managing a $1 billion company.

Here is an interview with the youngest mining CEO in the world.

Watson formerly worked to chief financial officer at 26. He helped raise more than $1 billion in debt and equity to fund Silver Wheaton (SLW)'s acquisition needs. In 2009, Watson led Sandstorm in raising C$47 million along with a Silver Wheaton alumnus.

Sandstorm provides an upfront cash payment to a company that is building a mine, in exchange for the right to purchase a percentage of its future production at a set price.

“There are things and absolutes that should guide conduct, and one of those things is integrity… [it] makes a difference in business. People view you as different than other[s] if you’re willing to not make money [by] doing the wrong thing,” and by adhering to that philosophy he added, “I think the mining industry is one of those industries where you can make a lot of money.” When discussing the mechanics of finding quality streaming deals, and building a successful company, he said, “[We] try to find assets that have really good exploration upside… with a company that hasn’t had the ability to fully exploit [it] yet, either due to the geologic nature of the deposit, or just due to lack of funds… [if] we can do a deal to finance [mine] production — that’s what we’re really looking for.”


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