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flow perspective. We are also trying to
focus on attracting companies that want
our capital who are also looking for atten-
tion in the public capital markets.
I believe that the traditional equity
financing mechanisms for junior mining
companies is half broken and is in the pro-
cess of breaking further. If you look back
10 years, a CEO raising capital in the junior
mining space just had to know strong
investment bankers and brokers. The invest-
ment bankers took care of the institutional
capital side of our business and the brokers
took care of the retail capital side. On the
retail side, brokers, because of technological
changes are disappearing at a rapid pace.
Brokers are becoming an extinct species
along with the mechanism to attract the
attention of a retail investor – which used
to be a broker calling.
On the investment banker side, they
used to phone up actively managed insti-
tutional investor funds. Now a lot of that
capital has moved away from active man-
agement funds and has been put into
passive management funds; ETFs and
things like that. ETFs can't write cheques
for equity financings so it's becoming
harder for CEOs to raise money.
I think they mistakenly believe that one
day it's going to get better when gold prices
go back up and they don't realize the actual
market mechanisms for how we used to
raise capital before the crash are gone. For
fundamental structural reasons they aren't
coming back. We're looking for Sandstorm
to help fill that void. We have 41,000 inves-
tors to start with and we're building an
in-house marketing team that we want to
become adept at learning how to attract
the hearts and minds of retail investors as
well as institutional investors. We want to
leverage that system for companies that we
choose to make investments in. If you're a
junior exploration company and you're
not able to attract attention, we want you
to come to Sandstorm, have us buy a roy-
alty and become a lead investor in your
company. We can generate tremendous
attention so that going forward you don't
need us anymore. You can attract capital
from those people that we have targeted.
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