DESIGNATED NEWS RELEASE
VANCOUVER, BC, July 6, 2023
/CNW/ - Sandstorm Gold Ltd. ("Sandstorm Gold Royalties",
"Sandstorm", or the "Company") (NYSE: SAND) (TSX: SSL) is pleased
to report that the Company sold approximately 24,500 attributable
gold equivalent ounces1 and realized record
preliminary revenue2 of $49.8
million during the three months ended June 30, 2023, (19,276 attributable gold
equivalent ounces and $36.0 million
in revenue for the comparable period in 2022).
Preliminary cost of sales, excluding depletion2 for
the three month period was $5.6
million resulting in cash operating margins1 of
approximately $1,743 per attributable
gold equivalent ounce1 ($5.3
million and $1,593 per
attributable gold equivalent ounce for the comparable period in
2022, respectively).
SECOND QUARTER SHARE BUYBACKS
During the three months ended June 30,
2023, the Company purchased and cancelled approximately 2.6
million Sandstorm common shares ("Common Shares") at a weighted
average price of C$6.92 per share
under the Company's normal course issuer bid ("NCIB"). The NCIB,
which was renewed in April 2023 (see
press release dated April 5, 2023),
provides the Company with the option to purchase its Common Shares
from time to time when Sandstorm's management believes that the
Common Shares are undervalued by the market. While the Company's
capital allocation strategy remains focused on debt repayment,
Sandstorm's management continues to evaluate accretive
opportunities to exercise the NCIB.
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Note 1
Sandstorm Gold Royalties has included certain performance measures
in this press release that do not have any standardized meaning
prescribed by International Financial Reporting Standards ("IFRS")
including (i) attributable gold equivalent ounces and (ii) cash
operating margin. The presentation of these non-IFRS measures is
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Other companies may
calculate these non-IFRS measures differently. Note these figures
have not been audited and are subject to change. (i) As the
Company's operations are primarily focused on precious metals, the
Company presents attributable gold equivalent ounces as it believes
that certain investors use this information to evaluate the
Company's performance in comparison to other mining companies in
the precious metals mining industry who present results on a
similar basis. Attributable Gold Equivalent ounces is a non-IFRS
financial ratio that uses Total Sales, Royalties, and Income from
Other Interests as a component. Total Sales, Royalties and Income
from Other Interests is a non-IFRS financial measure and is
calculated by taking total revenue which includes Sales and Royalty
Revenue, and adding contractual income relating to royalties,
streams and other interests excluding gains and losses on
dispositions. Attributable Gold Equivalent ounces is calculated by
dividing the Company's Total Sales, Royalties, and Income from
other interests, less revenue attributable to non-controlling
shareholders for the period, by the average realized gold price per
ounce from the Company's Gold streams for the same respective
period ([$49.8 million - $1.5 million]/$1,972 for the three months
ended June 30, 2023, and $36.0 million/$1,866 for the comparable
period in 2022) and may be subject to change. (ii) The Company
presents cash operating margin as it believes that certain
investors use this information to evaluate the Company's
performance and ability to generate cash flow in comparison to
other companies in the precious metals mining industry who present
results on a similar basis. Cash operating margin is calculated by
subtracting average cash cost per Attributable Gold Equivalent
ounce from the average realized gold price per ounce from the
Company's Gold streams (see item i above) for the same respective
period. Average cash cost per Attributable Gold Equivalent ounce is
calculated by dividing the Company's cost of sales, excluding
depletion, by the number of Attributable Gold Equivalent ounces
($5.6 million/24,500 Attributable Gold Equivalent ounces for the
three months ended June 30, 2023, and $5.3 million/19,276
Attributable Gold Equivalent ounces for the comparable period in
2022).
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Note 2
These figures have not been audited and are subject to change. As
the Company has not yet finished its quarter-end close procedures,
the anticipated financial information presented in this press
release is preliminary, subject to final quarter-end closing
adjustments, and may change materially.
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ABOUT SANDSTORM GOLD ROYALTIES
Sandstorm is a precious metals-focused royalty company that
provides upfront financing to mining companies and receives the
right to a percentage of production from a mine, for the life of
the mine. Sandstorm holds a portfolio of 250 royalties, of which 40
of the underlying mines are producing. Sandstorm plans to grow and
diversify its low cost production profile through the acquisition
of additional gold royalties. For more information visit:
www.sandstormgold.com.
CAUTIONARY STATEMENTS TO U.S. SECURITYHOLDERS
The financial information included or incorporated by reference
in this press release or the documents referenced herein has been
prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards
Board, which differs from US generally accepted accounting
principles ("US GAAP") in certain material respects, and thus are
not directly comparable to financial statements prepared in
accordance with US GAAP.
This press release and the documents incorporated by reference
herein, as applicable, have been prepared in accordance with
Canadian standards for the reporting of mineral resource and
mineral reserve estimates, which differ from the previous and
current standards of the United
States securities laws. In particular, and without limiting
the generality of the foregoing, the terms "mineral reserve",
"proven mineral reserve", "probable mineral reserve", "inferred
mineral resources,", "indicated mineral resources," "measured
mineral resources" and "mineral resources" used or referenced
herein and the documents incorporated by reference herein, as
applicable, are Canadian mineral disclosure terms as defined in
accordance with Canadian National Instrument 43-101 — Standards of
Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy and Petroleum (the "CIM") — CIM
Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended (the "CIM Definition
Standards").
For United States reporting
purposes, the United States Securities and Exchange Commission (the
"SEC") has adopted amendments to its disclosure rules (the "SEC
Modernization Rules") to modernize the mining property disclosure
requirements for issuers whose securities are registered with the
SEC under the Exchange Act, which became effective February 25, 2019. The SEC Modernization Rules
more closely align the SEC's disclosure requirements and policies
for mining properties with current industry and global regulatory
practices and standards, including NI 43-101, and replace the
historical property disclosure requirements for mining registrants
that were included in SEC Industry Guide 7. Issuers were required
to comply with the SEC Modernization Rules in their first fiscal
year beginning on or after January 1,
2021. As a foreign private issuer that is eligible to file
reports with the SEC pursuant to the multi-jurisdictional
disclosure system, the Corporation is not required to provide
disclosure on its mineral properties under the SEC Modernization
Rules and will continue to provide disclosure under NI 43-101 and
the CIM Definition Standards. Accordingly, mineral reserve and
mineral resource information contained or incorporated by reference
herein may not be comparable to similar information disclosed by
United States companies subject to
the United States federal
securities laws and the rules and regulations thereunder.
As a result of the adoption of the SEC Modernization Rules, the
SEC now recognizes estimates of "measured mineral resources",
"indicated mineral resources" and "inferred mineral resources." In
addition, the SEC has amended its definitions of "proven mineral
reserves" and "probable mineral reserves" to be "substantially
similar" to the corresponding CIM Definition Standards that are
required under NI 43-101. While the SEC will now recognize
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources", U.S. investors should not assume that
all or any part of the mineralization in these categories will be
converted into a higher category of mineral resources or into
mineral reserves without further work and analysis. Mineralization
described using these terms has a greater amount of uncertainty as
to its existence and feasibility than mineralization that has been
characterized as reserves. Accordingly, U.S. investors are
cautioned not to assume that all or any measured mineral resources,
indicated mineral resources, or inferred mineral resources that the
Company reports are or will be economically or legally mineable
without further work and analysis. Further, "inferred mineral
resources" have a greater amount of uncertainty and as to whether
they can be mined legally or economically. Therefore, U.S.
investors are also cautioned not to assume that all or any part of
inferred mineral resources will be upgraded to a higher category
without further work and analysis. Under Canadian securities laws,
estimates of "inferred mineral resources" may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. While
the above terms are "substantially similar" to CIM Definitions,
there are differences in the definitions under the SEC
Modernization Rules and the CIM Definition Standards. Accordingly,
there is no assurance any mineral reserves or mineral resources
that the Company may report as "proven mineral reserves", "probable
mineral reserves", "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under NI 43-101 would
be the same had the Company prepared the reserve or resource
estimates under the standards adopted under the SEC Modernization
Rules or under the prior standards of SEC Industry Guide 7.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This press release contains "forward-looking statements", within
the meaning of the U.S. Securities Act of 1933, the U.S. Securities
Exchange Act of 1934, the Private Securities Litigation Reform Act
of 1995 and "forward-looking information" within the meaning of
applicable Canadian securities legislation, concerning the
business, operations and financial performance and condition of
Sandstorm Gold Royalties. Forward-looking statements include, but
are not limited to the future price of gold, silver, copper, iron
ore and other metals; statements with respect to Sandstorm's
proposed NCIB and the number of Common Shares that may be purchased
under the NCIB; the estimation of mineral reserves and resources,
realization of mineral reserve estimates, the timing and amount of
estimated future production. Forward-looking statements can
generally be identified by the use of forward-looking terminology
such as "may", "will", "expect", "intend", "estimate",
"anticipate", "believe", "continue", "plans", or similar
terminology.
Forward-looking statements are made based upon certain
assumptions and other important factors that, if untrue, could
cause the actual results, performances or achievements of Sandstorm
Gold Royalties to be materially different from future results,
performances or achievements expressed or implied by such
statements. Such statements and information are based on numerous
assumptions regarding present and future business strategies and
the environment in which Sandstorm Gold Royalties will operate in
the future, including the receipt of all required approvals, the
price of gold and copper and anticipated costs. Certain important
factors that could cause actual results, performances or
achievements to differ materially from those in the forward-looking
statements include, amongst others, failure to receive necessary
approvals, changes in business plans and strategies, market
conditions, share price, best use of available cash, gold and other
commodity price volatility, discrepancies between actual and
estimated production, mineral reserves and resources and
metallurgical recoveries, mining operational and development risks
relating to the parties which produce the gold or other commodity
the Company will purchase, regulatory restrictions, activities by
governmental authorities (including changes in taxation), currency
fluctuations, the global economic climate, dilution, share price
volatility and competition.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other important factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking statements, including but not
limited to: the impact of general business and economic conditions,
the absence of control over mining operations from which the
Company will purchase gold, other commodities or receive royalties
from, and risks related to those mining operations, including risks
related to international operations, government and environmental
regulation, actual results of current exploration activities,
conclusions of economic evaluations and changes in project
parameters as plans continue to be refined, risks in the
marketability of minerals, fluctuations in the price of gold and
other commodities, fluctuation in foreign exchange rates and
interest rates, stock market volatility, as well as those factors
discussed in the section entitled "Risks to Sandstorm" in the
Company's annual report for the financial year ended December 31, 2022 and the section entitled "Risk
Factors" contained in the Company's annual information form dated
March 23, 2023 available at
www.sedar.com. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. The Company does not
undertake to update any forward-looking statements that are
contained or incorporated by reference, except in accordance with
applicable securities laws.
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SOURCE Sandstorm Gold Ltd.