VANCOUVER, BC, April 5,
2023 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm
Gold Royalties", "Sandstorm", or the "Company") (NYSE: SAND) (TSX:
SSL) is pleased to report that the Company sold approximately
28,400 attributable gold equivalent ounces1 and
realized preliminary revenue2 of $44.0 million during the three months ended
March 31, 2023, both representing a
record for the Company (18,741 attributable gold equivalent ounces
and $35.4 million in revenue for the
comparable period in 2022).
The Company had preliminary total sales, royalties, and income
from other interests1 of $54.0
million for the three month period, a record for the Company
($35.4 million total sales,
royalties, and income from other interests for the comparable
period in 2022).
Preliminary cost of sales, excluding depletion2 for
the three month period was $6.5
million resulting in cash operating margins1 of
approximately $1,650 per attributable
gold equivalent ounce1 ($5.3
million and $1,604 per
attributable gold equivalent ounce for the comparable period in
2022, respectively).
RENEWAL OF NORMAL COURSE ISSUER
BID
The Company's normal course issuer bid ("NCIB") is being renewed
after the existing NCIB expires on April 6,
2023. The current NCIB provides Sandstorm with the option to
purchase up to 18.9 million of the Company's common shares ("Common
Shares") from time to time when Sandstorm's management believes
that the Common Shares are undervalued by the market. Under the
renewed NCIB, Sandstorm may purchase up to 24.0 million of its
Common Shares, representing approximately 8% of the Company's
issued and outstanding Common Shares. As of March 31, 2023, the Company had 298,740,427
Common Shares issued and outstanding, 247,355,113 of which made up
the "Public Float" (within the meaning of the rules of the Toronto
Stock Exchange) and the 24.0 million Common Shares purchasable
under the NCIB represents approximately 9.7% of the Company's
Public Float. The new NCIB also provides Sandstorm 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. The Toronto Stock Exchange ("TSX") has accepted the
Company's notice that it intends to proceed with a NCIB in
accordance with TSX rules. Purchases under the renewed NCIB may
commence on April 11, 2023, and will
terminate on the earlier of April 10,
2024, the date that Sandstorm completes its purchases
pursuant to the NCIB as filed with the TSX, or the date of notice
by Sandstorm of termination of the NCIB.
All purchases under the NCIB will be executed on the open market
through the facilities of the TSX or alternative Canadian trading
systems and through the facilities of the NYSE or alternative
trading systems in the United States of
America. Purchases will be made at the market price of the
Common Shares at the time of acquisition and may be funded by
Sandstorm's working capital. Any Common Shares acquired by the
Company under the NCIB will be cancelled. Sandstorm's average daily
trading volume on the TSX during the last six calendar months was
389,301 Common Shares. Under the rules of the TSX, subject to the
Company's ability to make block purchases, daily purchases on the
TSX under the NCIB will not exceed 97,325 Common Shares, which
represents 25% of the average daily trading volume on the TSX
during the last six calendar months. The maximum number of Common
Shares which can be purchased per day on the NYSE will be 25% of
the average daily trading volume for the four calendar weeks
preceding the date of purchase, subject to certain exceptions for
block purchases.
The actual number of Common Shares that may be purchased and the
timing of such purchases will be determined by the Company.
Decisions regarding purchases will be based on market conditions,
share price, best use of available cash, and other factors.
In the last twelve months, the Company has purchased 336,201
Common Shares pursuant to its NCIB at a volume-weighted average
price of approximately C$6.69 per
common share on the TSX and alternative Canadian trading systems
and approximately US$5.00 per common
share on the NYSE and alternative US trading systems.
This press release shall not constitute an offer to sell or
the solicitation of an offer to buy securities in the United States, nor shall there be any sale
of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
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, which, during the three months ended March 31, 2023,
is comprised of a one-time $10.0 million payment received as per
the Company's royalty agreement on the Mt. Hamilton project ($44
million + $10 million = $54 million). 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 ([$54.0 million - $0.6
million]/$1,882 average realized gold price for the three months
ended March 31, 2023, and $35.4 million/$1,887 average realized
gold price 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 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 ($6.5 million/28,400
Attributable Gold Equivalent ounces for the three months ended
March 31, 2023, and $5.3 million/18,741 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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CONTACT INFORMATION
For more information about Sandstorm Gold Royalties, please
visit our website at www.sandstormgold.com or email us at
info@sandstormgold.com.
ABOUT SANDSTORM GOLD ROYALTIES
Sandstorm is a gold royalty company that provides upfront
financing to gold mining companies that are looking for capital and
in return, receives the right to a percentage of the gold produced
from a mine, for the life of the mine. Sandstorm holds a portfolio
of 250 royalties, of which 39 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.