Sandstorm Gold Ltd. (TSX:SSL)(NYSE MKT:SAND) ("Sandstorm" or the
"Company") has released its unaudited results for the first quarter
ended March 31, 2013 (all figures in U.S. dollars).
First Quarter Highlights
-- Record revenue of $15.4 million.
-- Gold sales of 8,581 ounces.
-- Average cash cost per ounce(1) of $427 resulting in cash operating
margins(1) of $1,208 per ounce.
-- Operating cash flow of $7.0 million.
-- Acquired 46.7 million common shares and 7.0 million warrants of Premier
Royalty Inc. representing approximately 59.9% of the currently issued
and outstanding shares.
-- Credit facility upsize to $100 million.
-- Entered into a streaming agreement with Entree Gold Inc. to purchase
25.7% and 33.8% of Entree's 20% share of the gold and silver produced
from the Heruga and Hugo North Extension deposits, respectively.
-- Net loss of $12.3 million due to a non-cash impairment charge of $14.0
million on goodwill arising from the Premier Royalty business
combination.
"The strong revenue and gold sales during the first quarter
point to stable mining operations underlying Sandstorm's streaming
agreements," said President and CEO, Nolan Watson. "Sandstorm is on
track to meet our annual production guidance and we are looking
forward to a number of potential catalysts over the next year.
These catalysts include expansion studies at Aurizona and Santa
Elena, initial production at Serra Pelada and Bracemac-McLeod,
continued exploration at a number of mines and potential
announcements related to new streaming agreements."
Outlook
Sandstorm's forecasted attributable production for 2013 is
33,000 to 40,000 gold equivalent ounces coming from seven active
mines. Attributable production is expected to increase to
approximately 70,000 gold equivalent ounces by 2016 from the
Company's current portfolio of gold streams.
Sandstorm's Management's Discussion and Analysis (MD&A) and
Financial Statements for the first quarter results will be
accessible on the Company's website and on SEDAR at www.sedar.com.
The Company has also completed a Form 6-K filing with the SEC that
will be accessible on EDGAR at http://www.sec.gov/edgar.shtml.
Shareholders can request a hard copy of the MD&A and Financial
Statements by emailing info@sandstormltd.com.
Webcast and Conference Call Details
A conference call will be held on Thursday, May 9, 2013 starting
at 8:30am PDT to further discuss the first quarter results. To
participate in the conference call use the following dial-in
numbers:
Local/International: 647-788-4916
North American Toll-Free: 877-214-4966
It is recommended that participants dial in five minutes prior
to the commencement of the conference call. To access an audio
webcast of the conference call, use the following link:
http://www.snwebcastcenter.com/custom_events/sandstorm-20130509/site.
The webcast will also be available on the Sandstorm website.
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a gold streaming company. Sandstorm
provides upfront financing for gold mining companies that are
looking for capital and in return receives a gold streaming
agreement. This agreement gives Sandstorm the right to purchase a
percentage of the life of mine gold produced, at a fixed price.
Sandstorm is a non-operating gold mining company with a portfolio
of ten gold streams, six of which are producing gold, and three NSR
royalties. Sandstorm plans to grow and diversify its low cost
production profile through the acquisition of additional gold
streams.
Sandstorm is focused on low cost operations with excellent
exploration potential and strong management teams. Sandstorm has
completed gold purchase or royalty agreements with Brigus Gold
Corp., Colossus Minerals Inc., Donner Metals Ltd., Entree Gold
Inc., Luna Gold Corp., Magellan Minerals Ltd., Metanor Resources
Inc., Mutiny Gold Ltd., Santa Fe Gold Corp., SilverCrest Mines
Inc., Rambler Metals and Mining plc and Solitario Exploration &
Royalty Corp.
For more information visit: www.sandstormgold.com.
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 applicable Canadian securities legislation, concerning
the business, operations and financial performance and condition of
Sandstorm Gold Ltd. ("Sandstorm"). Forward-looking statements
include, but are not limited to, statements with respect to the
future price of gold, the estimation of mineral reserves and
resources, realization of mineral reserve estimates, and 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
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 will operate in the future,
including the price of gold 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, gold 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 Sandstorm 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
Sandstorm 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 Sandstorm
will purchase gold 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,
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 Sandstorm's annual report
for the financial year ended December 31, 2012 available at
www.sedar.com. Although Sandstorm 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. Sandstorm does not
undertake to update any forward looking statements that are
contained or incorporated by reference, except in accordance with
applicable securities laws.
Note 1: Sandstorm has included certain performance measures in
this press release that do not have any standardized meaning
prescribed by International Financial Reporting Standards (IFRS)
including average cash cost per ounce of gold and cash operating
margin. Average cash cost per ounce of gold is calculated by
dividing the total cost of sales, less depletion, by the ounces
sold. In the precious metals mining industry, this is a common
performance measure but does not have any standardized meaning. The
Company believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors use this
information to evaluate the Company's performance and ability to
generate cash flow. Cash operating margin is calculated by
subtracting the average cash cost per ounce of gold from the
average realized selling price per ounce of gold. 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. 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.
Neither the TSX Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
Contacts: Sandstorm Gold Ltd. Erfan Kazemi Chief Financial
Officer (604) 689-0234 Sandstorm Gold Ltd. Denver Harris Investor
Relations (604) 628-1178 www.sandstormgold.com
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