VANCOUVER, July 31, 2013 /PRNewswire/ - Sandstorm Gold Ltd.
("Sandstorm" or the "Company") (NYSE MKT: SAND, TSX: SSL) has
released its unaudited results for the second quarter ended
June 30, 2013 (all figures in U.S.
dollars).
Second Quarter Highlights
- Revenue of $13.4 million.
- Gold sales of 7,473 ounces (additional 1,800 ounces deferred to
third quarter due to timing and delay of shipments).
- Average cash cost per ounce1 of $417 resulting in cash operating
margins1 of $999 per
ounce.
- Operating cash flow of $8.5
million.
- Strong balance sheet with over $94
million in cash.
- Acquired a 1.0% net smelter returns royalty ("NSR") on the Paul
Isnard gold project located in French
Guiana and owned by Columbus Gold Corporation for an upfront
payment of $5.0 million.
- Acquired a 1.2% precious metal NSR on the Prairie Creek project
located in the Northwest Territories,
Canada from Canadian Zinc Corporation for $3.2 million (via a back-to-back agreement with
Sandstorm Metals & Energy Ltd.).
- Net loss of $17.1 million due to
a non-cash impairment charge of $16.0
million on goodwill arising from the Premier Royalty Inc.
("Premier Royalty") business combination.
Sandstorm President & CEO Nolan Watson commented, "The second quarter was
an overall good quarter for Sandstorm. We saw development progress
at several of the mines and if timing of shipments had not affected
the recording of an additional 1,800 ounces that was produced at
Aurizona but not received until the beginning of the third quarter,
we would have seen a record in terms of gold ounces sold."
Outlook
Based on the Company's existing gold streams and
excluding any attributable production relating to Premier Royalty,
forecasted 2013 attributable production is between 33,000 and
40,000 gold equivalent ounces, increasing to over 60,000 gold
equivalent ounces per annum by 2016. This growth is driven by the
Company's portfolio of gold streams with mines, all of which are
either currently producing or expected to commence production by
2015.
Sandstorm's Management's Discussion and Analysis
(MD&A) and Financial Statements for the second 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, August 1, 2013 starting at 8:30am PDT to further discuss the second 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, click here. 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., Canadian Zinc Corp., Colossus Minerals Inc.,
Columbus Gold Corp., Donner Metals Ltd., Entrée 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.
SOURCE Sandstorm Gold Ltd.