Designated News Release
Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or
the “Company”) (NYSE: SAND, TSX: SSL) is pleased to announce the
Company has sold approximately 10,900 attributable gold equivalent
ounces1 and realized preliminary revenue2 of $18.7 million during
the three months ended June 30, 2020. Preliminary cost of sales,
excluding depletion2 for the three month period was $2.8 million
resulting in cash operating margins1 of approximately $1,460 per
attributable gold equivalent ounce1.
Due to the effects of COVID-19, several countries implemented
restrictions on business operations. During the second quarter of
2020, some of the mines which Sandstorm receives royalty revenue or
gold ounces from experienced limited mine production or temporarily
suspended operations. Although this impacted Sandstorm’s
attributable gold equivalent ounces sold during the second quarter
of 2020, all mines have now resumed operations.
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 (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 Sandstorm’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. The
Company’s royalty and other commodity stream revenue is converted
to an attributable gold equivalent ounce basis by dividing the
royalty and other commodity stream revenue for that period by the
average realized gold price per ounce from the Company’s gold
streams for the same respective period. These attributable gold
equivalent ounces when combined with the gold ounces sold from the
Company’s gold streams equal total attributable gold equivalent
ounces sold 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 cost of sales, excluding
depletion from revenue and dividing this figure by attributable
gold equivalent ounces sold ([$18.7 Million - $2.8 Million]/10,900
attributable gold equivalent ounces).
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.
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 has acquired a
portfolio of 200 royalties, of which 24 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.
Information contained or referenced in this press release or in
the documents referenced herein concerning the properties,
technical information and operations of Sandstorm has been prepared
in accordance with requirements and standards under securities
laws, which differ from the requirements of US securities laws. The
terms “mineral resource”, “measured mineral resource”, “indicated
mineral resource” and “inferred mineral resource” used in this or
in the documents incorporated by reference herein are mining terms
as defined in accordance with NI 43-101 under guidelines set out in
the Definition Standards for Mineral Resources and Mineral Reserves
adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum Council on 11 December 2005. While the terms “mineral
resource”, “measured mineral resource”, “indicated mineral
resource” and “inferred mineral resource” are recognized and
required by securities laws other than the requirements of US
securities laws, they are not recognized by the SEC. Disclosure of
contained ounces are or may be permitted disclosure under
regulations applicable to Sandstorm; however, the SEC normally only
permits issuers to report resources as in place tonnage and grade
without reference to unit of production measures. As such, certain
information contained in this document or in the documents
incorporated by reference herein concerning descriptions of
mineralization and mineral resources under these standards may not
be comparable to similar information made public by US companies
subject to reporting and disclosure requirements of the SEC.
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. Forward-looking statements include, but are not limited
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, 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
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, 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
Sandstorm’s annual report for the financial year ended December 31,
2019 and the section entitled “Risk Factors” contained in the
Company’s annual information form dated March 30, 2020 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200706005129/en/
For more information about Sandstorm Gold Royalties, please
visit our website at www.sandstormgold.com or email us at
info@sandstormgold.com.
ERFAN KAZEMI CHIEF FINANCIAL OFFICER 604 689
0234
KIM BERGEN CAPITAL MARKETS 604 628 1164
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