Sandstorm Gold Recognizes Record Gold Sales in the Fourth Quarter
March 15 2012 - 7:02PM
Marketwired
Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (TSX
VENTURE:SSL) is pleased to announce its results for the fourth
quarter and year ended December 31, 2011 (all figures in U.S.
dollars).
Fourth Quarter Highlights (3 Months)
-- Record gold sales totaled 6,611 ounces.
-- Operating cash flow increased 353% to $7.8 million compared with $1.7
million in Q4 2010.
-- Net earnings increased 189% to $4.9 million compared with US$1.7 million
in Q4 2010.
-- Average cash cost per ounce(1) was $407 resulting in cash operating
margins of $1,276 per ounce.
2011 Highlights (12 Months)
-- Gold sales totaled 18,516 ounces; an increase of 697% over 2010.
-- Operating cash flow increased to $20.7 million compared with $0.5
million in 2010.
-- Entered into a gold streaming agreement with Metanor Resources Inc. to
purchase 20% of the life of mine gold produced from the Bachelor Lake
Mine.
-- Entered into a gold streaming agreement with Donner Metals Ltd. via a
back-to-back agreement with Sandstorm Metals & Energy Ltd. to purchase
17.5% of the life of mine gold and gold equivalent produced from the
Bracemac-McLeod development project.
-- Gold production reached feasibility levels at both the Aurizona Mine and
Santa Elena Mine.
-- Luna Gold Corp. released a significant mineral resource update at the
Aurizona Mine. Measured and indicated gold resources now total 78
million tonnes at 1.26 grams per tonne gold or 3.2 million ounces, an
increase of 250% from the previous mineral resource estimate. Inferred
gold resources now total 15.2 million tonnes at 1.47 grams per tonne
gold or 0.7 million ounces, an increase of 79% from the previous
resource estimate.
-- Rambler Metals & Mining plc. began mining and processing ore from its
flagship project, the Ming Mine. Commercial production is targeted
before the end of fiscal 2012.
"2011 was a breakout year for Sandstorm Gold. Not only did our
attributable gold production and cash flow increase significantly,
but we saw the Company's mineral resources expand by over 80%,"
said Sandstorm President & CEO Nolan Watson. "The focus for
2012 is to complete additional gold streaming deals and with a
strong cash position, a $50 million revolving line of credit, and
over $3 million in cash flow coming in on a monthly basis, we are
well capitalized to do so."
Outlook
In 2012, Sandstorm will be purchasing gold from five mines, all
of which are expected to increase production throughout the year.
Sandstorm's forecasted attributable production for 2012 is 25,000
to 35,000 ounces of gold increasing to over 50,000 ounces of gold
per annum by 2015.
Further details of the individual commodity streams can be found
within Management's Discussion and Analysis contained in the
Company's 2011 annual report and on the Company website.
Webcast and Conference Call Details
A conference call will be held on Friday, March 16, 2012
starting at 12:00 pm EST to further discuss the fourth 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. Click here to access an
audio webcast of the conference call which will also be available
on the Sandstorm website.
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a growth focused resource based company
that seeks to complete gold purchase agreements with companies that
have advanced stage development projects or operating mines. A gold
purchase agreement involves Sandstorm making an upfront cash
payment to its partners and in exchange, Sandstorm receives the
right to purchase a percentage of the gold produced for the life of
the mine, at a fixed price per ounce. Sandstorm helps other
companies in the resource industry grow their business, while
acquiring attractive assets in the process.
Sandstorm is focused on low cost operations with excellent
exploration potential and strong management teams. Sandstorm has
completed gold purchase agreements with Luna Gold Corp.,
SilverCrest Mines Inc., Santa Fe Gold Corp., Rambler Metals and
Mining plc, Brigus Gold Corp., Metanor Resources Inc. and Donner
Metals Ltd.
For more information visit: http://www.sandstormgold.com.
Cautionary Note Regarding Forward-Looking Information
Except for the statements of historical fact contained herein,
the information presented constitutes "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Forward-looking information is based on reasonable assumptions that
have been made by Sandstorm as at the date of such information and
is subject to known and unknown risks, uncertainties and other
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 the forward-looking information,
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; problems inherent to the marketability of minerals;
industry conditions, including fluctuations in the price of metals,
fluctuations in foreign exchange rates and fluctuations in interest
rates; stock market volatility; competition; 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,
2011. Although Sandstorm has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on
forward-looking information. Sandstorm does not undertake to update
any forward-looking information that is contained or incorporated
by reference herein, except in accordance with applicable
securities laws. Sandstorm does not provide any representation as
to its comparability with other companies in its industry
including, but not limited to, Silver Wheaton Corp., Royal Gold,
Inc., and Franco-Nevada Corporation.
Note 1: Sandstorm has included a non-IFRS performance measure in
this press release being average cash cost per ounce. Average cash
cost per ounce is calculated by dividing the Company's costs of
sales by the number of ounces sold. The Company presents average
cash cost per ounce 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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture 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 Contact (604) 628-1178 www.sandstormgold.com