DESIGNATED NEWS RELEASE
VANCOUVER, BC, Jan. 10, 2022 /CNW/ - Sandstorm Gold Ltd.
("Sandstorm Gold Royalties" or the "Company") (NYSE: SAND) (TSX:
SSL) is pleased to report that the Company sold approximately
67,500 attributable gold equivalent ounces1 and realized
preliminary revenue2 of $114.8
million for the full 2021 year, both representing a record
for the Company. During the year, Sandstorm realized preliminary
total sales, royalties, and income from other interests1
of $120.7 million.
During the three months ended December
31, 2021, the Company sold approximately 16,600 attributable
gold equivalent ounces1 and realized preliminary
revenue2 of $29.8 million.
Preliminary cost of sales, excluding depletion2 for the
three month period was $3.7 million
resulting in cash operating margins1 of approximately
$1,570 per attributable gold
equivalent ounce1. These results should be read in
conjunction with the Company's audited consolidated financial
statements for the year ended December 31,
2021 as and when released.
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 (ii) total sales,
royalties, and income from other interests, and (iii) 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. The Company's royalty and other commodity stream
revenue, including adjustments for contractual income relating to
those interests (see total sales, royalties, and income from other
interests in (ii) below), is converted to an attributable gold
equivalent ounce basis by dividing total sales, royalties, and
income from other interests, 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) Total sales, royalties, and
income from other interests 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 ($114.8
million + $5.9 million =
$120.7 million). The Company presents
total sales, royalties, and income from other interests as it
believes that certain investors use this information to evaluate
the Company's performance in comparison to other streaming and
royalty companies in the precious metals mining industry.
(iii) 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 Total Sales, Royalties, and Income
from other interests and dividing this figure by attributable gold
equivalent ounces sold ([$29.8
million - $3.7 million]/16,600
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 year-end annual close
procedures, and the audit of its 2021 financial statements is not
complete, the anticipated financial information presented in this
press release is preliminary, subject to final year-end closing
adjustments, and may change materially. The information presented
above has not been audited by the Company's independent
accountants, should not be considered a substitute for audited
financial statements, and should not be regarded as a
representation by the Company as to the actual financial
results.
ABOUT SANDSTORM GOLD ROYALTIES
Sandstorm Gold Royalties 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. The Company
has acquired a portfolio of 230 royalties, of which 29 of the
underlying mines are producing. Sandstorm Gold Royalties 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.
The disclosure and information contained or referenced herein
uses mineral reserve and mineral resource classification terms that
comply with reporting standards in Canada, and mineral reserve and mineral
resource estimates are made in accordance with Canadian NI 43-101
and the Canadian Institute of Mining, Metallurgy and Petroleum —
CIM Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended (the "CIM Definition
Standards"). These standards differ significantly from the mineral
reserve disclosure requirements of the United States Securities
Exchange Commission (the "SEC") set forth in Industry Guide 7.
Consequently, information regarding mineralization contained or
referenced herein is not comparable to similar information that
would generally be disclosed by U.S. companies under Industry Guide
7 in accordance with the rules of the SEC. Further, the SEC has
adopted amendments to its disclosure rules to modernize the mineral
property disclosure requirements for issuers whose securities are
registered with the SEC under the Securities Exchange Act of 1934
("Exchange Act"). These amendments became effective February 25, 2019 (the "SEC Modernization Rules")
and, commencing for registrants with their first fiscal year
beginning on or after January 1,
2021, the SEC Modernization Rules replaced the historical
property disclosure requirements included in SEC Industry Guide
7. As a foreign private issuer that files its annual report
on Form 40-F with the SEC pursuant to the multi-jurisdictional
disclosure system, the Company 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. The SEC Modernization Rules include
the adoption of terms describing mineral reserves and mineral
resources that are "substantially similar" to the corresponding
terms under the CIM Definition, but 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 mineral reserve or mineral resource
estimates under the standards adopted under the SEC Modernization
Rules. U.S. investors are also cautioned that while the SEC
recognizes "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under the Modernization
Rules, investors should not assume that any part or all of the
mineralization in these categories will ever be converted into a
higher category of mineral resources or into mineral reserves.
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, investors are
cautioned not to assume that any measured mineral resources,
indicated mineral resources, or inferred mineral resources that the
Company reports are or will be economically or legally mineable.
Further, "inferred mineral resources" have a greater amount of
uncertainty as to their existence 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 the "inferred
mineral resources" exist. Under Canadian securities laws, estimates
of "inferred mineral resources" may not form the basis of
feasibility or pre-feasibility studies, except in rare cases.
For the above reasons, information contained or referenced herein
regarding descriptions of our mineral reserve and mineral resource
estimates is not comparable to similar information made public by
U.S. companies subject to reporting and disclosure requirements of
the SEC under either Industry Guide 7 or SEC Modernization
Rules.
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, 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, 2020 and the section entitled "Risk
Factors" contained in the Company's annual information form dated
March 30, 2021 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.