Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or
the “Company”) (NYSE: SAND, TSX: SSL) is pleased to announce the
Company has sold approximately 13,400 attributable gold equivalent
ounces1 and realized preliminary revenue2 of $21.3 million during
the three months ended March 31, 2020. Preliminary cost of sales,
excluding depletion2 for the three month period was $4.2 million
resulting in cash operating margins1 of approximately $1,280 per
attributable gold equivalent ounce1.
Normal Course Issuer Bid Renewal
The Company’s normal course issuer bid (“NCIB”) is being renewed
after the existing NCIB expires on April 4, 2020. The current NCIB
provides Sandstorm with the option to purchase up to 13.0 million
of the Company’s common shares (“Common Shares”) from time to time
when Sandstorm’s management believes that the Common Shares are
undervalued by the market. Under the renewed NCIB, Sandstorm may
purchase up to 17,170,237 of its Common Shares, representing
approximately 10% of the Company’s issued and outstanding Common
Shares of 174,211,583 as of March 31, 2020, less those Common
Shares held by the Company’s directors and senior officers. The
Toronto Stock Exchange (“TSX”) has accepted the Company’s notice
that it intends to proceed with a NCIB in accordance with TSX
rules. Purchases under the renewed NCIB may commence on April 6,
2020 and will terminate on the earlier of April 5, 2021, the date
that Sandstorm completes its purchases pursuant to the NCIB as
filed with the TSX, or the date of notice by Sandstorm of
termination of the NCIB.
During the fourth quarter of 2018, Sandstorm announced that the
Company’s Board of Directors approved the purchase of up to 18.3
million of its Common Shares (the “Buyback”). Since the
announcement of the Buyback on November 15, 2018, Sandstorm has
bought back approximately 15.5 million Common Shares. The renewed
NCIB provides Sandstorm sufficient capacity to purchase the
remaining Common Shares from the previously announced Buyback, as
well as additional Common Shares at management’s discretion.
All purchases under the NCIB will be executed on the open market
through the facilities of the TSX or alternative Canadian trading
platforms and through the facilities of the NYSE or alternative
trading platforms in the United States of America. Purchases will
be made at the market price of the Common Shares at the time of
acquisition and may be funded by Sandstorm’s working capital. Any
Common Shares acquired by the Company under the NCIB will be
cancelled. Sandstorm’s average daily trading volume on the TSX
during the last six calendar months was 630,335 Common Shares.
Under the rules of the TSX, subject to the Company’s ability to
make block purchases, daily purchases on the TSX under the NCIB
will not exceed 157,583 Common Shares, which represents 25% of the
average daily trading volume on the TSX during the last six
calendar months. The maximum number of Common Shares which can be
purchased per day on the NYSE will be 25% of the average daily
trading volume for the four calendar weeks preceding the date of
purchase, subject to certain exceptions for block purchases.
The actual number of Common Shares that may be purchased and the
timing of such purchases will be determined by the Company.
Decisions regarding purchases will be based on market conditions,
share price, best use of available cash, and other factors.
In the last twelve months, the Company has purchased 10,076,492
Common Shares pursuant to its NCIB at a weighted average price of
C$7.42 per common share on the TSX and alternates and approximately
US$5.09 per common share on the NYSE, NYSE American (prior to
transfer to the NYSE on February 21, 2020) and alternates.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States,
nor shall there be any sale of these securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful.
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 ([$21.3 Million - $4.2
Million]/13,400 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 191 royalties, of which 23 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, the timing
and amount of estimated future production, and statements with
respect to Sandstorm’s proposed NCIB and the number of Common
Shares that may be purchased under the NCIB. 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, government entities interpreting existing tax
legislation or enacting new tax legislation in a way which
adversely affects Sandstorm, stock market volatility, competition,
the potential impact of epidemics, pandemics or other public health
crises, including the outbreak of novel coronavirus, 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/20200402005212/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 INVESTOR RELATIONS 604 628
1164
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