Designated News Release
VANCOUVER, BC, Oct. 4, 2021 /PRNewswire/ - Sandstorm Gold Ltd.
("Sandstorm Gold Royalties" or the "Company") (NYSE: SAND) (TSX:
SSL) is pleased to announce that the Company sold approximately
15,500 attributable gold equivalent ounces1 and realized
preliminary revenue2 of $27.6
million during the three months ended September 30, 2021. Preliminary cost of sales,
excluding depletion2 for the three month period was
$3.7 million resulting in cash
operating margins1 of approximately $1,540 per attributable gold equivalent
ounce1.
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 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 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, is converted to an attributable gold equivalent
ounce basis by dividing the royalty and other commodity stream
revenue, including adjustments for contractual income relating to
those 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) 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 ([$27.6 million - $3.7 million]/15,500
attributable gold equivalent ounces). 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. 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.
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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.
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Contact Information
For more information about Sandstorm Gold Royalties, please
visit our website at www.sandstormgold.com or email us at
info@sandstormgold.com.
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. Sandstorm Gold
Royalties has acquired a portfolio of 229 royalties, of which 28 of
the underlying mines are producing. The Company 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 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 expectation that various closing conditions
of the Vatukoula Stream will be met including but not limited to
consent of the Reserve Bank of Fiji, consent from the Minister of Lands and
Mineral Resources, consent from the Fiji Director of Mines, the expectation that
the Vatukoula Stream will close, 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, including the
increases to production guidance, the offer and sale of Common
Shares under the at-the-market equity program (the "ATM Program"),
including the timing and amounts thereof, the use of any proceeds
from the ATM Program, and statements with respect to the Company's
proposed normal course issuer bid ("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
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 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.