Sandstorm Gold Royalties Announce Record 2021 Annual Results VANCOUVER, BC, Feb. 17, 2022 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm Gold Royalties", "Sandstorm" or the "Company") (NYSE: SAND) (TSX: SSL) has released its results for the fourth quarter and year ended December 31, 2021 (all figures in U.S. dollars).
FOURTH QUARTER HIGHLIGHTS
- Attributable gold equivalent ounces1 of 16,586 ounces (Q4 2020 — 15,795 ounces);
- Revenue of $29.8 million (Q4 2020 — $29.7 million);
- Cash flows from operating activities, excluding changes in non-cash working capital1 of $22.1 million (Q4 2020 — $22.5 million)
- Net income of $7.4 million (Q4 2020 — $10.5 million).
FULL YEAR HIGHLIGHTS
- Record attributable gold equivalent ounces1 of 67,548 ounces (FY 2020 — 52,176 ounces)
- Record revenue of $114.9 million (FY 2020 — $93.0 million);
- Record total sales, royalties and income from other interests1 of $120.7 million (FY 2020 — $93.0 million)
- Average cash cost per attributable gold equivalent ounce1 of $249 resulting in cash operating margins1 of $1,539 per ounce (FY 2020 — $269 per ounce and $1,514 per ounce respectively);
- Record cash flows from operating activities, excluding changes in non-cash working capital1 of $83.5 million (FY 2020 — $68.3 million);
- Record net income of $27.6 million (FY 2020 — $13.8 million);
- Significant acquisitions: Over $150 million in transactions on cash flowing assets
- Waterton Royalty Package: In May 2021, the Company acquired a package of royalties for consideration of $7 million. The package includes 21 royalties on development, advanced exploration and exploration stage projects located in Nevada and Montana.
- Vale Royalties: In June 2021, the Company acquired a diverse package of Vale Royalties, which provide holders with life of mine net sales royalties on certain Vale producing and exploration assets. The royalties provide exposure to several of Vale's long-life, low-cost assets and are expected to contribute to Sandstorm's portfolio for several decades.
- Vatukoula Gold Stream: In June 2021, the Company agreed to acquire a gold stream on the operating Vatukoula gold mine in Fiji in exchange for a $30 million upfront deposit. The stream entitles Sandstorm to purchase 25,920 ounces of gold over a 5.5-year period and thereafter 2.55%–2.9% of the gold produced from the mine for ongoing per ounce cash payments equal to 20% of the spot price of the gold. In addition to the gold stream, Sandstorm will also receive an effective 0.45% NSR royalty on certain prospecting licenses.
- Mercedes Gold Stream: In December 2021, the Company announced a $60 million financing package with Bear Creek Mining to facilitate its acquisition of the producing Mercedes gold-silver mine in Mexico from Equinox Gold Corp. The financing package includes a $37.5 million gold stream and a $22.5 million convertible debenture. The transaction is expected to close by March 31, 2022 and gold deliveries to Sandstorm will commence immediately thereafter.
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