Sandstorm Gold Ltd T.SSL

Announces 2021 Second Quarter Results

[Betteryear2]

VANCOUVER, BC, Aug. 5, 2021 /CNW/ - Sandstorm Gold Ltd. ("Sandstorm Gold Royalties", "Sandstorm" or the "Company") (NYSE: SAND) (TSX: SSL) has released its results for the second quarter ended June 30, 2021 (all figures in U.S. dollars).

SECOND QUARTER HIGHLIGHTS

• Record attributable gold equivalent ounces1 of 18,004 ounces (Q2 2020 — 10,920 ounces);
   
• Revenue of $26.4 million (Q2 2020 — $18.7 million);
   
• Record total sales, royalties, and income from other interests1 of $32.3 million (Q2 2020 — $18.7 million);
   
• Cash flows from operating activities, excluding changes in non-cash working capital1 of $17.6 million (Q2 2020 — $13.4 million);
   
• Average cash cost per attributable gold equivalent ounce1 of $227 resulting in cash operating margins1 of $1,569 per ounce (Q2 2020 — $257 per ounce and $1,458 per ounce respectively);
   
• Net income of $8.6 million (Q2 2020 —$7.1 million);
   
• Significant Acquisitions: During the quarter, the Company entered into over $140 million in stream and royalty transactions. The acquisitions provide the Company with immediate cash flow, exposure to quality assets, increased diversification, and exploration upside.
  • In June 2021, the Company acquired a diverse package of Vale royalties which provide holders with life of mine net sales royalties on certain of Vale's 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.
     
  • 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 six-year period and thereafter 2.55%–2.9% of the gold produced from the mine for on-going per ounce cash payment 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 on certain prospecting licenses. The transaction is anticipated to close in the third quarter of 2021. Upon closing, the disbursement of the US$30 million will commence alongside the completion of various construction and expansion milestones.
     
  • 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.

https://www.newswire.ca/news-releases/sandstorm-gold-royalties-announces-2021-second-quarter-results-847137000.html