- Record attributable gold equivalent ounces1 of 97,245 ounces (FY 2022 — 82,376 ounces);
- Record revenue of
$179.6 million (FY 2022 —$148.7 million ); - Record total sales, royalties, and income from other interests1 of
$191.4 million (FY 2022 —$148.7 million ); - Record cash flows from operating activities, excluding changes in non-cash working capital1 of
$151.1 million (FY 2022 —$109.8 million ); - Net income of
$42.7 million (FY 2022 —$78.5 million ); - Average cash cost per attributable gold equivalent ounce1 of
$223 resulting in cash operating margins1 of$1,706 per ounce (FY 2022 —$284 per ounce and$1,511 per ounce respectively); - Debt Reduction and Monetization Efforts: De-levering remains a top priority for Sandstorm. As of
February 15, 2024 , the Company had$421 million drawn and outstanding on the credit facility. To further expedite debt repayment, the Company is undergoing a process to monetize between $40–$100 million of non-core assets by the end of 2024. Accordingly, in the fourth quarter of 2023, Sandstorm closed its previously announced agreement to sell the El Pilar and Blackwater Royalties for total consideration of$25.0 million comprised of cash and common shares. The Company anticipates that consideration from future monetization efforts will consist entirely of cash. Sandstorm's financial position continues to strengthen, with current available capital totaling over$200 million . - Credit Facility Renewal: In
September 2023 , Sandstorm renewed its revolving credit facility, allowing the Company to borrow up to$625 million for a four year term. - Closing of Antamina Transaction: In
June 2023 , Sandstorm closed the final component of its previously announced arrangement with Horizon Copper Corp. ("Horizon Copper") to sell a portion of the Company's Antamina royalty in consideration for a silver stream, debt, equity, and cash. - Mercedes Stream Amendment: In
January 2024 , Sandstorm closed its previously announced transaction to amend its existing gold and silver stream agreements on the Mercedes mine with Bear Creek Mining Corporation ("Bear Creek") and to refinance certain other debt investments of Bear Creek that it holds. In exchange for the stream amendments, Sandstorm received a 1.0% NSR on Bear Creek's wholly-owned Corani project inPeru , one of the world's largest fully permitted silver deposits, and$10 million of additional consideration in the form of a combination of Bear Creek common shares and debt.
- Attributable gold equivalent ounces1 of 23,250 ounces (Q4 2022 — 21,753 ounces);
- Revenue of
$44.5 million (Q4 2022 —$38.4 million ); - Total sales, royalties, and income from other interests1 of
$46.3 million (Q4 2022 —$38.4 million ); - Cash flows from operating activities, excluding changes in non-cash working capital1 of
$36.5 million (Q4 2022 —$29.9 million ); - Net income of
$24.5 million (Q4 2022 — net loss of$2.1 million ).
Based on the Company's existing royalties, attributable gold equivalent ounces for 2024 are forecasted to be between 75,000 and 90,000 ounces. The Company's production forecast is expected to reach approximately 125,000 attributable gold equivalent ounces within the next five years.
During 2023, the Company realized record annual revenue of
The Company had cash flows from operating activities of
- Certain gains recognized during 2022 which did not occur during 2023, including:
i. a
ii.
iii. a
- A
$22.2 million increase in finance expense in 2023 compared to 2022, primarily related to interest paid on the Company's revolving credit facility, which was drawn down in the third quarter of 2022 to finance acquisitions made in 2022; and - A
$15.6 million increase in depletion expense in 2023 compared to 2022, partly driven by an increase in attributable gold equivalent ounces sold.
The decrease in net income was partially offset by:
- A
$30.9 million increase in revenue, as described above; - A
$13.9 million increase in the gains recognized on the revaluation of the Company's investments, mostly driven by an increase in the fair value of the Company's Sandbox Royalties and Horizon Copper debentures; $11.8 million in other income primarily related to a one-time contractual payment from the Company's Mt.Hamilton royalty; and- A
$4.0 million gain on the disposal of the Company's Blackwater andEl Pilar royalties to Sandbox Royalties.
Of the gold equivalent ounces sold by Sandstorm during the fourth quarter of 2023, approximately 12% were attributable to mines located in
THREE MONTHS ENDED | YEAR ENDED | |||
Revenue | Gold Equivalent | Revenue | Gold Equivalent | |
2,828 | 13,013 | |||
5,216 | 25,101 | |||
10,116 | 45,355 | |||
Other | 5,090 | 13,776 | ||
Total | 23,250 | 97,245 |
Streams and royalties on Canadian mines contributed 9% more gold equivalent ounces to Sandstorm when compared to the fourth quarter of 2022. The change is primarily due to an increase in gold equivalent ounces from a number of different royalties within the Company's portfolio.
Gold equivalent ounces sold from operations located within
Operations in
Streams and royalties on mines in other countries contributed 31% more gold equivalent ounces sold when compared to the fourth quarter of 2022. This change is primarily due to an increase in royalty revenue from the Houndé mine in
A conference call will be held on
International: (+1) 416-764-8688
North American Toll-Free: (+1) 888-390-0546
Conference ID: 31083956
Webcast URL: https://bit.ly/3OjOzC8
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 Accounting Standards as issued by the | |
(i) | Total sales, royalties and income from other interests is a non-IFRS financial measure and 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 and ability to generate cash flow in comparison to other streaming and royalty companies in the precious metals mining industry. |
(ii) | Attributable gold equivalent ounce is a non-IFRS financial ratio that uses total sales, royalties, and income from other interests as a component. Attributable gold equivalent ounce is calculated by dividing the Company's total sales, royalties, and income from other interests, less revenue attributable to non-controlling shareholders for the period, by the average realized gold price per ounce from the Company's gold streams for the same respective period. The Company presents Attributable Gold Equivalent ounce 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 that present results on a similar basis. |
(iii) | Average cash cost per attributable gold equivalent ounce is calculated by dividing the Company's cost of sales, excluding depletion by the number of attributable gold equivalent ounces. The Company presents average cash cost per Attributable Gold Equivalent ounce as it believes that certain investors use this information to evaluate the Company's performance and ability to generate cash flow in comparison to other streaming and royalty companies in the precious metals mining industry who present results on a similar basis. |
(iv) | Cash operating margin is calculated by subtracting the average cash cost per attributable gold equivalent ounce from the average realized gold price per ounce from the Company's gold streams. The Company presents cash operating margin as it believes that certain investors use this information to evaluate the Company's performance and ability to generate cash flow in comparison to other streaming and royalty companies in the precious metals mining industry that present results on a similar basis. |
(v) | Cash flows from operating activities excluding changes in non-cash working capital is a non-IFRS financial measure that is calculated by adding back the decrease or subtracting the increase in changes in non-cash working capital to or from cash provided by (used in) operating activities. The Company presents cash flows from operating activities excluding changes in non-cash working capital 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 that present results on a similar basis. |
Refer to pages 34-36 of the Company's MD&A for the year ended |
Note 2 | |
Excluding attributable ounces related to contractual payments (primarily relating to a one-time contractual payment from the Company's Mt. |
For more information about Sandstorm Gold Royalties, please visit our website at www.sandstormgold.com or email us at info@sandstormgold.com.
Sandstorm is a precious metals-focused royalty company that provides upfront financing to mining companies and receives the right to a percentage of production from a mine, for the life of the mine. Sandstorm holds a portfolio of approximately 250 royalties, of which 40 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.
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
This press release and the documents incorporated by reference herein, as applicable, have been prepared in accordance with Canadian standards for the reporting of mineral resource and mineral reserve estimates, which differ from the previous and current standards of
For
As a result of the adoption of the SEC Modernization Rules, the
This press release contains "forward-looking statements", within the meaning of the
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
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