VANCOUVER, March 11, 2014 /CNW/ - Sandstorm Gold Ltd. ("Sandstorm" or
the "Company") (NYSE MKT: SAND, TSX: SSL) has released its unaudited
results for the fourth quarter and year ended December 31, 2013 (all
figures in U.S. dollars).
Fourth Quarter Highlights (3 Months)
Record gold sales of 10,523 ounces, excluding Premier Royalty Inc.'s
("Premier Royalty") attributable ounces.
Record revenue of $15.8 million.
Average cash cost per ounce1 of $407 resulting in cash operating margins1 of $863 per ounce.
Operating cash flow of $8.1 million.
Net loss of $39.9 million primarily due to a non-cash impairment charge
of $52.2 million relating to the Serra Pelada Gold Stream.
2013 Highlights (12 Months)
Record gold sales of 36,146 ounces, excluding Premier Royalty's
Record revenue of $59.8 million.
Operating cash flow of $32.2 million.
Average cash cost per ounce1 of $420 resulting in cash operating margins1 of $981.
Net loss of $74.6 million.
Acquired all of the outstanding common shares of Premier Royalty.
Completed a $10 million loan to Luna Gold Corp. ("Luna") in accordance
with a previously announced commitment to issue a non-revolving loan
facility to Luna.
Acquired a 1.0% net smelter returns royalty ("NSR") on the Paul Isnard
gold project located in French Guiana and owned by Columbus Gold
Acquired a 1.2% precious metal NSR on the Prairie Creek project located
in the Northwest Territories, Canada from Canadian Zinc Corporation.
Amended the previously announced gold stream with Mutiny Gold Ltd. to a
2.6% gold stream on the Deflector mine.
Entered into a streaming agreement with Entrée Gold Inc. to purchase
25.7% and 33.8% of Entrée's 20% share of the gold and silver produced
from the Heruga and Hugo North Extension deposits in Mongolia.
Sandstorm President & CEO Nolan Watson commented, "Amidst a challenging
gold price environment in 2013, our streaming partners demonstrated the
economic strength of their mining operations as the average all-in cost
of the mines underlying our four key streams was close to $1,000 per
ounce by the end of the year." Watson added, "Our focus is building
shareholder value by growing and diversifying our production base and
cash flow through the acquisition of streams and royalties."
Based on the existing gold streams and including attributable production
relating to the Company's NSRs, forecasted 2014 attributable production
is between 40,000 to 50,000 gold equivalent ounces, increasing to
approximately 60,000 of gold equivalent ounces per annum by 2016. This
growth is largely driven by the Company's portfolio of gold streams
with mines, most of which are either currently producing or expected to
commence production by 2015.
Webcast and Conference Call Details
A conference call will be held on Tuesday, March 11, 2014 starting at
8:30am PDT to further discuss the fourth quarter and annual results. To
participate in the conference call use the dial-in numbers below. It is
recommended that participants dial in five minutes prior to the
commencement of the conference call. To access an audio webcast of the
conference call, click here. The webcast will also be available on the Sandstorm website.
North American Toll-Free: 877-214-4966
Sandstorm's Management's Discussion and Analysis (MD&A) and Financial
Statements for the fourth quarter and annual results will be accessible
on the Company's website and on SEDAR at www.sedar.com. The Company has also completed a Form 40-F filing with the SEC that
will be accessible on EDGAR at www.sec.gov/edgar.shtml. Shareholders can request a hard copy of the MD&A and Financial
Statements by emailing email@example.com.
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 average
cash cost per ounce of gold and cash operating margin. Average cash
cost per ounce of gold is calculated by dividing the total cost of
sales, less depletion, by the ounces sold. In the precious metals
mining industry, this is a common performance measure but does not have
any standardized meaning. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate the Company's performance
and ability to generate cash flow. Cash operating margin is calculated
by subtracting the average cash cost per ounce of gold from the average
realized selling price per ounce of gold. 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. 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.
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a gold streaming company. Sandstorm provides
upfront financing to gold mining companies that are looking for capital
and in return, receives a gold streaming agreement. This agreement
gives Sandstorm the right to purchase a percentage of the gold produced
from a mine, for the life of the mine, at a fixed price per ounce.
Sandstorm has acquired a portfolio of eight gold streams and
twenty-seven gold royalties, thirteen of which are producing gold.
Sandstorm plans to grow and diversify its low cost production profile
through the acquisition of additional gold streams.
Sandstorm is focused on low cost operations with excellent exploration
potential and strong management teams. Sandstorm has completed gold
stream agreements with Entrée Gold Inc., Luna Gold Corp., Metanor
Resources Inc., Mutiny Gold Ltd., Primero Mining Corp., Rambler Metals
and Mining plc., Santa Fe Gold Corp., and SilverCrest Mines Inc.
For more information visit: www.sandstormgold.com.
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 Ltd. ("Sandstorm"). Forward-looking statements include,
but are not limited to, statements with respect to the future price of
gold, the estimation of mineral reserves and resources, realization of
mineral reserve estimates, and the timing and amount of estimated
future production. 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, gold 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 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, 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
Sandstorm's annual report for the financial year ended December 31,
2013 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.
SOURCE: Sandstorm Gold Ltd.
For further information:
Sandstorm Gold Ltd.
Erfan Kazemi, Chief Financial Officer
Denver Harris, Investor Relations Contact