Sandstorm Gold Royalties Announces 2024 Third Quarter Results
Sandstorm Gold Royalties (NYSE: SAND) reported Q3 2024 financial results with revenue of $44.7 million, up from $41.3 million in Q3 2023. The company achieved 17,359 attributable gold equivalent ounces, down from 21,123 ounces year-over-year. Cash operating margins reached a record $2,215 per attributable gold equivalent ounce. Net income was $5.8 million compared to $0.01 million in Q3 2023. The company received first gold deliveries from Greenstone following commercial production announcement. For 2024, production guidance is set at 70,000-75,000 attributable gold equivalent ounces, with a five-year target of 125,000 ounces.
Sandstorm Gold Royalties (NYSE: SAND) ha riportato i risultati finanziari del terzo trimestre 2024, con un fatturato di 44,7 milioni di dollari, in aumento rispetto ai 41,3 milioni del terzo trimestre 2023. L'azienda ha raggiunto 17.359 once equivalenti in oro attribuibili, in calo rispetto alle 21.123 once rispetto all'anno precedente. I margini operativi in contante hanno raggiunto un record di 2.215 dollari per ogni oncia equivalente in oro attribuibile. L'utile netto è stato di 5,8 milioni di dollari, rispetto a 0,01 milioni del terzo trimestre 2023. L'azienda ha ricevuto le prime consegne d'oro da Greenstone dopo l'annuncio della produzione commerciale. Per il 2024, la guida alla produzione è fissata tra 70.000 e 75.000 once equivalenti in oro attribuibili, con un obiettivo quinquennale di 125.000 once.
Sandstorm Gold Royalties (NYSE: SAND) informó los resultados financieros del tercer trimestre de 2024, con ingresos de 44,7 millones de dólares, un aumento desde los 41,3 millones en el tercer trimestre de 2023. La compañía alcanzó 17,359 onzas equivalentes de oro atribuibles, una disminución desde las 21,123 onzas del año anterior. Los márgenes operativos en efectivo alcanzaron un récord de 2,215 dólares por onza equivalente de oro atribuible. La ganancia neta fue de 5.8 millones de dólares en comparación con 0.01 millones en el tercer trimestre de 2023. La empresa recibió las primeras entregas de oro de Greenstone tras el anuncio de producción comercial. Para 2024, la guía de producción está establecida entre 70,000 y 75,000 onzas equivalentes de oro atribuibles, con un objetivo de cinco años de 125,000 onzas.
샌드스톰 골드 로열티(NYSE: SAND)가 2024년 3분기 재무 결과를 발표했습니다. 매출은 4470만 달러로, 2023년 3분기 4130만 달러에서 증가했습니다. 이 회사는 17,359 온스의 귀속 금 환산량을 달성하였으며, 이는 지난해 21,123 온스에서 감소한 수치입니다. 현금 운영 마진은 귀속 금 환산량 온스당 기록적인 2,215달러에 도달했습니다. 순이익은 580만 달러로, 2023년 3분기 1만 달러와 비교되었습니다. 이 회사는 상업 생산 발표 이후 그린스톤으로부터 첫 번째 금 배송을 받았습니다. 2024년 생산 가이드는 70,000-75,000 온스의 귀속 금 환산량으로 설정되었으며, 5년 목표는 125,000 온스입니다.
Sandstorm Gold Royalties (NYSE: SAND) a publié ses résultats financiers pour le troisième trimestre 2024, avec des revenus de 44,7 millions de dollars, en hausse par rapport à 41,3 millions de dollars au troisième trimestre 2023. La société a atteint 17 359 onces d'or équivalent attribuables, en baisse par rapport à 21 123 onces d'une année sur l'autre. Les marges opérationnelles en cash ont atteint un niveau record de 2 215 dollars par once d'or équivalent attribuable. Le bénéfice net s'est établi à 5,8 millions de dollars, contre 0,01 million de dollars au troisième trimestre 2023. L'entreprise a reçu ses premières livraisons d'or de Greenstone suite à l'annonce de la production commerciale. Pour 2024, les prévisions de production sont fixées entre 70 000 et 75 000 onces d'or équivalent attribuables, avec un objectif quinquennal de 125 000 onces.
Sandstorm Gold Royalties (NYSE: SAND) hat die finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben, mit Einnahmen von 44,7 Millionen Dollar, ein Anstieg von 41,3 Millionen Dollar im dritten Quartal 2023. Das Unternehmen erzielte 17.359 zuweisbare Goldäquivalentunzen, ein Rückgang von 21.123 Unzen im Vergleich zum Vorjahr. Die Cash-Betriebsgewinne erreichten mit 2.215 Dollar pro zuweisbarer Goldäquivalentunze einen Rekord. Der Nettogewinn betrug 5,8 Millionen Dollar im Vergleich zu 0,01 Millionen Dollar im dritten Quartal 2023. Das Unternehmen erhielt die ersten Goldlieferungen von Greenstone nach der Ankündigung der kommerziellen Produktion. Für 2024 wird die Produktionsprognose auf 70.000-75.000 zuweisbare Goldäquivalentunzen gesetzt, mit einem Fünfjahresziel von 125.000 Unzen.
- Revenue increased 8.2% YoY to $44.7 million
- Record cash operating margins of $2,215 per gold equivalent ounce, up 30.4% YoY
- Net income grew significantly to $5.8 million from $0.01 million YoY
- Operating cash flows increased to $37.0 million from $33.9 million YoY
- Reduced credit facility balance by $56 million in first nine months of 2024
- Attributable gold equivalent ounces decreased 17.8% YoY to 17,359 ounces
- Significant debt remains with $369 million outstanding on credit facility
Insights
Sandstorm Gold delivered a solid Q3 2024 with several positive developments. Revenue increased by
Key strategic progress includes the successful start of Greenstone mine deliveries, continued debt reduction with
The balance sheet continues strengthening with available credit of
The operational highlights show promising asset development across the portfolio. Greenstone's commercial production announcement is particularly significant, with
Portfolio diversification remains strong with meaningful exposure across Canada (
Financial Highlights
of revenue compared to$44.7 million in Q3 2023;$41.3 million - 17,359 attributable gold equivalent ounces1 compared to 21,123 ounces in Q3 2023;
in cash flows from operating activities, excluding changes in non-cash working capital1, compared to$37.0 million in Q3 2023;$33.9 million - Cash operating margins1 of
per attributable gold equivalent ounce, compared to$2,215 per ounce in Q3 2023, marking the second consecutive quarter of record operating margins; and$1,699 of net income compared to net income of$5.8 million in Q3 2023.$0.01 million
Corporate Updates
First Gold Deliveries and Commercial Production at Greenstone
The Company received the first gold deliveries under its Greenstone gold stream following the mine's first gold pour in May 2024. Equinox Gold Corp. ("Equinox Gold") reported that Greenstone produced 42,400 ounces of gold in the third quarter and announced commercial production on November 6, 2024.
Balance Sheet Deleveraging
The Company continues to focus on deleveraging its balance sheet following several royalty and stream acquisitions in 2022. For the nine months ended September 30, 2024, the Company made net repayments of
Capital Allocation
As part of the Company's commitment to returning capital back to shareholders, the Company purchased approximately 1.1 million common shares for total consideration of
In September 2024, the Company declared a dividend of
Outlook
Based on the Company's existing streams and royalties and the year-to-date outperformance of gold prices relative to other commodities, attributable gold equivalent ounces for 2024 are forecasted to be between 70,000 and 75,000 ounces. The Company's production forecast is expected to reach approximately 125,000 attributable gold equivalent ounces within the next five years, based solely on streams and royalties that the Company has bought and paid for.
Financial Results
For the three months ended September 30, 2024, the Company realized quarterly revenue of
Revenue (in millions) | Gold Equivalent Ounces | |
Precious Metals | 12,472 | |
Copper | 3,417 | |
Other | 1,470 | |
Total | 17,359 |
When compared to the same period in 2023, the increase in revenue was driven by a
The Company had cash operating margins of
Stream & Royalty Portfolio
During the third quarter of 2024, the Company sold 17,359 gold equivalent ounces attributable to its diversified streaming and royalty portfolio. Approximately
Revenue (in millions) | Gold Equivalent Ounces | |
2,996 | ||
2,431 | ||
8,715 | ||
Other | 3,217 | |
Total | 17,359 |
Streams and royalties on Canadian mines contributed approximately
Following the first gold pour in May 2024, Equinox Gold announced commercial production at its Greenstone gold mine on November 6, 2024, based on operating progress achieved in October. Equinox Gold reported that Greenstone produced 42,400 ounces of gold in the third quarter at an average recovery rate of
North America Excluding Canada
North American mines outside of
ROBERTSON (CORTEZ COMPLEX)
In October 2024, the final Environmental Impact Statement for the Robertson project in
Operations in
Lundin Gold Inc. ("Lundin Gold") recently announced additional drill results and an expanded near-mine drilling program, with recent intercepts continuing to delineate the new Bonza Sur gold deposit (discovered in 2023) at the Fruta del Norte mine ("FDN"). A metallurgical study is planned for 2024 and a maiden Mineral Resource Estimate for the Bonza Sur deposit is expected by mid-2025. As part of a recent Investor Day, Lundin Gold highlighted the opportunity for Bonza Sur to be its second producing deposit within the La Zarza mining concession and expects a Preliminary Economic Assessment ("PEA") on Bonza Sur to be completed by the end of 2025. For more information, visit www.lundingold.com. Sandstorm holds a
Mining has resumed at the Aurizona mine in
Other
Streams and royalties on mines in other countries contributed approximately
In the third quarter, Allied Gold Corporation ("Allied") closed a third party
Ivanhoe Mines Ltd. ("Ivanhoe") has completed the Phase 1 concentrator at its Platreef PGM project in
Webcast & Conference Call Details
A conference call will be held on Friday, November 8, 2024, starting at 8:30am PST to further discuss the third quarter results. To participate in the conference call, use the following dial-in numbers and conference ID, or join the webcast using the link below:
International: (+1) 437-900-0527
North American Toll-Free: (+1) 888-510-2154
Conference ID: 87406
Webcast URL: https://app.webinar.net/dpZeMJ5W6Y8
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 International Accounting Standards Board ("IFRS Accounting Standards" or "IFRS") including, (i) total sales, royalties, and income from other interests, (ii) attributable gold equivalent ounce, (iii) average cash cost per attributable gold equivalent ounce, (iv) cash operating margin, and (v) cash flows from operating activities excluding changes in non-cash working capital. | |
(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 32–34 of the Company's MD&A for the quarter ended September 30, 2024, which is available on SEDAR+ at www.sedarplus.com, for a numerical reconciliation of the non-IFRS financial measures described above. The presentation of these non-IFRS financial 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 financial measures differently. |
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 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 over 230 royalties, of which 41 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.
CAUTIONARY STATEMENTS TO
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.
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 SEC now recognizes estimates of "measured mineral resources", "indicated mineral resources" and "inferred mineral resources." In addition, the SEC has amended its definitions of "proven mineral reserves" and "probable mineral reserves" to be "substantially similar" to the corresponding CIM Definition Standards that are required under NI 43-101. While the SEC will now recognize "measured mineral resources", "indicated mineral resources" and "inferred mineral resources", U.S. investors should not assume that all or any part of the mineralization in these categories will be converted into a higher category of mineral resources or into mineral reserves without further work and analysis. 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, U.S. investors are cautioned not to assume that all or any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable without further work and analysis. Further, "inferred mineral resources" have a greater amount of uncertainty 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 inferred mineral resources will be upgraded to a higher category without further work and analysis. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases. While the above terms are "substantially similar" to CIM Definitions, 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 reserve or resource estimates under the standards adopted under the SEC Modernization Rules or under the prior standards of SEC Industry Guide 7.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
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 December 31, 2023 and the section entitled "Risk Factors" contained in the Company's annual information form dated March 27, 2024 available at www.sedarplus.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.
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