Sandstorm Gold Royalties: Hod Maden Joint Venture to Invest Up to $100M to Advance Critical Path; Underpins Long-term Outlook

Rhea-AI Summary

Sandstorm Gold Royalties (NYSE: SAND) announces significant developments for the Hod Maden gold-copper project in Türkiye. The joint venture has approved early-works capital investments of US$60-$100 million for 2025, supplementing the US$42 million development costs from 2024. The project's critical path items, focusing on road and tunnel construction, will be prioritized.

Technical work and infill drilling continue to validate previous due diligence outcomes, with SSR Mining planning an initial exploration program for deposit extension. The company maintains its forecast for first production in 2028. Sandstorm holds a 2.0% net smelter returns royalty and a gold stream agreement, allowing purchase of 20% of all gold produced at 50% of spot price until 405,000 ounces, followed by 12% of gold at 60% of spot price for the mine's lifetime.

Positive

• Significant capital investment of US$60-$100M approved for 2025 development
• Technical work continues to validate previous due diligence outcomes
• Maintains timeline for production start in 2028
• Substantial gold stream agreement securing future revenue

Negative

• Project still requires securing additional project financing
• Production start still 3 years away in 2028

Insights

Mining Investment Analyst

The $60-$100 million capital investment approved for Hod Maden's early-works development represents a significant positive milestone for Sandstorm Gold Royalties. This funding supplements the $42 million already invested in 2024, demonstrating continued commitment to advancing this high-grade gold-copper project in Türkiye.

Critically, road and tunnel construction work indicates the project is moving from planning to physical development phase. The continued technical work and infill drilling program aims to de-risk the initial production years, potentially improving the project's economic certainty. With SSR Mining proceeding toward project financing and a final investment decision, Sandstorm's maintained forecast of 2028 production appears increasingly solid.

Sandstorm's 2.0% NSR royalty and substantial gold stream (20% of production for 50% of spot price until 405,000 oz, then 12% at 60% of spot) position this asset as a major future revenue driver. This stream structure provides significant leverage to gold prices while limiting capital exposure compared to direct mine ownership.

The planned exploration program focusing on potential resource expansion adds upside opportunity beyond the currently defined resource. For a royalty company like Sandstorm, this development progress without direct capital commitments represents an ideal scenario - project advancement funded by the operator while Sandstorm maintains its fixed-cost exposure to the future gold production.

Financial Analyst

This investment announcement carries significant financial implications for Sandstorm. The $60-$100 million joint venture capital commitment in 2025 represents continued momentum following $42 million in development costs from 2024, with critical path infrastructure now being constructed.

Importantly, Sandstorm's exposure comes through a capital-efficient royalty and streaming model rather than direct project funding. The structured gold stream provides remarkable operator-funded optionality - Sandstorm will receive 20% of all gold produced from Hod Maden for just 50% of spot price until 405,000 ounces are delivered, then 12% of gold at 60% of spot price thereafter.

Based on previous technical reports, Hod Maden represents one of the highest-grade undeveloped gold-copper projects globally, with potential to become a cornerstone asset in Sandstorm's portfolio. The maintained 2028 production timeline suggests the project is progressing according to schedule despite the challenging jurisdiction.

The exploration program targeting resource expansion adds potential upside beyond current modeled economics. Meanwhile, SSR Mining's efforts to secure project financing will help determine the final capital structure and potential returns. For Sandstorm shareholders, this development trajectory supports the company's long-term production growth outlook without diluting near-term cash flows or requiring equity raises to fund development.

VANCOUVER, BC, March 31, 2025 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm Gold Royalties", "Sandstorm" or the "Company") (NYSE: SAND) (TSX: SSL) is pleased to report that SSR Mining Inc. ("SSR Mining") has released its 2025 guidance, including anticipated capital expenditure for the Hod Maden gold-copper project in Türkiye. For 2025, the Hod Maden joint venture has approved early-works capital investments of approximately US$60–$100 million (on a 100% basis), which is in addition to the reported US$42 million in development costs incurred at the project in 2024. To date, technical work continues to affirm prior due diligence outcomes and SSR Mining continues infill drilling with an aim of de-risking the initial years of the mine. The focus of 2025 activities will be on advancing the project's critical path items—principally, road and tunnel construction. An initial exploration program focused on potential extension of the existing deposit and defining new targets is also planned for 2025. In addition to these development activities, SSR Mining is expected to continue the process of securing project financing for Hod Maden as it advances the asset towards a final investment decision. Based on the continued progress of these critical path early-works initiatives, Sandstorm maintains its forecast for first production at Hod Maden in 2028.

For more information, visit SSR Mining's website at www.ssrmining.com and refer to the press release dated March 31, 2025.

Sandstorm has a 2.0% net smelter returns royalty and a gold stream on the Hod Maden project. Under the terms of the gold stream with Horizon Copper Corp., the Company has agreed to purchase 20% of all gold produced from Hod Maden (on a 100% basis) for ongoing per ounce payments equal to 50% of the spot price of gold until 405,000 ounces of gold are delivered. Sandstorm will then receive 12% of the gold produced for the life of the mine for ongoing payments equal to 60% of the spot price of gold.

Sandstorm Filing of 40-F

Sandstorm filed its Form 40-F for the year ended December 31, 2024, with the Securities and Exchange Commission and it is available on EDGAR at www.sec.gov/edgar.shtml. The Company's 2024 Audited Financial Statements, along with its Form 40-F, are both available on the Company's website at www.sandstormgold.com.

Shareholders may also receive copies of these documents, without charge, upon request to Sandstorm's Investor Relations Department, Suite 3200, 733 Seymour St, Vancouver, British Columbia, V6B 0S6 Canada or to info@sandstormgold.com.

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 230 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.

CAUTIONARY STATEMENTS TO U.S. SECURITYHOLDERS

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 the United States securities laws. In particular, and without limiting the generality of the foregoing, the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "inferred mineral resources,", "indicated mineral resources," "measured mineral resources" and "mineral resources" used or referenced herein and the documents incorporated by reference herein, as applicable, are Canadian mineral disclosure terms as defined in accordance with Canadian National Instrument 43-101 — Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") — CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Definition Standards").

For United States reporting purposes, the United States Securities and Exchange Commission (the "SEC") has adopted amendments to its disclosure rules (the "SEC Modernization Rules") to modernize the mining property disclosure requirements for issuers whose securities are registered with the SEC under the Exchange Act, which became effective February 25, 2019. The SEC Modernization Rules more closely align the SEC's disclosure requirements and policies for mining properties with current industry and global regulatory practices and standards, including NI 43-101, and replace the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7. Issuers were required to comply with the SEC Modernization Rules in their first fiscal year beginning on or after January 1, 2021. As a foreign private issuer that is eligible to file reports with the SEC pursuant to the multi-jurisdictional disclosure system, the Corporation is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101 and the CIM Definition Standards. Accordingly, mineral reserve and mineral resource information contained or incorporated by reference herein may not be comparable to similar information disclosed by United States companies subject to the United States federal securities laws and the rules and regulations thereunder.

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 U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Sandstorm Gold Royalties. Forward-looking statements include but not limited to the expected capital expenditures and development activity at Hod Maden; expectations that SSR Mining will continue to advance and secure sufficient project financing at Hod Maden; the expected timing of production at Hod Maden;  the future price of gold, silver, copper, iron ore and other metals, 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 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, 2024 and the section entitled "Risk Factors" contained in the Company's annual information form dated March 31, 2025 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.

FAQ

What is the 2025 capital investment planned for Hod Maden project by Sandstorm Gold (SAND)?

The Hod Maden joint venture has approved US$60-$100 million in early-works capital investments for 2025, in addition to US$42 million spent in 2024.

When is Sandstorm Gold's (SAND) Hod Maden project expected to begin production?

Sandstorm maintains its forecast for first production at Hod Maden in 2028.

What are the terms of Sandstorm Gold's (SAND) stream agreement for Hod Maden?

Sandstorm can purchase 20% of gold at 50% spot price until 405,000 ounces, then 12% of gold at 60% spot price for life of mine.

What are the main focus areas for Hod Maden's development in 2025?

The project will focus on critical path items, primarily road and tunnel construction, along with deposit extension exploration.