Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or the “Company”) (NYSE: SAND, TSX: SSL) has released its results for the first quarter ended March 31, 2021 (all figures in U.S. dollars).

FIRST QUARTER HIGHLIGHTS
•Record attributable gold equivalent ounces sold1 of 17,444 ounces (Q1 2020 — 13,393 ounces);
•Record revenue of $31.0 million (Q1 2020 — $21.3 million);
•Record cash flows from operating activities, excluding changes in non-cash working capital1 of $23.0 million (Q1 2020 — $14.4 million);
•Average cash cost per attributable gold equivalent ounce1 of $307 resulting in record cash operating margins1 of $1,470 per ounce (Q1 2020 — $314 per ounce and $1,279 per ounce respectively);
•Net income of $5.0 million (Q1 2020 — net loss of $10.3 million);
•Capital: As at March 31, 2021, Sandstorm has a strong balance sheet with over $140 million in cash and over $52 million in equity and debt investments. When combined with an undrawn revolving credit facility of $225 million, strong operating cash flows, and the sale of non-core investments, Sandstorm expects to have significant capital available to propel the Company into the next phase of growth.
•Normal Course Issuer Bid: Under Sandstorm’s normal course issuer bid, the Company purchased and cancelled approximately 0.8 million shares for total consideration of $5.0 million during the first quarter of 2021. Additionally, in April 2021, Sandstorm renewed its normal course issuer bid.

OUTLOOK
Based on the Company’s existing royalties, attributable gold equivalent ounces sold for 2021 is forecast to be between 55,000 and 62,000 ounces. The Company is forecasting attributable gold equivalent production of 125,000 ounces in 2024.

FINANCIAL RESULTS
Sandstorm’s revenue during the first quarter of 2021 was $31.0 million compared with $21.3 million for the comparable period in 2020. The increase is largely due to a 30% increase in the attributable gold equivalent ounces sold, as well as a 12% increase in the average realized selling price of gold.

Net income was higher when compared to the same period in 2020 primarily due to a $8.5 million decrease in non-cash impairment charges. The increase in net income was also affected by a $4.1 million decrease in losses recognized on the revaluation of the Company’s investments. This was partially offset by a $4.6 million increase in tax expense as a result of the increase in net income.

STREAMS & ROYALTIES
Of the gold equivalent ounces sold by Sandstorm during the first quarter of 2021, approximately 18% were attributable to mines located in Canada, 15% from the rest of North America, 57% from South America, and 10% from other countries.

Three Months Ended Mar 31, 2021
Revenu (in millions)
Gold Equivalent Ounces

Canada $5.4 3,023
North America excl. Canada $4.7 2,679
South America $17.8 9,995
Other $3.1 1,747
Total $31.0 17,444

Canada
Streams and royalties on Canadian mines contributed 41% more gold equivalent ounces to Sandstorm when compared to the first quarter of 2020. The change is primarily due to an increase in royalty revenue from the Bracemac-McLeod mine in Québec, driven by commodity price increases.

North America Excluding Canada

The gold equivalent ounces sold from operations located within North America, but outside of Canada, contributed 6% more gold equivalent ounces when compared to the first quarter in 2020. The change was driven by an increase in gold equivalent ounces sold from the Relief Canyon mine in Nevada. In May 2020, Sandstorm received its first monthly gold delivery from Americas Gold and Silver Corp. under the Relief Canyon stream agreement. The increase was partially offset by a decrease in gold equivalent ounces sold from the Santa Elena mine in Mexico.

South America

Operations in South America contributed 48% more gold equivalent ounces when compared to the first quarter of 2020. The change is primarily due to an increase in gold equivalent ounces sold from the Cerro Moro mine in Argentina and the Chapada mine in Brazil.

Other

Streams and royalties on mines in other countries contributed 12% less gold equivalent ounces sold when compared to the first quarter of 2020. The change is primarily due to a decrease in royalty revenue from the Houndé mine in Burkina Faso, partially offset by an increase in gold equivalent ounces sold from the Karma mine in Burkina Faso.

WEBCAST & CONFERENCE CALL DETAILS

A conference call will be held on Friday, April 30, 2021 starting at 8:30am PDT to further discuss the first 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) 343-761-2522
North American Toll-Free: (+1) 833-350-1446
Conference ID: 3657105
Webcast URL: https://bit.ly/3deWaQl

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