Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or the “Company”) (NYSE: SAND, TSX: SSL) has released its results for the second quarter ended June 30, 2023 (all figures in U.S. dollars).
SECOND QUARTER HIGHLIGHTS
• Record revenue of $49.8 million (Q2 2022 — $36.0 million);
• Attributable gold equivalent ounces1 of 24,504 ounces (Q2 2022 — 19,276
ounces);
• Cash flows from operating activities, excluding changes in non-cash
working capital1 of $38.0 million (Q2 2022 — $21.9 million);
• Average cash cost per attributable gold equivalent ounce1 of $228 resulting in
cash operating margins1 of $1,744 per ounce (Q2 2022 — $273 per ounce and $1,593
per ounce respectively);
• Net income of $2.7 million (Q2 2022 — $39.7 million);
• Sale of Antamina NPI and closing of Horizon Copper transaction: In June,
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. The transaction furthers Sandstorm’s strategy to acquire precious metal streams on high-quality copper

NYSE SAND TSX SSL
assets. With the closing of the Antamina sale, Horizon Copper is positioned as a
competitive copper company with a portfolio of high-quality cash-flowing and
development stage copper assets.
• Share buybacks: During the six months ended June 30, 2023 and under the
Company’s normal course issuer bid, the Company purchased and cancelled
approximately 2.8 million common shares for total consideration of $14.2 million.

OUTLOOK
Based on the Company’s existing streams and royalties, attributable gold equivalent ounces for 2023 are forecasted to be between 90,000 and 100,000 ounces. The Company’s production forecast is expected to reach approximately 125,000 attributable gold equivalent ounces within the next five years, with a sustainable average annual production of approximately 110,000 attributable gold equivalent ounces over the next 15 years.

RECORD REVENUE AND OPERATING CASH FLOW
For the three months ended June 30, 2023, the Company realized record quarterly revenue of $49.8 million compared with $36.0 million for the comparable period in 2022. The increase in revenue is largely attributable to a 27% increase in attributable gold equivalent ounces sold.
The Company had record cash flows from operating activities of $42.1 million and net income of $2.7 million for the three month period, compared with cash flows from operating activities of $33.2 million and net income of $39.7 million for the comparable period in 2022.
The change is due to a combination of factors, including a $22.9 million gain that was recognized during the three months ended June 30, 2022, related to the sale of a portfolio of royalties to Sandbox Royalties Corp., and a $12.5 million gain on the sale of the Company’s equity interest in Entrée Resources Ltd. to Horizon Copper that was also recognized during the comparable period in 2022. Other contributing factors to the change include a $10.8 million increase in depletion expense partly driven by an increase in attributable gold
equivalent ounces sold and a $9.1 million increase in finance expense, primarily related to interest paid on the Company’s credit facility that was drawn down to finance acquisitions made in 2022. The change in net income and cash flows from operating activities was partially offset by a $13.9 million increase in revenue and a $5.7 million decrease in income tax expense.

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STREAMS & ROYALTIES
Of the attributable gold equivalent ounces sold by Sandstorm during the second quarter of 2023, approximately 11% were attributable to mines located in Canada, 30% from the rest of North America, 45% from South America, and 14% from other countries.

Revenue
(in Millions)
Gold Equivalent Ounces
Canada $5.5 2,769
North America excl. Canada $14.6 7,436
South America $23.4 11,092
Other $6.3 3,207
Total $49.8 24,504

Canada
Streams and royalties on Canadian mines contributed 11% less gold equivalent ounces to Sandstorm when compared to the second quarter of 2022. The change is primarily due to a decrease in royalty revenue from the Diavik mine in the Northwest Territories, driven by the timing of sales, production rates, and diamond prices, as well as a decrease in royalty revenue from the Bracemac-McLeod mine in Quebec, which discontinued operations in the second
half of 2022. The decrease was partially offset by an increase in gold equivalent ounces received and sold from the CEZinc smelter in Quebec, which was acquired in July 2022, and an increase in ounces received and sold from the Black Fox mine in Ontario.

North America Excluding Canada
Operations located within North America, but outside of Canada, contributed 71% more gold equivalent ounces when compared to the second quarter of 2022. The change was primarily driven by an increase in gold equivalent ounces received from streams on the Mercedes mine in Mexico, which were acquired in April and August of 2022, and an increase in ounces received and sold from the Relief Canyon mine in Nevada, primarily due to the timing of
sales, whereby, 1,476 gold ounces were delivered by March 31, 2023, and sold in the subsequent quarter. The increase was partially offset by a decrease in ounces received from the Santa Elena mine in Mexico, largely due to mining activity on concessions not subject to the Company’s gold stream.
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South America
Operations in South America contributed 18% more gold equivalent ounces when compared to the second quarter of 2022. The increase was largely driven by an increase in royalty revenue from the Antamina mine in Peru and the Caserones mine in Chile, both of which were acquired in the second half of 2022. The change was partially offset by a decrease in revenue attributable to the Chapada copper stream primarily due to a 39% decrease in the number of copper pounds sold as a result of planned lower recoveries, partially offset by higher throughput, as well as a decrease in the average realized selling price of copper when compared to the equivalent period in 2022.

Other
Streams and royalties on mines in other countries contributed 34% more attributable gold equivalent ounces when compared to the second quarter of 2022. This change is primarily due to an increase in gold equivalent ounces received and sold from the Bonikro mine in Côte d’Ivoire and the Blyvoor mine in South Africa, both of which were acquired in August 2022.

WEBCAST & CONFERENCE CALL DETAILS
A conference call will be held on Friday, August 4, 2023, starting at 8:30am PDT to further discuss the second 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) 416-764-8688
North American Toll-Free: (+1) 888-390-0546
Conference ID: 86332521
Webcast URL: https://bit.ly/3rwhFWG

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, (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
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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 31–33 of the Company’s MD&A for the three months ended June 30, 2023, which is available on SEDAR+ at
www.sedarplus.ca, 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.
ERFAN KAZEMI MARK KLAUSEN
CHIEF FINANCIAL OFFICER INVESTOR RELATIONS
604 689 0234 604 628 1164