Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or the “Company”) (NYSE: SAND, TSX: SSL) has released its results for the fourth quarter and year ended December 31, 2022 (all figures in U.S. dollars).

FULL YEAR HIGHLIGHTS
Record attributable gold equivalent ounces1 of 82,376 ounces (FY 2021 — 67,548 ounces);
Record revenue of $148.7 million (FY 2021 — $114.9 million);
Record cash flows from operating activities, excluding changes in non-cash working capital1 of $109.8 million (FY 2021 — $83.5 million);
Record net income of $78.5 million (FY 2021 — $27.6 million);
Average cash cost per attributable gold equivalent ounce1 of $284 resulting in cash operating margins1 of $1,511 per ounce (FY 2021 — $249 per ounce and $1,539 per ounce respectively);
Closing of Transformative Acquisitions: The acquisition of Nomad Royalty Company Ltd. and the BaseCore Metals LP royalty portfolio propel the Company forward in both size and scale while solidifying Sandstorm’s position amongst its peers as the go-to mid-tier streaming and royalty company.
BaseCore Portfolio: In July 2022, the Company closed its previously announced agreement to acquire nine royalties and one stream from BaseCore Metals LP. The royalty package includes exposure to high-quality, long-life assets of which three are on currently producing interests, including a net profits interest on the Antamina copper mine in Peru.
Nomad Royalty Company: In August 2022, the Company completed the acquisition of all issued and outstanding common shares of Nomad Royalty Company Ltd. (“Nomad”). Nomad is a high-growth precious metals-focused royalty company with a portfolio of 20 royalty and stream assets, of which seven are on currently producing mines. Through the Nomad acquisition, Sandstorm adds several high-quality and low-cost assets to its portfolio, meaningfully increasing Sandstorm’s production profile in both the near and long-term.
Creation of Strategic Partner, Horizon Copper: In August 2022, the Company closed a component of its arrangement with Horizon Copper Corp. (“Horizon Copper”) to spin out a number of assets and retain precious metal streams along with a portion of debt and equity interest in Horizon Copper. The transaction repositions Sandstorm as a pure-play precious metals royalty and streaming company, while creating a key strategic growth partner for Sandstorm. Horizon Copper’s business intent is to become an aggressive consolidator of quality copper assets while providing Sandstorm the option to help fund acquisitions via precious metal by-product streaming contracts.
Creation of Sandbox Royalties: In June 2022, Sandstorm and Equinox Gold Corp. (“Equinox”) each closed their previously announced purchase and sale agreements with Sandbox Royalties Corp. (“Sandbox”) whereby Sandbox acquired a portfolio of royalties from both Sandstorm and Equinox. Sandbox will have exposure to a range of resource royalties, immediate cash flow from producing royalties, and significant leverage to strengthening metal prices and resource growth. Sandstorm and Equinox both hold significant equity positions in Sandbox, providing the opportunity to participate in and facilitate the future growth of Sandbox.
Other Notable Events:
Hod Maden Milestones: With the awarding of the key permit from the Turkish Ministry of Forestry in 2022, the Hod Maden project has moved into the next stage of development including securing project debt financing and initiating early works construction items.
Expanded Credit Facility: In August 2022, Sandstorm amended its revolving credit agreement allowing the Company to borrow up to $625 million. The facility maintains its sustainability-linked performance targets. As of February 21, 2023, $486 million remains outstanding under the Company’s credit facility.
Equity Financing: On October 4, 2022, the Company completed an equity financing for aggregate gross proceeds of $92.1 million. Upon closing of the financing, the majority of the net proceeds were used to reduce amounts drawn under the Company’s revolving credit facility.
FOURTH QUARTER HIGHLIGHTS
Attributable gold equivalent ounces1 of 21,753 ounces (Q4 2021 — 16,586 ounces);
Revenue of $38.4 million (Q4 2021 — $29.8 million);
Cash flows from operating activities, excluding changes in non-cash working capital1 of $29.9 million (Q4 2021 — $22.1 million);
Net loss of $2.1 million (Q4 2021 — net income of $7.4 million).
OUTLOOK
Based on the Company’s existing royalties, attributable gold equivalent ounces for 2023 are forecasted to be between 85,000 and 100,000 ounces. The Company is forecasting attributable gold equivalent production to be approximately 140,000 ounces in 2025.

FINANCIAL RESULTS
During 2022, the Company realized record annual revenue of $148.7 million compared with $114.9 million for the comparable period in 2021. The increase is largely attributable to a 22% increase in attributable gold equivalent ounces sold and an increase in the average realized selling price of gold.

Net income was higher during 2022 when compared to the same period in 2021 due to the increase in revenue as well as a combination of other factors including a $25.8 million gain on the disposal of streams, royalties, and other interests, primarily resulting from the sale of a portfolio of royalties to Sandbox; a $24.9 million gain resulting from the sale of the Company’s equity interest in Hod Maden to Horizon Copper; and a $12.5 million gain resulting from the sale of the Company’s equity interest in Entrée Resources Ltd. to Horizon Copper. The year-over-year increase in net income was partially offset by an increase in depletion expense largely due to an increase in attributable gold equivalent ounces sold and an increase in finance expense related to interest paid on the Company’s revolving credit facility, which was drawn down in 2022 to finance the various transactions described above.

STREAMS & ROYALTIES
Of the gold equivalent ounces sold by Sandstorm during the fourth quarter of 2022, approximately 12% were attributable to mines located in Canada, 28% from the rest of North America, 42% from South America, and 18% from other countries.

THREE MONTHS ENDED DEC 31, 2022 YEAR ENDED DEC 31, 2022
Revenue
(in millions) Gold Equivalent
Ounces Revenue
(in millions) Gold Equivalent
Ounces
Canada $4.5 2,583 $23.5 13,061
North America excl. Canada $10.8 6,187 $31.0 17,433
South America $16.4 9,110 $73.5 40,305
Other $6.7 3,873 $20.7 11,577
Total $38.4 21,753 $148.7 82,376
Canada
Streams and royalties on Canadian mines contributed 43% less gold equivalent ounces to Sandstorm when compared to the fourth quarter of 2021. 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, 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.

North America Excluding Canada
The gold equivalent ounces sold from operations located within North America, but outside of Canada, contributed 147% more gold equivalent ounces when compared to the fourth quarter of 2021. The change was primarily driven by an increase in gold equivalent ounces received and sold from the Mercedes mine in Mexico, which commenced making deliveries to Sandstorm in the second quarter of 2022, with Sandstorm also receiving deliveries in the period from the newly acquired Mercedes assets that were a part of the Nomad acquisition. The increase was partially offset due to a decrease in ounces received and sold from the Santa Elena mine in Mexico, largely due to mining activity on concessions not subject to Sandstorm’s gold stream on the project.

South America
Operations in South America contributed 3% more gold equivalent ounces sold when compared to the fourth quarter of 2021. The increase was driven by an increase in royalty revenue attributable to the Caserones mine in Chile, and ounces received and sold from the Cerro Moro mine in Argentina. The increase was offset by a decrease in royalty revenue attributable to the Aurizona mine in Brazil as well as a decrease in revenue attributable to the Chapada copper stream in Brazil, primarily due to a decrease in the number of copper pounds sold and a decrease in the average realized selling price of copper.

Other
Streams and royalties on mines in other countries contributed 417% more gold equivalent ounces sold when compared to the fourth quarter of 2021. This change is primarily due to an increase in gold equivalent ounces received and sold from the Blyvoor mine in South Africa and the Bonikro mine in Côte d’Ivoire. The Blyvoor and Bonikro streams were acquired as part of the Nomad acquisition in August 2022.

WEBCAST & CONFERENCE CALL DETAILS
A conference call will be held on Wednesday, February 22, 2023 starting at 8:30am PST to further discuss the fourth quarter and annual 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: 44216908
Webcast URL: https://bit.ly/40FB30k