Sandstorm Gold Royalties Announces 2020 Second Quarter Sales Numbers

Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or the “Company”) (NYSE: SAND, TSX: SSL) is pleased to announce the Company has sold approximately 10,900 attributable gold equivalent ounces¹ and realized preliminary revenue² of $18.7 million during the three months ended June 30, 2020. Preliminary cost of sales, excluding depletion² for the three month period was $2.8 million resulting in cash operating margins¹ of approximately $1,460 per attributable gold equivalent ounce¹.

Due to the effects of COVID-19, several countries implemented restrictions on business operations. During the second quarter of 2020, some of the mines which Sandstorm receives royalty revenue or gold ounces from experienced limited mine production or temporarily suspended operations. Although this impacted Sandstorm’s attributable gold equivalent ounces sold during the second quarter of 2020, all mines have now resumed operations.

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) attributable gold equivalent ounces and (ii) cash operating margin. The presentation of these non-IFRS 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 measures differently. Note these figures have not been audited and are subject to change. (i) As Sandstorm’s operations are primarily focused on precious metals, the Company presents attributable gold equivalent ounces as it believes that certain investors use this information to evaluate the Company’s performance in comparison to other mining companies in the precious metals mining industry who present results on a similar basis. The Company’s royalty and other commodity stream revenue is converted to an attributable gold equivalent ounce basis by dividing the royalty and other commodity stream revenue for that period by the average realized gold price per ounce from the Company’s gold streams for the same respective period. These attributable gold equivalent ounces when combined with the gold ounces sold from the Company’s gold streams equal total attributable gold equivalent ounces sold and may be subject to change. (ii) The Company presents cash operating margin as it believes that certain investors use this information to evaluate the Company’s performance in comparison to other companies in the precious metals mining industry who present results on a similar basis. Cash operating margin is calculated by subtracting cost of sales, excluding depletion from revenue and dividing this figure by attributable gold equivalent ounces sold ([$18.7 Million - $2.8 Million]/10,900 attributable gold equivalent ounces).