Sandstorm Gold Royalties Announces 2020 Third Quarter Results

Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or the “Company”) (NYSE: SAND, TSX: SSL) has released its results for the third quarter ended September 30, 2020 (all figures in U.S. dollars).

Third Quarter Highlights

• Attributable gold equivalent ounces sold¹ of 12,068 ounces (Q3 2019 — 17,289 ounces);
• Revenue of $23.3 million (Q3 2019 — $25.8 million);
• Cash flows from operating activities, excluding changes in non-cash working capital¹ of $18.0 million (Q3 2019 — $18.2 million);
• Average cash cost per attributable gold equivalent ounce¹ of $258 resulting in record cash operating margins¹ of $1,670 per ounce (Q3 2019 — $288 per ounce and $1,203 per ounce respectively);
• Net income of $6.5 million (Q3 2019 — net income of $6.2 million);
• Capital: As at September 30, 2020, Sandstorm has a strong balance sheet with over $70 million in cash and over $65 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.
  • Monetization of non-core assets: During the third quarter, the Company received over $15 million in cash from the sale and redemption of a portion of the Company’s equity and debt investments.

Warrant Expiration Reminder

Sandstorm wishes to remind holders of its warrants (CUSIP 80013R164) (the “Warrants”) that they expire on November 3, 2020 at 4:30 pm EST. Each Warrant entitles the holder thereof to purchase one common share of Sandstorm (the “Common Shares”) at a price of US$4.00.

Please refer to the press release issued on October 13^th, 2020 for Warrant exercise instructions: https://bit.ly/2J6xXPz

This news release is not an offer to sell or the solicitation of an offer to buy the Common Shares in the United States, and the issuance of Common Shares upon exercise of the Warrants in the United States is subject and pursuant to the Registration Statement (effective April 20,2020) and Prospectus Supplement (dated October 13, 2020) which forms a part.

Outlook

Due to the unknown long-term effects of the current global health pandemic, Sandstorm withdrew the Company’s 2020 production guidance. Based on the Company’s existing royalties, attributable gold equivalent ounces sold are forecasted to be approximately 125,000 ounces in 2024.