Sandstorm Gold Announces Record Gold Sales in Third Quarter 2013
http://sandstormgold.com/news/release/index.p...ent_id=345
Sandstorm Gold Ltd. (“Sandstorm” or the “Company”) (NYSE MKT: SAND, TSX: SSL) has released its unaudited results for the third quarter ended September 30, 2013 (all figures in U.S. dollars).
Third Quarter Highlights
Record Gold sales of 9,570 ounces (excluding Premier Royalty’s attributable ounces).
Revenue of $15.4 million.
Average cash cost per ounce1 of $430 resulting in cash operating margins1 of $894 per ounce.
Operating cash flow of $8.6 million.
Acquired all of the outstanding common shares of Premier Royalty Inc. (“Premier Royalty”).
Completed a $10 million loan to Luna Gold Corp. (“Luna”) in accordance with the previously announced commitment to issue a non-revolving loan facility to Luna.
Amended the previously announced gold stream with Mutiny Gold Ltd. to a 2.6% gold stream on the Deflector mine.
Net loss of $2.0 million primarily due to a non-cash impairment charge of $3.2 million related to the conversion of the Bracemac-McLeod gold stream into a 0.6% net smelter return royalty, and an approximately $1.5 million increase in expenses arising from the Premier Royalty business combination.
Sandstorm President & CEO Nolan Watson commented, “We are encouraged by the record gold sales and strong operating cash flow during the quarter. Over the next twelve months we anticipate that our assets will continue to ramp up production, while our general and administrative expenses are expected to decrease materially due to cost cutting and other reductions which have been made subsequent to quarter end. Having over $90 million in cash on our balance sheet enables us to actively pursue new streams and royalties, with the focus on increasing the Company’s per share value.”
On October 4, 2013, Sandstorm closed its previously announced arrangement agreement whereby the Company acquired all the outstanding common shares of Premier Royalty. As part of a general and administrative cost reduction plan, a number of the management team and employees of Premier Royalty were released, resulting in one-time costs that will be recognized during the fourth quarter of 2013.
Outlook
Based on the Company’s existing gold streams and excluding any attributable production relating to Premier Royalty, forecasted 2013 attributable production is between 33,000 and 37,000 gold equivalent ounces, increasing to approximately 60,000 gold equivalent ounces per annum by 2016. This growth is driven by the Company’s portfolio of gold streams with mines, almost all of which are either currently producing or expected to commence production by 2015.
Webcast and Conference Call Details
A conference call will be held on Wednesday, November 6, 2013 starting at 9:30am PST to further discuss the third quarter results. To participate in the conference call use the dial-in numbers below. It is recommended that participants dial in five minutes prior to the commencement of the conference call. To access an audio webcast of the conference call, click here. The webcast will also be available on the Sandstorm website.
Local/International: 647-788-4916
North American Toll-Free: 877-214-4966
Sandstorm’s Management's Discussion and Analysis (MD&A) and Financial Statements for the third quarter results will be accessible on the Company’s website and on SEDAR at www.sedar.com. The Company has also completed a Form 6-K filing with the SEC that will be accessible on EDGAR at www.sec.gov/edgar.shtml. Shareholders can request a hard copy of the MD&A and Financial Statements by emailing info@sandstormltd.com.
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 average cash cost per ounce of gold and cash operating margin. Average cash cost per ounce of gold is calculated by dividing the total cost of sales, less depletion, by the ounces sold. In the precious metals mining industry, this is a common performance measure but does not have any standardized meaning. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Cash operating margin is calculated by subtracting the average cash cost per ounce of gold from the average realized selling price per ounce of gold. 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. 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.
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a gold streaming company. Sandstorm provides upfront financing to gold mining companies that are looking for capital and in return, receives a gold streaming agreement. This agreement gives Sandstorm the right to purchase a percentage of the gold produced from a mine, for the life of the mine, at a fixed price per ounce. Sandstorm has acquired a portfolio of nine gold streams and twenty-five gold royalties, of which thirteen of the underlying mines are producing gold. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold streams.
Sandstorm is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed gold stream agreements with Brigus Gold Corp., Colossus Minerals Inc., Entrée Gold Inc., Luna Gold Corp., Metanor Resources Inc., Mutiny Gold Ltd., Santa Fe Gold Corp., and SilverCrest Mines Inc., Rambler Metals and Mining plc.
http://sandstormgold.com/news/release/index.p...ent_id=345
Sandstorm Gold Ltd. (“Sandstorm” or the “Company”) (NYSE MKT: SAND, TSX: SSL) has released its unaudited results for the third quarter ended September 30, 2013 (all figures in U.S. dollars).
Third Quarter Highlights
Record Gold sales of 9,570 ounces (excluding Premier Royalty’s attributable ounces).
Revenue of $15.4 million.
Average cash cost per ounce1 of $430 resulting in cash operating margins1 of $894 per ounce.
Operating cash flow of $8.6 million.
Acquired all of the outstanding common shares of Premier Royalty Inc. (“Premier Royalty”).
Completed a $10 million loan to Luna Gold Corp. (“Luna”) in accordance with the previously announced commitment to issue a non-revolving loan facility to Luna.
Amended the previously announced gold stream with Mutiny Gold Ltd. to a 2.6% gold stream on the Deflector mine.
Net loss of $2.0 million primarily due to a non-cash impairment charge of $3.2 million related to the conversion of the Bracemac-McLeod gold stream into a 0.6% net smelter return royalty, and an approximately $1.5 million increase in expenses arising from the Premier Royalty business combination.
Sandstorm President & CEO Nolan Watson commented, “We are encouraged by the record gold sales and strong operating cash flow during the quarter. Over the next twelve months we anticipate that our assets will continue to ramp up production, while our general and administrative expenses are expected to decrease materially due to cost cutting and other reductions which have been made subsequent to quarter end. Having over $90 million in cash on our balance sheet enables us to actively pursue new streams and royalties, with the focus on increasing the Company’s per share value.”
On October 4, 2013, Sandstorm closed its previously announced arrangement agreement whereby the Company acquired all the outstanding common shares of Premier Royalty. As part of a general and administrative cost reduction plan, a number of the management team and employees of Premier Royalty were released, resulting in one-time costs that will be recognized during the fourth quarter of 2013.
Outlook
Based on the Company’s existing gold streams and excluding any attributable production relating to Premier Royalty, forecasted 2013 attributable production is between 33,000 and 37,000 gold equivalent ounces, increasing to approximately 60,000 gold equivalent ounces per annum by 2016. This growth is driven by the Company’s portfolio of gold streams with mines, almost all of which are either currently producing or expected to commence production by 2015.
Webcast and Conference Call Details
A conference call will be held on Wednesday, November 6, 2013 starting at 9:30am PST to further discuss the third quarter results. To participate in the conference call use the dial-in numbers below. It is recommended that participants dial in five minutes prior to the commencement of the conference call. To access an audio webcast of the conference call, click here. The webcast will also be available on the Sandstorm website.
Local/International: 647-788-4916
North American Toll-Free: 877-214-4966
Sandstorm’s Management's Discussion and Analysis (MD&A) and Financial Statements for the third quarter results will be accessible on the Company’s website and on SEDAR at www.sedar.com. The Company has also completed a Form 6-K filing with the SEC that will be accessible on EDGAR at www.sec.gov/edgar.shtml. Shareholders can request a hard copy of the MD&A and Financial Statements by emailing info@sandstormltd.com.
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 average cash cost per ounce of gold and cash operating margin. Average cash cost per ounce of gold is calculated by dividing the total cost of sales, less depletion, by the ounces sold. In the precious metals mining industry, this is a common performance measure but does not have any standardized meaning. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Cash operating margin is calculated by subtracting the average cash cost per ounce of gold from the average realized selling price per ounce of gold. 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. 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.
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a gold streaming company. Sandstorm provides upfront financing to gold mining companies that are looking for capital and in return, receives a gold streaming agreement. This agreement gives Sandstorm the right to purchase a percentage of the gold produced from a mine, for the life of the mine, at a fixed price per ounce. Sandstorm has acquired a portfolio of nine gold streams and twenty-five gold royalties, of which thirteen of the underlying mines are producing gold. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold streams.
Sandstorm is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed gold stream agreements with Brigus Gold Corp., Colossus Minerals Inc., Entrée Gold Inc., Luna Gold Corp., Metanor Resources Inc., Mutiny Gold Ltd., Santa Fe Gold Corp., and SilverCrest Mines Inc., Rambler Metals and Mining plc.
