NYSE: SAND
TSX: SSL
A N N U A L R E P O R T
2 0 2 3
Hundreds of Royalties.
One Investment.
Corporate & Shareholder Information
Stock Exchange Listings
Board of Directors
Toronto Stock Exchange
Andrew T. Swarthout
TSX: SSL
New York Stock Exchange
NYSE: SAND
Transfer Agent
Computershare Investor Services
2nd Floor, 510 Burrard Street
Vancouver, British Columbia
V6C 3B9
T 604 661 9400
Corporate Secretary
Christine Gregory
Auditors
PricewaterhouseCoopers LLP
PricewaterhouseCoopers Place
Suite 1400, 250 Howe Street
Vancouver, British Columbia
V6C 3S7
T 604 806 7000
F 604 806 7806
David Awram
David E. De Witt
Elif Lévesque
John P. A. Budreski
Mary L. Little
Nolan Watson
Vera Kobalia
Corporate Offices
Vancouver Head Office
Suite 3200, 733 Seymour Street
Vancouver, British Columbia
V6B 0S6
T 604 689 0234
F 604 689 7317
info@sandstormgold.com
www.sandstormgold.com
Toronto Office
Suite 503, 36 Lombard Street
Toronto, Ontario
M5C 2X3
II
2023 Q4SECTION 1Corporate Profile Corporate Profile
Shareholder Message
Management Team
Board of Directors
Management's Discussion & Analysis
Company Highlights
Overview and Outlook
Key Producing Assets
Other Producing Assets
Development Assets
Summary of Annual Results
Summary of Quarterly Results
Quarterly Commentary
Consolidated Financial Statements
Financial Position
Income (Loss)
Comprehensive Income (Loss)
Cash Flow
Changes in Equity
IV
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Notes to the Consolidated Financial Statements 64
III
Q4 2023SECTION 1Corporate Profile A Message to Shareholders
When I think back over the decade
and a half of Sandstorm’s existence,
I can pinpoint certain inflection points
along the way that have contributed
to the Company’s success. As we’ve
built the Company, we have been
methodical in our approach to growth.
Some of our earlier deals like Aurizona
and Santa Elena laid the foundation
on which the Company was built. The
acquisitions of various royalty packages
like the Teck package and smaller
royalty companies, steadily increased
Sandstorm’s gold equivalent production
and cash flows while deepening
the portfolio’s exploration upside
and optionality. Acquiring Mariana
Resources in 2017 added a cornerstone
asset to Sandstorm’s portfolio with
Hod Maden. More recently, the
acquisitions of the BaseCore portfolio
and Nomad Royalty Company
solidified Sandstorm’s industry-
leading portfolio diversification while
bolstering the next two decades of
long-life, low-cost production.
I would be remiss to suggest that
the journey thus far has been
without bumps along the way.
President & CEO
Nolan Watson
IV
2023 Q4SECTION 1Corporate Profile Producing Assets
Development &
Exploration Assets
Mining is a risky business and changing
market conditions can create many
challenges for both operators and
the entities that finance them.
Our business model, however, protects
us from many of those risks that mining
companies face—as long as a mine continues
to produce, Sandstorm continues to receive
gold. As the Company has grown, we have
dramatically diversified the number of
mines around the world that deliver us that
gold, while simultaneously increasing the
quality of mines underpinning our portfolio.
2023 will go down in history as one of the
more challenging years in terms of global
macroeconomics. We saw a once-in-a-
generation interest rate hiking cycle aimed
at combatting extreme inflationary pressure
while world governments continued to
increase national debt to eye-watering levels.
This economic backdrop has created both
challenges and opportunities for Sandstorm.
MINERAL PROPERTY VALUE CONTRIBUTION
BMO Capital Markets Equity Research asset NPV estimates
and broker data at consensus pricing. Diversification
analysis combines total contractual exposure to a given
asset (e.g. Hod Maden gold stream + 2.0% royalty).
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Comparing Gold-Backed
ETFs to Gold Price
SPDR Gold Shares ETF
Spot Gold (Month Close)
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$1.0
$0.5
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-$2.5
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$1,300
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Dec 2023
Source: World Gold Council
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2023 Q4SECTION 1Corporate Profile
The first challenge is the impact
of interest rates on the Company’s
balance sheet. As part of one of the big
moves I mentioned earlier, Sandstorm
assumed nearly $640 million in debt
commitments with the acquisition
of the Nomad and BaseCore royalty
portfolios in 2022. This level of debt
was a first for the Company, but we
were confident that it was manageable,
despite rising interest rates. I am very
pleased with the progress we have made
in de-levering the balance sheet, and as
of the date of this MD&A, Sandstorm’s
debt balance sits at $421 million and
dropping quickly. In the fall of 2023,
we announced a plan to monetize a
minimum of $40 million in non-core
assets, with the cash proceeds dedicated
to further debt repayment. At this
rate, we anticipate the Company’s debt
balance to be below $350 million by the
end of 2024. In addition to the sale of
non-core assets, markets are beginning
to anticipate dropping interest rates
that, when realized, will further
expedite our debt repayment schedule.
Another challenge, which is not
specific to Sandstorm, has been the
dislocation between the spot gold
market and gold equities. For the first
time in my career, we are seeing a
separation between the price of gold
and the valuations of gold companies.
I believe that in 2024 this
demand gap between physical
gold and gold equities will close.
The reason for this lies in the difference
between buyers of physical gold and
buyers of gold equities. For some time
now, the major buyers of physical gold
have been world governments and central
banks. For all the economic reasons
mentioned above, central banks around
the world have been actively fortifying
their balance sheets with real assets like
gold. They see the writing on the wall
and know that the current interest rate
and debt levels are unsustainable. In
contrast to the spot gold market, many
of the world’s gold-backed ETFs that
track the price of gold have seen net
outflows for 13 of the last 18 months1.
These outflows are indicative of where
institutional money is being allocated—
or in this case, not being allocated.
The bottom line is that the entities that
are pushing the physical gold price to new
all-time highs are not the same entities
that are buying gold stocks. Herein lies
the opportunity going forward—I believe
that in 2024 this demand gap between
physical gold and gold equities will
close. As institutional investors begin
to look more closely at opportunities
in the gold space, Sandstorm has
never been in a better, more attractive
position relative to its peers.
1 Source: World Gold Council, SPDR Gold Shares
(GLD) fund flows between July 2022–Dec 2023
VII
Q4 2023SECTION 1Corporate Profile We just completed another record-breaking
year with over 97,000 gold equivalent ounces
sold and over $150 million in free cash flow2
As we enter 2024, I believe that
Sandstorm is the strongest version of
itself than ever before. We have the
most diversified portfolio of any major
royalty company, we just completed
another record-breaking year with
over 97,000 gold equivalent ounces
sold and over $150 million in free cash
flow2, and we are on the precipice of a
new growth chapter for the Company.
Over the next five years, Sandstorm will
ramp up production to approximately
125,000 gold equivalent ounces3. At
current commodity prices, that equates
to over $200 million in free cash flow
each year. All this coming from assets
that have already been bought and
paid for; our growth is truly built-in.
2 Excluding changes in non-cash working capital. See
note regarding Non-IFRS measures in the MDA.
3 Based on commodity price assumptions of
$1,800/oz Au, $23/oz Ag, $3,90/lb Cu
4 Ounces payable to Sandstorm are based on Orion
Mine Finance’s 40% minority interest in Greenstone.
This year, we are excited to see two
growth assets come online. The first is
Equinox Gold’s Greenstone gold mine in
northern Ontario, Canada. Equinox has
done an exceptional job constructing
the mine and as of today, the project has
commenced commissioning activities
and has started stockpiling ore. Equinox
expects to pour first gold in the first
half of this year, with deliveries to
Sandstorm beginning shortly after4.
Once fully ramped up, the Greenstone
mine will be one of Canada’s largest
open-pit gold mines and is expected to
produce an average of 400,000 ounces
of gold per year for the first four years
and an average of 360,000 ounces of
gold per year for the life of the mine.
Another asset entering production
this year is Ivanhoe’s Platreef mine.
Platreef is a multi-phase mine that
is expected to become one of the
world’s largest producers of platinum
group metals. Phase 1 is anticipated to
commence production in the second
half of 2024 and Ivanhoe has begun
the budgeting and planning process
for Phase 2. Once fully ramped up,
Platreef has the potential to become
one of Sandstorm’s largest-producing
assets on a gold equivalent basis.
125koz
Sandstorm’s Peak Annual Gold Equivalent Production within five years
VIII
2023 Q4SECTION 1Corporate Profile Platreef
Hod Maden
Greenstone
Another key development project
for Sandstorm is Hod Maden. In
2023, SSR Mining purchased a 10%
operating interest in Hod Maden
with the option to increase its
ownership to 40% through various
pre-construction capital commitments.
Upon the announcement, SSR Mining
continued project financing activities
and early earthworks construction
items that were set in motion by Lidya
Madencilik—one of Hod Maden’s
minority partners. I look forward
to seeing continued progress being
made at this extraordinary asset.
The Robertson deposit at Barrick’s
Cortez Complex in Nevada is another
exciting development project for
Sandstorm’s portfolio. Nevada Gold
Mines, the operator of Cortez, is
actively permitting the deposit and
expects Robertson to be in production
in 2027. This key expansion deposit
for Cortez will add to Sandstorm’s
robust growth pipeline.
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Three of the four development assets
I’ve mentioned were purchased in
the Nomad-BaseCore transaction
a little less than two years ago. I
am thrilled to see the plan we put
into motion come to fruition. With
these development projects, and
with several other growth assets
purchased over the last few years,
Sandstorm’s average mine life has
increased to nearly 25 years5, which
represents an increase of over 45%
in average mine life from where the
portfolio was just five years ago.
5 Average mine life based on the Company’s top 10
assets by net asset value.
45%Increase in the average mine life of Sandstorm’s portfolio since 2018.
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2023 Q4SECTION 1Corporate Profile
Despite the hurdles that we have had to overcome
throughout the growth journey of Sandstorm, we
have now arrived at a place where the Company is
producing more cash flow than ever from a portfolio
that is diversified across jurisdictions, geographies,
and excellent mining partners. All of this is coming
at a time when I believe gold equities will begin
to come back in favour with large institutional
investors, placing Sandstorm in an ideal position.
For shareholders who have been with us throughout
this journey, I offer my sincere thanks for your
support and patience. For those who have
recently joined as shareholders, we are glad you
have joined us at this exciting stage. I am proud
of the Company that Sandstorm has become and
look forward to this new, stable, growth chapter.
NOLAN WATSON
XI
Q4 2023SECTION 1Corporate Profile Management Team
1
2
1 Nolan Watson FCPA, FCA, CFA
PRESIDENT & CEO
2 David Awram B.Sc, Geologist
SENIOR EXECUTIVE VP
3 Erfan Kazemi CPA, CA, CFA
CFO
4 Tom Bruington P.E., M.Sc.
EXECUTIVE VP, PROJECT EVALUATION
5
Ian Grundy CPA, CA, CFA
EXECUTIVE VP, CORPORATE DEVELOPMENT
6 Ron Ho CPA, CA, CFA
SENIOR VP, FINANCE
7
Imola Götz M.Sc., P.Eng.
VP, MINING & ENGINEERING
8 Keith Laskowski Mining Geologist, MSc, QP
VP, GEOLOGY
9 Livia Danila CPA, CA
VP, CORPORATE CONTROLLER
10 Sarah Ford CPA, CA, CFA
VP, FINANCIAL PLANNING & ANALYSIS
11 Kim Bergen CFA
VP, CAPITAL MARKETS
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XII
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2023 Q4SECTION 1Corporate Profile 1
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Board of Directors
1 David E. De Witt
CHAIRMAN
2 John P. A. Budreski
DIRECTOR
3 Vera Kobalia
DIRECTOR
4 Elif Lévesque
DIRECTOR
5
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5 Mary L. Little
DIRECTOR
6 Andrew T.
Swarthout
DIRECTOR
7 Nolan Watson
DIRECTOR
8 David Awram
DIRECTOR
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XIII
Q4 2023SECTION 1Corporate Profile XIV
2023 Q4THIS PAGE INTENTIONALLY LEFT BLANK
FINANCIAL REPORTS
Q4 / 2023
Annual Report
SANDSTORM GOLD LTD.
DECEMBER 31ST, 2023
Management’s Discussion
and Analysis
For The Year Ended December 31, 2023
This management’s discussion and analysis (“MD&A”) for Sandstorm Gold Ltd. and its subsidiary entities
(collectively “Sandstorm”, “Sandstorm Gold” or the “Company”) should be read in conjunction with the audited
consolidated financial statements of Sandstorm for the year ended December 31, 2023 and related notes thereto
which have been prepared in accordance with International Financial Reporting Standards Accounting Standards
as issued by the International Accounting Standards Board (“IFRS Accounting Standards” or "IFRS"). The
information contained within this MD&A is current to February 15, 2024 and all figures are stated in U.S. dollars
unless otherwise noted.
2
2023 Annual Report
Management's Discussion & Analysis
Company Highlights
RECORD OPERATING RESULTS
Another record year in terms of
revenue, cash flow and Attributable
Gold Equivalent
1 ounces.
•
•
•
•
Revenue for the three months and year ended
December 31, 2023 was $44.5 million and $179.6
•
Cash flows from operating activities, excluding
changes in non-cash working capital1, for the
million, respectively, compared with $38.4
three months and year ended December 31, 2023
million and $148.7 million for the comparable
were $36.5 million and $151.1 million,
periods in 2022. Revenue for the most recently
respectively, compared with $29.9 million and
completed year represented a record for the
$109.8 million for the comparable periods in
Company.
Attributable Gold Equivalent ounces1 (as defined
hereinafter), for the three months and year ended
December 31, 2023 were 23,250 ounces and
97,245 ounces, respectively, compared with
21,753 ounces and 82,376 ounces for the
comparable periods in 2022. Attributable Gold
Equivalent ounces1 for the most recently
completed year represented a record for the
Company.
Total Sales, Royalties and Income from other
interests1 (as defined hereinafter) for the three
months and year ended December 31, 2023 was
$46.3 million and $191.4 million, respectively,
compared with $38.4 million and $148.7 million
for the comparable periods in 2022. Total Sales,
Royalties and Income from other interests1 for
the most recently completed year represented a
record for the Company.
Net income for the three months and year ended
•
•
•
2022. Cash flows from operating activities,
excluding changes in non-cash working capital1
for the most recently completed year represented
a record for the Company.
Cost of sales, excluding depletion, for the three
months and year ended December 31, 2023 was
$4.9 million and $21.7 million, respectively,
compared with $5.5 million and $23.4 million for
the comparable periods in 2022.
Average cash costs1 for the three months and year
ended December 31, 2023 of $211 and $223 per
Attributable Gold Equivalent ounce1,
respectively, compared with $253 and $284 per
Attributable Gold Equivalent ounce1 for the
comparable periods in 2022.
Cash operating margins1 for the three months
and year ended December 31, 2023 were $1,737
and $1,706 per Attributable Gold Equivalent
ounce1 compared with $1,493 and $1,511 per
Attributable Gold Equivalent ounce1 for the
December 31, 2023 was $24.5 million and $42.7
comparable periods in 2022.
million, respectively, compared with net loss of
$2.1 million for the three months ended
1. Refer to section on non-IFRS and other measures of this MD&A.
December 31, 2022 and net income for the year
ended December 31, 2022 of $78.5 million.
2023 Annual Report
3
Management's Discussion & Analysis
DEBT REDUCTION AND MONETIZATION EFFORTS
•
In January 2024, Sandstorm closed its previously
De-levering remains a top priority for
Sandstorm.
•
The Company has made over $62 million in net
repayments on its revolving credit facility in
2023, with $21.0 million of those repayments
occurring in the most recent quarter.
•
To further expedite this repayment schedule, the
Company is undergoing a process with a goal to
monetize between $40-$100 million of non-core
assets by the end of 2024, with proceeds from
any sales directed to debt repayment.
Accordingly, in the fourth quarter of 2023,
Sandstorm closed its previously announced
agreement to sell the El Pilar and Blackwater
announced transaction to amend its existing gold
and silver stream agreements with Bear Creek
and to refinance certain other debt investments
of Bear Creek that it holds. In exchange for the
stream amendments, Sandstorm received a 1.0%
NSR on Bear Creek’s wholly owned Corani
project in Peru, one of the world’s largest fully
permitted silver deposits, and $10 million of
additional consideration in the form of a
combination of Bear Creek common shares and
debt.
OTHER
Sandstorm renews credit facility and pays
Royalties for total consideration of $25.0 million
dividends.
comprised of cash and common shares. The
Company expects consideration from future
monetization efforts to consist entirely of cash.
PORTFOLIO UPDATES
Sandstorm closes Antamina transaction and
amends Mercedes streams.
•
In June 2023, Sandstorm closed the final
component of its previously announced
•
•
•
In September 2023, Sandstorm renewed its
revolving credit facility, allowing the Company to
borrow up to $625 million for a four year term.
During the year ended December 31, 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 $14.4 million.
In December 2023, the Company declared a
arrangement with Horizon Copper Corp. to sell a
dividend of CAD0.02 per share, which was paid
portion of the Company's Antamina royalty in
on January 26, 2024.
consideration for a silver stream, debt, equity,
and cash. This transaction furthers Sandstorm's
strategy of being a pure play streaming and
royalty company focused on precious metals.
4
2023 Annual Report
Management's Discussion & Analysis
Overview
Sandstorm is a growth-focused company that seeks to acquire royalties and gold and other metals
purchase agreements (“Gold Streams” or “Streams”) from companies that have advanced stage
development projects or operating mines. In return for making upfront payments to acquire a Stream,
Sandstorm receives the right to purchase, at a fixed price per ounce or at a fixed percentage of the spot
price, a percentage of a mine’s gold, silver, or other commodity (“Gold Equivalent” as further defined
herein)1 production for the life of the mine. Sandstorm partners with other companies in the resource
industry to grow their businesses, while acquiring attractive assets in the process. The Company is
focused on acquiring Streams and royalties from mines with low production costs, significant
exploration potential and strong management teams. The Company currently has 243 Streams and
royalties, of which 40 of the underlying mines are producing.
1. Refer to section on non-IFRS and other measures of this MD&A.
Outlook1
Based on the Company’s existing Streams and royalties, Attributable Gold Equivalent ounces
(individually and collectively referred to as “Attributable Gold Equivalent”)2 are forecasted to be
between 75,000–90,000 ounces in 2024. The Company’s production forecast is expected to reach
approximately 125,000 Attributable Gold Equivalent ounces within the next five years.
1.
Statements made in this section contain forward-looking information. Refer to the forward looking statements section of this MD&A.
2. Refer to section on non-IFRS and other measures of this MD&A.
Key Producing Assets
Cerro Moro Silver Stream
PAN AMERICAN SILVER CORP.
The Company has a silver stream on Pan American Silver Corp.’s (“Pan American”), the successor to
Yamana Gold Inc., silver-gold Cerro Moro mine, located in Santa Cruz, Argentina (the “Cerro Moro
Mine” or “Cerro Moro”). Under the terms of the silver stream, Sandstorm has agreed to purchase for
ongoing per ounce cash payments equal to 30% of the spot price of silver, an amount of silver from
Cerro Moro equal to 20% of the silver produced (up to an annual maximum of 1.2 million ounces of
silver), until 7.0 million ounces of silver have been delivered to Sandstorm; then 9% of the silver
produced thereafter.
Based on the cumulative ounces of silver purchased to-date, the Company’s current silver entitlement is
20%.
2023 Annual Report
5
Management's Discussion & Analysis
The Cerro Moro Mine, which commenced commercial production in 2018, is located approximately 70
kilometres southwest of the coastal port city of Puerto Deseado in the Santa Cruz province of Argentina.
Cerro Moro contains several high-grade epithermal gold and silver deposits, some of which will be
mined via open-pit and some via underground mining methods.
Chapada Copper Stream
LUNDIN MINING CORPORATION
The Company has a copper stream on Lundin Mining Corporation’s (“Lundin Mining”) open-pit copper-
gold Chapada mine located 270 kilometres northwest of Brasília in Goiás State, Brazil (“Chapada” or the
“Chapada Mine”). Under the terms of the Lundin Mining copper stream, Sandstorm has agreed to
purchase, for ongoing per pound cash payments equal to 30% of the spot price of copper, an amount of
copper from the Chapada Mine equal to:
•
•
•
4.2% of the copper produced (up to an annual maximum of 3.9 million pounds of copper) until the mine has
delivered 39 million pounds of copper to Sandstorm; then
3.0% of the copper produced until, on a cumulative basis, the mine has delivered 50 million pounds of copper
to Sandstorm; then
1.5% of the copper produced thereafter, for the life of the mine.
Based on the cumulative pounds of copper purchased to-date, the Company’s current copper
entitlement is 4.2%.
Chapada has been in production since 2007 and is a relatively low-cost South American copper-gold
operation. Ore is treated through a flotation plant with processing capacity of 24 million tonnes (“Mt”)
of ore per annum. In October 2019, an updated technical report was filed which outlines production
through 2050, which excludes any production from Lundin Mining’s recent Saúva discovery. For more
information, visit the Lundin Mining website at www.lundinmining.com.
Antamina Silver Stream and Royalty
HORIZON COPPER CORP.
The Company has a silver stream and a net profits interest ("NPI" or "Antamina NPI") on production
from the Antamina open-pit copper mine located in the Andes Mountain range of Peru, 270 kilometres
north of Lima (“Antamina” or the “Antamina Mine”). The silver stream and NPI is paid by Horizon
Copper Corp. ("Horizon Copper") which owns a 1.66% NPI on production from Antamina. The silver
stream entitles the Company to receive silver ounces equal to 1.66% of all silver production from the
Antamina mine with ongoing payments equal to 2.5% of the silver spot price. The NPI is calculated as
one third of Horizon Copper's 1.66% Antamina NPI, after deducting the cost to Horizon of delivering
silver ounces under the Antamina silver stream. The mine is operated by Compañia Minera Antamina
S.A., a top-tier operator jointly owned by the subsidiaries of major stakeholders BHP Billiton plc
(33.75%), Glencore plc (33.75%), Teck Resources Limited (22.5%) ("Teck"), and Mitsubishi Corporation
(10%). Antamina is the world’s third-largest copper mine on a copper equivalent (“CuEq”) basis,
producing approximately 560,000 CuEq tonnes per annum. The asset operates in the first cost quartile
6
2023 Annual Report
Management's Discussion & Analysis
of copper mines and has been in consistent production since 2001, including a throughput expansion
completed in 2012 to the mine’s current operating capacity of 145,000 tonnes per day. In addition to
copper, Antamina is also a significant zinc and silver producer.
Antamina contains Resources that support a multi-decade mine life producing high-grade copper. The
mine’s Measured and Indicated Mineral Resources, inclusive of Reserves, total 889 million tonnes at
0.86% copper, 0.02% molybdenum, 0.67% zinc, and 11 grams per tonne silver. Mineral Reserves total
283 million tonnes at 0.94% copper, 0.03% molybdenum, 0.74% zinc and 10 grams per tonne silver,
which are constrained by current tailings capacity. Reserves are expected to be expanded once
additional tailings capacity is confirmed. Both Mineral Reserves and Resources are effective as of
December 31, 2022 (cut-off grade unavailable). Sandstorm expects that significant Resource conversion
is likely as Antamina completes several Pre-Feasibility level tailings studies which are focused on
potential long-term solutions. For more information, visit the Teck website at www.teck.com.
Vale Royalties
VALE S.A.
Sandstorm holds a diverse package of royalties on several of Vale S.A.’s (“Vale”) assets located in Brazil.
These royalties provide holders with life of mine net sales royalties on seven producing mines and
several exploration properties covering a total area of interest of 15,097 square kilometres (the “Vale
Royalties” or the “Vale Royalty Package”). Sandstorm’s attributable portion of the Vale Royalty Package
is approximately as follows:
•
•
•
Copper and Gold
– 0.03% net sales royalty on the Sossego copper-gold mine; and
– 0.06% net sales royalty on copper and gold and a 0.03% net sales royalty on all other minerals from
certain assets.
Iron Ore
– 0.05% net sales royalty on iron ore sales from the Northern System; and
– 0.05% net sales royalty on iron ore sales from a portion of the Southeastern System (subject to certain
thresholds described below).
Other
– 0.03% of net sales proceeds in the event of an underlying asset sale on certain assets.
Vale is one of the world’s largest low-cost iron mining companies, contributing approximately 15% of
global iron ore supply. Vale’s iron ore production is in the first quartile of the cost curve and the
Northern and Southeastern Systems have reserve weighted mine lives of 30 years.
NORTHERN SYSTEM
The Northern System is comprised of three mining complexes: Serra Sul, Serra Norte, and Serra Leste
located in the Carajas District. Vale is currently executing plans to increase the Northern System’s
production capacity to a long-term target of 240 Mt per annum, which would be achieved via the
approved expansion at Serra Sul and other growth projects. In addition, Vale continues to study a
2023 Annual Report
7
Management's Discussion & Analysis
number of additional growth projects at the Pre-Feasibility or definitive feasibility study level which
could enhance production from Sandstorm’s royalty grounds.
Mining commenced in 1984 at Serra Norte and, based on current Mineral Reserves, is currently
expected to run through the late-2030s. Mining at Serra Leste began in 2014 and is expected to continue
into 2049; Serra Sul began production in 2016 and is expected to produce into the late 2050s.
SOUTHEASTERN SYSTEM
The Southeastern System, a portion of which is not covered by the Vale Royalties, is comprised of three
mining complexes: Itabira, Minas Centrais, and Mariana located in Minas Gerais. These complexes will
start contributing to the Vale Royalties once a cumulative sales threshold of 1.7 billion tonnes of iron ore
has been reached, which Vale most recently estimated would occur in 2025.
Blyvoor Gold Stream
BLYVOOR GOLD (PTY) LTD.
The Company has a Gold Stream on Blyvoor Gold (Pty) Ltd.’s underground Blyvoor gold mine located
on the Witwatersrand gold belt, South Africa (“Blyvoor” or the “Blyvoor Mine”). Under the terms of the
Gold Stream, until 300,000 ounces have been delivered (“Initial Blyvoor Delivery Threshold”), Blyvoor
Gold (Pty) Ltd. will deliver 10% of gold production until 16,000 ounces have been delivered in the
calendar year, then 5% of the remaining production for that calendar year. Following the Initial Blyvoor
Delivery Threshold, Sandstorm will receive 0.5% of gold production on the first 100,000 ounces in a
calendar year until a cumulative 10.32 million ounces of gold have been produced. Under the
agreement, Sandstorm will make ongoing cash payments of $572 per ounce of gold delivered.
The Blyvoor Mine, which commenced production in 1942, is situated in a prolific gold mining area
within the Carletonville Goldfield. The region hosts a number of well-established gold mines and is well
serviced by all amenities. The mine is located approximately 14 kilometres from the town of
Carletonville, Gauteng Province, and about 80 kilometres from Johannesburg, a major metropolitan
centre. In June 2021, an updated National Instrument 43-101 Technical Report was filed on the Blyvoor
Mine outlining a 22-year mine life with 5.5 million ounces of gold in Proven and Probable Mineral
Reserves (18.84 million tonnes at 9.09 grams per tonne gold) and 11.37 million ounces of gold in
Measured and Indicated Mineral Resources (25.8 million tonnes at 13.71 grams per tonne gold)
inclusive of Mineral Reserves (cut-off grade of 479 centimetre-grams per tonne and 300 centimetre-
grams per tonne, respectively). The current processing plant has a capacity of 1,300 tonnes per day. For
more information refer to the Blyvoor Technical Report dated June 28, 2021 under Nomad Royalty
Company Ltd.’s profile on www.sedarplus.ca.
Based on Sandstorm’s review of current operating plans at Blyvoor, the Company is budgeting for long-
term production rates of 60,000 to 80,000 ounces of gold per annum, based on conventional mining
methods.
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2023 Annual Report
Management's Discussion & Analysis
Other Producing Assets
Houndé Gold Royalty
ENDEAVOUR MINING CORPORATION
The Company has a 2% net smelter returns royalty (“NSR”) based on the production from the Houndé
gold mine located in Burkina Faso, West Africa (“Houndé” or the “Houndé Mine”) which is owned and
operated by Endeavour Mining Corporation (“Endeavour”).
The royalty covers the Kari North and Kari South tenements (the “Houndé Tenements”), representing
approximately 500 square kilometres of the Houndé property package. Houndé hosts a Proven and
Probable Mineral Reserve containing 2.7 million ounces of gold within 54.0 million tonnes of ore with
an average grade of 1.57 grams per tonne gold. The Measured and Indicated Resources contain 4.7
million ounces of gold contained in 93.4 million tonnes of ore with an average grade of 1.56 grams per
tonne gold. This Reserve and Resource estimate, a portion of which is not subject to the Company's
royalty, is based on an economic cut-off grade of 0.5 grams per tonne gold, inclusive of reserves, and is
effective as of December 31, 2022. See www.endeavourmining.com for more information.
Houndé is an open-pit gold mine with a 3.0 million tonne per year nameplate capacity carbon-in-leach
processing plant using a gravity circuit and a carbon-in-leach plant.
Aurizona Gold Royalty
EQUINOX GOLD CORP.
The Company has a 3%–5% sliding scale NSR on the production from Equinox Gold Corp.’s ("Equinox
Gold") open-pit Aurizona mine, located in Brazil (“Aurizona” or the “Aurizona Mine”) which achieved
commercial production in 2019. At gold prices less than or equal to $1,500 per ounce, the royalty is a 3%
NSR. At gold prices between $1,500 and $2,000 per ounce, the royalty is a 4% NSR. At gold prices
above $2,000 per ounce, the royalty is a 5% NSR. The royalty is calculated based on sales for the month
and the average monthly gold price. In addition, Sandstorm holds a 2% NSR on Equinox Gold’s
greenfields exploration ground. At any time prior to the commencement of commercial production at
the greenfields exploration ground, Equinox Gold can purchase one-half of the greenfields NSR for a
cash payment of $10 million.
On September 20, 2021, Equinox Gold announced a positive Pre-Feasibility Study for an expansion to
the Aurizona mine through the development of an underground mine which could be operated
concurrently with the existing open-pit mine and is subject to the Company’s 3%–5% sliding scale NSR.
The assessment outlines total production of 1.5 million ounces of gold over an 11-year mine life and
includes estimated Proven and Probable Mineral Reserves of 1.66 million ounces of gold (contained in
32.3 million tonnes at 1.6 grams per tonne gold with a cut-off grade of 0.35–0.47 grams per tonne for
open-pit and 1.8 grams per tonne gold for underground) with an expected average annual production of
137,000 ounces. The Pre-Feasibility Study also includes an updated Mineral Resource estimate whereby
the total Measured and Indicated Resources (exclusive of Reserves) increased to an estimated 868,000
2023 Annual Report
9
Management's Discussion & Analysis
ounces contained in 18.1 million tonnes at 1.5 grams per tonne gold (cut-off grade of 0.3 grams per
tonne for open-pit and 1.0 grams per tonne for underground Resources). For more information refer to
www.equinoxgold.com.
Fruta del Norte Precious Metals Royalty
LUNDIN GOLD INC.
The Company has a 0.9% NSR on the precious metals produced from Lundin Gold Inc.’s (“Lundin
Gold”) Fruta del Norte gold mine located in Ecuador (“Fruta del Norte” or “Fruta del Norte Mine”),
which commenced commercial production in February 2020.
The Fruta del Norte Mineral Reserve contains an estimated 5.02 million ounces of gold in 17.98 million
tonnes of ore with an average grade of 8.68 grams per tonne, as of December 31, 2022, ranking it
amongst the highest-grade gold projects in the world (based on cut-off grade of 4.20 grams per tonne
and 5.00 grams per tonne depending on mining method). Lundin Gold recently announced plans to
increase the plant's throughput to 5,000 tonnes per day with potential for this increased throughput to
become effective in 2024. See www.lundingold.com for more information.
In 2023, Lundin Gold completed approximately 42,000 metres of near-mine and regional exploration
drilling within the area of interest of the Company’s royalty to accelerate delineation of new targets,
continue to explore other sections along Fruta del Norte’s major structures, and identify another Fruta
del Norte deposit within the 16 kilometre-long Suarez Pull-Apart Basin. Lundin Gold recently
announced that drilling in 2023 indicated significant potential for the extension of resources at depth as
well as to the east, west and south of the current resource envelope. Lundin Gold also announced that it
expects to continue its near-mine and regional exploration programs with 56,000 metres of drilling
planned for 2024. The planned 46,000 metre near-mine program will focus on underground and
surface drilling at or near Fruta del Norte, while the 10,000 metre regional program will continue to
focus on several exploration targets located in the Suarez Basin, with the objective of identifying new
epithermal systems.
Caserones Royalty
LUNDIN MINING CORPORATION
The Company holds an effective 0.63% NSR (at copper prices above $1.25 per pound) on the production
from the Caserones open-pit mine located in the Atacama region of Chile (the “Caserones Mine”),
operated by Lundin Mining and owned by Lundin Mining and JX Nippon Mining & Metals Corporation.
The Caserones Mine has 10 years of operational history. In 2022, the Caserones Mine produced 125,000
tonnes of copper and 3,056 tonnes of molybdenum. On July 13, 2023, Lundin Mining published a
Technical Report in accordance with National Instrument 43-101 which outlined a mine life through
2037 and average annual production of approximately 110,000 tonnes of copper. The mine benefits
from a significant historical investment of $4.2 billion, well-established infrastructure and is expected to
produce significant volumes of copper and molybdenum over the long-term. Lundin has identified
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2023 Annual Report
Management's Discussion & Analysis
several priority exploration targets at the property, the majority of which are situated on the Company’s
royalty ground.
Mercedes Precious Metal Streams
BEAR CREEK MINING CORPORATION
The Company holds a silver stream and a Gold Stream on Bear Creek Mining Corporation’s (“Bear
Creek”) producing Mercedes gold-silver mine in Sonora, Mexico (“Mercedes” or the “Mercedes Mine”).
In January 2024, the Company closed its previously announced agreement to restructure its existing
streams and refinance certain Bear Creek debt investments (the "Restructuring Agreement").
REVISED GOLD STREAM:
Effective January 1, 2024, Sandstorm will have the right to purchase 275 gold ounces per month
through April 2028 and a 4.4% gold stream thereafter for an on-going cash payment of 25% of the spot
price of gold for each gold ounce delivered. During 2023, Sandstorm had the right to purchase 600 gold
ounces per month for ongoing per ounce cash payments equal to 7.5% of the spot price of gold.
REVISED SILVER STREAM:
Effective January 1, 2024, the silver stream is suspended through the fixed gold delivery period
(through April 2028); thereafter, Sandstorm will receive 100% of the silver produced for the life of the
mine for an on-going cash payment of 25% of the spot price of silver for each silver ounce delivered.
During 2023, Sandstorm had the right to purchase 75,000 silver ounces per quarter for ongoing per
ounce cash payments equal to 20% of the spot price of silver.
REVISED DEBT:
Sandstorm refinanced its $22.5 million convertible debenture and a $14.4 million secured loan acquired
in 2023 into five-year convertible notes bearing interest at 7% per annum and convertible into common
shares of Bear Creek at a strike price of CAD0.73 per share (the “Refinanced Sandstorm Debentures").
In consideration for the amendments, Sandstorm also received:
Corani royalty: a 1.0% NSR on Bear Creek’s wholly owned Corani project in Peru, one of the world’s
largest fully permitted silver deposits.
$10.0 million in non-royalty consideration: Additional consideration comprised of 28,706,687 Bear
Creek common shares and $4.3 million in principal to be added to the Refinanced Sandstorm
Debentures described above.
The Mercedes district has been the focus of mining activities dating back to the 1880s. Commercial
production commenced at the Mercedes Mine in 2011 and the mine has produced over 800,000 ounces
of gold. The Mercedes mill has a current capacity of 2,000 tonnes per day, with gold recoveries
averaging approximately 95% over the past five years. Proven and Probable Reserves as of December
2023 Annual Report
11
Management's Discussion & Analysis
2021 totaled 2.2 million tonnes grading 3.75 grams per tonne gold and 29.0 grams per tonne silver,
containing 267,000 ounces of gold and 2.07 million ounces of silver (based on a 2.1 grams per tonne
gold cut-off grade, except Diluvio which is based on a 2.0 grams per tonne gold cut-off grade).
Vatukoula Gold Stream
VATUKOULA GOLD MINES PTE LIMITED
The Company has a Gold Stream on Vatukoula Gold Mines PTE Limited’s (“VGML”) underground gold
mine located in Fiji (“Vatukoula” or the “Vatukoula Mine”). The Stream entitles the Company to
purchase 11,022 ounces of gold over a 4.5 year period which began in January 2023 (the “Fixed Delivery
Period”) and thereafter 1.2%–1.4% of the gold produced from Vatukoula for ongoing per ounce cash
payments equal to 20% of the spot price of gold. In addition to the Gold Stream, Sandstorm holds an
effective 0.21% NSR on certain prospecting licenses plus a five-kilometre area of interest.
The Fixed Delivery Period entitles Sandstorm to receive 1,320 ounces of gold per year, increasing to
2,772 ounces of gold per year during the final 3.5 years of the Fixed Delivery Period. After which,
Sandstorm will receive a variable proportion of gold produced from the Vatukoula Mine for the life of
the mine.
The Vatukoula Mine has produced more than seven million ounces of gold over the last 85 years. Since
2013, annual mine production has averaged 30,000–40,000 ounces per year.
Relief Canyon Gold Stream
AMERICAS GOLD AND SILVER CORPORATION
The Company has a precious metal Stream on the Relief Canyon gold project in Nevada, U.S.A. (“Relief
Canyon” or the “Relief Canyon Mine”), which is owned and operated by Americas Gold and Silver
Corporation (“Americas Gold”). Under the terms of the Stream, including additional stream funding
advanced in 2023, Sandstorm is entitled to receive 39,174 ounces of gold over a 6.5-year period which
began in the second quarter of 2020 (the “Fixed Deliveries”). After receipt of 32,022 gold ounces under
the Fixed Deliveries, the Company has agreed to purchase 4% of the gold and silver produced from the
Relief Canyon Mine for ongoing per ounce cash payments equal to 30%–65% of the spot price of gold or
silver, with the range dependent on the concession’s existing royalty obligations. In addition, Sandstorm
has a 1.4%–2.8% NSR on the area surrounding the Relief Canyon mine.
In January 2021, Americas Gold announced that it had achieved commercial production at the Relief
Canyon Mine. Since then, the ramp up of operations has been challenging and Americas Gold have
suspended mining operations while efforts are under way to resolve metallurgical challenges. Americas
Gold discontinued leaching and heap rinsing operations in the fourth quarter of 2023 and will reassess
the status of the operation as the results of these efforts become available and are evaluated. The mine is
located in Nevada, U.S.A. at the southern end of the Pershing Gold and Silver Trend, which hosts other
projects such as Coeur Mining Inc.’s Rochester mine.
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2023 Annual Report
Management's Discussion & Analysis
Black Fox Gold Stream
MCEWEN MINING INC.
The Company has a Gold Stream to purchase 8% of the life of mine gold produced from McEwen Mining
Inc.’s (“McEwen”) open-pit and underground Black Fox mine, located in Ontario, Canada (the “Black
Fox Mine”), and 6.3% of the life of mine gold produced from McEwen’s Black Fox Extension, which
includes a portion of McEwen’s Pike River concessions, for a per ounce cash payment equal to the lesser
of $601 and the spot price of gold.
The Black Fox Mine began operating as an open-pit mine in 2009 (depleted in 2015) and transitioned to
underground operations in 2011.
Bonikro Gold Stream
ALLIED GOLD CORPORATION
The Company has a Gold Stream on Allied Gold Corp.’s (“Allied”) Bonikro gold mine located in Côte
d’Ivoire (“Bonikro” or the “Bonikro Mine”). Under the terms of the Gold Stream, Allied will deliver 6%
of gold produced at the mine until 39,000 ounces of gold are delivered, then 3.5% of gold produced until
a cumulative 61,750 ounces of gold have been delivered, then 2% thereafter. Under the agreement,
Sandstorm will make ongoing cash payments of $400 per ounce of gold delivered.
The Bonikro Mine is a producing gold-silver mine located approximately 67 kilometres south of
Yamassoukro, the political capital of Côte d'Ivoire, and approximately 240 kilometres northwest from
Abidjan, the commercial capital of the country. The operation consists of two primary areas: the
Bonikro mining license and the Hiré mining license. Gold has been produced from the Bonikro open-pit
and through the Bonikro carbon-in-leach plant since 2008 with over 1.0 million ounces having been
produced.
On September 7, 2023, Allied announced the closing of its previously announced business combination
and public listing transaction and the expansion of its executive team to include former principals from
Yamana Gold. Allied and its partners have raised approximately $267 million in equity and convertible
debt financing. The Company also published an updated Reserve and Resource Estimate for Bonikro
including Proven and Probable Mineral Reserves of 645,000 gold ounces (15.4 million tonnes at 1.30
grams per tonne gold), on a 100% basis (based on open pit cut-off grades of 0.60-0.85 grams per
tonne). Ongoing drilling is focused on expanding and converting the existing Inferred Mineral Resource
targeting a mine life of over 10 years. See www.alliedgold.com for more information.
CEZinc Stream
GLENCORE CANADA CORPORATION
The Company has a zinc Stream to purchase 1.0% of the zinc processed at the Canadian Electrolytic Zinc
(“CEZinc”) smelter located in Quebec, Canada until the later of June 30, 2030 or delivery of 68 million
pounds zinc, for ongoing per pound cash payments of 20% of the average quarterly spot price of zinc.
The smelter is owned and operated by a wholly-owned subsidiary of Glencore Canada Corporation
(“GCC”).
2023 Annual Report
13
Management's Discussion & Analysis
CEZinc is situated on the St. Lawrence Seaway along major transportation networks that connect the
processing facility to its end markets in the United States and Canada. In 2022, GCC completed a
cellhouse maintenance shutdown of the smelter to proactively repair numerous cells and conduct a cell-
by-cell integrity assessment, with these efforts expected to stabilize near-term operating conditions.
Operations restarted in December 2022; however, given the timelines between production and Stream
deliveries, this shutdown had an impact on zinc deliveries under the Stream in the second quarter of
2023. Longer-term, GCC is evaluating opportunities to replace all cells in the cellhouse to further
stabilize and improve operating conditions.
Gualcamayo Royalty
ERIS LLC
The Company has several royalties on the Gualcamayo gold mine (the “Gualcamayo Mine”) which is
located in San Juan province, Argentina and is owned and operated by Eris LLC (“Eris”). The
Gualcamayo Mine is an open-pit, heap leach operation. The Company holds the following royalties and
contractual interests associated with the property: (i) a 1% NSR on the producing Gualcamayo Mine; (ii)
a 2% NSR based on the production from the oxides, excluding the first 396,000 ounces of gold
contained in product produced from the non-deep carbonates component on certain surrounding
ground; (iii) 1.5% NSR on production from the deep carbonates project, and (iv) a $30 million milestone
payment due on commencement of commercial production from the deep carbonates project.
Highland Valley Copper NPI
TECK RESOURCES LIMITED
The Company holds a 0.5% NPI on the Highland Valley Copper operations (“HVC”) located in British
Columbia, Canada and owned and operated by Teck. HVC has been in production since 1962 and
produces both copper and molybdenum concentrates. Teck has guided for 2024 to 2027 copper
production of 112,000-160,000 tonnes per year, with 2024 expected to be at the lower end of the range
followed by increased production in 2025 and 2026. Teck recently completed a feasibility study and
submitted a project environmental assessment for the Highland Valley Copper 2040 Project, which
would extend the mine life to approximately 2043, through an extension of the existing site
infrastructure.
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2023 Annual Report
Management's Discussion & Analysis
Development Assets
Hod Maden Gold Stream
HORIZON COPPER CORP.
The Company has a Gold Stream, payable by Horizon Copper, on the Hod Maden gold-copper project,
which is located in Artvin Province, northeastern Türkiye (the “Hod Maden Project” or “Hod Maden”).
In the second quarter of 2023 SSR Mining Inc. (“SSR Mining”) reached an agreement with Lidya
Madencilik Sanayi ve Ticaret A.S. (“Lidya”) to acquire up to a 40% operating interest in Hod Maden and
assume operational control of the project. Assuming the terms of the earn-in milestone payments of the
agreement are fulfilled, SSR Mining will hold a 40% operating interest in Hod Maden, with the
remaining passive ownership held by Lidya (30%) and Horizon Copper (30%).
Under the terms of the Hod Maden Gold Stream, Sandstorm has agreed to purchase 20% of all gold
produced from Hod Maden (on a 100% basis) for ongoing per ounce cash payments equal to 50% of the
spot price of gold until 405,000 ounces of gold are delivered. Sandstorm will then receive 12% of the
gold produced for the life of the mine for ongoing per ounce cash payments equal to 60% of the spot
price of gold. In addition to the Gold Stream, Sandstorm also holds a 2% NSR on Hod Maden payable by
the entity that holds the mining license.
In November 2021, a Feasibility Study was released. The results demonstrate a Proven and Probable
Mineral Reserve of 2.45 million ounces of gold and 129,000 tonnes of copper being mined over a 13-
year mine life (8.7 million tonnes at 8.8 grams per tonne gold and 1.5% copper or 11.1 grams per tonne
gold equivalent using $82 per tonne NSR based cut-off grades). The study projects a pre-tax net present
value (5% discount rate) of $1.3 billion and an internal rate of return of 41%. For more information refer
to www.horizoncopper.com.
With the approval of the Environmental Impact Assessment, the release of the Feasibility Study and the
receipt of all key permits (with the award of the final permit from the Ministry of Forestry in 2022), Hod
Maden moved into the next stage of development including securing project debt financing and
initiating long-lead construction items. For the first half of 2024 early-works construction activities are
expected to continue at Hod Maden focused on site access and earthworks, power supply construction
and the land expropriation process.
2023 Annual Report
15
Management's Discussion & Analysis
Platreef Gold Stream
IVANHOE MINES LTD.
The Company has a Gold Stream on the Platreef project located in South Africa (“Platreef”), which is
majority owned and operated by Ivanhoe Mines Ltd. (“Ivanhoe”). Under the terms of the Stream,
Sandstorm is entitled to purchase 37.5% of payable gold produced from Platreef until 131,250 gold
ounces have been delivered, 30% until an aggregate of 256,980 ounces of gold are delivered and 1.875%
thereafter, as long as certain conditions are met. The Gold Stream will be based on all recovered gold
from Platreef, subject to a fixed payability factor of 80% and is subject to ongoing cash payments of
$100 per ounce of gold until 256,980 ounces have been delivered, and then 80% of the spot price of
gold for each ounce delivered thereafter.
Platreef is a development stage project that contains an underground deposit of thick, high-grade
platinum group elements and nickel-copper-gold mineralization. It currently ranks as one of the largest
precious metal deposits under development and has the potential to be one of the industry’s largest and
lowest-cost primary platinum group metals producers. Ivanhoe is focusing on construction activities to
bring Phase 1 of Platreef into production in the second half of 2024.
Greenstone Gold Stream
EQUINOX GOLD CORP.
The Company has a Gold Stream on the Greenstone gold project located in the Geraldton-Beardmore
district of western Ontario, Canada (the “Greenstone Project” or “Greenstone”). The project is jointly
owned by Equinox Gold (60%) and Orion Mine Finance (40%). Sandstorm holds a Gold Stream on the
Greenstone project pursuant to an agreement with an affiliate of Orion Mine Finance (“Orion”), who
holds a 40% interest in the Greenstone Project. Under the terms of the Gold Stream, Sandstorm has
agreed to purchase 2.375% of the gold produced from the property (calculated on a 100% basis but
payable from Orion’s 40% interest), until 120,333 ounces of gold have been delivered, then 1.583%
thereafter, for an ongoing per ounce cash payment to Orion of 20% of the spot price of gold. Additional
ongoing payments of $30 per gold ounce will fund mine-level environmental and social programs.
A Feasibility Study was released in December 2020 outlining the design of an open-pit mine producing
more than five million ounces over an initial 14-year mine life. In November 2023, Equinox Gold
announced that the project was approximately 96% complete including detailed engineering (100%
complete), procurement (92% complete), and construction (96% complete). Pre-production mining
activities commenced ahead of schedule in September 2022 and the project remains on track to pour
gold in the first half of 2024.
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2023 Annual Report
Management's Discussion & Analysis
Hugo North Extension & Heruga Stream
ENTRÉE RESOURCES LTD.
The Company has a precious metals Stream with Entrée Resources Ltd. to purchase an amount equal to
5.62% and 4.26%, respectively, of the gold and silver produced from the Hugo North Extension and
Heruga deposits located in Mongolia, (the “Hugo North Extension” and “Heruga”, respectively) for per
ounce cash payments equal to the lesser of $220 per ounce of gold and $5 per ounce of silver and the
then prevailing market price of gold and silver, respectively. Additionally, Sandstorm has a copper
stream to purchase an amount equal to 0.42% of the copper produced from Hugo North Extension and
Heruga for per pound cash payments equal to the lesser of $0.50 per pound of copper and the then
prevailing market price of copper.
The Company is not required to contribute any further capital, exploration, or operating expenditures to
Entrée Resources.
The Hugo North Extension is a copper-gold porphyry deposit and Heruga is a copper-gold-molybdenum
porphyry deposit. Both projects are located in the South Gobi Desert of Mongolia, approximately 570
kilometres south of the capital city of Ulaanbaatar and 80 kilometres north of the border with China.
The Hugo North Extension and Heruga are part of the Oyu Tolgoi mining complex and are managed by
Oyu Tolgoi LLC, a subsidiary of Rio Tinto PLC (the project manager) and the Government of Mongolia.
Entrée Resources retains a 20% interest in the Hugo North Extension and Heruga.
In 2021, Entrée Resources announced the completion of an updated Feasibility Study on its interest in
the Entrée/Oyu Tolgoi joint venture property. The updated report aligns Entrée Resource’s disclosure
with that of other Oyu Tolgoi project stakeholders on development of the first lift of the underground
mine. Entrée Resources further announced that optimization studies on Panel 1 are currently underway
which have the potential to further improve Lift 1 economics for the Entrée/Oyu Tolgoi joint venture.
Robertson Royalty
BARRICK GOLD CORP.
The Company has a sliding scale NSR on the Robertson development stage deposit which is part of the
Cortez Mine Complex in Nevada (“Robertson”), jointly owned by Barrick Gold Corp ("Barrick") (61.5%)
and Newmont Corporation (“Newmont”) (38.5%). The NSR ranges from 1.0% to 2.25% depending on
the average quarterly gold price.
Robertson is currently being qualified by Barrick as an emerging tier two gold asset, defined by Barrick
as an asset with a Reserve potential to deliver a minimum 10-year life, annual production of at least
250,000 ounces of gold and total cash costs per ounce of gold over the mine life that are in the lower
half of the industry cost curve. Barrick expects first production at Robertson to occur in 2027, subject to
permitting.
2023 Annual Report
17
Management's Discussion & Analysis
Horne 5 Royalty
FALCO RESOURCES LTD.
The Company holds a 2% NSR on the Horne 5 deposit located in Quebec, Canada, (“Horne 5”) owned by
Falco Resources Ltd. (“Falco Resources”).
An updated Feasibility Study, released in April 2021, envisions an underground operation producing
approximately 320,000 gold equivalent ounces annually over a 15-year mine life. Proven and Probable
Mineral Reserves are 80.9 million tonnes at an average grade of 1.44 grams per tonne gold, 14.14 grams
per tonne silver, 0.17% copper, and 0.77% zinc with an effective date of August 26, 2017 (NSR cut-off
grade of CAD55 per tonne). Falco Resources recently announced that it has entered into an operating
license and indemnity agreement with Glencore Canada Corporation. This is a key milestone for Falco
Resources and the development of Horne 5. The terms of the agreement outline key deliverables and
lines of communication between the parties to facilitate the development and ultimately the operation of
Horne 5. For more information refer to www.falcores.com/en.
Lobo-Marte Royalty
KINROSS GOLD CORPORATION
The Company has a 1.05% NSR on production, subject to a $40 million cap, from the Lobo-Marte
project located in the Maricunga gold district of Chile (the “Lobo-Marte Project”) which is owned by
Kinross Gold Corporation (“Kinross”).
In the fourth quarter of 2021, Kinross announced the results of a Feasibility Study for the Lobo-Marte
Project. The study estimates a Probable Mineral Reserve of 6.7 million ounces contained in 160.7
million tonnes at an average grade of 1.3 grams per tonne gold with additional Indicated Resources of
2.4 million ounces contained in 99.4 million tonnes at an average grade of 0.7 grams per tonne gold and
Inferred Resources of 0.4 million ounces contained in 18.5 million tonnes at an average grade of 0.75
grams per tonne gold. Kinross estimates a total life of mine production of approximately 4.7 million gold
ounces during a 16-year mine life, which includes 14 years of mining followed by two years of residual
processing. For more information refer to www.kinross.com.
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2023 Annual Report
Management's Discussion & Analysis
Revolving Credit Facility
In September 2023, Sandstorm renewed its revolving credit facility allowing the Company to borrow up
to $625 million (the “Revolving Facility”), extending the maturity date to September 2027. The amounts
drawn on the Revolving Facility remain subject to interest at SOFR plus 1.875%–3.5% per annum, and
the undrawn portion of the Revolving Facility remain subject to a standby fee of 0.422%–0.788% per
annum, both of which are dependent on the Company’s leverage ratio. The facility maintains its
sustainability-linked incentive pricing terms that allow Sandstorm to reduce the borrowing from the
interest rates described above as the Company’s performance targets are met. The syndicate of banks
include The Bank of Nova Scotia, Bank of Montreal, National Bank of Canada, Canadian Imperial Bank
of Commerce, and Royal Bank of Canada. The Revolving Facility has a term of four years, maturing in
September 2027.
Other
De-levering the Company’s balance sheet remains a top priority for Sandstorm. To expedite this
repayment schedule, the Company is undergoing a process with a goal to monetize between $40 - $100
million of non-core assets by the end of 2024, with proceeds from any sales directed to debt repayment.
Accordingly, in the fourth quarter of 2023, Sandstorm closed its previously announced agreement to sell
the Company's El Pilar and Blackwater Royalties to Sandbox Royalties Corp. ("Sandbox") for total
consideration of $25.0 million comprised of a cash payment of $10.0 million and $15.0 million in
common shares of Sandbox. The Company anticipates that consideration from future monetization
efforts will consist entirely of cash.
2023 Annual Report
19
Management's Discussion & Analysis
Summary of Annual Results
Year Ended
In $000s
(except for per share and per ounce amounts)
Total revenue
Attributable Gold Equivalent ounces1
Sales
Royalty revenue
Average realized gold price per ounce from the
Company’s Gold Streams1
Average cash cost per attributable ounce1
$
$
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
179,636 $
148,732 $
114,860
97,245
106,584 $
73,052
1,929
223
82,376
97,815 $
50,917
1,795
284
Cash flows from operating activities
152,754
106,916
Net income
Net income attributable to Sandstorm shareholders
Basic income per share
Diluted income per share
Total assets
Total long-term liabilities
Dividends declared per share (CAD)
Dividends declared
Dividends paid
1. Refer to section on non-IFRS and other measures of this MD&A.
42,709
41,716
0.14
0.14
78,450
78,361
0.34
0.33
1,931,426
1,974,777
461,252
514,331
0.08
17,720
17,736
0.08
15,009
13,637
67,548
71,722
43,138
1,788
249
81,139
27,622
27,622
0.14
0.14
620,858
20,873
0.02
3,004
—
Attributable gold
equivalent ounces1
Sales & royalty
revenue
Total sales, royalties,
and income from
other interests1
Average realized gold price
per ounce from the
Company's Gold Streams
1. Refer to section on non-IFRS and other measures of this MD&A.
20
2023 Annual Report
67,548oz82,376oz97,245oz$114.9M$179.6M$120.7M$148.7M$191.4M$1,788$1,795$1,929202120222023
Management's Discussion & Analysis
The Company’s operating segments for the year ended
December 31, 2023 are summarized in the table below:
In $000s
(except for ounces
sold)
Antamina
Aurizona
Blyvoor
Bonikro
Caserones
Cerro Moro
Chapada
Fruta del Norte
Houndé
Product
Copper,
Other2
Silver
Gold
Gold
Gold
Copper
Silver
Copper
Gold
Gold
Iron Ore
Gold
Copper,
Other4
Vale Royalties
Other
Corporate
Consolidated
Attributable
Gold
Equivalent
ounces1
Sales and
royalty
revenues
Cost of
sales
excluding
depletion
Depletion
expense
Contractual
(income)
from
Stream,
royalty and
other
interests
(Gain) loss
on
disposal
of Stream,
royalty
and other
interests
Stream,
royalty and
other
interests
impairments
Income
(loss)
before
taxes
Cash flows
from
operating
activities
6,569 $ 12,040 $
— $ 7,215 $
— $
— $ 2,039 $ 2,786 $ 11,455
1,150
2,769
55
1,361
5,087
9,825
—
492
2,292
4,431
1,313
1,225
4,797
9,223
1,919
4,956
4,181 12,022
—
5,832
13,585 26,197
7,853
10,753
7,015 13,469
4,074
2,761
3,999
7,722
—
2,098
2,967
5,731
—
1,835
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,353
2,714
—
9,333
9,025
—
1,893
2,994
—
2,348
7,619
—
6,190
8,365
—
7,591
18,345
—
6,634
9,395
—
5,624
5,434
—
3,896
4,474
—
6,712
24,511
—
4,665
9,395
—
3,562
5,005
17,366 22,202
3,054
6,790
940
(11,810)
—
23,228
30,068
7,562 13,864
1,151
7,075
—
—
—
—
687
—
—
(3,988) 8,939
12,644
—
—
(47,842)
(8,689)
97,245 $ 179,636 $ 21,677 $ 75,337 $ 1,627 $ (11,810) $ (1,949) $ 46,912 $ 152,754
Mercedes
Gold, Silver3
12,794 24,757
2,258
15,787
Relief Canyon
Gold
4,772
9,396
—
4,731
3,109
5,988
—
2,426
1. Refer to section on non-IFRS and other measures of this MD&A.
2. Revenue from Antamina consists of $9.1 million from copper and $2.9 million from other base metals.
3.
4.
Sales revenue from Mercedes consists of $21.8 million from gold and $3.0 million from silver.
Includes revenue from other base metals of $5.9 million, $4.7 million from copper, and $3.3 million from diamonds.
2023 Annual Report
21
Management's Discussion & Analysis
FY 2023
Attributable Gold Equivalent Ounces by Asset
Q1
Q2
Q3
Q4
FY 2023
FY 2023
Attributable Gold Equivalent Ounces by Region
Attributable Gold Equivalent Ounces by Metal
North America
Canada
South America
Other
Precious Metals
Base Metals
Copper
Diamonds
Attributable Gold Equivalent Ounces by Metal Precious Metals Base Metals Copper Diamonds 2% 71% 27% 19%
FY 2023 Attributable Gold Equivalent Ounces by Region North America Canada South America Other 14% 13% 39% 47% FY 2023
22
2023 Annual Report
13,58512,7947,7197,0155,0874,7974,7724,1813,9993,1092,9672,29224,928Cerro MoroMercedesAntaminaChapadaAurizonaBonikroRelief CanyonCaseronesFruta del NorteVale RoyaltiesHoundéBlyvoorOther47%14%13%39%2%71%19%27% Management's Discussion & Analysis
The Company’s operating segments for the year ended
December 31, 2022 are summarized in the table below:
In $000s
(except for ounces sold)
Product
Attributable
Gold
Equivalent
ounces1
Sales and
royalty
revenues
Cost of
sales
excluding
depletion
Depletion
expense
Stream,
royalty and
other
interests
impairments
(Gain) on
disposal of
Stream,
royalty and
other
interests
Income
(loss)
before
taxes
Cash flows
from
operating
activities
Copper, Other2
2,492 $
4,269 $
— $ 5,676 $
— $
— $ (1,407) $ 1,069
Antamina
Aurizona
Blyvoor
Bonikro
Caserones
Cerro Moro
Chapada
Fruta del Norte
Houndé
Mercedes
Relief Canyon
Vale Royalties
Other
Corporate
Consolidated
Gold
Gold
Gold
Copper
Silver
Copper
Gold
Gold
3,860
6,925
—
1,502
2,589
1,199
379
787
3,033
5,243
2,422
3,106
1,022
2,615
—
1,656
15,365
27,804
8,323
11,994
8,777
16,016
4,828
3,060
3,625
6,546
3,226
5,815
—
—
2,416
2,159
Gold, Silver3
8,563
14,934
2,001
8,144
6,046
10,891
4,287
7,813
—
—
5,121
2,537
Gold
Iron Ore
Gold
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6,546
7,925
603
2,083
(285)
3,742
959
2,747
7,487
19,480
8,128
11,188
4,130
4,757
3,656
3,547
4,789
11,669
5,770
10,891
5,276
7,618
12,202
22,219
3,795
7,699
1,086
(2,396) 12,035
17,929
Copper, Other4
8,376
15,053
798
5,046
—
(23,437) 32,646
14,734
—
—
—
—
—
—
(2,564) (12,463)
82,376 $ 148,732 $ 23,366 $ 59,780 $
1,086 $ (25,833) $ 87,769 $ 106,916
1. Refer to section on non-IFRS and other measures of this MD&A.
2. Royalty revenue from Antamina consists of $2.9 million from copper, $0.2 million from silver and $1.2 million from other base metals.
3. Revenue from Mercedes consists of $12.4 million from gold and $2.5 million from silver.
4.
Includes revenue from diamonds of $8.2 million, other base metals of $5.6 million and copper of $1.3 million.
Attributable Gold Equivalent Ounces by Region North America 41% Canada 11% South America 45% Other 14% Attributable Gold Equivalent Ounces by Metal Precious Metals 74% Base Metals 24% Copper 18% Diamonds 2%
2023 Annual Report
23
Management's Discussion & Analysis
Summary of Quarterly Results
Quarters Ended
In $000s
(except for per share and per ounce amounts)
Total revenue
Attributable Gold Equivalent ounces1
Sales
Royalty revenue
Average realized gold price per ounce from the
Company’s Gold Streams1
Average cash cost per attributable ounce1
Cash flows from operating activities
Net income
Net income (loss) attributable to Sandstorm
shareholders
Basic income (loss) per share
Diluted income (loss) per share
Total assets
Total long-term liabilities
Dividends declared per share (CAD)
Dividends declared
Dividends paid
In $000s
(except for per share and per ounce amounts)
Total revenue
Attributable Gold Equivalent ounces1
Sales
Royalty revenue
Average realized gold price per ounce from the
Company’s Gold Streams1
Average cash cost per attributable ounce1
Cash flows from operating activities
Net (loss) income
Net (loss) income attributable to Sandstorm
shareholders
Basic (loss) income per share
Diluted (loss) income per share
Total assets
Total long-term liabilities
Dividends declared per share (CAD)
Dividends declared
Dividends paid
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
$
$
44,498 $
41,324 $
49,835 $
23,250
21,123
24,504
26,412 $
22,497 $
31,269 $
18,086
18,827
18,566
43,979
28,368
26,406
17,573
1,948
1,919
1,972
1,882
211
38,741
24,459
24,239
0.08
0.08
220
31,947
14
(241)
(0.00)
(0.00)
228
42,142
2,684
230
39,924
15,552
2,049
15,669
0.01
0.01
0.05
0.05
1,931,426
1,916,819
1,937,207
1,963,151
461,252
466,793
477,387
490,258
0.02
4,446
4,367
0.02
4,390
4,530
0.02
4,469
4,385
0.02
4,415
4,454
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
$
$
38,448 $
38,951 $
35,968 $
21,753
22,606
19,276
27,680 $
24,315 $
23,805 $
10,768
14,636
12,163
35,365
18,741
22,015
13,350
1,746
1,706
1,866
1,887
253
26,266
(2,068)
323
25,090
31,681
273
33,198
39,696
283
22,362
9,141
(2,358)
31,882
39,696
9,141
(0.01)
(0.01)
0.13
0.13
0.21
0.20
0.05
0.05
1,974,777
1,928,271
662,739
624,561
514,331
540,399
26,690
24,705
0.02
4,388
4,402
0.02
4,560
3,197
0.02
2,984
2,997
0.02
3,077
3,041
1. Refer to section on non-IFRS and other measures of this MD&A.
24
2023 Annual Report
Management's Discussion & Analysis
Summary of Quarterly Results
Attributable gold
equivalent ounces1
Sales & royalty
revenue
Total sales, royalties,
and income from
other interests1
Average realized gold price
per ounce from the
Company's Gold Streams
1. Refer to section on non-IFRS and other measures of this MD&A.
2023
Changes in sales, net income, and cash flows from operating activities from quarter to quarter are
affected primarily by fluctuations in production at the mines, the timing of shipments, changes in the
price of commodities, as well as acquisitions of Streams and royalty interests and the commencement of
operations of mines under construction. For more information refer to the quarterly commentary below.
2023 Annual Report
25
28,368oz24,504oz21,123oz23,250oz$44.0M$44.5M$54.0M$49.8M$41.3M$46.3M$1,882$1,972$1,919$1,948Q1Q2Q3Q4 Management's Discussion & Analysis
The Company’s operating segments for the three months ended
December 31, 2023 are summarized in the table below:
In $000s
(except for ounces sold)
Product
Attributable
Gold
Equivalent
ounces1
Sales and
royalty
revenues
Cost of
sales
excluding
depletion
Depletion
expense
Contractual
(income)
from
Stream,
royalty and
other
interests
(Gain) on
disposal
of Stream,
royalty
and other
interests
Stream,
royalty and
other
interests
impairments
Income
(loss)
before
taxes
Cash flows
from
operating
activities
Antamina
Aurizona
Blyvoor
Bonikro
Caserones
Cerro Moro
Chapada
Fruta del Norte
Houndé
Mercedes
Relief Canyon
Vale Royalties
Other
Corporate
Consolidated
Copper, Other2
297 $ 580 $
— $ 799 $
— $
— $
— $
(219) $ 930
Silver
Gold
Gold
Gold
Copper
Silver
Copper
Gold
Gold
537 1,045
1,323 2,577
26
—
449
882
257
642
123
246
1,103 2,122
441
1,149
1,085 3,130
—
1,693
3,268 6,366
1,901
2,964
1,715 3,340
1,009
999 1,946
1,130 2,201
—
—
734
484
594
Gold, Silver3
3,384 6,533
582
3,860
Gold
Iron Ore
Gold
1,568 3,127
—
1,676
770 1,500
—
622
4,367 6,904
380
1,854
Copper, Other4
1,255 2,245
302
1,795
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
377
1,019
—
2,454
2,377
—
—
379
574
532
1,199
—
1,437
2,269
—
1,501
4,466
—
1,597
2,331
—
1,462
1,263
—
1,607
1,449
—
2,091
5,777
—
1,451
3,126
—
878
2,258
(1,810)
—
6,480
8,132
687
—
—
(3,988) 3,449
3,177
—
—
3,566
(1,606)
23,250 $ 44,498 $ 4,898 $ 19,235 $
687 $ (1,810) $ (3,988) $ 29,042 $ 38,741
1. Refer to section on non-IFRS and other measures of this MD&A.
2. Revenue from Antamina consists of $0.6 million from copper.
3.
4.
Sales revenue from Mercedes consists of $5.7 million from gold and $0.8 million from silver.
Includes revenue from other base metals of $1.8 million, $0.3 million from diamonds, and $0.1 million from copper.
26
2023 Annual Report
Management's Discussion & Analysis
The Company’s operating segments for the three months ended
December 31, 2022 are summarized in the table below:
In $000s
(except for ounces sold)
Product
Attributable
Gold
Equivalent
ounces1
Sales and
royalty
revenues
Cost of sales
excluding
depletion
Depletion
expense
(Gain) on
disposal of
Stream, royalty
and other
interests
Income (loss)
before taxes
Cash flows from
operating
activities
Copper, Other2
446 $
779 $
— $
2,814 $
— $
(2,035) $
1,069
Antamina
Aurizona
Blyvoor
Bonikro
Caserones
Cerro Moro
Chapada
Fruta del Norte
Houndé
Mercedes
Relief Canyon
Vale Royalties
Other
Corporate
Consolidated
Gold
Gold
Gold
Copper
Silver
Copper
Gold
Gold
990
1,729
1,002
1,730
1,959
3,397
553
1,430
—
572
783
—
3,479
6,075
1,824
1,436
2,508
769
995
1,736
816
1,424
—
—
Gold, Silver3
4,003
7,011
650
Gold
Iron Ore
Gold
Other4
1,968
3,472
831
1,450
1,742
1,533
—
3,029
2,678
—
—
—
560
346
—
98
525
2,006
1,164
2,778
578
689
577
3,358
1,667
572
1,140
1,677
—
—
—
—
—
—
—
—
—
—
—
—
1,631
633
608
266
1,473
1,161
1,047
847
3,003
1,805
878
(2,396)
3,725
655
—
—
1,729
1,224
2,063
438
4,249
1,739
1,322
1,285
5,727
3,472
3,089
1,565
3,673
21,753 $ 38,448 $
5,504 $ 19,643 $
(2,396) $
1,150 $
26,266
(14,547)
(6,378)
1. Refer to section on non-IFRS and other measures of this MD&A.
2. Royalty revenue from Antamina consists of $0.6 million from copper and $0.2 million from other base metals.
3. Revenue from Mercedes consists of $5.5 million from gold and $1.5 million from silver.
4.
Includes revenue from diamonds of $1.4 million and other base metals of $1.3 million.
2023 Annual Report
27
Management's Discussion & Analysis
Three Months Ended December 31, 2023
Compared to the Three Months Ended
December 31, 2022
For the three months ended December 31, 2023, net income and cash flows from operating activities
were $24.5 million and $38.7 million, respectively, compared with net loss of $2.1 million and cash
flows from operating activities of $26.3 million for the comparable period in 2022. The change is due to
a combination of factors including:
•
•
•
A $20.9 million increase in the gains recognized on the revaluation of the Company’s investments mostly
driven by an increase in the fair value of the Company's Sandbox and Horizon Copper debentures,
A $6.1 million increase in revenue described in greater detail below; and
A $0.8 million decrease in senior management compensation.
Partially offset by:
•
A $1.4 million increase in income tax expense largely driven by the increase in net income.
For the three months ended December 31, 2023, revenue was $44.5 million compared with $38.4
million for the comparable period in 2022. The increase is attributable to a 12% increase in the average
realized selling price of gold as well as a 5% increase in Attributable Gold Equivalent ounces1 sold
excluding attributable ounces related to contractual payments which are included in Other Income. In
particular, the increase in revenue was driven by:
•
•
A $3.4 million increase in revenue attributable to the Company's Other segment, largely due to increases in
mining activity on concessions subject to the Company's royalties in the period; and
A $1.7 million increase in revenue attributable to the Caserones royalty, as a result of increased production
rates and copper prices.
Partially offset by:
•
A $1.3 million decrease in revenue from the Company's Bonikro Gold Stream primarily due to the timing of
sales, whereby, 811 gold ounces were delivered by December 31, 2023 but sold in the subsequent quarter.
1. Refer to section on non-IFRS and other measures of this MD&A.
28
2023 Annual Report
Management's Discussion & Analysis
Year Ended December 31, 2023 Compared to the
Year Ended December 31, 2022
For the year ended December 31, 2023, net income and cash flows from operating activities were $42.7
million and $152.8 million, respectively, compared with net income of $78.5 million and cash flows
from operating activities of $106.9 million for the comparable period in 2022. The increase in cash
flows from operating activities is largely driven by an increase in revenue (described in greater detail
below) and contractual payments relating to Mount Hamilton. The decrease in net income is due to a
combination of factors including:
•
•
•
Certain items recognized during the year ended December 31, 2022 which did not occur during the year ended
ended December 31, 2023 including (i) a $24.9 million gain resulting from the sale of the Company’s Hod
Maden interest to Horizon Copper; (ii) $25.8 million in gains on disposal of stream, royalty and other
interests, primarily related to the sale of a portfolio of royalties to Sandbox Royalties; and (iii) a $12.5 million
gain resulting from the sale of the Company’s equity interest in Entrée Resources to Horizon Copper;
A $22.2 million increase in finance expense, primarily related to interest paid on the Revolving Facility, which
was drawn down in the third quarter of 2022 to finance acquisitions made in 2022; and
A $15.6 million increase in depletion expense partly driven by an increase in Attributable Gold Equivalent
ounces1 sold.
Partially offset by:
•
•
•
•
A $30.9 million increase in revenue described in greater detail below;
A $13.9 million increase in the gains recognized on the revaluation of the Company’s investments mostly
driven by an increase in the fair value of the Company's Sandbox and Horizon Copper debentures;
$11.8 million in other contractual income primarily related to a one-time contractual payment from the
Company's Mt. Hamilton royalty; and
A $4.0 million gain on the disposal of the Company's Blackwater and El Pilar royalties to Sandbox.
For the year ended December 31, 2023, revenue was $179.6 million compared with $148.7 million for
the comparable period in 2022. The increase is attributable to a 12% increase in Attributable Gold
Equivalent ounces1 sold, excluding attributable ounces related to contractual payments, which are
included in Other Income and described above, as well as a 7% increase in the average realized selling
price of gold. In particular, the increase in revenue was driven by:
•
•
A $10.5 million increase in revenue attributable to the Company's Antamina royalty and Stream, which were
acquired in July 2022 and June 2023 respectively;
A $9.8 million increase in revenue attributable to the Mercedes Mine streams, which were acquired in April
and August of 2022. Based on the timing of sales and shipments, 600 gold ounces were delivered by December
31, 2023 and were sold in the subsequent quarter;
2023 Annual Report
29
Management's Discussion & Analysis
•
•
A $9.4 million increase in revenue attributable to the Caserones royalty, which was acquired in August 2022;
and
A $4.0 million increase in revenue attributable to the Bonikro Stream, which was acquired in August 2022.
Partially offset by:
•
A $2.5 million decrease in revenue attributable to the Chapada copper stream due to a 9% decrease in the
number of copper pounds sold as a result of lower production as well as a decrease in the average realized
selling price of copper which decreased from an average of $4.15 per pound during the year ended December
31, 2022 to an average of $3.83 per pound during the equivalent period in 2023.
1. Refer to section on non-IFRS and other measures of this MD&A.
Three Months Ended December 31, 2023
Compared to the Other Quarters Presented
For the three months ended December 31, 2023, revenue was $44.5 million. Attributable Gold
Equivalent ounces1 sold have increased overall as a result of various assets acquired, including; (i) the
acquisition of the BaseCore Metals LP stream and royalty package ("BaseCore"), which consists of nine
royalties and one stream and was purchased during the three months ended September 30, 2022; (ii)
the acquisition of Nomad Royalty Company Ltd. ("Nomad") which consists of 20 royalties and streams
and closed during the three months ended September 30, 2022; and (iii) the acquisition of the Mercedes
Gold Stream during the three months ended June 30, 2022. When comparing revenue for the three
months ended December 31, 2023 with the other quarters presented, the following items impact
comparability:
•
•
30
Revenue attributable to the Mercedes Mine streams, which commenced making deliveries under the Gold
Stream in April 2022, with Sandstorm also receiving deliveries in subsequent periods from the newly acquired
assets that were a part of the Nomad acquisition, of $6.5 million for the three months ended December 31,
2023, $5.8 million for the three months ended September 30, 2023, $8.1 million for the three months ended
June 30, 2023, $4.3 million for the three months ended March 31, 2023, $7.0 million for the three months
ended December 31, 2022, $5.7 million for the three months ended September 30, 2022, and $2.2 million for
the three months ended June 30, 2022;
Revenue attributable to the Antamina royalty and silver Stream, which were acquired in July 2022 and June
2023 respectively, of $1.6 million for the three months ended December 31, 2023, $3.4 million for the three
months ended September 30, 2023, $3.5 million for the three months ended June 30, 2023, $6.3 million for
the three months ended March 31, 2023, $0.8 million for the three months ended December 31, 2022 and
$3.5 million for the three months ended September 30, 2022;
2023 Annual Report
Management's Discussion & Analysis
•
•
Revenue attributable to the Caserones royalty, which was acquired in August 2022, of $3.1 million for the
three months ended December 31, 2023, $2.4 million for the three months ended September 30, 2023, $4.6
million for the three months ended June 30, 2023, $1.8 million for the three months ended March 31, 2023,
$1.4 million for the three months ended December 31, 2022 and $1.2 million for the three months ended
September 30, 2022; and
Revenue attributable to the Bonikro stream, which was acquired in August 2022, of $2.1 million for the three
months ended December 31, 2023, $1.8 million for the three months ended September 30, 2023, $2.9 million
for the three months ended June 30, 2023, $2.3 million for the three months ended March 31, 2023, $3.4
million for the three months ended December 31, 2022 and $1.8 million for the three months ended
September 30, 2022.
Partially offset by:
•
The Bracemac McLeod royalty discontinuing operations in the second half of 2022.
When comparing net income of $24.5 million and cash flow from operating activities of $38.7 million
for the three months ended December 31, 2023, with net income and cash flow from operating activities
for the other quarters presented, the following items impact comparability:
•
•
•
•
•
•
Depletion expense has largely increased since 2021, primarily due to the overall increase in Attributable Gold
Equivalent ounces1 sold. The depletion recognized is as follows:
– During the three months ended December 31, 2023, depletion of $19.2 million was recognized;
– During the three months ended September 30, 2023, depletion of $16.3 million was recognized;
– During the three months ended June 30, 2023, depletion of $21.8 million was recognized;
– During the three months ended March 31, 2023, depletion of $18.0 million was recognized;
– During the three months ended December 31, 2022, depletion of $19.6 million was recognized;
– During the three months ended September 30, 2022, depletion of $18.0 million was recognized;
– During the three months ended June 30, 2022, depletion of $11.0 million was recognized; and
– During the three months ended March 31, 2022, depletion of $11.1 million was recognized.
A $24.9 million gain on disposal of the Hod Maden investment in associate recognized during the three
months ended September 30, 2022;
A $22.9 million gain on disposal of Streams, royalties and other interests recognized during the three months
ended June 30, 2022, primarily resulting from the sale of a portfolio of royalties to Sandbox Royalties
Corporation;
A $12.5 million gain resulting from the sale of the Company’s equity interest in Entrée Resources to Horizon
Copper during the three months ended June 30, 2022;
$10.0 million in contractual income from stream, royalty and other interests due to a contractual payment
relating to the Mt. Hamilton royalty during the three months ended March 31, 2023;
The recognition of $10.0 million in finance expense during the three months ended December 31, 2023, $9.8
million during the three months ended September 30, 2023, $9.8 million during the three months ended June
30, 2023, $9.9 million during the three months ended March 31, 2023 and $8.8 million during the three
months ended December 31, 2022, primarily related to interest paid on the Revolving Facility which was
drawn down in the third and fourth quarters of 2022 to finance the Nomad and BaseCore acquisitions;
2023 Annual Report
31
Management's Discussion & Analysis
•
The Company recognized gains and losses with respect to the revaluation of its investments, which were
primarily driven by changes in the fair value of the Company’s debentures including the Americas Gold
convertible debenture, and more recently, the Sandbox, Horizon Copper and Bear Creek debentures. These
gains/losses were recognized as follows:
– During the three months ended December 31, 2023, a gain of $21.4 million was recognized;
– During the three months ended September 30, 2023, a loss of $4.0 million was recognized;
– During the three months ended June 30, 2023, a loss of $4.9 million was recognized;
– During the three months ended March 31, 2023, a gain of $3.1 million was recognized;
– During the three months ended December 31, 2022, a gain of $0.5 million was recognized;
– During the three months ended September 30, 2022, a gain of $1.9 million was recognized;
– During the three months ended June 30, 2022, a loss of $0.8 million was recognized; and
– During the three months ended March 31, 2022, a gain of $0.2 million was recognized.
1. Refer to section on non-IFRS and other measures of this MD&A.
32
2023 Annual Report
Management's Discussion & Analysis
Change in Total Assets
Total assets increased by $14.6 million from September 30, 2023 to December 31, 2023 as a result of (i)
cash flow from operating activities; (ii) the recognition of a right of use asset related to the Company's
office lease; and (iii) gains on the revaluation of the Company's investments; partially offset by (i) the
repayment of $21.0 million in debt outstanding on the Company's Revolving Facility and (ii) depletion
expense. Total assets decreased by $20.4 million from June 30, 2023 to September 30, 2023 as a result
of (i) depletion expense; (ii) the repayment of $11.0 million in debt outstanding on the Company's
Revolving Facility, net of draw downs in the period; and (iii) losses on the revaluation of the Company's
investments; partially offset by cash flow from operating activities. Total assets decreased by $25.9
million from March 31, 2023 to June 30, 2023 as a result of (i) depletion expense; (ii) repurchases of the
Company’s shares in accordance with its normal course issuer bid; (iii) the repayment of $8.0 million in
debt outstanding on the Company's Revolving Facility, net of draw downs in the period; and (iv) losses
on the revaluation of the Company's investments; partially offset by cash flow from operating activities.
Total assets decreased by $11.6 million from December 31, 2022 to March 31, 2023 as a result of (i)
depletion expense; and (ii) the repayment of $22.5 million in debt outstanding on the Company's
Revolving Facility; partially offset by (i) cash flow from operating activities and (ii) gains on the
revaluation of the Company's investments. Total assets increased by $46.5 million from September 30,
2022 to December 31, 2022 as a result of additions to the Company’s Stream, royalty and other interests
primarily as a result of the final deposit paid for the Greenstone Gold Stream in the period; partially
offset by depletion expense. Total assets increased by $1,265.5 million from June 30, 2022 to September
30, 2022 as a result of (i) the BaseCore transaction; (ii) the Nomad acquisition; (iii) the sale of the Hod
Maden investment in associate to Horizon Copper for a Stream on Hod Maden and other assets; and
(iv) cash flow from operating activities; partially offset by depletion expense. As a result of the disposal
of the Hod Maden interest, the Company reclassified the related cumulative currency translation
adjustments of $149.5 million, which were recognized within accumulated other comprehensive income,
into the income statement. Total assets increased by $38.2 million from March 31, 2022 to June 30,
2022 as a result of (i) cash flow from operating activities; (ii) the Sandbox transaction; and (iii) the sale
of the Entrée Resources investment in associate to Horizon Copper; partially offset by (i) depletion
expense and (ii) a decrease in the valuation of investments. Effective April 1, 2022, the Company
reassessed the functional currency of the associate which held the Hod Maden Project. The assessment
was triggered by the forecasted expenditures of the associate, the currency driving those expenditures
and the underlying transactions, events, and conditions of the entity. As a result of that assessment, it
was determined the functional currency had changed from Turkish Lira to U.S. dollars. As a
consequence, the depreciation or appreciation of the Turkish Lira, which was the functional currency of
the entity that holds the Hod Maden Project, relative to the U.S. dollar, which is the presentation
currency of Sandstorm Gold Ltd. did not have a material impact on the recognition of currency
translations adjustments in other comprehensive income during the three months ended June 30, 2022.
Total assets increased by $3.7 million from December 31, 2021 to March 31, 2022 as a result of (i) cash
flow from operating activities; and (ii) an increase in the valuation of investments; partially offset by (i)
2023 Annual Report
33
Management's Discussion & Analysis
a decrease in the Hod Maden interest due to the depreciation of the Turkish Lira, which was the
functional currency of the entity that held the Hod Maden interest, relative to the U.S. dollar; and (ii)
depletion expense. The depreciation of the Turkish Lira, partially offset by the increase in the valuation
of investments, were largely responsible for the losses recognized through other comprehensive income
for the three months ended March 31, 2022.
Non-IFRS and Other Measures
The Company has included, throughout this document, certain performance measures, 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. 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. These non-IFRS
measures do not have any standardized meaning prescribed by IFRS, and other companies may
calculate these measures differently.
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 Streams, royalties 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. Figure 1.1 provides a reconciliation of Total Sales, Royalties
and Income from other interests.
Figure 1.1
In $000s
Total Revenue
Add:
Contractual income from streams, royalties and other
interests1
Equals:
Total Sales, Royalties, and Income from other
interests
3 Months Ended
Dec. 31, 2023
3 Months Ended
Dec. 31, 2022
Year Ended
Dec. 31, 2023
Year Ended
Dec. 31, 2022
$
44,498 $
38,448 $
179,636 $
148,732
1,810
—
11,810
—
$
46,308 $
38,448 $
191,446 $
148,732
1. During the three months ended March 31, 2023, the Company received a one-time contractual payment of $10.0 million relating to the Mt.
Hamilton royalty included in Other Income. During the three months ended December 31, 2023, the Company received a one-time
payment of $1.8 million related to the Company's Ming Gold Stream.
34
2023 Annual Report
Management's Discussion & Analysis
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
(described further in item i above), less revenue attributable to non-controlling interests 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 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. Figure 1.2 provides a reconciliation of Attributable Gold Equivalent
ounce.
Figure 1.2
(In $000s)
(except for ounces and per ounce amounts)
3 Months Ended
Dec. 31, 2023
3 Months Ended
Dec. 31, 2022
Year Ended
Dec. 31, 2023
Year Ended
Dec. 31, 2022
Total Sales, Royalties, and Income from other
interests1
Less:
$
46,308 $
38,448 $
191,446 $
148,732
Revenue attributable to non-controlling interest
1,017
465
3,907
850
Total Sales, Royalties, and Income from other
interests attributable to
Sandstorm Gold Ltd. shareholders
Divided by:
Average realized gold price per ounce from the
Company's Gold Streams
Equals:
$
45,291 $
37,983 $
187,539 $
147,882
1,948
1,746
1,929
1,795
Total Attributable Gold Equivalent ounces
23,250
21,753
97,245
82,376
1.
Prior to March 31, 2022, total Attributable Gold Equivalent ounces was calculated by dividing the royalty and other commodity stream
revenue, including adjustments for contractual payments received relating to those interests, 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. The change
in the calculation of the measure did not result in a change to prior periods. Recalculated totals may differ due to rounding.
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
(described further in item ii above). 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.
Figure 1.3 provides a reconciliation of average cash cost of gold on a per ounce basis.
2023 Annual Report
35
Management's Discussion & Analysis
Figure 1.3
(In $000s)
(except for ounces and per ounce amounts)
3 Months Ended
Dec. 31, 2023
3 Months Ended
Dec. 31, 2022
Year Ended
Dec. 31, 2023
Year Ended
Dec. 31, 2022
Cost of Sales, excluding depletion1
$
4,898 $
5,504 $
21,677 $
23,366
Divided by:
Total Attributable Gold Equivalent ounces sold
23,250
21,753
97,245
82,376
Equals:
Average cash cost (per Attributable Gold Equivalent
ounce)
$
211 $
253 $
223 $
284
1. Cost of Sales, excluding depletion, includes cash payments made for Gold Equivalent ounces associated with commodity streams.
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 and 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. Figure 1.4 provides a
reconciliation of cash flows from operating activities excluding changes in non-cash working
capital.
Figure 1.4
(In $000s)
3 Months Ended
Dec. 31, 2023
3 Months Ended
Dec. 31, 2022
Year Ended
Dec. 31, 2023
Year Ended
Dec. 31, 2022
Cash flows from operating activities
$
38,741 $
26,266 $
152,754 $
106,916
Less:
Changes in non-cash working capital
2,270
(3,612)
1,697
(2,890)
Equals:
Cash flows from operating activities excluding
changes in non-cash working capital
$
36,471 $
29,878 $
151,057 $
109,806
36
2023 Annual Report
Management's Discussion & Analysis
Liquidity and Capital Resources
As of December 31, 2023, the Company had cash and cash equivalents of $5.0 million (December 31,
2022 — $7.0 million) and working capital (current assets less current liabilities) of $37.6 million
(December 31, 2022 — $13.7 million). As of the date of the MD&A, $421 million remains outstanding
under the Company’s Revolving Facility and the undrawn and available balance remaining is $204
million.
During the year ended December 31, 2023, the Company generated cash flows from operating activities
of $152.8 million compared with $106.9 million during the comparable period in 2022. When
comparing the change, the primary drivers were an increase in the number of Attributable Gold
Equivalent ounces sold and an increase in the average realized selling price of gold.
During the year ended December 31, 2023, the Company had net cash outflows from investing activities
of $22.2 million which were primarily the result of (i) the acquisition of $30.5 million in investments
and other assets partially comprised of a $14.0 million secured loan to Bear Creek; and (ii) the
acquisition of $20.9 million in stream, royalty and other interests; partially offset by $20.0 million
received in connection with the partial disposition of the Antamina NPI and $10.0 million in connection
with the disposal of the El Pilar and Blackwater royalties to Sandbox. During the year ended December
31, 2022, the Company had net cash outflows from investing activities of $612.7 million which were
primarily the result of (i) the BaseCore transaction described earlier; (ii) the acquisition of Stream,
royalty and other interests including the Mercedes Gold Stream, the Vatukoula Gold Stream and other
royalties; (iii) the $56.3 million payment owed under the Company’s Platreef Gold Stream; (iv) the
$81.7 million payment owed under the Company’s Greenstone Gold Stream; (v) the acquisition of $33.4
million in investments and other; and (vi) a $3.8 million investment in the Company’s previously owned
Hod Maden interest; partially offset by (i) $38.1 million of proceeds from the sale of certain Stream,
royalty and other interests; and (ii) $7.3 million of proceeds from the sale and redemption of a portion
of the Company’s debt and equity investments and other.
During the year ended December 31, 2023, the Company had net cash outflows from financing activities
of $131.9 million primarily related to (i) the repayment of $104.0 million on its revolving credit facility;
(ii) interest expense payments of $35.7 million; (iii) $16.0 million in repurchases of the Company’s
shares in accordance with its normal course issuer bid and other; and (iv) dividend payments of $17.7
million; partially offset by a $41.5 million draw down on its revolving credit facility. During the year
ended December 31, 2022, the Company had net cash inflows from financing activities of $497.6 million
primarily related to (i) $653.1 million drawn on its revolving credit facility; and (ii) $86.0 million
proceeds from issuance of common shares net of financing costs; partially offset by (i) the repayment of
$212.4 million on its revolving credit facility; (ii) interest expense payments of $15.2 million; and (iii)
dividend payments of $13.6 million.
2023 Annual Report
37
Management's Discussion & Analysis
Commitments and Contingencies
In connection with its Streams, the Company has committed to purchase the following:
Stream
Antamina
Black Fox1
Blyvoor2
Bonikro3
Cerro Moro4
CEZinc5
Chapada6
Entrée1,7,8
Greenstone9
Hod Maden10
Karma
Mercedes11
Platreef12
Relief Canyon13
Santa Elena1
South Arturo
Vatukoula14
Woodlawn15
% of Life of Mine Gold
or Relevant Commodity
1.66%
8%
10%
6%
20%
1%
4.2%
5.62% on Hugo North Extension
and 4.26% on Heruga
2.375%
20%
1.625%
14,300 ounces of gold over 52 months
and 4.4% thereafter
100% of silver produced beginning in
2028
37.5%
39,174 ounces over 6.5 years
and 4% thereafter
20%
40%
11,022 ounces over 4.5 years and
1.199% – 1.363% thereafter
Per Ounce Cash Payment:
lesser of amount below and the then
prevailing market price of commodity
(unless otherwise noted)
2.5% of silver spot price
$601
$572
$400
30% of silver spot price
20% of quarterly average zinc spot price
30% of copper spot price
Varies
20% of gold spot price
50% of gold spot price until 405,000
ounces of gold have been delivered,
then 60% of gold spot price thereafter
20% of gold spot price
25% of gold spot price
25% of silver spot price
Varies
Varies
$478
20% of silver spot price
20% of gold spot price
Varies
Nil
1.
2.
3.
Per ounce cash payment subject to an annual inflationary adjustment.
For the Blyvoor Gold Stream, until 300,000 ounces have been delivered, Blyvoor Gold (Pty) Ltd. will deliver 10% of gold production until
16,000 ounces have been delivered in the calendar year, then 5% of the remaining production for that calendar year. Following the Initial
Blyvoor Delivery Threshold, Sandstorm will receive 0.5% of gold production on the first 100,000 ounces in a calendar year until a cumulative
10.32 million ounces of gold have been produced. Under the Stream agreement Sandstorm will make ongoing payments at the lesser of
$572 per ounce delivered and the gold market price on the business day immediately preceding the date of delivery.
For the Bonikro Gold Stream, Sandstorm will receive 6% of gold produced at the mine until 39,000 ounces of gold are delivered, then 3.5%
of gold produced until 61,750 cumulative ounces of gold have been delivered, then 2% thereafter. Under the Stream agreement Sandstorm
will make ongoing payments at the lesser of $400 per ounce delivered and the gold market price on the business day immediately
preceding the date of delivery.
4. Under the terms of the Cerro Moro silver stream, Sandstorm has agreed to purchase an amount of silver from Cerro Moro equal to 20% of
the silver produced (up to an annual maximum of 1.2 million ounces of silver), until 7.0 million ounces of silver have been delivered to
Sandstorm; then 9.0% of the silver produced thereafter.
5.
For the CEZinc zinc stream, the Company has committed to purchase 1.0% of the zinc produced until the later of June 30, 2030 or delivery
of 68.0 million pounds of zinc under the contract.
38
2023 Annual Report
Management's Discussion & Analysis
6.
7.
8.
9.
For the Chapada copper stream, the Company has committed to purchase an amount equal to 4.2% of the copper produced (up to an
annual maximum of 3.9 million pounds of copper) until the mine has delivered 39 million pounds of copper to Sandstorm; then 3.0% of the
copper produced until, on a cumulative basis, the mine has delivered 50 million pounds of copper to Sandstorm; then 1.5% of the copper
produced thereafter, for the life of the mine.
For the Entrée Gold Stream, after approximately 8.6 million ounces of gold have been produced from the joint venture property, the price
increases from $220 per gold ounce to $500 per gold ounce. For the Entrée silver stream, the purchase price is the lesser of the prevailing
market price and $5 per ounce of silver until 40.3 million ounces of silver have been produced from the entire joint venture property.
Thereafter, the purchase price will increase to the lesser of the prevailing market price and $10 per ounce of silver. For the Entrée Gold and
silver stream, percentage of life of mine is 5.62% on Hugo North Extension and 4.26% on Heruga if the minerals produced are contained
below 560 metres in depth. For the Entrée Gold and silver stream, percentage of life of mine is 8.43% on Hugo North Extension and 6.39%
on Heruga if the minerals produced are contained above 560 metres in depth.
For the Entrée copper stream, the Company has committed to purchase an amount equal to 0.42% of the copper produced from the Hugo
North Extension and Heruga deposits. If the minerals produced are contained above 560 metres in depth, then the commitment increases
to 0.62% for both the Hugo North Extension and Heruga deposits. Sandstorm will make ongoing per pound cash payments equal to the
lesser of $0.50 and the then prevailing market price of copper, until 9.1 billion pounds of copper have been produced from the entire joint
venture property. Thereafter, the ongoing per pound payments will increase to the lesser of $1.10 and the then prevailing market price of
copper.
For Greenstone, the Gold Stream on the project is for 2.375% of gold production from the Greenstone joint venture (100% basis), until
120,333 ounces of gold have been delivered, then 1.583% thereafter. In addition to the ongoing payments of 20% of the spot price of gold
and to the extent the costs are incurred by the Greenstone joint venture, Sandstorm will pay the joint venture $30 per ounce to fund mine-
level environmental and social programs.
10. Under the Hod Maden Gold Stream, Sandstorm will receive 20% of all gold produced from Hod Maden (on a 100% basis) and will make
ongoing payments of 50% of the gold spot price until 405,000 ounces of gold are delivered (the "Delivery Threshold"). Once the Delivery
Threshold has been reached, Sandstorm will receive 12% of the gold produced for the life of the mine for ongoing payments of 60% of the
gold spot price.
11. Under the terms of the amended Mercedes Gold Stream, the Company will have the right to purchase 275 ounces per month through April
2028 and thereafter 4.4% of the gold produced from the Mercedes Mine for ongoing per ounce cash payments equal to 25% of the spot
price of gold. Under the terms of the amended Mercedes silver stream, beginning in May 2028, the Company is entitled to purchase 100%
of silver produced, the cost of which is 25% of the spot price of silver.
12. Under the terms of the Platreef Gold Stream, the Company has the right to purchase 37.5% of gold produced until 131,250 gold ounces
have been delivered, 30% until an aggregate of 256,980 ounces of gold are delivered, and 1.875% thereafter if certain conditions are met.
In calculating gold deliveries owing under the Stream, a fixed payability factor of 80% is applied to all gold production. Until 256,980
ounces have been delivered, Sandstorm will make ongoing payments equal to the lesser of $100 per ounce of gold and the gold market
price on the business day immediately preceding the date of delivery. After 256,980 ounces have been delivered, Sandstorm will make
ongoing payments of 80% of the spot price of gold for each ounce delivered.
13. For the Relief Canyon Stream, after receipt of 32,022 gold ounces (the cost of which is nil), the Company is entitled to purchase 4.0% of the
gold and silver produced from the Relief Canyon Mine for ongoing per ounce cash payments equal to 30%-65% of the spot price of gold or
silver, with the range dependent on the concession's existing royalty obligations.
14. Under the terms of the amended Vatukoula Gold Stream, the Company is entitled to fixed deliveries totaling 11,022 gold ounces (the cost
of which is 20% of the spot price) after January 1, 2023 (the "Vatukoula Fixed Delivery Period"). Following the Vatukoula Fixed Delivery
Period, the Company is entitled to purchase 1.363% for the first 100,000 ounces of gold produced in a calendar year, and 1.199% for the
volume of production above 100,000 ounces, with both variable delivery rates subject to upward adjustment depending on the final scale
of the Company's investment in the Vatukoula Gold Stream.
15. For the Woodlawn silver stream, Sandstorm has agreed to purchase an amount of silver equal to 80% of payable silver produced. Deliveries
under the Woodlawn silver stream are capped at AUD27 million. In addition, the Company holds a second stream at Woodlawn under
which the operator has agreed to pay Sandstorm AUD1.0 million for each 1Mt of tailings ore processed at Woodlawn, subject to a
cumulative cap of AUD10 million.
2023 Annual Report
39
Management's Discussion & Analysis
Contractual obligations related to bank debt and interest are as follows:
In $000s
Bank debt1
Interest2
Leases3
Total Less than one year
1 – 3 years
4-5 years
More than 5 years
$
421,000 $
— $
— $
421,000 $
93,349
26,423
26,660
2,482
49,667
5,261
17,022
4,316
$
540,772 $
29,142 $
54,928 $
442,338 $
—
—
14,364
14,364
1. As at February 15, 2024, the Company had $421 million drawn and outstanding on the Revolving Facility. The repayment date in the table
above reflects the full term of the facility which matures on September 11, 2027, assuming no extension periods.
2.
The amounts drawn on the Revolving Facility are subject to an interest rate of SOFR plus 1.875%-3.5% per annum, and the undrawn portion
of the Revolving Facility is subject to a standby fee of 0.4219% - 0.7875% per annum, both of which are dependent on the terms of the
Revolving Facility and the Company's leverage ratio. The interest charges have been estimated based on assumptions of the Company's
future leverage ratio. The Revolving Facility incorporates sustainability-linked incentive pricing terms that allow the Company to reduce the
borrowing costs from the interest rates described above as the Company's targets are met. The interest charges have been estimated
based on the assumption that the Company will continue with the same pricing adjustment to the debt maturity date. As the applicable
interest rate is floating in nature, the interest charges are estimated based on market forward interest rate curves at the ending of the
reporting period combined with the assumption that the principal balance outstanding at February 15, 2024, does not change until the
debt maturity date.
3.
Future minimum lease payments for the Company's leases related to offices in Vancouver, BC that have commenced.
As previously disclosed, Sandstorm became aware that a third party commenced legal proceedings
against it in a Brazilian court. The proceedings involve severance owed to former employees of Colossus
Mineração Ltda., a Brazilian subsidiary company of Colossus Minerals Inc. (an entity with which
Sandstorm entered into a Stream). Since these severance claims, estimated to be approximately $8
million, remain outstanding, the claimants are seeking to recoup their claims from Sandstorm.
Sandstorm intends on defending itself as it believes the case is without merit.
The Company has agreed to make available certain additional funds to Horizon subject to certain
conditions, including availability, use of proceeds and other customary conditions up to a maximum of
$150 million. The facility will bear interest at the secured overnight financing rate plus a margin
(currently 2.0% - 3.5% per annum). The maturity date of the Horizon facility is August 31, 2032 and is
convertible to Horizon Shares at the option of the Company or Horizon (provided that no conversion
will be effected if it would result in the Company holding a greater than 34% equity interest in Horizon).
No amounts have been drawn to-date.
In connection with the Restructuring Agreement with Bear Creek described earlier, Sandstorm has
agreed to make up to $8 million in additional credit available to Bear Creek (of which $5.4 million had
been advanced as at the date of this MD&A) prior to August 31, 2024, subject to certain conditions. Any
amounts drawn under this facility will be added to the principal amount of the Refinanced Sandstorm
Debentures.
As part of the sale of the Hod Maden interest, Sandstorm provided Horizon Copper with normal course
indemnification for claims arising from pre-existing matters. Sandstorm became aware that a lawsuit
was filed by a former employee of the predecessor company to Horizon Copper's associate, Artmin
Madencilik Sanayi ve Ticaret A.S ("Artmin"), the Turkish entity which holds the Hod Maden project.
40
2023 Annual Report
Management's Discussion & Analysis
The former employee claimed that he was entitled to 1% of the value of the project as a finder's fee.
Subsequent to year end, the claim was settled for an insignificant amount.
In an effort to reduce operating costs, the Company has signed a 15-year lease for office space which is
expected to commence in the fourth quarter of 2024, a portion of which has been sublet. Under the
terms of this agreement the minimum lease payments for the entire space, including the sublet areas,
are approximately $25 million over the 15-year lease term. As a result of this 15-year lease agreement,
the Company intends to sublet its current leased office space.
Share Capital
As of February 15, 2024, the Company had 297,908,238 common shares outstanding. As disclosed
previously, the funds from the issuance of share capital have been used to finance the acquisition of
Streams and royalties (recent acquisitions are described earlier in greater detail) and pay down debt.
Under the Company’s normal course issuer bid (“NCIB”), the Company is able, until April 10, 2024, to
purchase up to 24.0 million common shares. The NCIB provides the Company with the option to
purchase its common shares from time to time. During the year ended December 31, 2023 and under
the Company’s current and previous NCIB, the Company purchased and cancelled approximately 2.8
million common shares for $14.4 million.
During the three months ended March 31, 2022, the Company paid its first quarterly dividend of
CAD0.02 per common share and has maintained that same dividend payment for each subsequent
quarter. In December 2023 the Company declared a dividend of CAD0.02 per share payable to
shareholders of record as of January 16, 2024. The full amount of the dividend of $4.4 million was paid
in cash in January 2024.
In June 2023, the Company re-established an at-the-market equity program (the “ATM Program”) after
the Company's previous ATM Program expired in May 2022. Under the terms of the ATM program, the
Company is permitted to issue up to an aggregate of $150 million worth of common shares from
treasury at prevailing market prices to the public through the Toronto Stock Exchange, the New York
Stock Exchange or any other marketplace on which the common shares are listed, quoted or otherwise
trade. The volume and timing of distributions under the ATM Program is determined at the Company’s
sole discretion, subject to applicable regulatory limitations. The ATM Program will be effective until the
earliest of the date that all common shares available for issue under the ATM Program have been issued,
October 22, 2024 or the ATM Program is terminated prior to such date by the Company or the Agents.
To-date, the Company has not utilized or sold any shares under the current or previously expired ATM
Program.
2023 Annual Report
41
Management's Discussion & Analysis
A summary of the Company’s share purchase options as of February 15, 2024 is as follows:
Year of expiry
Number outstanding
Vested
2024
2025
2026
2027
2028
2,946,023
2,812,000
2,968,000
4,231,000
4,101,417
2,946,023
2,812,000
1,978,671
1,410,340
—
17,058,440
9,147,034
1. Weighted average exercise price of options that are exercisable.
Exercise price per share
(range) (CAD)
7.03 - 12.40
9.43
7.18
7.12
6.53
Weighted-average
exercise price per share
(CAD)1
8.57
9.43
7.18
7.12
-
8.31
As of February 15, 2024, the Company had 2,354,911 restricted share rights outstanding and 242,000
warrants outstanding with an exercise price of $8.97 and an expiry date of May 13, 2024.
Key Management Personnel Compensation
The remuneration of directors and those persons having authority and responsibility for planning, directing,
and controlling activities of the Company is as follows:
In $000s
Salaries and benefits
Share-based payments
Total key management compensation expense
Year Ended
Dec. 31, 2023
Year Ended
Dec. 31, 2022
$
$
1,630 $
5,116
6,746 $
3,000
4,124
7,124
Financial Instruments
The Company’s financial instruments consist of cash and cash equivalents, trade receivables and other,
short-term and long-term investments, loans receivable which are included in short and long-term
investments, trade payables and other, lease liabilities, and bank debt. The Company’s short and long-
term investments, excluding loans receivable, are initially recorded at fair value, and subsequently
revalued to their fair market value at each period end. Investments in common shares and warrants held
that have direct listings on an exchange are valued based on quoted prices in active markets. The fair
value of warrants, convertible debt instruments and related instruments are determined using
discounted cash flow models and Black-Scholes models based on relevant assumptions including
discount rate, risk free interest rate, expected dividend yield, expected volatility, and expected warrant
life which are supported by observable current market conditions. Investments are acquired for
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2023 Annual Report
Management's Discussion & Analysis
strategic purposes and may be disposed of from time to time. The fair value of the Company's other
financial instruments, which include cash and cash equivalents, trade receivables and other, loans
receivable which are included in investments, trade payables and other, and bank debt approximate
their carrying values at December 31, 2023.
Sandstorm also holds common shares of Sandbox and Horizon Copper. As a result of these equity
ownership positions being greater than 20% on a fully diluted basis, Sandstorm has determined that it
has significant influence over Sandbox and Horizon Copper; consequently, they are related parties of
the Company and any transactions with these entities are considered related party transactions.
Credit Risk
The Company’s credit risk is limited to cash and cash equivalents, loans receivable which are included in
short and long-term investments, trade and other receivables and the Company’s investments in
convertible debentures. The Company’s trade and other receivables are subject to the credit risk of the
counterparties who own and operate the mines underlying Sandstorm’s royalty portfolio. In order to
mitigate its exposure to credit risk, the Company closely monitors its financial assets and maintains its
cash deposits in several high-quality financial institutions. The impact of expected credit losses on trade
receivables and financial assets held at amortized cost is not material.
The Company’s investments in debentures are subject to the counterparties’ credit risk. In particular,
the Company’s convertible debentures due from Horizon Copper, Bear Creek and Sandbox Royalties are
subject to their respective credit risk, the Company’s ability to realize on its security and the net
proceeds available under that security.
Market Risk
Market risk is the risk that the fair value of cash flows of a financial instrument will fluctuate due to
changes in interest rates, exchange rates or other prices such as equity prices and commodity prices.
INTEREST RATE RISK
The Company is exposed to interest rate risk on its bank debt and its investments in debentures. The
Company’s bank debt is subject to a floating interest rate. The Company monitors its exposure to
interest rates. During the three months ended December 31, 2023, a 1% increase (decrease) in nominal
interest rates would have increased (decreased) interest expense by approximately $1.1 million and
would not have a material impact on the fair value of the Company’s investments in debentures.
CURRENCY RISK
Financial instruments that impact the Company’s net income (loss) or other comprehensive income
(loss) due to currency fluctuations include cash and cash equivalents, loans receivable which are
2023 Annual Report
43
Management's Discussion & Analysis
included in investments, trade and other receivables and trade payables and other denominated in
Canadian dollars. Based on the Company's Canadian dollar denominated monetary assets and monetary
liabilities at December 31, 2023, a 10% increase (decrease) of the value of the Canadian dollar relative to
the United States dollar would increase (decrease) net income by $2.0 million and would not have a
material impact on other comprehensive income.
OTHER RISKS
Sandstorm holds common shares, convertible debentures, loans receivable, warrants and investments of
other companies with a combined fair market value as at December 31, 2023 of $258.9 million
(December 31, 2022 — $129.9 million). The daily exchange traded volume of these shares, including the
shares underlying the warrants, may not be sufficient for the Company to liquidate its position in a short
period of time without potentially affecting the market value of the shares. The Company is subject to
default risk with respect to any debt instruments. The Company is exposed to equity price risk as a
result of holding these investments in other mining companies. The Company does not actively trade
these investments. Based on the Company's investments held as at December 31, 2023, a 10% increase
(decrease) in the equity prices of these investments would increase (decrease) other comprehensive
income by $1.7 million and would not have a material impact on net income.
Other Risks to Sandstorm
The primary risk factors affecting the Company are set forth below. For additional discussion of risk
factors, please refer to the Company’s Annual Information Form dated March 23, 2023, which is
available on www.sedarplus.ca.
The Chapada Mine, the Cerro Moro Mine, the Aurizona Mine, the Fruta del Norte Mine, the Relief
Canyon Mine, the Black Fox Mine, the Hugo North Extension and Heruga deposits, the Gualcamayo
Mine, the Lobo-Marte Project, the Houndé Mine, the Vatukoula Mine, the Vale Royalty Package, the
Antamina Mine, the Blyvoor Mine, the Caserones Mine, the Mercedes Mine, the Bonikro Mine, CEZinc,
HVC, the Hod Maden Project, Platreef, the Greenstone Project, Robertson, Horne 5 and other royalties
and commodity Streams in Sandstorm’s portfolio are hereafter referred to as the “Mines”.
Risks Relating to Mineral Projects
To the extent that they relate to the production of gold or an applicable commodity from, or the
operation of, the Mines, the Company will be subject to the risk factors applicable to the operators of
such Mines. Whether the Mines will be commercially viable depends on a number of factors, including
cash costs associated with extraction and processing, the particular attributes of the deposit, such as
size, grade, and proximity to infrastructure, as well as metal prices which are highly cyclical and
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2023 Annual Report
Management's Discussion & Analysis
government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use,
importing and exporting of minerals and environmental protection. The Mines are also subject to other
risks that could lead to their shutdown and closure including flooding and weather related events, the
failure to receive permits or having existing permits revoked, collapse of mining infrastructure including
tailings pond, as well as community or social related issues. The exact effect of these factors cannot be
accurately predicted, but the combination of these factors may result in the Mines becoming
uneconomic resulting in their shutdown and closure. The Company is not entitled to purchase gold,
other commodities, receive royalties if no gold or applicable commodity is produced from the Mines or
the underlying are expropriated or laws are enacted that effectively expropriate the economics of the
Mines.
No Control Over Mining Operations
With respect to its Streams and royalties, the Company has no contractual rights relating to the
operation or development of the Mines. Except for any payments which may be payable in accordance
with applicable completion guarantees or cash flow guarantees, the Company will not be entitled to any
material compensation if these mining operations do not meet their forecasted gold or other production
targets in any specified period or if the Mines shut down or discontinue their operations on a temporary
or permanent basis. The Mines may not commence commercial production within the time frames
anticipated, if at all, and there can be no assurance that the gold or other production from such
properties will ultimately meet forecasts or targets. At any time, any of the operators of the Mines or
their successors may decide to suspend or discontinue operations. The Company is subject to the risk
that the Mines shut down on a temporary or permanent basis due to issues including, but not limited to
economics, lack of financial capital, floods, fire, mechanical malfunctions, social unrest, expropriation,
and other risks. There are no guarantees the Mines will achieve commercial production, ramp-up
targets, or complete expansion plans. These issues are common in the mining industry and can occur
frequently.
Government Regulations
The Mines are subject to various foreign laws and regulations governing prospecting, exploration,
development, production, exports, taxes, labour standards, waste disposal, protection and remediation
of the environment, reclamation, historic and cultural resources preservation, mine safety and
occupational health, handling, storage and transportation of hazardous substances and other matters. It
is possible that the risks of expropriation, cancellation or dispute of licenses could result in substantial
costs, losses, and liabilities in the future. The costs of discovering, evaluating, planning, designing,
developing, constructing, operating, and closing the Mines in compliance with such laws and
regulations are significant. It is possible that the costs and delays associated with compliance of such
laws and regulations could become such that the owners or operators of the Mines would not proceed
with the development of or continue to operate the Mines. Moreover, it is possible that future regulatory
2023 Annual Report
45
Management's Discussion & Analysis
developments, such as increasingly strict environmental protection laws, regulations, and enforcement
policies thereunder, and claims for damages to property and persons resulting from the Mines could
result in substantial costs and liabilities in the future.
International Operations
The operations with respect to the Company’s gold, other precious metals and other interests are
conducted in Canada, Mexico, the United States, Mongolia, Burkina Faso, Ecuador, South Africa,
Ghana, Botswana, Côte d'Ivoire, Argentina, Brazil, Chile, Peru, Egypt, Ethiopia, Guyana, Paraguay,
French Guiana, Türkiye, Sweden, Fiji and Australia and as such, the Mines are exposed to various levels
of political, economic and other risks and uncertainties. These risks and uncertainties include, but are
not limited to, terrorism, international sanctions, hostage taking, military repression, crime, political
instability, currency controls, extreme fluctuations in currency exchange rates, high rates of inflation,
labour unrest, the risks of war or civil unrest, expropriation and nationalization, renegotiation or
nullification of existing concessions, licenses, permits, approvals and contracts, illegal mining, changes
in taxation policies, restrictions on foreign exchange and repatriation, changing political conditions, and
governmental regulations. Changes, if any, in mining or investment policies or shifts in political attitude
may adversely affect the operations or profitability of the Mines in these countries. Operations may be
affected in varying degrees by government regulations with respect to, but not limited to, restrictions on
production, price controls, export controls, currency remittance, income taxes, expropriation of
property, foreign investment, maintenance of claims, environmental legislation, land use, land claims of
local people, water use, mine safety and the rewarding of contracts to local contractors or require
foreign contractors to employ citizens of, or purchase supplies from, a particular jurisdiction. Any
adverse developments with respect to SSR Mining and Lidya, its cooperation, its intention to pursue
project financing, or in its exploration, development, permitting and operation of the Hod Maden
Project in Türkiye may adversely affect the Company’s related exposure to the project. There are no
assurances that the Company will be able to realize on its investments related to the Hod Maden Project
if sanctions are imposed on Türkiye, Lidya and its related entities or SSR Mining. Any changes or
unfavorable assessments with respect to (i) the validity, ownership, or existence of the Entrée
Resources’ concessions; as well as (ii) the validity or enforceability of Entrée Resources’ joint venture
agreement with Oyu Tolgoi LLC may adversely affect the Company’s profitability or profits realized
under the Entrée Stream. The Serra Pelada royalty cash flow or profitability may be adversely impacted
if the Cooperative de Mineração dos Garimpeiros de Serra Pelada, which holds a 25% interest in the
Serra Pelada Mine, continues to take unfavorable actions. In addition, Colossus Minerals Inc.’s Brazilian
subsidiary has payables in excess of $30 million and accordingly, there is a risk that it may be unable to
repay its debts, resulting in insolvency and loss of any rights to the Serra Pelada mine. A failure to
comply strictly with applicable laws, regulations and local practices relating to mineral right
applications and tenure, could result in loss, reduction or expropriation of entitlements, or the
imposition of additional local or foreign parties as joint venture partners with carried or other interests.
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2023 Annual Report
Management's Discussion & Analysis
The occurrence of these various factors and uncertainties cannot be accurately predicted and could have
an adverse effect on the Mines.
Income Taxes
No assurance can be given that new taxation rules will not be enacted or that existing rules will not be
applied in a manner which could result in the Company’s past and future profits being subject to
increased levels of income tax. The Company’s prior years’ Canadian tax returns may be audited by the
Canada Revenue Agency ("CRA") and no assurances can be given that tax matters, if they so arise, will
be resolved favorably. Currently, the Company’s prior years’ tax returns for the 2019 and 2020 taxation
years are under international tax audit by the CRA. The Company has not received any proposal or
Notices of Reassessment in connection with this. The majority of the Company’s Streams and royalties
have been entered into directly by Canadian based subsidiaries and are therefore, subject to Canadian
tax. The Company is aware that the CRA has taken the position with other similar companies in the
royalty and streaming business that the upfront payment made in connection with precious metal and
commodity stream agreements should be deducted for income tax purposes in a similar manner to how
such amount is expensed for financial statement purposes. Sandstorm believes that the Company’s
position, as reflected in its filed Canadian income tax returns and consistent with the terms of the
stream agreements, that the cost of the precious metal acquired under the streams is equal to the
market value while a deposit is outstanding, and the cash cost thereafter is correct. If Sandstorm were to
apply the CRA’s proposed methodology to prior taxation years, the Company estimates that losses
would arise that could be carried back to reduce tax and interest to an immaterial amount.
Commodity Prices for Metals Produced from the Mines
The price of the Company’s common shares and the Company’s financial results may be significantly
adversely affected by a decline in the price of gold, silver, copper, zinc and/or iron ore (collectively, the
“Metals”). The price of the Metals fluctuates widely, especially in recent years, and is affected by
numerous factors beyond the Company’s control, including but not limited to, the sale or purchase of
the Metals by various central banks and financial institutions, interest rates, exchange rates, inflation or
deflation, fluctuation in the value of the U.S. dollar and foreign currencies, global and regional supply
and demand, and the political and economic conditions of major gold, silver, copper, zinc and iron ore
producing countries throughout the world.
In the event that the prevailing market price of the Metals are at or below the price at which the
Company can purchase such commodities pursuant to the terms of the Stream agreements associated
with the metal interests, the Company will not generate positive cash flow or earnings. Declines in
market prices could cause an operator to reduce, suspend or terminate production from an operating
project or construction work at a development project, which may result in a temporary or permanent
reduction or cessation of revenue from those projects, and the Company might not be able to recover the
initial investment in Streams and royalties.
2023 Annual Report
47
Management's Discussion & Analysis
Information Systems and Cyber Security
The Company’s information systems, and those of its counterparties under the precious metal purchase
agreements and vendors, are vulnerable to an increasing threat of continually evolving cybersecurity
risks. Unauthorized parties may attempt to gain access to these systems or the Company’s information
through fraud or other means of deceiving the Company’s counterparties.
The Company’s operations depend, in part, on how well the Company and its suppliers, as well as
counterparties under the commodity purchase and royalty agreements, protect networks, equipment,
information technology systems and software against damage from a number of threats. The failure of
information systems or a component of information systems could, depending on the nature of any such
failure, adversely impact the Company’s reputation and results of operations.
Although to-date the Company has not experienced any material losses relating to cyber-attacks or
other information security breaches, there can be no assurance that the Company will not incur such
losses in the future. The Company’s risk and exposure to these matters cannot be fully mitigated
because of, among other things, the evolving nature of these threats. As a result, cyber security and the
continued development and enhancement of controls, processes and practices designed to protect
systems, computers, software, data and networks from attack, damage or unauthorized access remain
an area of attention.
Key Management
The Company is dependent upon the services of a small number of key management personnel who are
highly skilled and experienced. The Company’s ability to manage its activities will depend in large part
on the efforts of these individuals. The Company faces intense competition for qualified personnel, and
there can be no assurance that the Company will be able to attract and retain such personnel. The loss of
the services of one or more of such key management personnel could have a material adverse effect on
the Company.
No Control Over Underlying Investments and Securities
With respect to the Company’s investments in debt and equity securities and its investments in
associates, the Company has no contractual rights over the operations of those investees. The Company
does not control the investees’ operations, their boards or management teams. The decisions of those
entities could at times conflict with the interests of the Company. Any adverse developments with
respect to those entities, its cooperation or in its exploration, development, permitting and operation of
the underlying assets may adversely affect the Company’s interests in those securities and investments.
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2023 Annual Report
Management's Discussion & Analysis
Environmental
All phases of mining and exploration operations are subject to environmental regulation pursuant to a
variety of government laws and regulations. Environmental legislation is becoming stricter, with
increased fines and penalties for non-compliance, more stringent environmental assessments of
proposed projects and heightened responsibility for companies and their officers, directors, and
employees. Continuing issues with tailings dam failures at other companies’ operations may increase
the likelihood that these stricter standards and enforcement mechanisms will be implemented in the
future. There can be no assurance that possible future changes in environmental regulation will not
adversely affect the operations at the Mines, and consequently, the results of Sandstorm’s operations.
Failure by the operators of the Mines to comply with these laws, regulations and permitting
requirements may result in enforcement actions, including orders issued by regulatory or judicial
authorities causing operations to cease or be curtailed, and may include corrective measures requiring
capital expenditures, installation of additional equipment, or remedial actions. The occurrence of any
environmental violation or enforcement action may have an adverse impact on the operations at the
Mines, Sandstorm’s reputation and could adversely affect Sandstorm’s results of operations.
Government regulation relating to emission levels (such as carbon taxes) and energy efficiency is
becoming more prevalent and stringent. While some of the costs associated with reducing emissions
may be offset by increased energy efficiency and technological innovation, Sandstorm expects that
increased government regulation will result in increased costs at some operations at the Mines if the
current regulatory trend continues. All of Sandstorm’s mining interests are exposed to climate-related
risks through the operations at the Mines. Climate change could result in challenging conditions and
extreme weather that may adversely affect the operations at the Mines and there can be no assurances
that mining operations will be able to predict, respond to, measure, monitor or manage the risks posed
as a result of climate change factors.
Solvency Risk of Counterparties
The price of the common shares and the Company’s financial results may be significantly affected by the
Mines operators’ ability to continue as a going concern and have access to capital. The lack of access to
capital could result in these companies entering bankruptcy proceedings and as a result, Sandstorm may
not be able to realize any value from its respective Streams or royalties.
As the Company’s revolving facility is secured against the Company’s assets, to the extent Sandstorm
defaults on its debt or related covenants, the lenders may seize on their security interests. The
realization of security or default could materially affect the price of the Company’s common shares and
financial results.
The Company’s Vale Royalties are publicly traded on Brazil’s National Debenture System. The daily
exchange traded volume of the Vale Royalties may not be sufficient for the Company to liquidate its
position in a short period of time without potentially affecting their market value.
2023 Annual Report
49
Management's Discussion & Analysis
Health Crises and Other
Global markets have been adversely impacted by emerging infectious diseases and/or the threat of
outbreaks of viruses, other contagions, or epidemic diseases, including recently, the novel COVID-19. A
significant new outbreak or continued outbreaks of COVID-19 could result in a widespread crisis that
could adversely affect the economies and financial markets of many countries, resulting in an economic
downturn which could adversely affect the Company’s business and the market price of the common
shares. Many industries, including the mining industry, have been impacted by these market conditions.
If increased levels of volatility continue or in the event of a rapid destabilization of global economic
conditions, it may result in a material adverse effect on commodity prices, demand for metals,
availability of credit, investor confidence, and general financial market liquidity, all of which may
adversely affect the Company’s business and the market price of the Company’s securities. In addition,
there may not be an adequate response to emerging infectious diseases, or significant restrictions may
be imposed by a government, either of which may impact mining operations. There are potentially
significant economic and social impacts, including labour shortages and shutdowns, delays and
disruption in supply chains, social unrest, government or regulatory actions or inactions, including
quarantines, declaration of national emergencies, permanent changes in taxation or policies, decreased
demand or the inability to sell and deliver concentrates and resulting commodities, declines in the price
of commodities, delays in permitting or approvals, suspensions or mandated shut downs of operations,
governmental disruptions or other unknown but potentially significant impacts. At this time, the
Company cannot accurately predict what effects these conditions will have on its operations or financial
results, due to uncertainties relating to the ultimate geographic spread, the duration of the outbreak,
and the length restrictions or responses that have been or may be imposed by the governments. Given
the global nature of the Company’s operations, the Company may not be able to accurately predict
which operations will be impacted or if those impacted will resume operations. Any new outbreaks or
the continuation of the existing outbreaks or threats of any additional outbreaks of a contagion or
epidemic disease could have a material adverse effect on the Company, its business and operational
results.
Other
Critical Accounting Estimates
The preparation of consolidated financial statements in conformity with IFRS requires management to
make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure
of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of
revenues and expenditures during the periods presented. Notes 2 and 3 of the Company’s 2023 annual
consolidated financial statements describe all of the significant accounting policies as well as the
significant judgments and estimates.
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2023 Annual Report
Management's Discussion & Analysis
Disclosure Controls and Procedures
Disclosure controls and procedures are designed to provide reasonable assurance that all relevant
information is gathered and reported to senior management, including the Company’s Chief Executive
Officer and the Chief Financial Officer, on a timely basis so that appropriate decisions can be made
regarding public disclosure. The Company’s system of disclosure controls and procedures includes, but
is not limited to, the Disclosure Policy, the Code of Conduct, the Stock Trading Policy, Corporate
Governance, the effective functioning of the Audit Committee and procedures in place to systematically
identify matters warranting consideration of disclosure by the Audit Committee.
As at the end of the period covered by this Management’s Discussion and Analysis, management of the
Company, with the participation of the Chief Executive Officer and the Chief Financial Officer, evaluated
the effectiveness of the Company’s disclosure controls and procedures as required by National
Instrument 52-109 in Canada (“NI 52-109”) and under the Securities Exchange Act of 1934, as
amended, in the United States. The evaluation included documentation review, enquiries and other
procedures considered by management to be appropriate in the circumstances. Based on that
evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that, as of
December 31, 2023, the disclosure controls and procedures (as defined in National Instrument 52-109-
Certification of Disclosure in Issuers’ Annual and Interim Filings (“NI 52-109”) and Rules 13(a)-15(e)
under the Securities Exchange Act of 1934, as amended) were effective to provide reasonable assurance
that information required to be disclosed in the Company’s annual and interim filings and other reports
filed or submitted under applicable securities laws, is recorded, processed, summarized and reported
within time periods specified by those laws and that material information is accumulated and
communicated to management of the Company, including the Chief Executive Officer and the Chief
Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Management’s Report on Internal Control Over Financial Reporting
Management of the Company is responsible for establishing and maintaining effective internal control
over financial reporting as such term is defined in the rules of the National Instrument 52-109 in
Canada and under the Securities Exchange Act of 1934, as amended, in the United States. The
Company’s internal control over financial reporting is designed to provide reasonable assurance
regarding the reliability of the Company’s financial reporting for external purposes in accordance with
IFRS.
The Company’s internal control over financial reporting includes:
• Maintaining records, that in reasonable detail, accurately and fairly reflect our transactions and dispositions of
the assets of the Company;
•
Providing reasonable assurance that transactions are recorded as necessary for preparation of the
consolidated financial statements in accordance with IFRS;
2023 Annual Report
51
Management's Discussion & Analysis
•
•
Providing reasonable assurance that receipts and expenditures are made in accordance with authorizations of
management and the directors of the Company; and
Providing reasonable assurance that unauthorized acquisition, use or disposition of Company assets that could
have a material effect on the Company's consolidated financial statements would be prevented or detected on
a timely basis.
The Company’s internal control over financial reporting may not prevent or detect all misstatements
because of inherent limitations. Additionally, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of changes in conditions or
deterioration in the degree of compliance with the Company’s policies and procedures. Management
assessed the effectiveness of the Company’s internal control over financial reporting as of December 31,
2023 based on the criteria set forth in Internal Control - Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this
assessment, management has concluded that, as of December 31, 2023, the Company’s internal control
over financial reporting is effective and no material weaknesses were identified.
Changes in Internal Controls
There were no changes in internal controls of the Company during the year ended December 31, 2023
that have materially affected, or are likely to materially affect, the Company’s internal control over
financial reporting.
Limitations of Controls and Procedures
The Company’s management, including the Chief Executive Officer and the Chief Financial Officer,
believe that any disclosure controls and procedures or internal controls over financial reporting, no
matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the
objectives of the control system are met. Further, the design of a control system must reflect the fact
that there are resource constraints, and the benefits of controls must be considered relative to their
costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance
that all control issues and instances of fraud, if any, within the Company have been prevented or
detected. These inherent limitations include the realities that judgments in decision-making can be
faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be
circumvented by the individual acts of some persons, by collusion of two or more people, or by
unauthorized override of the control. The design of any systems of controls also is based in part upon
certain assumptions about the likelihood of future events, and there can be no assurance that any design
will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of
the inherent limitations in a cost-effective control system, misstatements due to error or fraud may
occur and not be detected.
52
2023 Annual Report
Management's Discussion & Analysis
Forward Looking Statements
This MD&A and any exhibits attached hereto and incorporated herein, if any, contain “forward-looking statements”, within the meaning of the
U.S. Securities Act of 1933, as amended, the U.S. Securities Exchange Act of 1934, as amended, the United States Private Securities Litigation
Reform Act of 1995, and applicable Canadian and other securities legislation, concerning the business, operations and financial performance
and condition of Sandstorm. Forward-looking information is provided as of the date of this MD&A and Sandstorm does not intend, and does not
assume any obligation, to update this forward-looking information, except as required by law.
Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not
expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or
variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”,
“occur” or “be achieved”. Forward-looking information is based on reasonable assumptions that have been made by Sandstorm as at the date of
such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity,
performance or achievements of Sandstorm to be materially different from those expressed or implied by such forward-looking information,
including but not limited to: the impact of general business and economic conditions; Antamina Mine, Blyvoor Mine, Caserones Mine, Mercedes
Mine, Bonikro Mine, CEZinc, HVC, Hod Maden Gold Stream, Platreef, Greenstone Project, Robertson, Horne 5, the Chapada Mine, the Cerro
Moro Mine, the Houndé Mine, the Gualcamayo Mine, the Fruta del Norte Mine, the Black Fox Mine, the Aurizona Mine, the Relief Canyon Mine,
the Hugo North Extension and Heruga deposits, the mines underlying the Sandstorm portfolio of royalties, the Lobo-Marte Project, the
Vatukoula Mine, or the Vale Royalty Package; the absence of control over mining operations from which Sandstorm will purchase gold or other
commodities, or receive royalties from and risks related to those mining operations, including risks related to international operations,
government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in
project parameters as plans continue to be refined; problems inherent to the marketability of minerals; industry conditions, including
fluctuations in the price of metals, fluctuations in foreign exchange rates and fluctuations in interest rates; government entities interpreting
existing tax legislation or enacting new tax legislation in a way which adversely affects Sandstorm; the number or aggregate value of common
shares which may be purchased under the NCIB; audits being conducted by the CRA and available remedies; the expectation that the terms of
the earn-in milestone payments of SSR Mining's agreement to acquire a 40% operating interest in the Hod Maden Project will be fulfilled, its
intention to pursue project financing, including expectation of benefits to the overall development of the project as a result of the SSR Mining
acquisition and its ability to fulfil its role as operator of the Hod Maden Project, including the social and regulatory license to operate;
management’s expectations regarding Sandstorm’s growth; stock market volatility; competition; as well as those factors discussed in the section
entitled “Risks to Sandstorm” herein and those risks described in the section entitled “Risk Factors” contained in Sandstorm’s most recent Annual
Information Form for the year ended December 31, 2022 available at www.sedarplus.ca and www.sec.gov and incorporated by reference
herein.
Forward-looking information in this MD&A includes, among other things, disclosure regarding: the impact of COVID-19 on the business, audits
being conducted by the CRA and available remedies, management’s expectations regarding Sandstorm’s growth, Sandstorm’s existing Gold
Streams and royalties as well as its future outlook, the operators of the mines ability to fulfil their roles as operators, including the social and
regulatory license to operate; the Mineral Reserve and Mineral Resource estimates for each of the Chapada Mine, the Cerro Moro Mine, the
Houndé Mine, the Gualcamayo Mine, the Fruta del Norte Mine, the Black Fox Mine, the Aurizona Mine, the Relief Canyon Mine, the Hugo North
Extension and Heruga deposits, the mines underlying the Sandstorm portfolio of royalties, the Lobo-Marte Project, the Vatukoula Mine, the Vale
Royalty Package, the Antamina Mine,the Blyvoor Mine, the Caserones Mine, the Mercedes Mine, the Bonikro Mine, CEZinc, HVC, the Hod
Maden Project, Platreef, the Greenstone Project, Robertson, and Horne 5. Forward-looking information is based on assumptions management
believes to be reasonable, including but not limited to the continued operation of the mining operations from which Sandstorm will purchase
gold, other commodities or receive royalties from, no material adverse change in the market price of commodities, that the mining operations
will operate in accordance with their public statements and achieve their stated production outcomes, and such other assumptions and factors
as set out therein.
Although Sandstorm has attempted to identify important factors that could cause actual actions, events or results to differ materially from those
contained in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially
from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.
Imola Götz, the Vice President, Mining and Engineering of the Company, is a "qualified person" as such term is defined under National
Instrument 43-101 and has reviewed and approved the scientific and technical information disclosed in this document.
2023 Annual Report
53
Management's Discussion & Analysis
Management’s Responsibility for Financial Reporting
The accompanying consolidated financial statements of Sandstorm Gold Ltd. and all the information in
this annual report are the responsibility of management and have been approved by the Board of
Directors.
The consolidated financial statements have been prepared by management on a going concern basis in
accordance with International Financial Reporting Standards Accounting Standards as issued by the
International Accounting Standards Board (“IFRS” or "IFRS Accounting Standards"). When alternative
accounting methods exist, management has chosen those it deems most appropriate in the
circumstances. Financial statements are not exact since they include certain amounts based on
estimates and judgments. Management has determined such amounts on a reasonable basis in order to
ensure that the financial statements are presented fairly, in all material respects. Management has
prepared the financial information presented elsewhere in the annual report and has ensured that it is
consistent with that in the financial statements.
Sandstorm Gold Ltd. maintains systems of internal accounting and administrative controls in order to
provide, on a reasonable basis, assurance that the financial information is relevant, reliable and accurate
and that the Company's assets are appropriately accounted for and adequately safeguarded.
The Board of Directors is responsible for ensuring that management fulfills its responsibilities for
financial reporting and is ultimately responsible for reviewing and approving the financial statements.
The Board carries out this responsibility principally through its Audit Committee.
The Audit Committee is appointed by the Board, and all of its members are independent directors. The
Audit Committee meets at least four times a year with management, as well as the external auditors, to
discuss internal controls over the financial reporting process, auditing matters and financial reporting
issues, to satisfy itself that each party is properly discharging its responsibilities, and to review the
quarterly and the annual reports, the financial statements and the external auditors' report. The Audit
Committee reports its findings to the Board for consideration when approving the financial statements
for issuance to the shareholders. The Audit Committee also considers, for review by the Board and
approval by the shareholders, the engagement or reappointment of the external auditors. The
consolidated financial statements have been audited by PricewaterhouseCoopers LLP, Chartered
Professional Accountants, in accordance with the standards of the Public Company Accounting
Oversight Board (United States) on behalf of the shareholders. PricewaterhouseCoopers LLP has full
and free access to the Audit Committee.
“Nolan Watson” “Erfan Kazemi”
President & Chief Executive Officer Chief Financial Officer
February 15, 2024
54
2023 Annual Report
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Sandstorm Gold Ltd.
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated statements of financial position of Sandstorm Gold
Ltd. and its subsidiaries (together, the Company) as of December 31, 2023 and 2022, and the related
consolidated statements of income (loss), comprehensive income (loss), changes in equity and cash flow
for the years then ended, including the related notes (collectively referred to as the consolidated
financial statements). We also have audited the Company’s internal control over financial reporting as
of December 31, 2023, based on criteria established in Internal Control – Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of the Company as of December 31, 2023 and 2022, and its financial
performance and its cash flows for the years then ended in conformity with IFRS Accounting Standards
as issued by the International Accounting Standards Board. Also in our opinion, the Company
maintained, in all material respects, effective internal control over financial reporting as of December
31, 2023, based on criteria established in Internal Control – Integrated Framework (2013) issued by the
COSO.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining
effective internal control over financial reporting, and for its assessment of the effectiveness of internal
control over financial reporting, included in the accompanying Management’s Report on Internal
Control Over Financial Reporting. Our responsibility is to express opinions on the Company’s
consolidated financial statements and on the Company’s internal control over financial reporting based
on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that
we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement, whether due to error or fraud, and whether effective
internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks
of material misstatement of the consolidated financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits
2023 Annual Report
55
also included evaluating the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the consolidated financial statements. Our audit of
internal control over financial reporting included obtaining an understanding of internal control over
financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk. Our audits also
included performing such other procedures as we considered necessary in the circumstances. We
believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company’s internal
control over financial reporting includes those policies and procedures that (i) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made only
in accordance with authorizations of management and directors of the company; and (iii) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the
risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the
consolidated financial statements that was communicated or required to be communicated to the audit
committee and that (i) relates to accounts or disclosures that are material to the consolidated financial
statements and (ii) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the consolidated
financial statements, taken as a whole, and we are not, by communicating the critical audit matter
below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to
which it relates.
Assessment of impairment indicators of stream, royalty and other interests
As described in Notes 3 and 5 to the consolidated financial statements, the Company’s stream, royalty
and other interests carrying amount was $1,560 million as of December 31, 2023. Management assesses
whether any indication of impairment exists at the end of each reporting period for each stream, royalty
and other interest, including assessing whether there are observable indications that the asset’s value
2023 Annual Report
56
has declined during the period. If such an indication exists, the recoverable amount of the interest is
estimated in order to determine the extent of the impairment (if any). Management uses judgment
when assessing whether there are indicators of impairment, such as significant changes in future
commodity prices, discount rates, operator reserve and resource estimates or other relevant information
received from the operators that indicates production from the interests will not likely occur or may be
significantly reduced in the future.
The principal considerations for our determination that performing procedures relating to the
assessment of impairment indicators of stream, royalty and other interests is a critical audit matter are
(i) the judgment by management when assessing whether there were indicators of impairment related to
significant changes in future commodity prices, discount rates, operator reserve and resource estimates
or other relevant information received from the operators that indicates production from the interests
will not likely occur or may be significantly reduced in the future; (ii) a high degree of auditor judgment,
subjectivity and effort in performing procedures and evaluate audit evidence related to management’s
assessment of impairment indicators of stream, royalty and other interests.
Addressing the matter involved performing procedures and evaluating audit evidence in connection
with forming our overall opinion on the consolidated financial statements. These procedures included
testing the effectiveness of controls relating to management’s review of the assessment of impairment
indicators of stream, royalty and other interests. These procedures also included, among others,
evaluating the reasonableness of management’s assessment of indicators of impairment for a sample of
stream, royalty and other interests, related to significant changes in future commodity prices, discount
rates, operator reserve and resource estimates or other relevant information received from the operators
that indicates production from the interests will not likely occur or may be significantly reduced in the
future, by considering (i) the current and past performance of the underlying mining operation
associated with the interest; (ii) external market and industry data; (iii) the publicly disclosed
information by operators of the underlying mining operation associated with the interests; and (iv)
consistency with evidence obtained in other areas of the audit.
/s/PricewaterhouseCoopers LLP
Chartered Professional Accountants
Vancouver, Canada
February 15, 2024
We have served as the Company’s auditor since 2016.
2023 Annual Report
57
Consolidated Financial
Statements
For the Year Ended December 31, 2023
58
2023 Annual Report
Consolidated Statements of Financial Position
Expressed in U.S. Dollars ($000s)
ASSETS
Current
Cash and cash equivalents
Trade and other receivables
Short-term investments
Other current assets
Non-Current
Stream, royalty and other interests
Investments in associates
Investments
Other long-term assets
Total assets
LIABILITIES
Current
Trade payables and other
Non-Current
Bank debt
Deferred income tax and other liabilities
EQUITY
Share capital
Reserves
Retained earnings
Accumulated other comprehensive loss
Equity attributable to Sandstorm Gold Ltd.’s shareholders
Non-controlling interests
Total liabilities and equity
Commitments and contingencies (note 16)
Note
December 31, 2023
December 31, 2022
8
7
5
6
7
10 (b)
9
12
10
$
$
$
$
$
$
$
5,003 $
16,065
28,400
4,310
53,778 $
7,029
21,394
3,773
531
32,727
1,560,416 $
1,781,256
57,559
230,474
29,199
27,265
126,117
7,412
1,931,426 $
1,974,777
16,193 $
19,041
435,000 $
26,252
477,445 $
497,500
16,831
533,372
11
$
1,312,352 $
1,318,622
28,716
122,917
(34,984)
24,647
98,921
(27,490)
$
$
1,429,001 $
1,414,700
24,980
26,705
1,931,426 $
1,974,777
The accompanying notes are an integral part of these consolidated financial statements.
On Behalf of the Board:
“Nolan Watson”, Director
“David De Witt”, Director
2023 Annual Report
59
Consolidated Statements of Income (Loss)
Expressed in U.S. Dollars ($000s)
Except for per share amounts
Sales
Royalty revenue
Cost of sales, excluding depletion
Depletion
Total cost of sales
Gross profit
Expenses and other (income)
Administration expenses1
Project evaluation1
Finance expense
Gain on revaluation of investments
Contractual income from stream, royalty and other interests
Share of net loss of associates
Gain on disposal of stream, royalty and other interests
Stream, royalty and other interests impairments
Gain on disposal of investment in associate
Other
Income before taxes
Current income tax expense
Deferred income tax (recovery) expense
Total income tax expense
Net income for the year
Net income for the year attributable to:
Sandstorm Gold Ltd.’s shareholders
Non-controlling interests
Earnings per share attributable to Sandstorm Gold Ltd.’s shareholders:
Basic earnings per share
Diluted earnings per share
Weighted average number of common shares outstanding
Basic
Diluted
1.
Equity settled share-based compensation (a non-cash item) is included in
administration expenses and project evaluation
7
17
10
11 (e)
11 (e)
$
$
$
$
$
$
$
The accompanying notes are an integral part of these consolidated financial statements.
Note
17
17
17
17
$
$
$
$
Year Ended
December 31, 2023
Year Ended
December 31, 2022
106,584 $
73,052
179,636 $
21,677
75,337
97,014 $
97,815
50,917
148,732
23,366
59,780
83,146
82,622 $
65,586
13
$
14,373 $
7,153
39,515
(15,671)
(11,810)
2,141
(1,949)
1,627
—
331
46,912 $
8,706
(4,503)
4,203 $
13,394
7,434
17,286
(1,756)
—
3,654
(25,833)
1,086
(37,396)
(52)
87,769
5,261
4,058
9,319
42,709 $
78,450
41,716 $
993
0.14 $
0.14 $
78,361
89
0.34
0.33
297,406,309
299,991,157
231,348,386
234,318,180
7,616 $
6,101
60
2023 Annual Report
Consolidated Statements of Comprehensive Income (Loss)
Expressed in U.S. Dollars ($000s)
Net income for the year
Other Comprehensive (Loss) Income for the Year
Items that may subsequently be reclassified to net income:
Currency translation differences
Currency translation differences reclassified to net income
Items that will not subsequently be reclassified to net income:
Loss on FVTOCI investments and other
Tax recovery on FVTOCI investments
Total other comprehensive (loss) gain for the year
Total comprehensive income for the year
Note
Year Ended
December 31, 2023
Year Ended
December 31, 2022
$
$
$
$
42,709 $
78,450
(65) $
—
(8,520)
1,091
(7,494) $
35,215 $
(12,900)
149,473
(8,450)
896
129,019
207,469
The accompanying notes are an integral part of these consolidated financial statements.
2023 Annual Report
61
Consolidated Statements of Cash Flow
Expressed in U.S. Dollars ($000s)
Cash flow from (used in):
OPERATING ACTIVITIES
Net income for the year
Items not affecting cash:
Depletion and depreciation
Interest expense and financing amortization
Gain on revaluation of investments
Share-based payments
Deferred income tax (recovery) expense
Share of net loss of associates
Gain on disposal of stream, royalty and other interests
Stream, royalty and other interests impairments
Unrealized foreign exchange loss
Gain on disposal of investment in associate
Other
Changes in non-cash working capital
INVESTING ACTIVITIES
Acquisition of investments and other assets
Acquisition of stream, royalty, and other interests
Proceeds from disposal of stream, royalty and other interests
Proceeds from disposal of investments and other
Investment in Hod Maden interest
FINANCING ACTIVITIES
Bank debt drawn
Bank debt repaid
Interest paid
Dividends paid
Redemption of common shares (normal course issuer bid) and other
Proceeds from issuance of common shares net of financing costs
Effect of exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents — beginning of the year
Cash and cash equivalents — end of the year
Supplemental cash flow information (note 14)
Note
Year Ended
December 31, 2023
Year Ended
December 31, 2022
6
5
14
5
$
$
$
$
$
$
$
$
$
$
42,709 $
78,450
75,927 $
39,400
(15,671)
7,616
(4,503)
2,141
(1,949)
1,627
1,349
—
2,411
1,697
152,754 $
(30,534) $
(20,943)
23,554
5,741
—
60,239
17,193
(1,756)
6,101
4,058
3,654
(25,833)
1,086
765
(37,396)
3,245
(2,890)
106,916
(33,432)
(620,790)
38,113
7,255
(3,818)
(22,182) $
(612,672)
41,500 $
(104,000)
(35,720)
(17,736)
(15,970)
—
(131,926) $
653,122
(212,372)
(15,159)
(13,637)
(421)
86,031
497,564
(672) $
(945)
(2,026) $
7,029
5,003 $
(9,137)
16,166
7,029
The accompanying notes are an integral part of these consolidated financial statements.
62
2023 Annual Report
Consolidated Statements of Changes in Equity
Expressed in U.S. dollars ($000s)
Share Capital
Reserves
Note
Number
Amount
Share Options,
Warrants and
Restricted
Share Rights
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Total equity
attributable to
Sandstorm
Gold Ltd.’s
shareholders
Non-
controlling
interests
Total
At January 1, 2022
191,653,454 $
694,675 $
18,903 $
35,569 $
(156,509) $
592,638 $
— $
592,638
Shares issued for Nomad
Royalty acquisition
Warrants and options issued
for Nomad Royalty
acquisition
Acquisition of CMC non-
controlling interest
Shares issued for BaseCore
acquisition
Shares issued in equity
financing
74,382,930
454,089
—
—
—
—
—
13,495,276
75,304
18,055,000
92,081
2,776
—
—
—
Options exercised
11 (b)
1,130,218
6,124
(1,430)
Warrants exercised
11 (c)
484
5
—
Vesting of restricted share
rights
Acquisition and cancellation
of common shares (normal
course issuer bid)
Share-based payments
Share issuance costs
Dividends declared
Total comprehensive income
(loss)
314,100
1,703
(1,703)
(187,801)
(940)
—
—
—
—
—
—
6,101
(4,419)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(15,009)
—
—
—
—
—
—
—
—
—
—
—
—
454,089
2,776
—
—
454,089
2,776
—
27,568
27,568
75,304
92,081
4,694
5
—
(940)
6,101
(4,419)
—
—
—
—
—
—
—
—
75,304
92,081
4,694
5
—
(940)
6,101
(4,419)
(15,009)
(952)
(15,961)
78,361
129,019
207,380
89
207,469
At December 31, 2022
298,843,661 $ 1,318,622 $
24,647 $
98,921 $
(27,490) $ 1,414,700 $
26,705 $ 1,441,405
Options exercised
11 (b)
1,147,066
6,102
(1,031)
Vesting of restricted share
rights
Acquisition and cancellation
of common shares (normal
course issuer bid)
Share-based payments
Share issuance costs
Dividends declared
11 (a)
Total comprehensive income
(loss)
463,506
2,516
(2,516)
11 (a)
(2,787,995)
(14,385)
—
—
—
—
—
—
7,616
(503)
—
—
—
—
—
—
—
—
—
—
(17,720)
—
—
—
—
—
—
5,071
—
(14,385)
7,616
(503)
—
—
—
—
—
5,071
—
(14,385)
7,616
(503)
(17,720)
(2,718)
(20,438)
41,716
(7,494)
34,222
993
35,215
At December 31, 2023
297,666,238 $ 1,312,352 $
28,716 $ 122,917 $
(34,984) $ 1,429,001 $
24,980 $ 1,453,981
The accompanying notes are an integral part of these consolidated financial statements.
2023 Annual Report
63
Financial Statements
Notes to the Consolidated Financial
Statements
December 31, 2023 | Expressed In U.S. Dollars
1. Nature of Operations
Sandstorm Gold Ltd. was incorporated under the Business Corporations Act of British Columbia on
March 23, 2007. Sandstorm Gold Ltd. and its subsidiary entities (collectively “Sandstorm”, “Sandstorm
Gold” or the “Company”) is a resource-based company that seeks to acquire gold and other metals
purchase agreements (“Gold Streams” or “Streams”) and royalties from companies that have advanced
stage development projects or operating mines. In return for making an upfront payment to acquire a
Stream or royalty, Sandstorm receives the right to purchase, at a fixed price per unit or at a fixed
percentage of the spot price, a percentage of a mine’s production for the life of the mine (in the case of a
Stream) or a portion of the revenue generated from the mine (in the case of a royalty).
The head office, principal address and registered office of the Company are located at Suite 3200, 733
Seymour Street, Vancouver, British Columbia V6B 0S6.
These consolidated financial statements were authorized for issue by the Board of Directors of the
Company on February 15, 2024.
2. Summary of Material Accounting Policies
A Statement of Compliance
These consolidated financial statements, including comparatives, have been prepared in accordance
with International Financial Reporting Standards Accounting Standards as issued by the International
Accounting Standards Board (“IFRS Accounting Standards” or "IFRS").
B Basis of Presentation
These consolidated financial statements have been prepared on a historical cost basis except for certain
financial instruments, which are measured at fair value.
The consolidated financial statements are presented in United States dollars, and all values are rounded
to the nearest thousand except as otherwise indicated.
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Financial Statements
C Principles of Consolidation
These consolidated financial statements include the accounts of the Company and its subsidiaries which
are wholly owned: Inversiones Mineras Australes Holdings (BVI) Inc., Inversiones Mineras Australes
S.A., Premier Royalty U.S.A. Inc., SA Targeted Investing Corp., Sandstorm Metals & Energy (US) Inc.
Coral Resources Inc., and Nomad Royalty Company Ltd. Subsidiaries are fully consolidated from the
date the Company obtains control and continue to be consolidated until the date that control ceases.
These consolidated financial statements also include the accounts of the Company’s 67.5% interest in
Compañia Minera Caserones (“CMC”). The non-controlling interest related to this entity has been
recorded in equity. Sandstorm consolidates the results of CMC on a 100% basis, with the proportionate
share of net income (loss) and comprehensive (loss) attributable to owners of the Company and non-
controlling interest presented separately. Control is achieved when the Company is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity.
All intercompany balances, transactions, revenues and expenses have been eliminated on consolidation.
D Investments in Associates
An associate is an entity over which the Company has significant influence and is neither a subsidiary
nor a joint arrangement. The Company has significant influence when it has the power to participate in
the financial and operating policy decisions of the associate but does not have control or joint control
over those policies.
The Company accounts for its investments in associates using the equity method. Under the equity
method, the Company’s investments in associates are initially recognized at cost when acquired and
subsequently increased or decreased to recognize the Company’s share of net income and losses of the
associate, after any adjustments necessary to give effect to uniform accounting policies, any other
movement in the associate’s reserves, and for impairment losses after the initial recognition date. The
Company’s share of income and losses of the associate is recognized in net income during the period.
Unrealized gains on transactions between the Company and an associate are eliminated to the extent of
the Company’s interest in the associate. Unrealized losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. Dilution gains and losses arising from
changes in interests in investments in associates are recognized in the consolidated statement of income
or loss. Dividends received from the associate are accounted for as a reduction in the carrying amount of
the Company’s investment.
E Stream, Royalty and Other Interests
Stream, royalty and other interests consist of acquired royalty and Stream metal purchase agreements.
These interests are recorded at cost and capitalized as long term tangible assets with finite lives. They
are subsequently measured at cost less accumulated depletion and accumulated impairment losses, if
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65
Financial Statements
any. Project evaluation costs that are not related to a specific agreement are expensed in the period
incurred.
Stream, royalty and other interests related to producing mines are depleted using the units-of-
production method over the life of the property to which the agreement relates, which is estimated using
available information of proven and probable Reserves and the portion of Resources expected to be
classified as Mineral Reserves at the mine corresponding to the specific interest.
On acquisition of a Stream, royalty or other interest, an allocation of its cost may be attributed to the
exploration potential of the interest and is recorded as a non-depletable asset on the acquisition date.
The value of the exploration potential is accounted for by reference to IFRS 6, Exploration and
Evaluation of Mineral Resources and is not depleted until such time as the technical feasibility and
commercial viability have been established at which point the value of the asset is accounted for by
reference to IAS 16, Property, Plant and Equipment.
F Impairment of Stream, Royalty and Other Interests
Evaluation of the carrying values of each Stream, royalty and other interest is undertaken when events
or changes in circumstances indicate that the carrying values may not be recoverable and at each
reporting period. If any indication of impairment exists, the recoverable amount is estimated to
determine the extent of any impairment loss. The recoverable amount is the higher of the fair value less
costs of disposal and value in use.
Fair value is the price that would be received from selling an asset in an orderly transaction between
market participants at the measurement date. Costs of disposal are incremental costs directly
attributable to the disposal of an asset. Fair value less costs of disposal is usually estimated using a
discounted cash flow approach. Estimated future cash flows are calculated using estimated production,
sales prices, and a discount rate. Estimated production is determined using current Reserves and the
portion of Resources expected to be classified as Mineral Reserves as well as exploration potential
expected to be converted into Resources. Estimated sales prices are determined by reference to a long-
term metal price forecasts by analysts and management’s expectations. The discount rate is estimated
using a discount rate incorporating analyst views and management’s expectations to value precious
metal royalty companies. Value in use is determined as the present value of future cash flows expected
to be derived from continuing use of an asset in its present form for those assets where value in use
exceeds fair value less costs of disposal. If it is determined that the recoverable amount is less than the
carrying value, then an impairment is recognized within net income (loss) immediately.
An assessment is made at each reporting period if there is any indication that a previous impairment
loss may no longer exist or has decreased. If any indications are present, the carrying amount of the
Stream, royalty and other interest is increased to the revised estimate of its recoverable amount, but so
that the increased carrying amount does not exceed the carrying amount net of depletion that would
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Financial Statements
have been determined had no impairment loss been recognized for the Stream, royalty and other
interest in previous periods.
G Revenue Recognition
Revenue is comprised of revenue earned in the period from contracts with customers under each of its
royalty and Stream interests. The Company has determined that each unit of a commodity that is
delivered to a customer under a royalty and Stream interest is a performance obligation for the delivery
of a good that is separate from each other unit of the commodity to be delivered under the same
arrangement. In accordance with IFRS 15, the Company recognizes revenue to depict the transfer of the
relevant commodity to customers in an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those commodities.
For Stream interests, revenue recognition occurs when the relevant commodity received from the
Stream operator is transferred by the Company to its third-party customers.
For royalty interests, revenue recognition occurs when the relevant commodity is transferred to the end
customer by the operator of the royalty property. Revenue is measured at the fair value of the
consideration received or receivable when management can reliably estimate the amount, pursuant to
the terms of the royalty agreement. In some instances, the Company will not have access to sufficient
information to make a reasonable estimate of consideration to which it expects to be entitled and,
accordingly, revenue recognition is deferred until management can make a reasonable estimate.
Differences between estimates and actual amounts are adjusted and recorded in the period that the
actual amounts are known.
H Foreign Currency Translation
The functional currency of the Company and its subsidiaries is the principal currency of the economic
environment in which they operate. For the Company and its subsidiaries Inversiones Mineras
Australes Holdings (BVI) Inc., Inversiones Mineras Australes S.A., Premier Royalty U.S.A. Inc., SA
Targeted Investing Corp., Sandstorm Metals & Energy (US) Inc., Coral Resources Inc., Nomad Royalty
Company Ltd., the company's interest in CMC, the Company’s Sandbox Royalty Corp. investment in
associate and the Company's Horizon Copper Corp. investment in associate, the functional currency is
the U.S. dollar.
Transactions in foreign currencies are initially recorded in the entity’s functional currency as the rate on
the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are
translated using the closing rate as at the reporting date.
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Financial Statements
I Financial Instruments
The Company’s financial instruments consist of cash and cash equivalents, trade receivables and other,
short and long-term investments, loans receivable, trade payables and other and bank debt. All financial
instruments are initially recorded at fair value and designated as follows:
Cash and cash equivalents, trade receivables and other, and loans receivable are classified as financial
assets at amortized cost and trade payables and other and bank debt are classified as financial liabilities
at amortized cost. Both financial assets at amortized cost and financial liabilities at amortized cost are
measured at amortized cost using the effective interest method.
The Company’s financial assets which are subject to credit risk include cash and cash equivalents, trade
receivables and other and loans receivable. At December 31, 2022 and December 31, 2023, the Company
determined that the expected credit losses on its financial assets were nominal. There were no material
impairment losses recognized on financial assets during the years ended December 31, 2023 and
December 31, 2022.
Investments in common shares are held for long-term strategic purposes and not for trading. The
Company has made an irrevocable election to designate all these investments as fair value through other
comprehensive income (“FVTOCI”) in order to provide a more meaningful presentation based on
management’s intention, rather than reflecting changes in fair value in net income. Such investments
are measured at fair value at the end of each reporting period, with any gains or losses arising on re-
measurement recognized as a component of other comprehensive income under the classification of
gain (loss) on revaluation of investments. Cumulative gains and losses are not subsequently reclassified
to profit or loss.
Investments in warrants and convertible debt instruments are classified as fair value through profit or
loss (“FVTPL”). These warrants and convertible debt instruments are measured at fair value at the end
of each reporting period, with any gains or losses arising on re-measurement recognized as a component
of net income (loss) under the classification of gain (loss) on revaluation of investments.
Transaction costs on initial recognition of financial instruments classified as FVTPL are expensed as
incurred. Transaction costs incurred on initial recognition of financial instruments classified as loans
and receivables, FVTOCI and other financial liabilities are recognized at their fair value amount and
offset against the related loans and receivables or capitalized when appropriate.
Financial assets are derecognized when the contractual rights to the cash flows from the asset expire.
Financial liabilities are derecognized only when the Company’s obligations are discharged, cancelled or
they expire. On derecognition, the difference between the carrying amount (measured at the date of
derecognition) and the consideration received (including any new asset obtained less any new liability
obtained) is recognized in profit or loss.
In August 2020, the International Accounting Standards Board issued Interest Rate Benchmark Reform
– Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) (“IBOR Amendments”), which
68
2023 Annual Report
Financial Statements
is applied to potential changes in contractual cash flows of a financial asset or financial liability as a
result of replacing an interest rate benchmark with an alternative benchmark rate. The Company has
adopted the IBOR Amendments retrospectively. The new standard did not have a material impact on
the Company’s consolidated financial statements.
J Inventory
When refined gold or the applicable commodity, under the Stream agreement, is delivered to the
Company, it is recorded as inventory. The amount recognized for inventory includes both the cash
payment and the related depletion associated with the related Stream interest.
K Cash and Cash Equivalents
Cash and cash equivalents include cash on account, demand deposits and money market investments
with maturities from the date of acquisition of three months or less, which are readily convertible to
known amounts of cash and are subject to insignificant changes in value.
L Income Taxes
Current income tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used are those that are substantively enacted
at the reporting date.
Deferred income taxes are provided for using the liability method on temporary differences at the
reporting date between the tax bases of assets and liabilities and their carrying amounts for accounting.
The change in the net deferred income tax asset or liability is included in income except for deferred
income tax relating to equity items which is recognized directly in equity, and relating to investments in
common shares designated as FVTOCI which is recognized in other comprehensive income. The income
tax effects of differences in the periods when revenue and expenses are recognized in accordance with
Company accounting practices, and the periods they are recognized for income tax purposes are
reflected as deferred income tax assets or liabilities. Deferred income tax assets and liabilities are
measured using the substantively enacted statutory income tax rates which are expected to apply to
taxable income in the years in which the assets are realized or the liabilities settled. A deferred tax asset
is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it
is probable that future taxable profits will be available for utilization. Temporary differences are not
provided for the initial recognition of assets or liabilities that affect neither accounting nor taxable
earnings.
Deferred income tax assets and liabilities are offset only if a legally enforceable right exists to offset
current tax assets against liabilities and the deferred tax assets and liabilities relate to income taxes
2023 Annual Report
69
Financial Statements
levied by the same taxation authority on the same taxable entity and are intended to be settled on a net
basis.
The determination of current and deferred taxes requires interpretations of tax legislation, estimates of
expected timing of reversal of deferred tax assets and liabilities, and estimates of future earnings.
M Share Capital and Share Purchase Warrants
The proceeds from the issue of units are allocated between common shares and share purchase warrants
(with an exercise price denominated in U.S. dollars) on a pro-rata basis based on relative fair values at
the date of issuance. The fair value of common shares is based on the market closing price on the date
the units are issued and the fair value of share purchase warrants is determined using the quoted
market price or if the warrants are not traded, using the Black-Scholes Model (“BSM”) as of the date of
issuance. Equity instruments issued to agents as financing costs are measured at their fair value at the
date the services were provided. Upon exercise, the original consideration is reallocated from share
purchase warrants reserve to issued share capital along with the associated exercise price. Original
consideration associated with expired share purchase warrants is reallocated to issued share capital.
N Earnings Per Share
Basic earnings per share is computed by dividing the net income available to Sandstorm common
shareholders by the weighted average number of common shares issued and outstanding during the
period. Diluted earnings per share is calculated assuming that outstanding share options and share
purchase warrants, with an average market price that exceeds the average exercise prices of the options
and warrants for the year, are exercised and the proceeds are used to repurchase shares of the Company
at the average market price of the common shares for the year.
O Share Based Payments
The Company recognizes share based compensation expense for all share purchase options and
restricted share rights (“RSRs”) awarded to employees, officers and directors based on the fair values of
the share purchase options and RSRs at the date of grant. The fair values of share purchase options and
RSRs at the date of grant are expensed over the vesting periods of the share purchase options and RSRs,
respectively, with a corresponding increase to equity. The fair value of share purchase options is
determined using the BSM with market related inputs as of the date of grant. Share purchase options
with graded vesting schedules are accounted for as separate grants with different vesting periods and
fair values. The fair value of RSRs is the market value of the underlying shares at the date of grant. At
the end of each reporting period, the Company re-assesses its estimates of the number of awards that
are expected to vest and recognizes the impact of any revisions to this estimate in the Consolidated
Statements of Income (Loss).
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The BSM requires management to estimate the expected volatility and expected term of the equity
instrument, the risk-free rate of return over the term, expected dividends, and the number of equity
instruments expected to ultimately vest. The Company uses its competitors market data with respect to
expected volatility and expected dividend yield to the extent these factors are indicative of the
Company’s future expectations. The expected term is estimated using historical exercise data, and the
number of equity instruments expected to vest is estimated using historical forfeiture data.
P Related Party Transactions
Parties are considered related if one party has the ability, directly or indirectly, to control the other party
or exercise significant influence over the other party. Parties are also considered related if they are
subject to common control or significant influence. A transaction is considered a related party
transaction when there is a transfer of resources or obligations between related parties.
Q Segment Reporting
An operating segment is a component of the Company that engages in business activities from which it
may earn revenues and incur expenses. The Company’s operating segments are components of the
Company’s business for which discrete financial information is available and which are reviewed
regularly by the Company’s Chief Executive Officer to make decisions about resources to be allocated to
the segment and assess its performance.
R Leases
Upon lease commencement, the Company recognizes a right-of-use asset and a corresponding lease
liability unless the lease term is twelve months or less or the underlying asset has a low value. Lease
liabilities are initially measured at the present value of the lease payments payable over the lease term,
discounted at the rate implicit in the lease; if this rate cannot be determined, the incremental borrowing
rate is used. Lease liabilities are subsequently measured by increasing the carrying amount to reflect
interest on the lease liability, using the effective interest method, and by reducing the carrying amount
to reflect the lease payments made. Right-of-use assets are initially measured at the amount of the lease
liability plus any initial direct costs incurred and are amortized over the life of the lease on a straight-
line basis. Lease liabilities and right-of-use assets are re-measured when there are changes to the terms
of the lease.
S Non-controlling Interests
The Company owns a 67.5% interest in Compañia Minera Caserones (“CMC”), which holds the
Caserones Royalty. The non-controlling interest related to this entity has been recorded in equity.
Sandstorm consolidates the results of CMC on a 100% basis, with the proportionate share of net income
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71
Financial Statements
(loss) and comprehensive income (loss) attributable to owners of the Company and non-controlling
interest presented separately.
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the
Company’s equity therein. Non-controlling interests consist of the amount of those interests at the date
of the original acquisition and the non-controlling interest’s share of changes in equity since the date of
the acquisition.
New and Amended Accounting Policies
The Company has applied the following accounting standard amendments which are effective January 1,
2023. New and amended accounting standards that are not applicable to the Company have been
excluded from this note. The amendments listed below did not have any impact on the amounts
recognized in prior and current periods and are not expected to significantly impact future periods.
•
•
Definition of Accounting Estimates – amendments to IAS 8
Disclosure of Accounting Policies – amendments to IAS 1 and IFRS Practice Statement 2
Certain amendments to accounting standards have been published that are not mandatory for the
December 31, 2023 reporting periods and have not been early adopted by the Company. These
amendments are not expected to have a material impact on the entity in the current or future reporting
periods.
3. Key Sources of Estimation Uncertainty and Critical
Accounting Judgments
The preparation of the Company’s consolidated financial statements in conformity with IFRS
Accounting Standards requires management to make judgments, estimates and assumptions that affect
the reported amounts of assets, liabilities and contingent liabilities at the date of the consolidated
financial statements and reported amounts of revenues and expenses during the reporting period.
Estimates and assumptions are continuously evaluated and are based on management’s experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances. However, actual outcomes can differ from these estimates.
Information about significant sources of estimation uncertainty and judgments made by management in
preparing the consolidated financial statements are described below.
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2023 Annual Report
Financial Statements
A Attributable Reserve and Resource Estimates
Stream, royalty and other interests are a significant class of assets of the Company, with a carrying value
of $1,560.4 million at December 31, 2023 (2022 — $1,781.3 million). This amount represents the
capitalized expenditures related to the acquisition of the Stream, royalty and other interests net of
accumulated depletion and any impairments. The Company estimates the Reserves and Resources
relating to each interest. Management estimates Mineral Reserves and Resources based on information
compiled by appropriately qualified persons. Reserves and Resources are estimates of the amount of
minerals that can be economically and legally extracted from the mining properties at which the
Company has Stream and royalty interests, adjusted where applicable to reflect the Company’s
percentage entitlement to minerals produced from such mines. The public disclosures of Reserves and
Resources that are released by the operators of the interests involve assessments of geological and
geophysical studies and economic data and the reliance on a number of assumptions, including
commodity prices and production costs. The estimates of Reserves and Resources may change based on
additional knowledge gained subsequent to the initial assessment. Changes in the estimates of Reserves
or Resources may impact the carrying value of the Company’s Stream, royalty and other interests and
depletion charges.
The Company’s Stream and royalty interests are depleted on a units-of-production basis, with estimated
recoverable Reserves and Resources being used to determine the depletion rate for each of the
Company’s Stream and royalty interests. These calculations require determination of the amount of
recoverable Resources to be converted into Reserves. Changes to depletion rates are accounted for
prospectively.
B Investments
In the normal course of operations, the Company invests in equity interests of other entities. In such
circumstances, management considers whether the facts and circumstances pertaining to each such
investment result in the Company obtaining control, joint control or significant influence over the
investee entity. In some cases, the determination of whether or not the Company controls, jointly
controls or significantly influences the investee entities requires the application of significant
management judgment to consider individually and collectively such factors as:
•
•
•
•
The purpose and design of the investee entity.
The ability to exercise power, through substantive rights, over the activities of the investee entity that
significantly affect its returns.
The size of the Company’s equity ownership and voting rights, including potential voting rights.
The size and dispersion of other voting interests, including the existence of voting blocks.
2023 Annual Report
73
Financial Statements
•
•
Other investments in or relationships with the investee entity including, but not limited to, current or possible
board representation, royalty and/or Stream investments, loans and other types of financial support, material
transactions with the investee entity, interchange of managerial personnel or consulting positions.
Other relevant and pertinent factors.
If it is determined that the Company neither has control, joint control or significant influence over an
investee entity, the Company accounts for the corresponding investment in equity interest at fair value
through other comprehensive income as further described in note 2.
C Income Taxes
The interpretation of existing tax laws or regulations in Canada, the United States of America, Australia,
Argentina, Ecuador, Turkey, Guernsey, Mexico, Brazil, Chile or any of the countries in which the mining
operations are located or to which shipments of gold and other metals are made requires the use of
judgment. Differing interpretation of these laws or regulations could result in an increase in the
Company’s taxes, or other governmental charges, duties or impositions. To the extent there are
uncertain tax provisions, the Company measures the impact of the uncertainty using the method that
best predicts the resolution of the uncertainty. The judgements and estimates made to recognize and
measure the effect of uncertain tax treatments are reassessed whenever circumstances change or when
there is new information that affects those judgements. In addition, the recoverability of deferred
income tax assets, including expected periods of reversal of temporary differences and expectations of
future taxable income, are assessed by management at the end of each reporting period and adjusted, as
necessary, on a prospective basis. Refer to note 10 for more information.
D Impairment of Assets
There is judgment required to determine whether any indication of impairment exists at the end of each
reporting period for each Stream, royalty and other interest and investment in associate, including
assessing whether there are observable indications that the asset’s value has declined during the period.
Management uses judgment when assessing whether there are indicators of impairment, such as
significant changes in future commodity prices, discount rates, operator Reserve and Resource
estimates or other relevant information received from the operators that indicates production from
Stream and royalty interests will not likely occur or may be significantly reduced in the future. If such an
indication exists, the recoverable amount of the interest is estimated in order to determine the extent of
the impairment (if any). The recoverable amount is the higher of the fair value less costs of disposal and
value in use. The calculation of the recoverable amount requires the use of estimates and assumptions
such as long-term commodity prices, discount rates, and operating performance.
The recoverable amount is determined using a discounted cash flow model. The discount rate is based
on the Company’s weighted average cost of capital, adjusted for various risks. The expected future cash
flows are management’s best estimates of expected future revenues and costs. Under each method,
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2023 Annual Report
Financial Statements
expected future revenues reflect the estimated future production for each mine at which the Company
has a Stream or royalty based on detailed life of mine plans received from each of the mine operators.
Included in these forecasts is the production of Mineral Resources that do not currently qualify for
inclusion in proven and probable ore Reserves where there is a high degree of confidence in its
economic extraction. This is consistent with the methodology that is used to measure value beyond
proven and probable Reserves when determining the fair value attributable to acquired Stream and
royalty interests. Expected future revenues also reflect management’s estimated long term metal prices,
which are determined based on current prices, forward pricing curves and forecasts of expected long-
term metal prices prepared by analysts. These estimates often differ from current price levels but are
consistent with how a market participant would assess future long-term metal prices. Estimated future
cash costs are established based on the terms of each Stream, royalty and other interest, as disclosed in
note 16 to the financial statements.
E Accounting for Acquisition of Assets and Stream, Royalty and Other Interests
The Company’s business is the acquisition of Streams, royalties and other interests. Each Stream,
royalty and other interest has its own unique terms and judgement is required to assess the appropriate
accounting treatment. The determination of whether an acquisition should be accounted for as a
Stream, royalty and other interest or a financial instrument requires the consideration of factors such as
(i) the terms of the agreement; (ii) the applicability of the own use exemption under IFRS 9; (iii)
whether there is a contractual commitment to repay amounts under the Stream; and (iv) the expected
timing and amount of future deliveries of gold, silver and other commodities under the Stream with
reference to the existing mine plan.
The assessment of whether an acquisition meets the definition of a business, or a group of assets
acquired is another area of key judgement. If deemed to be a business combination, applying the
acquisition method to business combinations requires each identifiable asset and liability to be
measured at its acquisition date fair value. The excess, if any, of the fair value of the consideration over
the fair value of the net identifiable assets acquired is recognized as goodwill. If deemed to be an asset
acquisition, consideration paid on acquisition date is allocated on a pro-rata basis to the assets acquired
based on their relative fair value. For both business combinations and acquisitions of a group of assets,
the determination of the acquisition date fair values often requires management to make assumptions
and estimates about future events.
To estimate the fair value of Stream, royalty and other interests, management utilizes a discounted cash
flow model. The assumptions and estimates with respect to determining the fair value of Stream, royalty
and other interests generally require a high degree of judgement and include estimates of conversion of
Mineral Reserves and Resources acquired, estimated future production, future commodity prices and
discount rates. Estimates of Mineral Reserves and Resources along with the estimated future production
serve to determine the mine life. Changes in any of the assumptions or estimates used in determining
the fair value of acquired assets and liabilities could impact the amounts assigned to assets and
2023 Annual Report
75
Financial Statements
liabilities. Similar judgments are applied to Stream, royalty and other interests received as
consideration.
F Functional Currency
The functional currency for each of the Company’s subsidiaries and associates is the currency of the
primary economic environment in which the entity operates. Determination of functional currency may
involve certain judgments to determine the primary economic environment and the Company
reconsiders the functional currency of its entities if there is a change in events and conditions which
determine the primary economic environment.
4. Financial Instruments
A Capital Risk Management
The Company manages its capital such that it endeavors to continue as a going concern while
maximizing the return to stakeholders through the optimization of the debt and equity balance. At
December 31, 2023, the capital structure of the Company consisted of $1,429.0 million (December 31,
2022 — $1,414.7 million) of equity attributable to common shareholders, comprising issued share
capital (note 11), accumulated reserves, retained earnings and other comprehensive loss. The Company
was not subject to any externally imposed capital requirements. The Company complies with certain
covenants under the Revolving Facility agreement governing bank debt. The Company was in
compliance with the debt covenants as at December 31, 2023.
B Fair Value Estimation
The fair value hierarchy establishes three levels to classify the inputs of valuation techniques used to
measure fair value. As required by IFRS 13, assets and liabilities are classified in their entirety based on
the lowest level of input that is significant to the fair value measurement. The three levels of the fair
value hierarchy are described below:
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for
identical, unrestricted assets or liabilities. Investments in common shares and warrants held that have
direct listings on an exchange are classified as Level 1.
Level 2 | Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in
active markets, or inputs that are observable, either directly or indirectly, for substantially the full term
of the asset or liability. Investments in warrants and convertible debt instruments held that are not
listed on an exchange are classified as Level 2. The fair value of warrants, convertible debt instruments
and related instruments are determined using a Black-Scholes model based on relevant assumptions
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2023 Annual Report
Financial Statements
including the risk free interest rate, expected dividend yield, expected volatility and expected warrant
life which are supported by observable current market conditions. The use of reasonably possible
alternative assumptions would not significantly impact the Company’s results.
Level 3 | Inputs that are unobservable (supported by little or no market activity). When a fair value
measurement of a Stream, royalty and other interest is required, it is determined using unobservable
discounted future cash flows. As a result, the fair values are classified within Level 3 of the fair value
hierarchy.
The following table sets forth the Company's financial assets and liabilities measured at fair value on a
recurring basis by level within the fair value hierarchy as at December 31, 2023 and December 31, 2022.
As at December 31, 2023:
In $000s
SHORT-TERM INVESTMENTS
Convertible debt
LONG-TERM INVESTMENTS
Common shares held
Warrants and other
Convertible debt
As at December 31, 2022:
In $000s
SHORT-TERM INVESTMENTS
Convertible debt
LONG-TERM INVESTMENTS
Common shares held
Warrants and other
Convertible debt
Quoted prices in
active markets for
identical assets
(Level 1)
Total
Significant other
observable inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
$
$
9,770 $
— $
9,770 $
17,682 $
17,682 $
— $
1,628
211,164
—
—
1,628
211,164
$
240,244 $
17,682 $
222,562 $
—
—
—
—
—
Quoted prices in
active markets for
identical assets
(Level 1)
Total
Significant other
observable inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
$
$
1,272 $
— $
1,272 $
19,025 $
19,025 $
— $
2,088
105,004
—
—
2,088
105,004
$
127,389 $
19,025 $
108,364 $
—
—
—
—
—
The fair value of the Company's other financial instruments, which include cash and cash equivalents,
trade and other receivables, loans receivable which are included in investments, and trade payables and
other, approximate their carrying values at December 31, 2023 and December 31, 2022 due to their
short-term nature. The fair value of the Company’s bank debt, which is measured using Level 2 inputs,
2023 Annual Report
77
Financial Statements
approximates its carrying value due to the nature of its market-based rate of interest. There were no
transfers between the levels of the fair value hierarchy during the year ended December 31, 2023 and
the year ended December 31, 2022.
C Credit Risk
The Company’s credit risk is limited to cash and cash equivalents, loans receivable which are included in
investments, trade and other receivables, and the Company’s investments in convertible debentures.
The Company’s trade and other receivables are subject to the credit risk of the counterparties who own
and operate the mines underlying Sandstorm’s royalty portfolio. Generally, the Company's cash and
cash equivalents held at financial institutions are in excess of the applicable deposit insurance company
coverage limits. In order to mitigate its exposure to credit risk, the Company closely monitors its
financial assets and maintains its cash deposits in several high-quality financial institutions. The impact
of expected credit losses on trade receivables and financial assets held at amortized cost is not material.
The Company’s investments in debentures are subject to counterparties’ credit risk. In particular, the
Company’s convertible debentures due from Horizon Copper Corp. (“Horizon Copper”), Bear Creek
Mining Corporation (“Bear Creek”) and Sandbox Royalties Corp. (“Sandbox”) are subject to their
respective credit risk, the Company’s ability to realize on its security and the net proceeds available
under that security.
D Liquidity Risk
The Company has in place a planning and budgeting process to help determine the funds required to
support the Company’s normal operating requirements on an ongoing basis. In managing liquidity risk,
the Company takes into account the amount available under the Company’s revolving credit facility,
anticipated cash flows from operating activities and its holding of cash and cash equivalents. As at
December 31, 2023, the Company had cash and cash equivalents of $5.0 million (December 31, 2022 —
$7.0 million). Sandstorm holds common shares, convertible debentures, warrants, investments and
loans receivable due from other companies with a combined fair market value as at December 31, 2023
of $258.9 million (December 31, 2022 — $129.9 million). The daily exchange traded volume of these
shares, including the shares underlying the warrants, may not be sufficient for the Company to liquidate
its position in a short period of time without potentially affecting the market value of the shares. The
Company's trade payables and other are due within one year. The Company's contractual obligations
related to bank debt and interest are disclosed in note 16.
78
2023 Annual Report
Financial Statements
E Market Risk
Market risk is the risk that the fair value or cash flows of a financial instrument will fluctuate due to
changes in interest rates, exchange rates or other prices such as equity prices and commodity prices.
INTEREST RATE RISK
The Company is exposed to interest rate risk on its bank debt and its investments in debentures. The
Company’s bank debt is subject to a floating interest rate. The Company monitors its exposure to
interest rates. During the year ended December 31, 2023, a 1% increase (decrease) in nominal interest
rates would have increased (decreased) interest expense by approximately $5.0 million and would not
have a material impact on the fair value of the Company’s investments in debentures.
CURRENCY RISK
Financial instruments that impact the Company’s net income (loss) or other comprehensive income
(loss) due to currency fluctuations include cash and cash equivalents, loans receivable which are
included in investments, trade and other receivables, lease liabilities and trade payables and other
denominated in Canadian dollars. Based on the Company's Canadian dollar denominated monetary
assets and monetary liabilities at December 31, 2023, a 10% increase (decrease) of the value of the
Canadian dollar relative to the United States dollar would increase (decrease) net income by
$2.0 million and would not have a material impact on other comprehensive income.
OTHER PRICE RISK
The Company is exposed to equity price risk as a result of holding investments in other mining
companies. The Company does not actively trade these investments. The equity prices of investments
are impacted by various underlying factors including commodity prices, the volatility in global markets
as a result of expectations of inflation and global events. Based on the Company's investments held as at
December 31, 2023, a 10% increase (decrease) in the equity prices of these investments would increase
(decrease) other comprehensive income by $1.7 million and would not have a material impact on net
income.
2023 Annual Report
79
Financial Statements
5. Stream, Royalty and Other Interests
A Carrying Amount
As of and for the year ended December 31, 2023:
Cost
Accumulated Depletion
In $000s
Opening
Net Additions
(Disposals)
Ending
Opening
Depletion
Depletion in
Ending
Inventory
Disposals
Impairment
Ending
Carrying
Amount
Antamina, Peru
$ 342,227 $
(154,545) $ 187,682 $
5,676 $
8,576 $
— $ (11,418) $
— $
2,834 $ 184,848
Aurizona, Brazil
11,091
Blyvoor,
South Africa
Bonikro,
Côte d'Ivoire
106,332
37,773
Caserones, Chile
82,678
Cerro Moro,
Argentina
74,261
Chapada, Brazil
69,561
Fruta del Norte,
Ecuador
Greenstone,
Canada
33,268
107,234
Horne 5, Canada
78,934
—
—
—
—
—
—
—
—
—
11,091
3,246
492
106,332
787
1,225
—
57
37,773
3,106
4,956
842
82,678
1,656
5,832
74,261
48,292
10,753
69,561
22,905
2,761
33,268
6,010
2,098
107,234
78,934
—
—
—
—
—
—
206,969
26
206,995
45,120
—
45,120
16,100
1,835
35,352
6
35,358
—
—
—
—
—
—
—
—
—
—
—
70,809
5,089
75,898
8,144
15,787
669
186,640
360
187,000
—
—
—
26,448
11,010
37,458
12,652
4,731
1,209
117,787
—
117,787
3,981
2,426
—
609,670
(14,091)
595,579
328,343
13,865
372
Hod Maden,
Türkiye
Houndé, Burkina
Faso
Hugo North
Extension and
Heruga,
Mongolia
Mercedes,
Mexico
Platreef,
South Africa
Relief Canyon,
USA
Vale Royalties,
Brazil
Other1
Total2
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3,738
7,353
2,069
104,263
8,904
28,869
7,488
75,190
59,045
15,216
25,666
43,895
8,108
25,160
—
—
—
107,234
78,934
206,995
17,935
27,185
—
35,358
24,600
51,298
—
187,000
18,592
18,866
6,407
111,380
1,627
344,207
251,372
$ 2,242,154 $ (152,145) $ 2,090,009 $ 460,898 $ 75,337 $
3,149 $ (11,418) $
1,627 $ 529,593 $ 1,560,416
1.
Includes Vatukoula, Black Fox, Highland Valley, El Pilar, Cortez Complex (Robertson Deposit), CEZinc, Gualcamayo, Lobo-Marte, Ağı Dağı &
Kirazlı and others.
2.
Stream, royalty and other interests includes non-depletable assets of $36.5 million and depletable assets of $1,523.9 million.
80
2023 Annual Report
Financial Statements
As of and for the year ended December 31, 2022:
In $000s
Opening
Cost
Net Additions
(Disposals)
Accumulated Depletion
Ending
Opening
Depletion
Impairment
Ending
Carrying
Amount
Antamina, Peru
$
— $
342,227 $
342,227 $
— $
5,676 $
— $
5,676 $
336,551
Aurizona, Brazil
11,091
—
11,091
2,867
Blyvoor,
South Africa
Bonikro,
Côte d'Ivoire
Caserones, Chile
Cerro Moro,
Argentina
—
—
—
74,252
Chapada, Brazil
69,554
33,268
106,332
106,332
37,773
37,773
82,678
82,678
—
—
—
379
787
3,106
1,656
9
7
—
74,261
36,298
11,994
69,561
19,845
33,268
3,594
3,060
2,416
Fruta del Norte,
Ecuador
Greenstone,
Canada
Horne 5, Canada
Hod Maden,
Türkiye
Houndé, Burkina
Faso
Hugo North
Extension and
Heruga,
Mongolia
Mercedes,
Mexico
Platreef, South
Africa
Relief Canyon,
USA
Vale Royalties,
Brazil
Other1
Total2
—
—
107,234
107,234
78,934
78,934
5,818
201,151
206,969
—
—
—
—
—
—
45,120
13,941
2,159
—
—
35,352
70,809
70,809
186,640
186,640
—
—
—
—
8,144
—
7
—
26,448
7,531
5,121
117,787
1,444
2,537
45,120
35,352
—
—
26,441
117,787
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3,246
7,845
787
105,545
3,106
1,656
34,667
81,022
48,292
25,969
22,905
46,656
6,010
27,258
—
—
—
107,234
78,934
206,969
16,100
29,020
—
35,352
8,144
62,665
—
186,640
12,652
13,796
3,981
113,806
455,000
154,670
609,670
314,512
12,745
1,086
328,343
281,327
$
873,683 $ 1,368,471 $ 2,242,154 $
400,032 $
59,780 $
1,086 $
460,898 $ 1,781,256
1.
Includes Vatukoula, Black Fox, Highland Valley, El Pilar, Cortez Complex (Robertson Deposit), CEZinc, Gualcamayo, Lobo-Marte, Ağı Dağı &
Kirazlı and others.
2.
Stream, royalty and other interests includes non-depletable assets of $37.8 million and depletable assets of $1,743.5 million.
B Antamina Transaction
In June 2023, Sandstorm closed its previously announced agreement with Horizon Copper to sell a
portion of the 1.66% net profits interest on the Antamina copper mine (the "Antamina NPI") in
consideration for a silver stream, debenture, equity, and cash. As a result of the transaction, which was
accounted for as a partial disposition, Sandstorm recognized a $2.0 million loss.
The consideration that Horizon issued to Sandstorm under the agreement includes the following: a
debenture with a fair value of $122.7 million, described in further detail in note 7; a silver stream on
production from Antamina with a fair value of $101.4 million; a $20 million cash payment; and
$1.4 million in Horizon Copper shares, sufficient to maintain the Company's 34% interest. Sandstorm
2023 Annual Report
81
Financial Statements
will retain a residual Antamina NPI, calculated as one third of Horizon Copper's 1.66% NPI, after
deducting the cost to Horizon of delivering silver ounces under the Antamina silver stream described
below. The carrying amount of the royalty retained is $86.2 million.
As part of the Antamina silver stream, Sandstorm will receive silver ounces equal to 1.66% of all silver
production from the Antamina mine with ongoing payments equal to 2.5% of the silver spot price. To
estimate the fair value of the silver stream, management utilized a discounted cash flow model. Key
assumptions used in the analysis were a 2.8% discount rate, a long term silver price of $23 per ounce
and an estimated mine life of 29 years.
C El Pilar and Blackwater Disposals
In October 2023, Sandstorm closed its previously announced agreement to sell the El Pilar and
Blackwater Royalties to Sandbox Royalties Corp. ("Sandbox") for total consideration of $25 million
comprised of $10 million in cash and $15 million in common shares of Sandbox at a price of CAD0.70
per share. A gain of $4.0 million was recognized by Sandstorm on disposal of the royalties.
D Bear Creek Restructuring
In January 2024, Sandstorm closed its previously announced agreement to restructure its existing
streams and refinance certain Bear Creek investment (the “Restructuring Agreement”). The terms of the
restructured agreements are as follows:
•
•
•
Revised Gold stream: Effective January 1, 2024, Sandstorm will have the right to purchase 275 gold ounces
per month through April 2028 and a 4.4% gold stream thereafter for an on-going cash payment of 25% of the
spot price of gold for each gold ounce delivered. During 2023, Sandstorm had the right to purchase 600 gold
ounces per month for ongoing per ounce cash payments equal to 7.5% of the spot price of gold.
Revised Silver stream: Effective January 1, 2024, the silver stream will be suspended through the fixed gold
delivery period (through April 2028); thereafter, Sandstorm will receive 100% of the silver produced for the
life of the mine for an on-going cash payment of 25% of the spot price of silver for each silver ounce delivered.
During 2023, Sandstorm had the right to purchase 75,000 silver ounces per quarter for ongoing per ounce
cash payments equal to 20% of the spot price of silver.
Revised Debt: Sandstorm refinanced its $22.5 million convertible debenture and a $14.0 million secured loan
that was acquired by Sandstorm in 2023 into 5-year convertible notes bearing interest at 7% per annum and
convertible into common shares of Bear Creek at a strike price of CAD0.73 per share (the “Refinanced
Sandstorm Debentures").
On closing and in consideration for the amendments, Sandstorm also received:
•
•
82
Corani Royalty: a 1.0% net smelter returns royalty on Bear Creek’s wholly owned Corani project in Peru, one of
the world’s largest fully permitted silver deposits.
$10 million in Non-Royalty consideration: Additional consideration comprised of 28,706,687 Bear Creek
common shares and $4.3 million in principal to be added to the Refinanced Sandstorm Debentures.
2023 Annual Report
Financial Statements
In connection with the Restructuring Agreement, Sandstorm agreed to make up to $8 million in
additional credit available to Bear Creek (of which $5.0 million had been advanced as at December 31,
2023) prior to August 31, 2024, subject to certain conditions. Any amounts drawn under this facility will
be added to the principal amount of the Refinanced Sandstorm Debentures.
E Prior Year Transactions
Nomad Acquisition
In August 2022, the Company closed its previously announced purchase of Nomad Royalty Company
(“Nomad”) for consideration of approximately 74.4 million common shares to former Nomad
shareholders. The transaction was accounted for as an asset acquisition, with capitalized costs of
$534.2 million being determined by reference to the fair value of the net assets acquired. The other net
assets acquired in the transaction included cash and cash equivalents, accounts receivable and other
assets of approximately $24.3 million, accounts payable and accrued liabilities of $9.2 million and a
revolving credit facility balance of $56.8 million. Stream, royalty and other interests acquired include:
the Blyvoor Gold Stream, the Bonikro Gold Stream, the Caserones NSR, the Greenstone Gold Stream,
the Mercedes Gold and silver Stream, the Platreef Gold stream as well as the Robertson NSR, the
Troilus royalty and the Gualcamayo NSR (included in “Other” in the table above). Additionally, in
September and October 2022 respectively, the Company remitted the $56.3 million remaining up front
deposit under the Platreef agreement and $81.7 million remaining up front deposit owed under the
Greenstone agreement.
Basecore Acquisition
In July 2022, the Company closed its previously announced purchase of a portfolio of Stream, royalty
and other interests from BaseCore Metals LP (“BaseCore”). Sandstorm made a payment of $425 million
in cash and issued approximately 13.5 million common shares of the Company to BaseCore. The
transaction was accounted for as an asset acquisition, with capitalized costs of $508.5 million being
determined by reference to the fair value of the net assets acquired. Stream, royalty and other interests
acquired include: the Antamina NPI, the CEZinc stream, the Highland Valley NPI, the Horne 5 NSR,
and the El Pilar royalty (included in “Other” in the table above).
Hod Maden
In August 2022, the Company closed a previously announced transaction with Horizon Copper,
including the sale of the Company’s 30% interest in the Hod Maden project to Horizon Copper, as
further discussed in note 6, and the receipt of a $200 million Gold Stream on production from Hod
Maden.
As part of the sale, Sandstorm transferred to Horizon its 30% interest in Hod Maden as well as
$10 million in cash and a 25% equity stake in Entrée Resources Ltd. ("Entrée"). Consideration provided
to Sandstorm by Horizon includes the Hod Maden Gold Stream with an acquisition date fair value of
2023 Annual Report
83
Financial Statements
$200 million, common shares of Horizon Copper, representing a 34% equity interest, and a secured 10-
year convertible promissory note, which is measured at fair value through profit and loss, with a
principal amount of $95 million, and fair value on acquisition of $68.3 million.
Sandbox Royalties
In June 2022, the Company closed its previously announced sale of a portfolio of royalties to Sandbox
for $65 million composed of 34 million common shares of Sandbox at a price of CAD0.70 per share, a
$15 million cash payment and a 10-year secured convertible promissory note with a principal amount of
$31.4 million. A gain of $22.7 million was recognized by Sandstorm on disposal of the royalties.
Royalties acquired by Sandbox include: the Hackett River NSR, the Prairie Creek NSR, the Mason NSR
and several other exploration stage royalties, all included within “Other” in the table above. As a result
of this transaction, Sandstorm’s position on a fully diluted basis was greater than 20% and the Company
concluded that it had significant influence over Sandbox. Accordingly, it was accounted for as an
investment in associate under the equity method. The initial cost of the associate includes the cost of the
common shares held, which is equal to the fair value of the common shares on acquisition.
Mercedes Gold Stream
In April 2022, the Company closed its previously announced $60 million financing package of Bear
Creek to facilitate its acquisition of the producing Mercedes gold-silver mine (“Mercedes Mine”) in
Mexico from Equinox Gold Corp. The financing package included a $37.5 million Gold Stream on the
Mercedes Mine and a $22.5 million convertible debenture.
84
2023 Annual Report
Financial Statements
6. Investments in Associates
The following table summarizes the changes in the carrying amount of the Company’s investments in
associates:
In $000s
Sandbox
Royalties Corp.
Horizon
Copper Corp.
Hod Maden
Interest
Entrée Resources
Ltd.
Total Investments
in Associates
At December 31, 2021
$
— $
— $
63,313 $
21,276 $
84,589
Acquisition (disposal) of
investment in associate
Capital investment
Company's share of net loss
of associate
Currency translation
adjustments and other
18,647
10,687
(52,645)
(20,633)
(43,944)
—
—
3,818
—
3,818
(307)
(2,124)
(745)
(478)
(3,654)
(62)
424
(13,741)
(165)
(13,544)
At December 31, 2022
$
18,278 $
8,987 $
— $
— $
Capital investment
Additions
Company's share of net loss
of associate
Currency translation
adjustments and other
—
30,183
2,279
—
(1,202)
(939)
38
(65)
—
—
—
—
—
—
—
—
27,265
2,279
30,183
(2,141)
(27)
At December 31, 2023
$
47,297 $
10,262 $
— $
— $
57,559
As a result of Sandstorm's equity ownership position being greater than 20% on a fully diluted basis,
Sandstorm has determined that it has significant influence over Sandbox and Horizon Copper Corp.;
consequently, they are related parties of the Company and any transactions with these entities are
considered related party transactions.
A Sandbox Royalties Corp.
The Company holds 34% of the common shares of Sandbox, a stream and royalty company which is
incorporated in Canada, on a non-diluted basis and accounts for this interest using the equity method.
The Company records its share of Sandbox's profit or loss including adjustments, where appropriate, to
give effect to uniform accounting policies.
During the year ended December 31, 2023, additions to the Sandbox investment in associate relate to
Sandbox shares received in consideration for the sale of the El Pilar and Blackwater royalties to
Sandbox, as discussed in note 5, and Sandbox shares received as partial repayment of the convertible
promissory note owed from Sandbox to Sandstorm in the period, as discussed in note 7.
Summarized financial information for the Company’s interest in Sandbox on a 100% basis and
reflecting adjustments made by the Company, including fair value adjustments made at the time of
acquisition and adjustments for differences in accounting policies is as follows:
2023 Annual Report
85
Financial Statements
In $000s
Revenue
Depletion
Administration expenses
Other expenses
Total net loss
Other comprehensive loss
Total comprehensive loss
Company's share of comprehensive net loss of associate
In $000s
Current Assets
Non-current Assets
Total Assets
Current Liabilities
Non-current Liabilities
Total Liabilities
Net Assets
Company’s share of net assets of associate
Adjustments to Sandstorm’s share of net assets
Carrying amount of investment in associate
Year Ended
December 31, 2023
Year Ended
December 31, 2022
1,845 $
(945)
(5,762)
(293)
(5,155) $
248
(4,907) $
(1,164) $
355
(267)
(272)
(1,341)
(1,525)
(308)
(1,833)
369
At December 31, 2023
At December 31, 2022
11,349 $
147,256
158,605 $
414
44,790
45,204 $
113,401 $
38,556
8,741
47,297 $
6,615
71,993
78,608
86
15,975
16,061
62,547
12,600
5,678
18,278
$
$
$
$
$
$
$
$
$
Summarized financial information in respect of the Company's Sandbox investment in associate as at
and for the year ended December 31, 2023 is based on amounts included in the associate’s most recent
available consolidated financial statements prepared in accordance with IFRS Accounting Standards as
of September 30, 2023, adjusted for material transactions during the three months ended December 31,
2023, and for adjustments made by the Company in applying the equity method, including fair value
adjustments on acquisition of the interest in the associate.
B Horizon Copper Corp.
The Company holds 34% of the common shares of Horizon Copper, a mining company which is
incorporated in Canada, on a non-diluted basis and accounts for this interest using the equity method.
The Company records its share of Horizon Copper's profit or loss including adjustments, where
appropriate, to give effect to uniform accounting policies. Using the quoted price of Horizon Copper's
common shares, the fair value of Sandstorm's interest was $13.9 million at December 31, 2023.
86
2023 Annual Report
Financial Statements
In August 2022 as part of the Hod Maden transaction described in note 5(e) above, the Company
received an approximate 34% equity interest in Horizon Copper. As a result of this transaction the
Company recognized a gain of $24.9 million on the disposal of its Hod Maden investment in associate.
In determining the gain on the transaction, management estimated the fair value of the Hod Maden
Gold Stream (note 5(e)) and the convertible promissory note consideration received (note 5(e)). The
cumulative translation adjustment of $149.5 million previously recorded in other comprehensive
income was reclassified to profit and loss at the time of disposal of this foreign operation and has been
included in the calculation of the total gain on disposal.
Summarized financial information for the Company’s interest in Horizon Copper on a 100% basis and
reflecting adjustments made by the Company, including fair value adjustments made at the time of
acquisition and adjustments for differences in accounting policies is as follows:
In $000s
Revenue
Depletion
Administration expenses
Other expenses
Total net loss
Other comprehensive loss
Total comprehensive loss
Company's share of comprehensive net loss of associate
In $000s
Current Assets
Non-current Assets
Total Assets
Current Liabilities
Non-current Liabilities
Total Liabilities
Net Assets
Company’s share of net assets of associate
Adjustments to Sandstorm’s share of net assets
Carrying amount of investment in associate
Year Ended
December 31, 2023
Year Ended
December 31, 2022
4,054 $
(4,536)
(1,456)
(824)
(2,762) $
(192) $
(2,954) $
(1,004) $
—
—
(666)
(5,582)
(6,248)
1,249
(4,999)
(1,700)
At December 31, 2023
At December 31, 2022
20,750 $
499,495
520,245 $
10,401
504,465
514,866 $
5,379 $
1,829
8,433
10,262 $
41,360
259,523
300,883
141
271,163
271,304
29,579
10,057
(1,070)
8,987
$
$
$
$
$
$
$
$
$
$
2023 Annual Report
87
Financial Statements
The Company has agreed to make available certain additional funds to Horizon Copper subject to
certain conditions, including availability, use of proceeds and other customary conditions up to a
maximum of $150 million. The facility will bear interest at SOFR plus a margin (currently 2.0% - 3.5%
per annum). The maturity date of the Horizon Copper facility is August 31, 2032 and is convertible to
Horizon Copper shares at the option of the Company or Horizon Copper (provided that no conversion
will be effected if it would result in the Company holding a greater than 34% equity interest in Horizon
Copper). No amounts have been drawn to-date.
As part of the sale of the Hod Maden interest, Sandstorm provided Horizon Copper with normal course
indemnification for claims arising from pre-existing matters. Sandstorm became aware that a lawsuit
was filed by a former employee of the predecessor company to Horizon Copper's associate, Artmin
Madencilik Sanayi ve Ticaret A.S ("Artmin"), the Turkish entity which holds the Hod Maden project.
The former employee claimed that he was entitled to 1% of the value of the project as a finder's fee.
Subsequent to year end, the claim was settled for an insignificant amount.
7. Investments
As of and for the year ended December 31, 2023:
In $000s
Jan. 1, 2023
Additions
Disposals
Transfers
Fair Value
Adjustment
Interest
Revenue
Dec. 31, 2023
SHORT-TERM INVESTMENTS
Convertible debt instruments1
$
1,272 $
8,875 $
(6,573) $
6,196 $
Loans receivable3
2,501
16,439
(1,054)
—
— $
—
— $
9,770
744
18,630
Total short-term investments
$
3,773 $ 25,314 $
(7,627) $
6,196 $
— $
744 $
28,400
LONG-TERM INVESTMENTS
Common shares2
Warrants and other1
$
19,025 $
8,590 $
(1,376) $
— $
(8,557) $
— $
17,682
Convertible debt instruments1
105,004
114,001
(17,236)
(6,196)
15,591
2,088
—
(540)
—
80
—
—
1,628
211,164
Total long-term investments
$ 126,117 $ 122,591 $ (19,152) $
(6,196) $
7,114 $
— $
230,474
Total investments
$ 129,890 $ 147,905 $ (26,779) $
— $
7,114 $
744 $
258,874
Fair value adjustment recorded within Net Income (loss) for the period.
Fair value adjustment recorded within Other Comprehensive Income (loss) for the period.
Interest revenue recorded within Net Income (loss) for the period.
1.
2.
3.
88
2023 Annual Report
Financial Statements
In June 2023 and as described in note 5 above, Sandstorm received a debenture with a face value of
$149.1 million as consideration for the partial sale of its Antamina NPI to Horizon Copper. The
debenture has a 10 year term and bears stated interest at approximately 3%. Principal repayments are
subject to a cash sweep of the excess cash flow Horizon Copper receives from the 1.66% Antamina NPI
after the Antamina silver stream and Antamina residual royalty obligations are paid and prepayment
can occur at any time prior to maturity without penalty. The debenture is measured at fair value through
profit and loss and its fair value at the time of the transaction was $122.7 million measured using a
discount rate of approximately 6% and assumptions related to production and revenues at Antamina
consistent with those described further in note 5.
Also, during the year ended December 31, 2023, Sandbox issued approximately 33.8 million common
shares to Sandstorm with a total value of $17.2 million as repayment for a portion of the convertible
promissory note due from Sandbox to Sandstorm.
As of and for the year ended December 31, 2022:
In $000s
Jan. 1, 2022
Additions
Disposals
Transfers
Fair Value
Adjustment
Interest
Revenue Dec. 31, 2022
SHORT-TERM INVESTMENTS
Convertible debt instruments1
Loans receivable3
$
— $
— $
— $
1,272 $
5,001
—
(2,787)
—
— $
—
— $
287
1,272
2,501
Total short-term investments
$
5,001 $
— $
(2,787) $
1,272 $
— $
287 $
3,773
LONG-TERM INVESTMENTS
Common shares2
Warrants and other1
$
21,486 $ 10,748 $
(4,820) $
— $
(8,389) $
— $
19,025
Convertible debt instruments1
Loans receivable3
Total long-term investments
Total investments
$
$
1,666
—
—
—
422
904
104,972
(934)
(1,272)
1,334
—
—
2,088
105,004
—
33,781
(33,311)
—
—
(470)
—
24,056 $ 149,501 $ (39,065) $
(1,272) $
(6,633) $
(470) $
126,117
29,057 $ 149,501 $ (41,852) $
— $
(6,633) $
(183) $
129,890
1.
2.
3.
Fair value adjustment recorded within Net Income (loss) for the period.
Fair value adjustment recorded within Other Comprehensive Income (loss) for the period.
Interest revenue recorded within Net Income (loss) for the period.
2023 Annual Report
89
Financial Statements
8. Trade and Other Receivables
In $000s
Trade receivables
Other receivables
Total trade and other receivables
9. Trade Payables and Other
In $000s
Accounts payable and accrued liabilities
Dividends payable
Withholding taxes payable
Other payables1
Total trade payables and other
$
$
$
$
At December 31, 2023
At December 31, 2022
15,154 $
911
16,065 $
18,265
3,129
21,394
At December 31, 2023
At December 31, 2022
5,741 $
4,537
726
5,189
3,808
4,446
1,120
9,667
16,193 $
19,041
1.
Includes an $1.9 million payable to Horizon Copper Corp. at December 31, 2023 (December 31, 2022 - $8.3 million).
90
2023 Annual Report
Financial Statements
10.Deferred Income Tax and Other Liabilities
A Income Taxes
The income tax expense differs from the amount that would result from applying the federal and
provincial income tax rate to the net income before income taxes.
These differences result from the following items:
In $000s
Income before income taxes
Canadian federal and provincial income tax rates
Income tax expense based on the above rates
Increase (decrease) due to:
Non-deductible expenses and permanent differences
Non-taxable portion of capital gain or loss
Withholding taxes
Recognition of unrecognized losses on Horizon transaction
Change in unrecognized temporary differences and other
Income tax expense
Year Ended
December 31, 2023
Year Ended
December 31, 2022
$
$
$
$
46,912
$
27 %
12,666
$
5,149
$
(1,827)
2,821
—
(14,606)
4,203
$
87,769
27 %
23,698
2,102
(3,776)
2,975
(11,977)
(3,703)
9,319
2023 Annual Report
91
Financial Statements
The deferred tax liabilities are shown below:
In $000s
Non-capital losses
Investments and other
Stream, royalty and other interests
Total deferred income tax liabilities
At December 31, 2023
At December 31, 2022
$
$
50,160 $
957
(60,122)
(9,005) $
27,664
2,240
(44,688)
(14,784)
Deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same
taxation authority and the Company has the legal right and intent to offset. Non-capital losses have been
recognized as a deferred income tax asset to the extent there will be future taxable income against which
the Company can utilize the benefit prior to their expiration. The Company recognized deferred tax
assets in respect of tax losses as at December 31, 2023 of $183.8 million (2022 — $102.5 million) as it is
probable that there will be future taxable profits to recover the deferred tax assets. These non-capital
losses carry forwards are located in Canada and expire between 2030-2041.
The movement in net deferred income taxes is shown below:
In $000s
Balance, beginning of the year
Recognized in net income (loss) for the year
Recognized in equity
Recognized in other comprehensive income (loss) for the year
Recognized from new acquisitions in the year
Balance, end of year
Year Ended
December 31, 2023
Year Ended
December 31, 2022
(14,784) $
4,503
185
1,091
—
(18,294)
(4,058)
1,634
900
5,034
(9,005) $
(14,784)
$
$
The aggregate amount of deductible temporary differences associated with capital losses and other
items, for which deferred income tax assets have not been recognized as at December 31, 2023 are
$12.9 million (2022 — $15.6 million). No deferred tax asset is recognized in respect of these items
because it is not probable that future taxable capital gains or taxable income will be available against
which the Company can utilize the benefit.
B Right-of-Use Assets and Lease Liabilities
At December 31, 2023, right of use assets, included in other long term assets in the statement of
financial position, were $22.8 million. Additions in the period totaled $21.4 million relating to leased
office space in Vancouver, British Columbia. At December 31, 2023, lease liabilities were $18.5 million,
$1.3 million of which is current and included in trade payables and other with the remainder being
included in deferred tax and other liabilities in the statement of financial position. Additions to lease
liabilities in the period were $17.7 million relating to the above noted office lease.
92
2023 Annual Report
Financial Statements
11. Share Capital and Reserves
A Authorized Share Capital
The Company is authorized to issue an unlimited number of common shares without par value.
In April 2023, the Company renewed its normal course issuer bid ("NCIB") and is able, until April 10,
2024, to purchase up to 24.0 million of its common shares. The Company's previous NCIB expired on
April 6, 2023. The NCIB provides the Company with the option to purchase its common shares from
time to time. During the year ended December 31, 2023, the Company, utilizing its current and previous
NCIB, purchased and cancelled approximately 2.8 million common shares.
In June 2023, the Company re-established an at-the-market equity program (the "ATM Program")
whereby the Company is permitted to issue up to an aggregate of $150 million worth of common shares
from treasury at prevailing market prices to the public through the Toronto Stock Exchange, the New
York Stock Exchange or any other marketplace on which the common shares are listed, quoted or
otherwise trade. The volume and timing of distributions under the ATM Program is determined at the
Company's sole discretion, subject to applicable regulatory limitations. The ATM Program is effective
until October 22, 2024, unless terminated prior to such day by the Company. T0-date, the Company has
not utilized or sold any shares under the ATM Program.
In the first quarter of 2023, the Company declared a dividend of CAD0.02 per common share (Q1 2022
- CAD0.02). The full amount of the dividend was paid in cash in April 2023. In the second quarter of
2023, the Company declared a dividend of CAD0.02 per common share (Q2 2022 - CAD0.02). The full
amount of the dividend was paid in cash in July 2023. In the third quarter of 2023, the Company
declared a dividend of CAD0.02 per common share (Q3 2022 - CAD0.02). The full amount of the
dividend was paid in cash in October 2023. In the fourth quarter of 2023, the Company declared a
dividend of CAD0.02 per common share (Q4 2022 - CAD0.02). The full amount of the dividend was
recorded as a payable and included within trade payables and other as at December 31, 2023.
B Stock Options of the Company
The Company has an incentive stock option plan (the “Option Plan”) whereby the Company may grant
share options to eligible employees, officers, directors and consultants at an exercise price, expiry date,
and vesting conditions to be determined by the Board of Directors. The maximum expiry date is five
years from the grant date. All options are equity settled. The Option Plan permits the issuance of options
which, together with the Company's other share compensation arrangements, may not exceed 8.5% of
the Company’s issued common shares as at the date of the grant.
During the year ended December 31, 2023, the Company granted 4,101,417 options with a weighted
average exercise price of CAD6.53 and a fair value of $5.3 million or $1.29 per option. The fair value of
2023 Annual Report
93
Financial Statements
the options granted was determined using a BSM using the following weighted average assumptions:
grant date share price and exercise price of CAD6.53, expected volatility of 31.00%, risk-free interest
rate of 3.40%, dividend yield of 1.23%, and an expected life of 4 years. Expected volatility was
determined by considering the trailing 4 year historical average share price volatility of similar
companies in the same industry and business model.
A summary of the Company’s options and the changes for the period is as follows:
Options outstanding at December 31, 2021
Granted
Exercised
Expired
Options outstanding at December 31, 2022
Granted
Exercised
Expired
Options outstanding at December 31, 2023
Number of options
Weighted average exercise
price per share (CAD)
11,239,342
6,249,148
(1,130,218)
(2,250)
16,356,022
4,101,417
(1,147,066)
(2,009,933)
17,300,440
7.47
7.19
(5.39)
(15.00)
7.50
6.53
(5.99)
(6.07)
7.54
The weighted average remaining contractual life of the options as at December 31, 2023 was 3.05 (year
ended December 31, 2022 — 2.96 years). The weighted average share price, at the time of exercise, for
those share options that were exercised during the year ended December 31, 2023 was CAD6.71 per
share (year ended December 31, 2022 - CAD7.82).
A summary of the Company’s options as of December 31, 2023 is as follows:
Year of expiry
Number outstanding
Vested
2024
2025
2026
2027
2028
3,188,023
2,812,000
2,968,000
4,231,000
4,101,417
3,188,023
2,812,000
1,978,671
1,410,340
—
17,300,440
9,389,034
1. Weighted average exercise price of options that are exercisable.
Exercise price per share
(range) (CAD)
1.66 – 12.40
9.43
7.18
7.12
6.53
Weighted average
exercise price per share
(CAD)1
8.05
9.43
7.18
7.12
—
8.14
94
2023 Annual Report
Financial Statements
C Share Purchase Warrants
A summary of the Company’s warrants and the changes for the period is as follows:
Warrants outstanding at December 31, 2021
Issued
Exercised
Expired
Warrants outstanding at December 31, 2022 and December 31, 2023
Number of warrants
Shares to be issued upon
exercise of warrants
-
-
2,661,012
2,661,012
(484)
(2,418,528)
242,000
(484)
(2,418,528)
242,000
The weighted average share price, at the time of exercise, for those warrants that were exercised during
the year ended December 31, 2022 was CAD7.40 per share. At December 31, 2023 the Company had
242,000 warrants outstanding with an exercise price of $8.97 and an expiry date of May 13, 2024.
D Restricted Share Rights
The Company has a restricted share plan (the “Restricted Share Plan”) whereby the Company may grant
restricted share rights (“RSRs”) to eligible employees, officers, directors and consultants at an expiry
date to be determined by the Board of Directors. Each restricted share right entitles the holder to receive
a common share of the Company without any further consideration. The Restricted Share Plan permits
the issuance of up to a maximum of 4,500,000 restricted share rights.
During the year ended December 31, 2023, the Company granted 557,750 RSRs with a grant date fair
value of $2.7 million, a three year vesting term, and a weighted average grant date fair value of $4.88
per unit. As of December 31, 2023, the Company had 2,354,911 RSRs outstanding.
2023 Annual Report
95
Financial Statements
E Diluted Earnings Per Share
Diluted earnings per share is calculated based on the following:
In $000s
(except for shares and per share amounts)
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Net income attributable to Sandstorm’s shareholders for the year
$
41,716 $
78,361
Basic weighted average number of shares
297,406,309
231,348,386
Basic earnings per share
$
0.14 $
0.34
Effect of dilutive securities
Stock options
Restricted share rights
644,651
1,940,197
1,192,958
1,776,836
Diluted weighted average number of common shares
299,991,157
234,318,180
Diluted earnings per share
$
0.14 $
0.33
The following table lists the number of potentially dilutive securities excluded from the computation of
diluted earnings per share because the exercise prices exceeded the average market value of the
common shares of CAD7.10 during the year ended December 31, 2023 (December 31, 2022 —
CAD8.10).
Stock Options
Warrants
Year Ended
December 31, 2023
Year Ended
December 31, 2022
12,896,931
242,000
4,700,144
2,225,825
F Compañia Minera Caserones
Sandstorm holds a 67.5% interest in Compañia Minera Caserones (“CMC”), which is incorporated in
Chile. Summarized financial information for the Company’s investment in this subsidiary, on a 100%
basis and reflecting adjustments made by the Company, including fair value adjustments made at the
time of acquisition and adjustments for differences in accounting policies is as follows:
In $000s
Current Assets
Non-current Assets
Total Assets
Current Liabilities
Non-current Liabilities
Total Liabilities
Net Assets
At December 31, 2023
At December 31, 2022
$
$
$
$
2,356 $
62,852
65,208 $
767
—
767 $
64,441 $
1,791
81,022
82,813
445
—
445
82,368
96
2023 Annual Report
Financial Statements
Revenue
Depletion
Administration expenses and other
Income tax expense
Total net income and comprehensive income
Total net income and comprehensive income
attributable to non-controlling interests
Year Ended
December 31, 2023
Year Ended
December 31, 2022
$
$
$
12,022 $
(4,875)
(92)
(4,000)
3,055 $
993 $
2,615
(1,656)
28
(714)
273
89
12. Revolving Facility and Deferred Financing Costs
In September 2023, Sandstorm renewed its existing revolving credit agreement allowing the Company
to borrow up to $625 million (the “Revolving Facility”) for a four year term, maturing in September
2027.
The Revolving Facility is for general corporate purposes, from a syndicate of banks including The Bank
of Nova Scotia, Bank of Montreal, National Bank of Canada, Canadian Imperial Bank of Commerce, and
Royal Bank of Canada (“the Syndicate”). The facility matures in September 2027, subject to an
extension based on mutual consent of the parties.
The amounts drawn on the Revolving Facility are subject to interest at SOFR plus 1.875%–3.5% per
annum, and the undrawn portion of the Revolving Facility is subject to a standby fee of 0.422%–0.788%
per annum, both of which are dependent on the Company’s leverage ratio. The Revolving Facility
maintains its sustainability-linked incentive pricing terms that allow Sandstorm to reduce the
borrowing costs from the interest rates described earlier as the Company’s performance targets are met.
Sandstorm is required to maintain a leverage ratio of net debt divided by EBITDA (as defined in the
Revolving Facility) of less than or equal to 4.00:1.00, and an interest coverage ratio of greater than or
equal to 3.00:1.00 for each fiscal quarter.
The Revolving Facility is secured against the Company’s assets, including the Company’s Stream, royalty
and other interests and investments. As of December 31, 2023, the Company was in compliance with the
covenants and the balance of the Revolving Facility was $435 million.
Deferred financing costs are amortized on a straight-line basis over the term of the Revolving Facility.
At December 31, 2023, deferred financing costs, net of accumulated amortization, was $4.3 million
(December 31, 2022 — $3.9 million).
2023 Annual Report
97
Financial Statements
13. Administration Expenses
The administration expenses for the Company are as follows:
In $000s
Corporate administration
Employee benefits and salaries
Professional fees
Administration expenses before share-based compensation
Equity settled share-based compensation (a non-cash expense)
Total administration expenses
Year Ended
December 31, 2023
Year Ended
December 31, 2022
4,232 $
3,878
2,375
10,485 $
3,888
14,373 $
3,732
3,864
2,552
10,148
3,246
13,394
$
$
$
14. Supplemental Cash Flow Information
In $000s
Change in non-cash working capital:
Trade receivables and other
Trade payables and other
Net increase (decrease) in cash
Significant non-cash transactions:
Financial instrument received on disposal of
Stream, royalty and other interests
Sandbox common shares received in consideration
for a convertible debenture payment
Sandbox common shares received on disposal of
Stream, royalty and other interests
Financial instrument received on disposal of
Entrée investment in associate
Common shares issued on acquisition of
BaseCore portfolio of Stream, royalty and other interests
Common shares issued on acquisition of
Nomad portfolio of Stream, royalty and other interests
Financial instruments received on disposal of
Hod Maden investment in associate
Financial instrument disposed of on disposal of
Hod Maden investment in associate
Horizon Copper investment in associate received on
disposal of Hod Maden investment in associate
Year Ended
December 31, 2023
Year Ended
December 31, 2022
$
$
$
1,494 $
203
1,697 $
(5,498)
2,608
(2,890)
122,745 $
14,123
17,249
14,988
—
—
—
—
—
—
—
18,564
33,781
(75,304)
(454,089)
68,348
(33,311)
10,687
98
2023 Annual Report
Financial Statements
15. Key Management Compensation
The remuneration of directors and those persons having authority and responsibility for planning, directing
and controlling activities of the Company are as follows:
In $000s
Salaries and benefits
Share-based payments
Total key management compensation expense
Year Ended
December 31, 2023
Year Ended
December 31, 2022
$
$
1,630 $
5,116
6,746 $
3,000
4,124
7,124
16. Commitments and Contingencies
In connection with its Streams, the Company has committed to purchase the following:
Stream
Antamina
Black Fox1
Blyvoor2
Bonikro3
Cerro Moro4
CEZinc5
Chapada6
Entrée1,7,8
Greenstone9
Hod Maden10
Karma
Mercedes11
Platreef12
Relief Canyon13
Santa Elena1
South Arturo
Vatukoula14
Woodlawn15
% of Life of Mine Gold
or Relevant Commodity
1.66%
8%
10%
6%
20%
1%
4.2%
Per Ounce Cash Payment:
lesser of amount below and the then
prevailing market price of commodity
(unless otherwise noted)
2.5% of silver spot price
$589
$572
$400
30% of silver spot price
20% of quarterly average zinc spot price
30% of copper spot price
5.62% on Hugo North Extension
and 4.26% on Heruga
Varies
2.375%
20%
1.625%
20% of gold spot price
50% of gold spot price until 405,000
ounces of gold have been delivered,
then 60% of gold spot price thereafter
20% of gold spot price
29,400 ounces of gold over 49 months
and 4.4% thereafter
3,750,000 ounces of silver, and 30% of
silver produced thereafter
37.5%
39,174 ounces over 6.5 years
and 4% thereafter
20%
40%
11,022 ounces over 4.5 years and
1.199% – 1.363% thereafter
Varies
Varies
Varies
$478
20% of silver spot price
20% of gold spot price
Varies
Nil
2023 Annual Report
99
Financial Statements
1.
2.
3.
Per ounce cash payment subject to an annual inflationary adjustment.
For the Blyvoor Gold Stream, until 300,000 ounces have been delivered, Blyvoor Gold (Pty) Ltd. will deliver 10% of gold production until
16,000 ounces have been delivered in the calendar year, then 5% of the remaining production for that calendar year. Following the Initial
Blyvoor Delivery Threshold, Sandstorm will receive 0.5% of gold production on the first 100,000 ounces in a calendar year until a cumulative
10.32 million ounces of gold have been produced. Under the Stream agreement Sandstorm will make ongoing payments at the lesser of
$572 per ounce delivered and the gold market price on the business day immediately preceding the date of delivery.
For the Bonikro Gold Stream, Sandstorm will receive 6% of gold produced at the mine until 39,000 ounces of gold are delivered, then 3.5%
of gold produced until 61,750 cumulative ounces of gold have been delivered, then 2% thereafter. Under the Stream agreement Sandstorm
will make ongoing payments at the lesser of $400 per ounce delivered and the gold market price on the business day immediately
preceding the date of delivery.
4. Under the terms of the Cerro Moro silver stream, Sandstorm has agreed to purchase an amount of silver from Cerro Moro equal to 20% of
the silver produced (up to an annual maximum of 1.2 million ounces of silver), until 7.0 million ounces of silver have been delivered to
Sandstorm; then 9.0% of the silver produced thereafter.
5.
6.
7.
8.
9.
For the CEZinc zinc stream, the Company has committed to purchase 1.0% of the zinc produced until the later of June 30, 2030 or delivery
of 68.0 million pounds of zinc under the contract.
For the Chapada copper stream, the Company has committed to purchase an amount equal to 4.2% of the copper produced (up to an
annual maximum of 3.9 million pounds of copper) until the mine has delivered 39 million pounds of copper to Sandstorm; then 3.0% of the
copper produced until, on a cumulative basis, the mine has delivered 50 million pounds of copper to Sandstorm; then 1.5% of the copper
produced thereafter, for the life of the mine.
For the Entrée Gold Stream, after approximately 8.6 million ounces of gold have been produced from the joint venture property, the price
increases from $220 per gold ounce to $500 per gold ounce. For the Entrée silver stream, the purchase price is the lesser of the prevailing
market price and $5 per ounce of silver until 40.3 million ounces of silver have been produced from the entire joint venture property.
Thereafter, the purchase price will increase to the lesser of the prevailing market price and $10 per ounce of silver. For the Entrée Gold and
silver stream, percentage of life of mine is 5.62% on Hugo North Extension and 4.26% on Heruga if the minerals produced are contained
below 560 metres in depth. For the Entrée Gold and silver stream, percentage of life of mine is 8.43% on Hugo North Extension and 6.39%
on Heruga if the minerals produced are contained above 560 metres in depth.
For the Entrée copper stream, the Company has committed to purchase an amount equal to 0.42% of the copper produced from the Hugo
North Extension and Heruga deposits. If the minerals produced are contained above 560 metres in depth, then the commitment increases
to 0.62% for both the Hugo North Extension and Heruga deposits. Sandstorm will make ongoing per pound cash payments equal to the
lesser of $0.50 and the then prevailing market price of copper, until 9.1 billion pounds of copper have been produced from the entire joint
venture property. Thereafter, the ongoing per pound payments will increase to the lesser of $1.10 and the then prevailing market price of
copper.
For Greenstone, the Gold Stream on the project is for 2.375% of gold production from the Greenstone joint venture (100% basis), until
120,333 ounces of gold have been delivered, then 1.583% thereafter. In addition to the ongoing payments of 20% of the spot price of gold
and to the extent the costs are incurred by the Greenstone joint venture, Sandstorm will pay the joint venture $30 per ounce to fund mine-
level environmental and social programs.
10. Under the Hod Maden Gold Stream, Sandstorm will receive 20% of all gold produced from Hod Maden (on a 100% basis) and will make
ongoing payments of 50% of the gold spot price until 405,000 ounces of gold are delivered (the "Delivery Threshold"). Once the Delivery
Threshold has been reached, Sandstorm will receive 12% of the gold produced for the life of the mine for ongoing payments of 60% of the
gold spot price.
11.
In January 2024, the Company restructured its Mercedes Gold and Silver streams with the revised terms included in Note 5 (d). Under the
original terms of the Mercedes Gold Stream, after receipt of 25,200 gold ounces (the cost of which is 7.5% of the spot price), the Company
is entitled to purchase 4.4% of the gold produced from the Mercedes Mine for ongoing per ounce cash payments equal to 25% of the spot
price of gold. Under the original terms of the Mercedes silver stream, until 3,750,000 ounces of silver have been delivered under the
contract (the cost of which is 20% of the spot price of silver), the Company is entitled to purchase 100% of silver produced with a minimum
annual delivery requirement of 300,000 ounces per annum. After 3,750,000 ounces of silver have been delivered under the contract, the
Company is entitled to purchase 30% of silver produced (the cost of which is 20% of the spot price of silver).
12. Under the terms of the Platreef Gold Stream, the Company has the right to purchase 37.5% of gold produced until 131,250 gold ounces
have been delivered, 30% until an aggregate of 256,980 ounces of gold are delivered, and 1.875% thereafter if certain conditions are met.
In calculating gold deliveries owing under the Stream, a fixed payability factor of 80% is applied to all gold production. Until 256,980
ounces have been delivered, Sandstorm will make ongoing payments equal to the lesser of $100 per ounce of gold and the gold market
price on the business day immediately preceding the date of delivery. After 256,980 ounces have been delivered, Sandstorm will make
ongoing payments of 80% of the spot price of gold for each ounce delivered.
13. For the Relief Canyon Stream, after receipt of 32,022 gold ounces (the cost of which is nil), the Company is entitled to purchase 4.0% of the
gold and silver produced from the Relief Canyon Mine for ongoing per ounce cash payments equal to 30%-65% of the spot price of gold or
silver, with the range dependent on the concession's existing royalty obligations.
14. Under the terms of the amended Vatukoula Gold Stream, the Company is entitled to fixed deliveries totaling 11,022 gold ounces (the cost
of which is 20% of the spot price) after January 1, 2023 (the "Vatukoula Fixed Delivery Period"). Following the Vatukoula Fixed Delivery
Period, the Company is entitled to purchase 1.363% for the first 100,000 ounces of gold produced in a calendar year, and 1.199% for the
volume of production above 100,000 ounces, with both variable delivery rates subject to upward adjustment depending on the final scale
of the Company's investment in the Vatukoula Gold Stream.
15. For the Woodlawn silver stream, Sandstorm has agreed to purchase an amount of silver equal to 80% of payable silver produced. Deliveries
under the Woodlawn silver stream are capped at AUD27 million. In addition, the Company holds a second stream at Woodlawn under
which the operator has agreed to pay Sandstorm AUD1.0 million for each 1Mt of tailings ore processed at Woodlawn, subject to a
cumulative cap of AUD10 million.
100
2023 Annual Report
Financial Statements
Contractual obligations related to bank debt, interest and leases on an undiscounted basis are as follows:
In $000s
Bank debt1
Interest2
Leases3
Total Less than one year
1–3 years
4–5 years More than 5 years
$
435,000 $
— $
— $
435,000 $
104,608
26,423
32,859
2,482
53,477
5,261
18,272
4,316
—
—
14,364
$
566,031 $
35,341 $
58,738 $
457,588 $
14,364
1. As at December 31, 2023, the Company had $435 million drawn and outstanding on the Revolving Facility. The repayment date in the table
above reflects the full term of the facility which matures on September 11, 2027, assuming no extension periods.
2.
The amounts drawn on the Revolving Facility are subject to an interest rate of SOFR plus 1.875%–3.5% per annum, and the undrawn portion
of the Revolving Facility is subject to a standby fee of 0.4219% - 0.7875% per annum, both of which are dependent on the terms of the
Revolving Facility and the Company's leverage ratio. The interest charges have been estimated based on assumptions of the Company's
future leverage ratio. The Revolving Facility incorporates sustainability-linked incentive pricing terms that allow the Company to reduce the
borrowing costs from the interest rates described above as the Company's ESG targets are met. The interest charges have been estimated
based on the assumption that the Company will continue with the same pricing adjustment to the debt maturity date. As the applicable
interest rate is floating in nature, the interest charges are estimated based on market forward interest rate curves at the ending of the
reporting period combined with the assumption that the principal balance outstanding at December 31, 2023, does not change until the
debt maturity date
3.
Future minimum lease payments for the Company's leases related to offices in Vancouver, BC that have commenced. The above table
reflects lease payments due from January 2024 to May 2035 .
As previously disclosed, Sandstorm became aware that a third party commenced legal proceedings
against it in a Brazilian court. The proceedings involve severance owed to former employees of Colossus
Mineração Ltda., a Brazilian subsidiary company of Colossus Minerals Inc. (an entity with which
Sandstorm entered into a Stream). Since these severance claims, estimated to be approximately
$8 million, remain outstanding, the claimants are seeking to recoup their claims from Sandstorm.
Sandstorm intends on defending itself as it believes the case is without merit.
In an effort to reduce operating costs, the Company has signed a 15-year lease for office space which is
expected to commence in the fourth quarter of 2024, a portion of which has been sublet. Under the
terms of this agreement the minimum lease payments for the entire space, including the sublet areas,
are approximately $25 million over the 15-year lease term. As a result of this 15-year lease agreement,
the Company intends to sublet its current leased office space.
17. Segmented Information
The Company’s reportable operating segments, which are components of the Company’s business where
separate financial information is available and which are evaluated on a regular basis by the Company’s
Chief Executive Officer, who is the Company’s chief operating decision maker, for the purpose of
assessing performance, are summarized in the tables below:
2023 Annual Report
101
Financial Statements
For the year ended December 31, 2023:
In $000s
Product
Sales
Cost of
sales
excluding
depletion
Royalty
revenue
Depletion
Contractual
income
from
Stream,
royalty and
other
interests
Loss (gain)
on disposal
of Stream,
royalty and
other
interests
Stream,
royalty and
other
interests
impairment
Income
(loss)
before
taxes
Cash flows
from
operating
activities
Copper, Other1 $
– $ 12,040 $
– $
7,215 $
– $
– $
2,039 $
2,786 $ 11,455
Silver
Gold
Gold
Gold
2,222
547
–
9,825
55
–
1,361
492
4,431
9,223
–
–
1,313
1,225
1,919
4,956
Caserones, Chile
Copper
–
12,022
–
5,832
Cerro Moro,
Argentina
Silver
26,197
Chapada, Brazil
Copper
13,469
–
–
7,853
10,753
4,074
2,761
Gold
Gold
–
–
7,722
5,731
–
–
2,098
1,835
Gold, Silver2
24,757
Gold
9,396
–
–
Iron Ore
–
5,988
2,258
15,787
–
–
4,731
2,426
Antamina, Peru
Aurizona, Brazil
Blyvoor,
South Africa
Bonikro,
Côte d'Ivoire
Fruta del Norte,
Ecuador
Houndé,
Burkina Faso
Mercedes,
Mexico
Relief Canyon,
United States
Vale Royalties,
Brazil
Other3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,353
9,333
2,714
9,025
1,893
2,994
2,348
7,619
6,190
8,365
7,591
18,345
6,634
9,395
5,624
5,434
3,896
4,474
6,712
24,511
4,665
9,395
3,562
5,005
23,228
30,068
Gold
11,412
10,790
3,054
6,790
940
(11,810)
Copper, Other
5,477
8,387
1,151
7,075
687
–
(3,988)
8,939
12,644
Total Segments
$ 106,584 $ 73,052 $ 21,677 $ 75,337 $
1,627 $ (11,810) $
(1,949) $ 94,754 $ 161,443
Corporate:
Administration and Project
evaluation expenses
Gain on revaluation of
investments
Finance expense
Share of net income (loss)
of associates
Other
$
– $
– $
– $
– $
– $
– $
– $ (21,526) $ (13,321)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
15,671
–
(39,515)
(115)
(2,141)
–
(331)
4,747
Total Corporate
$
– $
– $
– $
– $
– $
– $
– $ (47,842) $
(8,689)
Consolidated
$ 106,584 $ 73,052 $ 21,677 $ 75,337 $
1,627 $ (11,810) $
(1,949) $ 46,912 $ 152,754
1. Royalty revenue from Antamina consists of $9.1 million from copper and $2.9 million from other base metals.
2. Revenue from Mercedes consists of $21.8 million from gold and $3.0 million from silver.
3. Where a Stream, royalty and other interest represents less than 10% of the Company’s sales, gross margin or aggregate asset book value
and represents an interest on gold, silver or other metal, the interest has been summarized under Other. Other includes Vatukoula,
Highland Valley, Black Fox, CEZinc, Gualcamayo and others. Includes revenue from Stream, royalty and other interests located in Canada of
$23.3 million, Mexico of $3.6 million and other of $9.2 million. Includes revenue from gold of $22.2 million, copper of $4.7 million,
diamonds of $3.3 million and other base metals of $5.9 million. Contractual income from stream, royalty and other interests includes a one-
time contractual payment of $10.0 million received related to the Mt. Hamilton royalty. Reportable segments that have not met the criteria
for separate disclosure in the current period have been included in Other for the current and prior period.
102
2023 Annual Report
Financial Statements
For the year ended December 31, 2022:
In $000s
Product
Sales
Royalty
revenue
Cost of sales
excluding
depletion
Depletion
Gain on
disposal of
Stream,
royalty and
other
interests and
Other
Stream,
royalty and
other
interests
impairment
Income (loss)
before taxes
Cash flows
from
operating
activities
Antamina, Peru
Copper, Other1 $
– $
4,269 $
– $
5,676 $
– $
– $
(1,407) $
1,069
Aurizona, Brazil
Blyvoor,
South Africa
Bonikro,
Côte d'Ivoire
Gold
Gold
Gold
–
6,925
–
2,589
5,243
–
–
1,199
2,422
3,106
379
787
Caserones, Chile
Copper
–
2,615
–
1,656
Cerro Moro,
Argentina
Silver
27,804
Chapada, Brazil
Copper
16,016
Gold
Gold
–
–
Gold, Silver2
14,934
Gold
10,891
Fruta del Norte,
Ecuador
Houndé,
Burkina Faso
Mercedes,
Mexico
Relief Canyon,
United States
Vale Royalties,
Brazil
Other3
Iron Ore
–
7,813
Gold
16,584
5,635
3,795
Copper, Other
3,754
11,299
798
–
–
6,546
5,815
–
–
8,323
11,994
4,828
3,060
–
–
2,416
2,159
2,001
8,144
–
–
5,121
2,537
7,699
5,046
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
6,546
7,925
603
2,083
(285)
3,742
959
2,747
7,487
19,480
8,128
11,188
4,130
4,757
3,656
3,547
4,789
11,669
5,770
10,891
5,276
7,618
1,086
(2,396)
12,035
17,929
–
(23,437)
32,646
14,734
Total Segments
$ 97,815 $ 50,917 $ 23,366 $ 59,780 $
1,086 $
(25,833) $ 90,333 $ 119,379
Corporate:
Administration and Project
evaluation expenses
Gain on revaluation of
investments
Finance expense
Gain on disposal of investment
in associates
Share of net income (loss)
of associates
Other
$
– $
– $
– $
– $
– $
– $
(20,828) $
(14,269)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,756
–
(17,286)
(122)
37,396
(3,654)
–
–
52
1,928
Total Corporate
$
– $
– $
– $
– $
– $
– $
(2,564) $
(12,463)
Consolidated
$ 97,815 $ 50,917 $ 23,366 $ 59,780 $
1,086 $
(25,833) $ 87,769 $ 106,916
1. Royalty revenue from Antamina consists of $2.9 million from copper, $0.2 million from silver and $1.2 million from other base metals.
2. Revenue from Mercedes consists of $12.4 million from gold and $2.5 million from silver.
3. Where a Stream, royalty and other interest represents less than 10% of the Company’s sales, gross margin or aggregate asset book value
and represents an interest on gold, silver or other metal, the interest has been summarized under Other. Other includes Vatukoula,
Highland Valley, Black Fox, CEZinc, Gualcamayo and others. Includes revenue from Stream, royalty and other interests located in Canada of
$23.5 million, Mexico of $4.8 million and other of $9.0 million. Includes revenue from gold of $22.2 million, other base metals of
$5.6 million, diamonds of $8.2 million and copper of $1.3 million. Reportable segments that have not met the criteria for separate
disclosure in the current period have been included in Other for the current and prior period.
2023 Annual Report
103
Financial Statements
Total assets as of:
In $000s
Antamina
Aurizona
Blyvoor
Bonikro
Caserones
Cerro Moro
Chapada
Fruta del Norte
Greenstone
Horne 5
Hod Maden
Houndé
Hugo North Extension and Heruga
Mercedes
Platreef
Relief Canyon
Vale Royalties
Other1
Total Segments
Corporate:
Cash and cash equivalents
Investments
Other assets2
Total Corporate
Consolidated
December 31, 2023
December 31, 2022
$
185,748 $
10,053
104,380
30,035
77,540
15,217
43,895
26,761
107,234
78,934
206,996
28,341
35,358
52,132
187,000
20,074
114,529
255,276
339,751
9,745
105,545
35,306
82,800
25,969
46,656
28,658
107,234
78,934
206,969
30,037
35,352
64,945
186,640
13,796
116,856
284,548
$
$
$
$
1,579,503 $
1,799,741
5,003 $
258,874
88,046
351,923 $
7,029
129,890
38,117
175,036
1,931,426 $
1,974,777
1. Where a Stream, royalty and other interest represents less than 10% of the Company's sales, gross margin or aggregate asset book value
and represents an interest on gold, silver or other metal, the interest has been summarized under Other. Includes Vatukoula, Black Fox,
Highland Valley, El Pilar, Cortez Complex (Robertson Deposit), CEZinc, Gualcamayo, Lobo-Marte, Ağı Dağı & Kirazlı, and others. Reportable
segments that have not met the criteria for separate disclosure in the current period have been included in Other for the current and prior
period.
2.
Includes Sandbox and Horizon Copper investments in associates.
104
2023 Annual Report
Financial Statements
Non-current assets by geographical region as of:
In $000s
North America
Canada
Mexico
USA
South & Central America
Peru
Brazil
Chile
Argentina
Ecuador
French Guiana
Africa
South Africa
Burkina Faso
Cote d'Ivoire
Other
Türkiye
Mongolia
Australia
Fiji
Other
Consolidated
1.
Includes Stream, royalty and other interests and Other long-term assets.
$
$
$
$
December 31, 20231
December 31, 20221
304,169 $
54,344
75,836
186,339 $
180,380
77,650
47,750
25,161
5,160
293,562 $
34,135
28,869
296,794
79,852
68,496
338,042
186,740
83,482
58,493
27,259
5,160
294,707
35,927
34,667
210,162 $
210,888
36,001
16,177
13,622
298
35,995
16,982
14,886
298
$
1,589,615 $
1,788,668
2023 Annual Report
105