2024
NYSE SAND TSX SSL
Annual
Report
II
2024 Q4
Company Profile
Corporate & Shareholder Information
Stock Exchange Listings
Toronto Stock Exchange
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
Board of Directors
Andrew T. Swarthout
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
III
Q4 2024
Company Profile
Company Profile
Shareholder Message
IV
Management Team
XII
Board of Directors
XIII
Management's Discussion & Analysis
Company Highlights
02
Overview and Outlook
04
Key Producing Assets
05
Other Producing Assets
09
Development Assets
16
Summary of Annual Results
22
Summary of Quarterly Results
25
Quarterly Commentary
29
Consolidated Financial Statements
Financial Position
61
Income (Loss)
62
Comprehensive Income (Loss)
63
Cash Flow
64
Changes in Equity
65
Notes to the Consolidated Financial Statements
66
1
2
3
IV
2024 Q4
Company Profile
In 2024, Sandstorm celebrated 15 years as a company. It is remarkable to
reflect on those 15 years and see how far we’ve come. From a shell company
in 2009, raising our first round of capital during the worst financial markets
in a generation, to the company it is today—one of the big six precious
metals royalty companies in the world with a robust growth profile.
This past year marked several meaningful advancements at key development
projects that underpin Sandstorm’s production growth, and we anticipate further
milestones in the coming months. As we await the maturation of our development
portfolio, we’ve continued to focus on strengthening the balance sheet and driving
value for shareholders. A combination of non-core asset sales and operational
cash flows, supported by rising gold prices, drove our deleveraging efforts in 2024.
The Company made $80 million in net debt repayments during the calendar year,
and an additional $15 million has been repaid as of the date of this annual report.
With gold at all-time highs, we expect debt repayment to accelerate in 2025.
Nolan Watson
President & CEO
A Message to Shareholders
V
Q4 2024
Company Profile
Sandstorm also recommenced its
share buyback program earlier in the
year, cancelling approximately 2.0
million shares in 2024, underscoring
our belief in the intrinsic value of
Sandstorm’s shares and our confidence
in the Company’s long-term trajectory.
For as long as Sandstorm remains
undervalued (and I believe that
Sandstorm is the most undervalued
royalty company of material size),
reducing the Company’s share float
will be an accretive and important
component driving shareholder
My focus on Sandstorm’s growth is not
growth for the sake of growth, rather it is
a desire for per share growth.
returns; and with a strong balance
sheet heading into 2025, I plan on
increasing the rate of share repurchases
materially in the ensuing year. My
focus on Sandstorm’s growth is not
growth for the sake of growth, rather
it is a desire for per share growth. By
increasing the rate that we buy back
shares and decrease our share count,
our future growth in production and
cash flow per share will be profound.
$80 Million
in net debt repayments during 2024
2024
2025
2027
2028
2028
2029
2029
2030
Greenstone
Platreef
Hod Maden
Robertson
Cortez Complex
Oyu Tolgoi
Hugo North Extension
Gualcamayo
Deep Carbonates Project
MARA
Equinox Gold
Glencore
Rio Tinto
Ivanhoe Mines
Barrick Gold
SSR Mining
AISA Group
8,000–10,000 oz
15,000–20,000 oz
3,000–4,000 oz
33,000–39,000 oz
3,000 oz
20,000–30,000 oz
Up to 11,000 oz
Average Annual Attributable
AuEq Production1
VI
2024 Q4
Company Profile
In many ways, we are at the beginning of a new
era of Sandstorm—one that will be characterized
by the most significant growth in the Company’s
history. Over the past several years, we have
been hard at work diligently assembling the
foundational pieces that will form this new chapter.
As we begin 2025, these pieces have started to
come together, and the future is taking shape.
One of the year’s defining achievements was the
commencement of production at the Greenstone
gold mine in Ontario, and its first gold deliveries
to Sandstorm. Following the mine’s first gold pour
in May, Equinox Gold announced commercial
production at Greenstone in November. Greenstone
will be one of Canada’s largest open-pit gold mines
and is targeting average annual production of
390,000 ounces of gold per year for the first five years
once fully ramped up. Sandstorm’s gold stream on
Greenstone was purchased in 2022 as part of the
Nomad Royalty Company acquisition and, along with
the Platreef gold stream, Greenstone was one of the
flagship development assets in Nomad’s portfolio. The
stream is expected to deliver between 8,000–10,000
ounces of gold to Sandstorm annually over the initial
15 year mine life. Over the long-term, our extensive
area of interest on the property covers any pit
expansion and/or underground mine development,
and we are looking forward to seeing Greenstone’s
growth potential unfold over the coming years.
1. Greenstone, Platreef, Robertson, and Hugo North Extension production
timing based on mine operator public disclosure. Hod Maden, MARA, and
Gualcamayo DCP production timelines based on Sandstorm estimates. Hugo
North Extension includes production from Lift 1 and Lift 2. Production from
Platreef includes Phases 1–3.
Greenstone, Canada
KEY ASSETS
160,000
140,000
180,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2025
2038
2030
in Ounces
+150koz
Oyu Tolgoi
MARA
Gualcamayo
Hod Maden
Robertson
Platreef
Greenstone
Other
VII
Q4 2024
Company Profile
At Platreef, Ivanhoe continues to make significant
construction progress. Platreef is a multi-development
phase operation that is expected to become the
world’s largest PGM mine. In 2024, Ivanhoe
completed construction of the Phase 1 concentrator
and is accelerating the development of Phase 2 by
utilizing Phase 1 infrastructure. The first two phases
are targeting production capacity of approximately
400,000 ounces of platinum, palladium, gold and
rhodium annually. Under Sandstorm’s gold stream,
we expect attributable deliveries of approximately
10,000 ounces of gold per year increasing to an
average of 20,000 ounces per year once Phase 3 is
in production. Ivanhoe has already commenced
construction on Shaft #2, which will be the largest
shaft on the African continent and is a crucial piece of
infrastructure that will support Phase 3 production.
Ivanhoe is expected to begin Phase 1 mining towards
the end of 2025, and we expect first gold deliveries to
Sandstorm commencing within the next 12 months.
1. Expected cash flows (USD) from operating activities attributable to the Company’s operating segment excluding changes in working capital. Price assumptions:
$2,600/oz gold, $30/oz silver, $4.00/lb copper.
2. Gold equivalent production and other related contractual cash flows. MARA Stream Option subject to conversion decision and contractual payment.
$260M
Expected portfolio cash flows in 20301
Attributable Gold
Equivalent Production2
In many ways, we are at the
beginning of a new era of
Sandstorm—one that will
be characterized by the
most significant growth in
the Company’s history.
VIII
2024 Q4
Company Profile
Platreef Shaft #2 headframe under construction.
Platreef, South Africa
Ivanhoe has already commenced
construction on Shaft #2, which
will be the largest shaft on the
African continent and is a crucial
piece of infrastructure that will
support Phase 3 production.
IX
Q4 2024
Company Profile
While rapidly rising commodity prices
have been a tailwind for the mining
industry, we are also seeing encouraging
advancements in various jurisdictions.
Argentina continued to attract
significant investment from some of
the world’s largest mining companies
in 2024. In July, the government of
Argentina adopted a new promotional
regime for large investments (RIGI),
that offers long-term stability relating
to tax, customs, and currency exchange.
Sandstorm’s royalty portfolio has
already realized positive impacts
from this program. In November, the
operator of the Gualcamayo mine
submitted the first mining proposal
under RIGI; a $1 billion investment
plan that includes the development
of the Gualcamayo Deep Carbonates
Project (DCP). Gualcamayo has
been a smaller producing asset in
Sandstorm’s portfolio since 2013,
but the development of the DCP will
increase attributable cash flows from
Gualcamayo by nearly $7 million per
year at current commodity prices.
Additionally, the royalty entitles
Sandstorm to receive a one-time $30
million payment upon commercial
production of the DCP. This is another
excellent example of the underlying
value within Sandstorm’s portfolio.
The Argentine RIGI program is also
expected to benefit Glencore’s MARA
project, located in the province of
Catamarca. I have continued to be
encouraged by Glencore’s public
comments related to MARA. With
the RIGI application deadline set
for July 2026, I anticipate more
positive news related to MARA’s
development over the next 18 months.
Utilizing existing infrastructure at
Glencore’s past-producing Alumbrera
mine, MARA is a low-capital intensive
project and Glencore’s most advanced
brownfields copper development
asset. The project is poised to become
a top 25 copper mine globally, yielding
approximately 250,000 tonnes of
copper and up to 100,000 ounces of
gold annually. Sandstorm holds an
exclusive option to convert its royalty
into a 20% gold stream, unlocking up
to $1.6 billion in life-of-mine cash flow
at current gold prices. Having pre-
negotiated this gold stream nearly 10
years ago using a gold price of $1,400
per ounce, the MARA gold stream
will no doubt be one of Sandstorm’s
most accretive deals once exercised.
Alumbrera Mill
MARA, Argentina
Gualcamayo, Argentina
+$7M
Gualcamayo DCP will
increase attributable cash
flows from Gualcamayo by
nearly $7 million per year.
X
2024 Q4
Company Profile
At Hod Maden—another one of
Sandstorm’s cornerstone assets—
development continues to progress.
After a temporary pause at the
beginning of 2024, SSR Mining
continued site preparation activities
through the remaining part of the year,
investing approximately $42 million
in 2024. We continue to forecast
first production from Hod Maden
in 2028, assuming the continued
advancement of early-works and
critical path initiatives ahead of a
formal investment decision, and
we look forward to more detailed
information from SSR Mining this year.
Another project I’m particularly excited
about is the Hugo North Extension at
Rio Tinto’s Oyu Tolgoi copper mine.
Entrée Resources provided several
positive updates related to their joint
venture on the Hugo North Extension.
Following the commencement of
underground development work at Lift
1 Panel 1 on the JV property, Entrée
released results from a 2023 drilling
program. The intercepts reconfirmed
the impressive high-grade nature of
the Hugo North deposit, but perhaps
more importantly, they highlighted
that the deposit remains open at depth
where it dips to the northwest with
an increasing proportion located on
the Entrée/Oyu Tolgoi JV ground.
Before ending the year, Entrée also
announced the successful conclusion
to the arbitration proceedings with
its JV partner, Oyu Tolgoi LLC,
providing better clarity on the
formalization of the JV agreement.
Long time Sandstorm shareholders
may recall that I have been adamant
about the potential at Oyu Tolgoi
since Sandstorm first acquired our
stream on Hugo North over a decade
ago. With development progressing,
I am more confident than ever in
this incredible copper mine and the
long-term value of Sandstorm’s stream.
Oyu Tolgoi, Mongolia
Hod Maden, Türkiye
+100%
Increase in production within
in the next five years
XI
Q4 2024
Company Profile
The assets I mentioned comprise only a portion of
Sandstorm’s industry-leading royalty portfolio. A
portfolio that is positioned to double its production
by 2030, with annual output exceeding 150,000
gold equivalent ounces. This growth is already
built-in and underpinned by some of the world’s
best mines, operated by some of the world’s best
mining companies. As this new era materializes and
the portfolio matures, I am confident in our ability
to deliver exceptional returns for our shareholders.
Whether you are new to the Sandstorm story, or
you are a long-term shareholder, I want to thank
you for being a part of what I consider one of
the best and most exciting growth companies
in the industry. It is a great time to be a Sand-
storm shareholder, and we are looking forward
to entering this new chapter alongside you.
Nolan Watson
XII
2024 Q4
Company Profile
Nolan Watson FCPA, FCA, CFA
PRESIDENT & CEO
Imola Götz M.Sc., P.Eng., QP
VP, MINING & ENGINEERING
Tom Bruington P.E., M.Sc.
EXECUTIVE VP,
PROJECT EVALUATION
Livia Danila CPA, CA
VP, CORPORATE CONTROLLER
David Awram B.Sc, Geologist
SENIOR EXECUTIVE VP
Kim Bergen CFA
VP, CAPITAL MARKETS
Keith Laskowski
Mining Geologist, MSc
VP, GEOLOGY
Erfan Kazemi CPA, CA, CFA
CFO
Ian Grundy CPA, CA, CFA
EXECUTIVE VP,
CORPORATE DEVELOPMENT
Sarah Ford CPA, CA, CFA
VP, FINANCIAL PLANNING
& ANALYSIS
Management Team
Ron Ho CPA, CA, CFA
SENIOR VP, FINANCE
XIII
Q4 2024
Company Profile
David E. De Witt
CHAIRMAN
Elif Lévesque
DIRECTOR
Nolan Watson
DIRECTOR
John P. A. Budreski
DIRECTOR
Mary L. Little
DIRECTOR
David Awram
DIRECTOR
Vera Kobalia
DIRECTOR
Andrew T. Swarthout
DIRECTOR
Board of Directors
XIV
2024 Q4
THIS PAGE INTENTIONALLY LEFT BLANK
Management’s Discussion
and Analysis
For The Year Ended December 31, 2024
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, 2024 and related notes thereto
which have been prepared in accordance with International Financial Reporting 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 18, 2025 and all figures are stated in U.S. dollars unless otherwise noted.
Sandstorm Gold Ltd.
1
2024 Annual Report
Company Highlights
OPERATING RESULTS
Strong commodity prices drive
another year of robust financial
results
•
Revenue for the three months and year ended
December 31, 2024 was $47.4 million and $176.3
million, respectively, compared with $44.5
million and $179.6 million for the comparable
periods in 2023.
•
Attributable Gold Equivalent ounces1 (as defined
hereinafter), for the three months and year ended
December 31, 2024 were 17,721 ounces and
72,810 ounces, respectively, compared with
23,250 ounces and 97,245 ounces for the
comparable periods in 2023.
•
Total Sales, Royalties and Income from other
interests1 (as defined hereinafter) for the three
months and year ended December 31, 2024 was
$47.4 million and $176.3 million, respectively,
compared with $46.3 million and $191.4 million
for the comparable periods in 2023.
•
Net income for the three months and year ended
December 31, 2024 was $3.1 million and $15.5
million, respectively, compared with $24.5 and
$42.7 million, respectively, for the three months
and year ended December 31, 2023.
•
Cash flows from operating activities, excluding
changes in non-cash working capital1, for the
three months and year ended December 31, 2024
were $36.8 million and $139.0 million,
respectively, compared with $36.5 million and
$151.1 million for the comparable periods in
2023.
•
Cost of sales, excluding depletion, for the three
months and year ended December 31, 2024 was
$4.3 million and $20.0 million, respectively,
compared with $4.9 million and $21.7 million for
the comparable periods in 2023.
•
Average cash costs1 for the three months and year
ended December 31, 2024 of $244 and $275 per
Attributable Gold Equivalent ounce1,
respectively, compared with $211 and $223 per
Attributable Gold Equivalent ounce1 for the
comparable periods in 2023.
•
Cash operating margins1 for the three months
and year ended December 31, 2024 were $2,396
and $2,097 per Attributable Gold Equivalent
ounce1 compared with $1,737 and $1,706 per
Attributable Gold Equivalent ounce1 for the
comparable periods in 2023. Cash operating
margins for the current three-month and annual
periods represent a record for the Company.
1.
Refer to section on non-IFRS and other measures of this MD&A.
GREENSTONE COMMENCES COMMERCIAL
PRODUCTION
Commercial production and initial
deliveries from the Greenstone Gold
Stream
•
On November 6, 2024, Equinox Gold Corp.
announced it had achieved commercial
production at its 100% owned Greenstone gold
mine, following its first gold pour in May 2024.
Sandstorm holds a gold stream on the
Greenstone mine, entitling the Company to
purchase 2.375% of the gold produced until
120,333 ounces have been delivered, and 1.583%
of the gold produced thereafter.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
2
2024 Annual Report
SIGNIFICANT DEBT REDUCTION
Sandstorm reduces debt balance and
renews credit facility with lower
interest rates
•
Throughout 2024, Sandstorm remained focused
on deleveraging, making net debt repayments of
$80 million during the year, with an additional
$15 million repaid subsequent to year-end.
•
In December 2024, Sandstorm renewed its
revolving credit facility, allowing the Company to
borrow up to $625 million for a four year term.
The amended facility includes revised interest
rates above SOFR which represent a 75-basis
point reduction at the upper end and a reduction
of 12.5 basis points at the lower end when
compared to the previous credit agreement.
SHARE PURCHASE PROGRAM AND DIVIDENDS
With near record commodity prices,
Sandstorm initiates its first ever
automatic share purchase program
•
With the recent increase in commodity prices and
the success in de-levering, in December 2024, the
Company established an Automatic Share
Purchase Plan to facilitate the repurchase of its
issued and outstanding common shares under its
normal course issuer bid. The plan allows for the
purchase of up to 10 million common shares
during periods when the Company would
otherwise be restricted from making purchases
due to regulatory constraints or self-imposed
blackout periods.
•
During the year ended December 31, 2024 and
under the Company’s normal course issuer bid,
the Company purchased and cancelled
approximately 2.0 million common shares for
total consideration of $10.9 million. Subsequent
to year end, the Company purchased and
cancelled an additional 266,000 common shares
for consideration of approximately $1.5 million.
•
In December 2024, the Company declared a
dividend of CAD0.02 per share, which was paid
on January 31, 2025.
OTHER
•
In January 2024, Sandstorm closed its previously
announced transaction to amend its existing gold
and silver Stream agreements with Bear Creek
and to refinance certain other debt investments
in 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 additional
consideration in the form of a combination of
Bear Creek common shares and debt.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
3
2024 Annual Report
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 231 Streams and
royalties, of which 41 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 65,000 and 80,000 ounces in 2025, which considers a range of commodity price scenarios.
With recent advancements within Sandstorm’s development asset portfolio, the Company is increasing
its long-term production forecast to be approximately 150,000 attributable gold equivalent ounces in
2030, based on the Company’s existing streams and royalties plus the exercise of the Company’s
exclusive gold stream option on the MARA project in Argentina.
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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
4
2024 Annual Report
Key Producing Assets
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 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%). 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 Copper of delivering silver ounces under the
Antamina silver Stream. 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 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 Mineral Resources that support a multi-decade mine life producing high-grade
copper. The mine’s Measured and Indicated Resources, inclusive of Proven and Probable Reserves,
totaled 863 million tonnes at 0.87% copper, 0.60% zinc, 11 grams per tonne silver, and 0.02%
molybdenum. In addition to the Mineral Resources associated with the open pit mine, Mineral
Resources have been associated with a conceptual underground mine. Mineral Reserves totaled 551
million tonnes at 0.92% copper, 0.68% zinc, 12 grams per tonne silver, and 0.02% molybdenum. Both
Mineral Reserves and Resources are effective as of December 31, 2024 (cut-off grade unavailable).
In February 2024, Teck reported that the Antamina Mine had received approval of the Modification of
Environmental Impact Assessment (the “MEIA”). The MEIA allows for an investment of approximately
$2 billion over the next eight years, which will extend operations at Antamina through to 2036. The
MEIA extends the permitted pit depth by 150 metres and will allow Antamina to optimize existing
mining components within its current operation while also expanding the footprint of the open pit and
expansion and optimization of tailings facilities. The MEIA also considers processing capacity of up to
208,000 tonnes per day which would be an approximate 40% increase from current levels. Reserves are
expected to be expanded once additional tailings capacity is confirmed. Sandstorm expects that
significant Mineral 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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
5
2024 Annual Report
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 13.5% 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
number of additional growth projects at the Pre-Feasibility or Feasibility Study level which could
enhance production from Sandstorm’s royalty grounds. Vale recently announced its Novo Carajas
Program, a R$70 billion investment to expand its iron ore and copper operations at the Carajas
complex.
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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
6
2024 Annual Report
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. As of June 30, 2024,
approximately 1.66 billion tonnes of iron ore have been produced from the Southeastern System royalty
grounds.
Vale continues to explore opportunities to extend the life of the Sossego operation and develop
additional brownfield copper projects within the Vale Royalty. Vale also continues to explore additional
copper development opportunities including an underground mining scenario at Sossego and the
development of the Alemao project.
Greenstone Gold Stream
EQUINOX GOLD CORP.
The Company has a Gold Stream on the Greenstone gold mine located in the Geraldton-Beardmore
district of western Ontario, Canada (the “Greenstone Mine” or “Greenstone”), owned and operated by
Equinox Gold Corp. (“Equinox” or “Equinox Gold”). Under the terms of the Gold Stream, Sandstorm
has agreed to purchase 2.375% of the gold produced from the property, until 120,333 ounces of gold
have been delivered, then 1.583% thereafter, for an ongoing per ounce cash payment of 20% of the spot
price of gold. Additional ongoing payments of $30 per gold ounce will fund mine-level environmental
and social programs. In May 2024, Equinox announced that it had completed its previously announced
transaction with Orion Mine Finance ("Orion") to acquire the 40% interest of the Greenstone Mine
previously held by Orion, consolidating Equinox’s ownership interest to 100%.
On May 23, 2024, Equinox Gold announced the first gold pour at Greenstone. Equinox announced
commercial production on November 6, 2024, and remains focused on systematically ramping up both
mining rates and plant throughput. Greenstone continues to progress toward design capacity, with a
target of achieving annual production rates of 390,000 ounces within the first five years of operation.
In October 2024, a Technical Report with an effective date of June 30, 2024 was released, which
outlines production of 5.7 million ounces over an initial 15-year mine life. Longer-term, Equinox
continues to evaluate opportunities to extend Greenstone’s mine life, with open-pit and underground
inferred resources of more than 3 million ounces. Trade-off studies to evaluate mining of the
underground resource down-plunge from the open pit are currently planned for 2025. For more
information, see www.equinoxgold.com.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
7
2024 Annual Report
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 Chapada 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.
As of December 31, 2024, a total of 33.2 million pounds of copper had been delivered under the
Chapada Copper Stream since its inception.
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. In 2025
Lundin Mining plans to undertake a 20,000-metre drilling program at Chapada with a goal to grow
resources and define higher grade resources that will be incorporated into an updated resource estimate
at Saúva. For more information, visit the Lundin Mining website at www.lundinmining.com.
Cerro Moro Silver Stream
PAN AMERICAN SILVER CORP.
The Company has a silver stream on Pan American Silver Corp.’s (“Pan American”) 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.
As of December 31, 2024, a total of 6.6 million ounces of silver had been delivered under the Yamana
Silver Stream since its inception.
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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
8
2024 Annual Report
Other Producing Assets
Houndé Gold Royalty
ENDEAVOUR MINING PLC
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 plc (“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 Reserve containing 2.6 million ounces of gold within 52.1 million tonnes of ore with an average
grade of 1.57 grams per tonne gold. The Measured and Indicated Resources, inclusive of Reserves,
contain 3.8 million ounces of gold contained in 73.1 million tonnes of ore with an average grade of 1.63
grams per tonne gold. This Mineral 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, 2023. See www.endeavourmining.com for more
information.
Houndé is an open-pit gold mine with a 3.0 million tonne per year nameplate capacity processing plant
using a gravity circuit and a carbon-in-leach plant. Since reaching commercial production, Houndé’s
processing plant has been consistently operating at more than 30% above its nameplate capacity.
In 2024, Endeavour embarked on a $10.0 million exploration program which is focused on delineating
targets at depth within the Kari Area and Vindaloo Deeps, as well as adding resources at existing
deposits. Drilling to date has continued to test the continuity of mineralization at the Vindaloo Deeps
target with preliminary results demonstrating the potential for a large, higher-grade underground
resource. The Vindaloo deposits and a significant portion of the Kari deposits at Houndé are included
within the Company’s royalty grounds.
In 2025, the Company expects production on its royalty grounds to be similar to 2024, with the
proportion of production subject to its royalty increasing in the coming years as production shifts away
from the Kari Pump deposit towards Sandstorm’s royalty grounds.
Aurizona Gold Royalty
EQUINOX GOLD CORP.
The Company has a 3%–5% sliding scale NSR on the production from Equinox Gold's 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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
9
2024 Annual Report
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.
In 2021, Equinox Gold published a Pre-Feasibility Study for an expansion to the Aurizona mine through
the development of an underground mine which outlines total production of 1.5 million ounces of gold
over an 11-year mine life. The underground mine would operate concurrently with the open pits and
would be subject to the Company’s 3%-5% sliding scale NSR. The updated production plan includes
estimated Proven and Probable Mineral Reserves of 1.66 million ounces of gold (contained in 32.3
million tonnes at 1.60 grams per tonne gold with a cut-off grade of 0.35–0.47 grams per tonne for open-
pit and 1.80 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
ounces contained in 18.1 million tonnes at 1.49 grams per tonne gold (cut-off grade of 0.30 grams per
tonne for open-pit and 1.00 grams per tonne for underground Mineral Resources). For more
information refer to www.equinoxgold.com.
On April 8, 2024, Equinox Gold reported a displacement of material in two areas in the south wall of the
Piaba pit at the Aurizona mine, caused by persistent heavy rains in Maranhão, Brazil. As a result, mining
at the Piaba pit was paused while Equinox Gold established a remediation plan and confirmed the safety
of the pit. To mitigate the potential impact on planned 2024 production, Equinox accelerated mining of
the Tatajuba open pit at Aurizona, which is also subject to the Company's royalty. In the fourth quarter
of 2024, Equinox announced that it had restarted mining in the Piaba pit and that its assessment of the
Piaba pit and surrounding infrastructure confirmed that the geotechnical event would not materially
impact the long-term economic performance of the Aurizona mine.
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 11 years of operational history. 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 Mining has
identified several priority exploration targets at the property, the majority of which are situated on the
Company’s royalty ground. In 2025, Lundin Mining plans to undertake an 18,000 metre drilling and
geophysical program that will focus on deeper in-pit drilling to better define higher grade breccia zones
and exploration drilling to continue testing the sulphide mineral potential below the Angelica oxide
deposit.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
10
2024 Annual Report
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 5.50 million ounces of gold in 21.70 million
tonnes of ore with an average grade of 7.89 grams per tonne, as of December 31, 2023, ranking it
amongst the highest-grade gold projects in the world (based on cut-off grade of 4.00 grams per tonne
and 5.30 grams per tonne depending on mining method). Lundin Gold plans to increase the plant's
throughput to 5,000 tonnes per day, which it expects to achieve in 2025. Lundin Gold anticipates
producing between 475,000 and 525,000 ounces of gold annually from 2025 through 2027. See
www.lundingold.com for more information.
Lundin Gold recently announced additional results from its 2024 near-mine drilling program, with
recent intercepts confirming the significant size of the new Bonza Sur gold deposit at Fruta del Norte.
The Bonza Sur gold deposit, discovered in 2023, is located 1 kilometre south of Fruta del Norte. The
deposit features a large mineralized envelope extending approximately 2.6 kilometres along strike, 150
metres wide, and at least 500 metres deep. In December 2024 Lundin Gold announced that it had
surpassed 56,000 metres of drilling, the largest ever exploration drilling program conducted on the land
package hosting Fruta del Norte, at an estimated program cost of $44.0 million when combined with its
regional program. Lundin Gold announced that in 2025 it plans to complete an additional 65,000
metres of drilling and to release an initial Mineral Resource at Bonza Sur mid-year.
Blyvoor Gold Stream
AUROUS RESOURCES
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 produced at the mine 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. Based on Sandstorm’s review of current operating plans at Blyvoor, the
Company is budgeting for long-term production rates of approximately 70,000 ounces of gold per
annum, based on conventional mining methods.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
11
2024 Annual Report
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 obtained the right to purchase 275 gold ounces per month
through April 2028, followed by a 4.4% gold stream thereafter, in exchange for an ongoing cash
payment of 25% of the spot gold price for each ounce delivered.
REVISED SILVER STREAM
Beginning in May 2028, Sandstorm will receive 100% of the silver produced for the life of the mine, in
exchange for an ongoing cash payment of 25% of the spot silver price for each ounce delivered.
REVISED DEBT HOLDINGS
Sandstorm refinanced its $22.5 million convertible debenture and $14.4 million secured loan into 5-
year convertible notes bearing 7% annual interest, convertible into Bear Creek common shares at a
strike price of CAD0.73 per share (the “Refinanced Sandstorm Debentures”). Additionally, Sandstorm
received $4.2 million in extra principal at closing and advanced approximately $2.6 million to Bear
Creek during 2024 under the terms of the Refinanced Sandstorm Debentures. As of December 31, 2024,
the total principal outstanding was approximately $44 million.
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.
•
Non-royalty consideration: Additional consideration comprised of 28,767,399 Bear Creek common
shares and $4.2 million in principal 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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
12
2024 Annual Report
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
including production from both the oxides and deep carbonates component; (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 ("DCP"). The Company anticipates that Eris
will exceed the 396,000-ounce threshold during the first half of 2025, triggering an increase in its oxide
royalty rate to a 3% NSR.
In 2024, the operator of the Gualcamayo Mine submitted a $1 billion investment plan to Argentina’s
Incentive Regime for Large Investment (“RIGI”). This plan encompasses the development of the
Gualcamayo DCP. A Feasibility Study and detailed engineering work for the DCP are currently
underway, with completion expected in 2025. The project includes the construction of a new
underground mine, a milling system, and a flotation plant designed to process 3,500–4,500 tonnes of
ore per day. In addition to the existing oxide inventory, the DCP is projected to produce approximately
120,000 ounces of gold annually over an initial 17-year mine life.
Bonikro Gold Stream
ALLIED GOLD CORPORATION
The Company has a Gold Stream on Allied Gold Corporation’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. In August of 2024
Sandstorm amended its Bonikro Gold Stream such that the Company is now entitled to minimum
annual deliveries of 4,000–6,000 ounces in the 2024–2026 period and 2,000–3,000 ounces in the
2027–2029 period. No other changes were made to the delivery or payment terms under the Stream. As
at December 31, 2024, approximately 29,000 ounces of gold had been delivered under the Bonikro Gold
Stream since its inception.
The Bonikro Mine is a producing gold-silver mine located approximately 67 kilometres south of
Yamoussoukro, 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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
13
2024 Annual Report
The most recently published Mineral Reserve and Mineral Resource estimate for Bonikro includes
Proven and Probable Mineral Reserves of 571,000 ounces of gold in 13.7 million tonnes of ore with an
average grade of 1.30 grams per tonne gold and Mineral Resources, inclusive of Reserves, of 1.39 million
ounces of gold in 32.8 million tonnes of ore with an average grade of 1.32 grams per tonne gold. This
Mineral Reserve and Mineral Resource estimate is effective as of December 31, 2023 and is based on
open pit cut-off grades of 0.68-0.74 grams per tonne for Mineral Reserves and 0.5 grams per tonne for
Mineral Resources. Ongoing drilling is focused on expanding and converting the existing Inferred
Resource targeting a mine life of over 10 years.
In the third quarter of 2024, Allied announced the closing of a $53 million third party financing package
for advancement initiatives at its Côte d’Ivoire Complex, which includes the Bonikro and Agbaou gold
mines. The financing is expected to support the advancement of highly prospective sites including the
allocation of $16.5 million in 2024 for the advancement of high priority targets such as Oume, Akissi-So,
Agbalé, and others, which are located within the area of interest of Sandstorm’s Bonikro Stream. 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”).
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.
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 and 2024, Sandstorm is entitled to receive 44,312 ounces of gold over an
approximately 8-year period which began in the second quarter of 2020 (the “Fixed Deliveries”). In the
fourth quarter of 2024, the stream was amended so that gold deliveries will be approximately 5,000
ounces annually for 2025–2027. Beginning on the fifth anniversary of the start of the Fixed Deliveries,
Management's Discussion & Analysis
Sandstorm Gold Ltd.
14
2024 Annual Report
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 has
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.
In the fourth quarter of 2024, Americas Gold closed its previously announced transaction with an
affiliate of Mr. Eric Sprott and Mr. Paul Huet under which Americas Gold acquired the remaining 40%
interest which it did not own in the Galena Complex in Idaho, USA. Additionally, Americas Gold
completed a bought deal private placement financing to raise gross proceeds of approximately CAD$50
million which are expected to be utilized to deleverage Americas Gold's balance sheet. On closing, Mr.
Eric Sprott became the largest shareholder of Americas Gold.
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. The Fixed Delivery Period entitles Sandstorm to receive
1,320 ounces of gold per year, increasing to 2,772 ounces of gold per year starting January 2024 for the
final 3.5 years of the Fixed Delivery Period.
In addition to the Gold Stream, Sandstorm holds an effective 0.21% NSR on certain prospecting licenses
plus a five-kilometre area of interest.
Subsequent to year-end, the Company executed an option agreement with VGML. Under the terms of
the agreement, Sandstorm received $4 million in cash in return for an option allowing VGML to
repurchase the stream. If VGML or its affiliates make an additional cash payment of $10 million in the
first quarter of 2025 and comply with customary conditions, Sandstorm will terminate its stream and
royalty interests on the property.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
15
2024 Annual Report
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 and Froome mine (both part of the Black
Fox property), 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 $613 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.
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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
16
2024 Annual Report
In February 2024, following an incident at one of its assets, SSR Mining retracted all previously issued
guidance for its Turkish assets, including the Hod Maden Project. However, site preparation activities
and engineering studies at the Hod Maden project continued in the second half of 2024 with SSR
Mining investing approximately $42 million in 2024. The Company continues to forecast first
production from Hod Maden in 2028 on the basis that the joint venture will continue to advance early-
works and critical path initiatives ahead of a formal investment decision, including site access,
tunneling, and power supply. Further details on project advancement are expected to be announced by
SSR Mining alongside its 2025 annual guidance announcement.
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. Ivanhoe recently announced the on-
schedule completion of the Phase 1 concentrator, which entered cold commissioning in July 2024. In-
line with Platreef’s optimized development plan schedule described below, the concentrator will be
placed on care and maintenance until the second half of 2025 as Shaft #1 prioritizes waste hoisting to
support and accelerate the development of Phase 2.
Ivanhoe recently announced an optimized development plan for Platreef which de-risks initial
production and accelerates the asset’s Phase 2 expansion by up to three years. Under the revised
development plan, Ivanhoe will re-purpose ventilation Shaft #3 for hoisting at a rate of 3 million tonnes
per annum (“Mtpa”) and increase the size of the initial Phase 2 concentrator to 3.3 Mtpa (previously 2.2
Mtpa), bringing site-wide processing capacity to 4.0 Mtpa. Shaft #3 is expected to be ready for hoisting
in the first quarter of 2026. An updated Feasibility Study, accelerating and optimizing the development
of Phase 2, is expected to be completed in 2025.
In conjunction with the advancement of Shaft #2 and the updated Feasibility Study, Ivanhoe is
undertaking a Preliminary Economic Assessment for Phase 3 expansion, also expected to be completed
in 2025. Phase 3 would increase total processing capacity at Platreef to approximately 10.0 Mtpa and is
anticipated to rank Platreef as one of the world’s largest and lowest-cost platinum-group metals, nickel,
copper, and gold operations. The processing capacity of the Phase 3 expansion will be 12.5 times greater
than that of Phase 1 and 2.5 times greater than the optimized Phase 2 expansion.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
17
2024 Annual Report
MARA Royalty and Stream Option
GLENCORE PLC
The Company has a 0.25% NSR on the MARA porphyry copper-gold project (“MARA”) which is located
in Catamarca province, Argentina and is wholly owned by a subsidiary of Glencore plc. In addition,
Sandstorm holds a Gold Stream conversion option.
Under the terms of the option agreement, Sandstorm may elect to make an advance payment up to a
maximum of $225 million (“Advance Payment”) to convert its existing 0.25% NSR into a Gold Stream
(“Stream Conversion”). If Sandstorm elects to pay the Advance Payment, the Company will have the
right to purchase an amount of gold equal to 20% of the life of mine gold produced from MARA for
ongoing payments for each ounce of gold received, equal to 30% of the spot price per ounce of gold.
To exercise its option, Sandstorm is required to elect the Stream Conversion only once the respective
subsidiary of Glencore plc has made a board-approved construction decision at MARA. The Advance
Payment is payable in quarterly tranches throughout the construction period in proportion to the total
project spending. In addition, if Sandstorm wishes to syndicate the Gold Stream to a third party, it has
the right to transfer any and all of its rights and obligations, under certain conditions. The Gold Stream
option is structured between Sandstorm’s Canadian parent company and a counterparty entity outside
of Argentina.
MARA is a brownfield copper-gold project that ranks as one of the lowest capital-intensive copper
projects in the world, owing to the existing Alumbrera processing plant and associated infrastructure
located nearby. MARA is expected to be in the top 25 global copper producers when operational and is
supported by Measured and Indicated Resources totalling 1,220 million tonnes with the following metal
grades: 0.47% copper, 0.20 grams per tonne gold grade, and 3.36 grams per tonne silver grade. The
Measured and Indicated Resources are reported within an economic pit shell for open pit mining. For
more information refer to www.glencore.com.
In September 2023, Glencore plc completed the acquisition of the remaining 56.25% interest that it did
not previously own in the MARA project. In early 2024, Glencore plc reported that it had earmarked an
aggregate of $400 million over the next three years for two growth projects located in Argentina,
including their wholly-owned MARA project. The investment is expected to continue the development,
feasibility studies, and early works of their Argentinian assets. The Company expects Glencore plc to
complete an updated technical study for the asset by the second half of 2025. In addition, provided that
copper market conditions remain favorable, Sandstorm expects that Argentina’s RIGI permitting regime
and the brownfield nature of the MARA project could help position the asset as one of the early large-
scale copper projects to be developed.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
18
2024 Annual Report
Hugo North Extension & Heruga Stream
ENTRÉE RESOURCES LTD.
The Company has a precious metals Stream with Entrée Resources Ltd. (“Entrée Resources”) 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. If the Mongolian Government acquires a 34%
interest in Entrée Resources’ share of the joint venture, Sandstorm will receive up to $6.8 million in
consideration, with the streaming rates adjusting to 4.47% for gold, 3.39% for silver, and 0.33% for
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. On February 3,
2025, Entrée announced that the joint venture agreement, which had been in operation but not fully
executed, had been formally signed and delivered by all parties.
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. In 2023 Entrée Resources reported that optimization studies on Panel 1, which have the potential
to further improve Lift 1 economics for the Entrée/Oyu Tolgoi joint venture, were completed in the
second quarter of 2023. More recently, Entrée Resources reported that first underground development
work on the Entrée/Oyu Tolgoi joint venture property commenced in the fourth quarter of 2024.
Additionally, Rio Tinto, the operator of Oyu Tolgoi, has announced that ramp up of the Oyu Tolgoi Lift 1
underground mine continues in line with its long-term plan, including commissioning of ventilation
Shafts 3 and 4, along with other important construction and commissioning milestones.
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”).
Management's Discussion & Analysis
Sandstorm Gold Ltd.
19
2024 Annual Report
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. The project continues to advance through its permitting process, with the Bureau d’audiences
publiques sur l’environnement having recently submitted its report to the relevant governmental
permitting authorities. For more information refer to www.falcores.com/en.
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. Based on the average quarterly gold price for the three months ended
December 31, 2024, the Robertson NSR would have been 2.25% if it were in production.
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. On November 15, 2024, the U.S. Bureau of Land Management filed a positive Record of
Decision for the Robertson mine, following publication of the project’s Final Environmental Impact
Statement (“EIS”) and public review period.
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 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, 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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
20
2024 Annual Report
Revolving Credit Facility
In December 2024, Sandstorm renewed its revolving credit agreement allowing the Company to borrow
up to $625 million (the “Revolving Facility”). The amounts drawn on the Revolving Facility are subject
to interest at SOFR plus 1.75%–2.75% per annum, and the undrawn portion of the Revolving Facility is
subject to a standby fee of 0.39%–0.62% per annum, both of which are dependent on the Company’s
leverage ratio. The revised interest rates above SOFR represent a 75-basis point reduction at the upper
end and a reduction of 12.5-basis points at the lower end when compared to the previous credit
agreement. The Revolving Facility retains its sustainability-linked incentive pricing terms that allow
Sandstorm to reduce 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 December 2028.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
21
2024 Annual Report
Summary of Annual Results
Year Ended
Total revenue
$
176,283 $
179,636 $
148,732
Attributable Gold Equivalent ounces1
72,810
97,245
82,376
Sales
$
107,742 $
106,584 $
97,815
Royalty revenue
68,541
73,052
50,917
Average realized gold price per ounce from the
Company’s Gold Streams1
2,372
1,929
1,795
Average cash cost per attributable ounce1
275
223
284
Cash flows from operating activities
135,378
152,754
106,916
Net income
15,504
42,709
78,450
Net income attributable to Sandstorm shareholders
14,293
41,716
78,361
Basic income per share
0.05
0.14
0.34
Diluted income per share
0.05
0.14
0.33
Total assets
1,850,184
1,931,426
1,974,777
Total long-term liabilities
384,615
461,252
514,331
Dividends declared per share (CAD)
0.08
0.08
0.08
Dividends declared
17,282
17,720
15,009
Dividends paid
17,509
17,736
13,637
In $000s
(except for per share and per ounce amounts)
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
1.
Refer to section on non-IFRS and other measures of this MD&A.
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
82,376oz
97,245oz
72,810oz
$179.6M
$148.7M
$191.4M
$176.3M
$1,795
$1,929
$2,372
2022
2023
2024
1.
Refer to section on non-IFRS and other measures of this MD&A.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
22
2024 Annual Report
The Company’s operating segments for the year ended December 31, 2024
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
Loss (gain) on
disposal and
impairment of
Stream, royalty
and other
interests
Income (loss)
before taxes
Cash flows
from operating
activities
Antamina
Copper, Other2
1,144 $
2,932 $
— $
2,783 $
— $
149 $
3,832
Silver
2,165
5,175
129
2,501
—
2,545
5,046
Aurizona
Gold
3,586
8,566
—
274
—
8,292
8,216
Blyvoor
Gold
2,060
4,874
1,178
1,160
—
2,536
3,719
Bonikro
Gold
7,234
16,932
2,894
7,648
—
6,390
14,513
Caserones
Copper
3,182
11,033
—
3,724
—
7,309
7,762
Cerro Moro
Silver
6,920
16,224
4,881
6,729
—
4,614
11,343
Chapada
Copper
6,446
14,903
4,489
2,690
—
7,724
10,415
Fruta del Norte
Gold
4,109
9,899
—
1,919
—
7,980
6,001
Greenstone
Gold
1,968
5,025
1,056
1,527
—
2,442
3,893
Houndé
Gold
2,501
5,844
—
1,594
—
4,250
4,909
Mercedes
Gold, Silver3
4,064
9,478
2,124
4,561
404
2,389
7,514
Relief Canyon
Gold
8,560
20,786
—
10,491
—
10,295
20,786
Vale Royalties
Iron Ore
2,515
5,792
—
2,424
—
3,368
5,391
Other
Gold
11,289
26,801
2,056
4,894
(139)
19,990
20,202
Copper, Other4
5,067
12,019
1,187
5,389
3,424
2,019
11,335
Corporate
—
—
—
—
—
(62,758)
(9,499)
Consolidated
72,810 $ 176,283 $
19,994 $
60,308 $
3,689 $
29,534 $ 135,378
1.
Refer to section on non-IFRS and other measures of this MD&A.
2.
Revenue from Antamina consists of $2.2 million from copper and $0.7 million from other base metals.
3.
Sales revenue from Mercedes consists of $9.2 million from gold and $0.3 million from silver.
4.
Includes revenue from other base metals of $6.9 million, $3.1 million from copper, and $2.0 million from diamonds.
FY 2024
Attributable Gold Equivalent Ounces by Asset
Q1
Q2
Q3
Q4
8,560
7,234
6,920
6,446
4,109
4,064
3,586
3,309
3,182
2,515
2,501
2,060
1,968
16,356
Relief Canyon
Bonikro
Cerro Moro
Chapada
Fruta del Norte
Mercedes
Aurizona
Antamina
Caserones
Vale Royalties
Houndé
Blyvoor
Greenstone
Other
Management's Discussion & Analysis
Sandstorm Gold Ltd.
23
2024 Annual Report
FY 2024
Attributable Gold Equivalent Ounces by Region
North America
Canada
South America
Other
45%
21%
35%
16%
FY 2024
Attributable Gold Equivalent Ounces by Metal
Precious Metals
Base Metals
and other
Copper
75%
16%
25%
FY 2024 Attributable Gold Equivalent Ounces by Region North America Canada South America Other 17% 42% 41% 17%FY 2024 Attributable Gold Equivalent Ounces by Metal Precious Metals Base Metals Copper 16% 9% 84%
The Company’s operating segments for the year 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
Loss (gain)
on disposal
and
impairment
of Stream,
royalty and
other
interests
Income
(loss)
before
taxes
Cash flows
from
operating
activities
Antamina
Copper, Other2
6,569 $
12,040 $
— $
7,215 $
— $
2,039 $
2,786 $ 11,455
Silver
1,150
2,769
55
1,361
—
—
1,353
2,714
Aurizona
Gold
5,087
9,825
—
492
—
—
9,333
9,025
Blyvoor
Gold
2,292
4,431
1,313
1,225
—
—
1,893
2,994
Bonikro
Gold
4,797
9,223
1,919
4,956
—
—
2,348
7,619
Caserones
Copper
4,181
12,022
—
5,832
—
—
6,190
8,365
Cerro Moro
Silver
13,585
26,197
7,853
10,753
—
—
7,591
18,345
Chapada
Copper
7,015
13,469
4,074
2,761
—
—
6,634
9,395
Fruta del Norte
Gold
3,999
7,722
—
2,098
—
—
5,624
5,434
Houndé
Gold
2,967
5,731
—
1,835
—
—
3,896
4,474
Mercedes
Gold, Silver3
12,794
24,757
2,258
15,787
—
—
6,712
24,511
Relief Canyon
Gold
4,772
9,396
—
4,731
—
—
4,665
9,395
Vale Royalties
Iron Ore
3,109
5,988
—
2,426
—
—
3,562
5,005
Other
Gold
17,366
22,202
3,054
6,790
(11,810)
940
23,228
30,068
Copper, Other4
7,562
13,864
1,151
7,075
—
(3,301)
8,939
12,644
Corporate
—
—
—
—
—
— (47,842)
(8,689)
Consolidated
97,245 $ 179,636 $ 21,677 $ 75,337 $ (11,810) $
(322) $ 46,912 $ 152,754
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.
Sales revenue from Mercedes consists of $21.8 million from gold and $3.0 million from silver.
4.
Includes revenue from other base metals of $5.9 million, $4.7 million from copper, and $3.3 million from diamonds.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
24
2024 Annual Report
Summary of Quarterly Results
Quarters Ended
Total revenue
$
47,400 $
44,698 $
41,374 $
42,811
Attributable Gold Equivalent ounces1
17,721
17,359
17,414
20,316
Sales
$
28,046 $
26,693 $
25,834 $
27,169
Royalty revenue
19,354
18,005
15,540
15,642
Average realized gold price per ounce from the
Company’s Gold Streams1
2,640
2,520
2,313
2,062
Average cash cost per attributable ounce1
244
305
270
280
Cash flows from operating activities
36,114
32,527
34,385
32,352
Net income (loss)
3,064
5,794
10,502
(3,856)
Net income (loss) attributable to Sandstorm
shareholders
3,062
5,399
10,028
(4,196)
Basic income (loss) per share
0.01
0.02
0.03
(0.01)
Diluted income (loss) per share
0.01
0.02
0.03
(0.01)
Total assets
1,850,184
1,879,553
1,889,324
1,907,863
Total long-term liabilities
384,615
406,466
414,800
442,741
Dividends declared per share (CAD)
0.02
0.02
0.02
0.02
Dividends declared
4,128
4,410
4,345
4,399
Dividends paid
4,405
4,277
4,379
4,448
In $000s
(except for per share and per ounce amounts)
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
In $000s
(except for per share and per ounce amounts)
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Total revenue
$
44,498 $
41,324 $
49,835 $
43,979
Attributable Gold Equivalent ounces1
23,250
21,123
24,504
28,368
Sales
$
26,412 $
22,497 $
31,269 $
26,406
Royalty revenue
18,086
18,827
18,566
17,573
Average realized gold price per ounce from the
Company’s Gold Streams1
1,948
1,919
1,972
1,882
Average cash cost per attributable ounce1
211
220
228
230
Cash flows from operating activities
38,741
31,947
42,142
39,924
Net income
24,459
14
2,684
15,552
Net income (loss) attributable to Sandstorm
shareholders
24,239
(241)
2,049
15,669
Basic income (loss) per share
0.08
(0.00)
0.01
0.05
Diluted income (loss) per share
0.08
(0.00)
0.01
0.05
Total assets
1,931,426
1,916,819
1,937,207
1,963,151
Total long-term liabilities
461,252
466,793
477,387
490,258
Dividends declared per share (CAD)
0.02
0.02
0.02
0.02
Dividends declared
4,446
4,390
4,469
4,415
Dividends paid
4,367
4,530
4,385
4,454
1.
Refer to section on non-IFRS and other measures of this MD&A.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
25
2024 Annual Report
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
20,316oz
17,414oz
17,359oz
17,721oz
$42.8M
$41.4M
$44.7M
$47.4M
$2,062
$2,313
$2,520
$2,640
Q1
Q2
Q3
Q4
2024
1.
Refer to section on non-IFRS and other measures of this MD&A.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
26
2024 Annual Report
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.
The Company’s operating segments for the three months ended
December 31, 2024 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
Loss (gain) on
disposal and
impairment of
Stream, royalty
and other
interests
Income (loss)
before taxes
Cash flows
from
operating
activities
Antamina
Copper, Other2
(61) $
(161) $
— $
593 $
— $
(754) $
1,939
Silver
538
1,421
36
568
—
817
1,386
Aurizona
Gold
1,121
2,961
—
87
—
2,874
2,011
Blyvoor
Gold
390
1,034
223
213
—
598
692
Bonikro
Gold
1,723
4,586
690
1,841
—
2,055
4,047
Caserones
Copper
485
1,895
—
772
—
1,123
1,507
Cerro Moro
Silver
1,252
3,305
1,000
1,201
—
1,104
2,305
Chapada
Copper
741
1,955
588
329
—
1,038
1,368
Fruta del Norte
Gold
1,216
3,211
—
541
—
2,670
1,824
Greenstone
Gold
796
2,120
483
615
—
1,022
1,579
Houndé
Gold
336
886
—
170
—
716
1,107
Mercedes
Gold
825
2,180
544
973
—
663
1,636
Relief Canyon
Gold
3,000
7,870
—
3,952
—
3,918
7,870
Vale Royalties
Iron Ore
511
1,350
—
643
—
707
2,109
Other
Gold
3,713
9,772
486
1,912
(139)
7,513
6,339
Copper, Other3
1,135
3,015
269
802
—
1,944
2,809
Corporate
—
—
—
—
—
(20,193)
(4,414)
Consolidated
17,721 $
47,400 $
4,319 $ 15,212 $
(139) $
7,815 $ 36,114
1.
Refer to section on non-IFRS and other measures of this MD&A.
2.
Revenue from Antamina consists of ($0.1) million from copper and ($0.1) million from other base metals.
3.
Includes revenue from other base metals of $1.8 million, $0.1 million from diamonds, and $1.1 million from copper.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
27
2024 Annual Report
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
Loss (gain)
on disposal
and
impairment
of Stream,
royalty and
other
interests
Income
(loss)
before
taxes
Cash flows
from
operating
activities
Antamina
Copper, Other2
297 $
580 $
— $
799 $
— $
— $
(219) $
930
Silver
537
1,045
26
642
—
—
377
1,019
Aurizona
Gold
1,323
2,577
—
123
—
—
2,454
2,377
Blyvoor
Gold
449
882
257
246
—
—
379
574
Bonikro
Gold
1,103
2,122
441
1,149
—
—
532
1,199
Caserones
Copper
1,085
3,130
—
1,693
—
—
1,437
2,269
Cerro Moro
Silver
3,268
6,366
1,901
2,964
—
—
1,501
4,466
Chapada
Copper
1,715
3,340
1,009
734
—
—
1,597
2,331
Fruta del Norte
Gold
999
1,946
—
484
—
—
1,462
1,263
Houndé
Gold
1,130
2,201
—
594
—
—
1,607
1,449
Mercedes
Gold, Silver3
3,384
6,533
582
3,860
—
—
2,091
5,777
Relief Canyon
Gold
1,568
3,127
—
1,676
—
—
1,451
3,126
Vale Royalties
Iron Ore
770
1,500
—
622
—
—
878
2,258
Other
Gold
4,367
6,904
380
1,854
(1,810)
—
6,480
8,132
Other4
1,255
2,245
302
1,795
—
(3,301)
3,449
3,177
Corporate
—
—
—
—
—
—
3,566
(1,606)
Consolidated
23,250 $ 44,498 $ 4,898 $ 19,235 $
(1,810) $ (3,301) $ 29,042 $ 38,741
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.
3.
Revenue from Mercedes consists of $5.7 million from gold and $0.8 million from silver.
4.
Includes revenue from other base metals of $1.8 million, $0.3 million from diamonds, and $0.1 million from copper.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
28
2024 Annual Report
Three Months Ended December 31, 2024
Compared to the Three Months Ended
December 31, 2023
For the three months ended December 31, 2024, net income and cash flows from operating activities
were $3.1 million and $36.1 million, respectively, compared with net income of $24.5 million and cash
flows from operating activities of $38.7 million for the comparable period in 2023. The decrease is due
to a combination of factors including:
•
A $23.6 million decrease in the gains recognized on the revaluation of the Company’s investments; whereby, a
loss of $2.1 million was recognized by the Company during the three months ended December 31, 2024; while
during the three months ended December 31, 2023 the Company recognized a gain of $21.4 million mostly
driven by an increase in the fair value of the Company's investments in debentures; and
•
Certain items recognized during the year ended December 31, 2023 which did not occur during the year ended
December 31, 2024 including a one time $4.0 million gain on the disposal of the Company's Blackwater and El
Pilar royalties to Versamet Royalties Corporation ("Versamet").
Partially offset by:
•
A $4.o million decrease in depletion expense, primarily due to a decrease in Attributable Gold Equivalent
ounces sold;
•
A $2.9 million increase in revenue described in greater detail below; and
•
A $2.0 million decrease in finance expense as a result of repayments of the Company's Revolving Facility
which had an outstanding balance of $355 million as at December 31, 2024, reduced from $435 million as at
December 31, 2023.
For the three months ended December 31, 2024, revenue was $47.4 million compared with $44.5
million for the comparable period in 2023. The increase is attributable to a 36% increase in the average
realized selling price of gold; partially offset by a 21% decrease 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 $4.7 million increase in revenue attributable to the Relief Canyon Stream, driven by an additional 1,500
ounces of gold received in the fourth quarter of 2024 due to an amendment to the Stream agreement,
primarily relating to the timing of fixed deliveries;
•
A $3.6 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;
Management's Discussion & Analysis
Sandstorm Gold Ltd.
29
2024 Annual Report
•
A $2.5 million increase in revenue from the Bonikro Gold Stream, driven by higher attributable gold
equivalent ounces sold. This was partly due to the timing of sales, as all ounces received in the fourth quarter
of 2024 were sold within the same period, leaving no inventory at period-end. In contrast, due to the timing of
sales, 811 ounces were in inventory as at December 31, 2023; and
•
A $2.1 million increase in revenue attributable to the Greenstone Gold Stream which poured first gold in May
2024 and began making deliveries under the Stream during the three months ended September 30, 2024.
Partially offset by:
•
A $4.4 million decrease in revenue attributable to the Mercedes Gold and silver Streams as a result of; (i) the
conclusion of the fixed gold delivery period, in accordance with the stream agreement, at the end of 2023,
which entitled the company to receive 1,000 ounces of gold per quarter; and (ii) the suspension of the silver
Stream through April 2028 and the reduction in the ongoing Gold stream entitlement to 275 ounces per
month from 600 ounces per month in accordance with the Restructuring Agreement described in the
Mercedes Precious Metal Streams section above;
•
A $3.1 million decrease in revenue attributable to the Cerro Moro silver Stream primarily due to a 64%
decrease in the number of silver ounces sold as a result of lower silver grades due to mine sequencing, partially
offset by an increase in the average realized selling price of silver which increased from an average of $21.22
per ounce during the three months ended December 31, 2023 to an average of $31.00 per ounce during the
equivalent period in 2024; and
•
A $1.4 million decrease in revenue attributable to the Chapada copper Stream primarily due to a 53% decrease
in the number of pounds of copper sold due to the timing of sales, partially offset by an increase in the average
realized selling price of copper which increased from an average of $3.58 per pound during the three months
ended December 31, 2023 to an average of $4.45 per pound during the equivalent period in 2024.
1.
Refer to section on non-IFRS and other measures of this MD&A.
Year Ended December 31, 2024 Compared to the
Year Ended December 31, 2023
For the year ended December 31, 2024, net income and cash flows from operating activities were $15.5
million and $135.4 million, respectively, compared with net income of $42.7 million and cash flows
from operating activities of $152.8 million for the comparable period in 2023. The decrease is due to a
combination of factors including:
•
A $20.3 million decrease in the gains recognized on the revaluation of the Company’s investments; whereby, a
loss of $4.6 million was recognized by the Company during the year ended December 31, 2024; while during
the year ended December 31, 2023 the Company recognized a gain of $15.7 million mostly driven by an
increase in the fair value of the Company's investments in debentures;
Management's Discussion & Analysis
Sandstorm Gold Ltd.
30
2024 Annual Report
•
Certain items were recognized during the year ended December 31, 2023 which did not occur during the year
ended December 31, 2024, including $11.8 million in other contractual income primarily related to a one-time
contractual payment from the Company's Mt. Hamilton royalty;
•
A $9.8 million increase in income tax expense compared to the prior year, primarily driven by the recognition
of previously unrecognized tax losses last year, which reduced tax expense, whereas no similar recognition
occurred this year; and
•
A $3.4 million decrease in revenue described in greater detail below.
Partially offset by:
•
A $15.0 million decrease in depletion expense, primarily due to a decrease in Attributable Gold Equivalent
ounces sold; and
•
A $4.5 million decrease in finance expense as a result of repayments of the Company's Revolving Facility
which had an outstanding balance of $355 million as at December 31, 2024, reduced from $435 million as at
December 31, 2023.
For the year ended December 31, 2024, revenue was $176.3 million compared with $179.6 million for
the comparable period in 2023. The decrease is attributable to a 20% decrease in Attributable Gold
Equivalent ounces1 sold, excluding attributable ounces related to contractual payments, which are
included in Other Income and described above, partially offset by a 23% increase in the average realized
selling price of gold. In particular, the decrease in revenue was driven by:
•
A $15.3 million decrease in revenue attributable to the Mercedes Gold and silver Streams as a result of; (i) the
conclusion of the fixed gold delivery period, in accordance with the stream agreement, at the end of 2023,
which entitled the Company to receive 1,000 ounces of gold per quarter; (ii) the suspension of the silver
Stream through April 2028 and the reduction in the ongoing Gold stream entitlement to 275 ounces per
month from 600 ounces per month in accordance with the Restructuring Agreement described in the
Mercedes Precious Metal Streams section above;
•
A $10.0 million decrease in revenue attributable to the Cerro Moro silver Stream primarily due to a 48%
decrease in the number of silver ounces sold as a result of lower silver grades due to mine sequencing, partially
offset by an increase in the average realized selling price of silver which increased from an average of $23.24
per ounce during the year ended December 31, 2023 to an average of $27.47 per ounce during the equivalent
period in 2024; and
•
A $6.7 million decrease in revenue attributable to the Antamina segment due to: a reduction in the Company's
royalty entitlement as a result of: (i) the partial disposition of the royalty to Horizon Copper in the second
quarter of 2023; (ii) a reduction in the royalty in the period due to an adjustment to the asset retirement
obligation at the Antamina Mine to reflect updates related to a recently approved mine plan and a re-
estimation of future closure costs; and (iii) other working capital adjustments, partially offset by revenue
related to the Antamina silver Stream which was received as consideration for the partial disposition of the
Antamina royalty in 2023.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
31
2024 Annual Report
Partially offset by:
•
An $11.4 million increase in revenue from the Relief Canyon Gold Stream due to: (i) the timing of deliveries,
whereby revenue for the year ended December 31, 2024 includes the sale of approximately 1,100 gold ounces
relating to the Company's 2023 entitlement which were in inventory as of December 31, 2023, in addition to
the Company's regular entitlement of ounces of 1,476 per quarter in 2024 and (ii) an additional 1,500 ounces
of gold received in the fourth quarter of 2024 due to an amendment to the Stream agreement, primarily
relating to the timing of fixed deliveries;
•
A $7.7 million increase in revenue from the Bonikro Gold Stream, driven by higher attributable gold
equivalent ounces sold. This was partly due to the timing of sales, as 811 ounces delivered by December 31,
2023, were sold in 2024. In contrast, there were no ounces in inventory as at December 31, 2024;
•
A $5.0 million increase in revenue attributable to the Greenstone Gold Stream which poured first gold in May
2024 and began making deliveries under the Stream during the three months ended September 30, 2024;
•
A $2.8 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 $2.2 million increase in revenue attributable to the Fruta del Norte royalty as a result of increases in gold
production and sales at the Fruta del Norte Mine. In January 2025, Lundin Gold announced record annual
production at Fruta del Norte in 2024.
1.
Refer to section on non-IFRS and other measures of this MD&A.
Three Months Ended December 31, 2024
Compared to the Other Quarters Presented
For the three months ended December 31, 2024, revenue was $47.4 million. With the exception of the
current quarter and year to date period, which are described earlier, Attributable Gold Equivalent
ounces1 sold have increased overall as a result of the acquisition of various assets, 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 and its amendment during the three months
ended March 31, 2024 (described in the Mercedes precious metal Streams section above). When
comparing revenue for the three months ended December 31, 2024 with the other quarters presented,
the following items impact comparability:
•
Greenstone Gold Stream: Equinox poured its first gold at the Greenstone mine in May 2024, and began
deliveries under the Gold Stream in the third quarter of 2024, contributing $2.1 million in revenue for the
three months ended December 31, 2024 and $2.9 million for the three months ended September 30, 2024.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
32
2024 Annual Report
•
Mercedes Mine Streams: The Mercedes Mine streams began delivering under the Gold Stream in April
2022, with additional deliveries received from assets acquired through the Nomad acquisition, which were
amended in the first quarter of 2024, contributing $2.2 million in revenue for the three months ended
December 31, 2024, compared to $2.1 million for the three months ended September 30, 2024, $2.5 million
for the three months ended June 30, 2024, $2.7 million for the three months ended March 31, 2024, $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, and $4.3 million for the three months
ended March 31, 2023.
•
Antamina Royalty and Silver Stream: Acquired in July 2022 and June 2023, respectively, the Antamina
royalty and silver stream contributed $1.3 million in revenue for the three months ended December 31, 2024,
compared to $4.1 million for the three months ended September 30, 2024, $2.4 million for the three months
ended June 30, 2024, $0.3 million for the three months ended March 31, 2024, $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, and $6.3 million for the three months ended March 31, 2023.
•
Caserones Royalty: Acquired in August 2022, the Caserones royalty generated $1.9 million in revenue for
the three months ended December 31, 2024, compared to $2.9 million for the three months ended September
30, 2024, $3.4 million for the three months ended June 30, 2024, $2.8 million for the three months ended
March 31, 2024, $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, and $1.8 million
for the three months ended March 31, 2023.
•
Bonikro Stream: Acquired in August 2022, the Bonikro stream contributed $4.6 million in revenue for the
three months ended December 31, 2024, compared to $3.5 million for the three months ended September 30,
2024, $3.1 million for the three months ended June 30, 2024, $5.7 million for the three months ended March
31, 2024, $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, and $2.3 million for the three
months ended March 31, 2023.
When comparing net income of $3.1 million and cash flows from operating activities of $36.1 million for
the three months ended December 31, 2024, with net income and cash flows from operating activities
for the other quarters presented, the following items impact comparability:
•
$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 Company recognized $8.0 million in finance expense for the three months ended December 31, 2024,
compared to $8.7 million for the three months ended September 30, 2024, $9.0 million for the three months
ended June 30, 2024, $9.4 million for the three months ended March 31, 2024, $10.0 million for the three
months ended December 31, 2023, $9.8 million for the three months ended September 30, 2023, $9.8 million
for the three months ended June 30, 2023 and $9.9 million for the three months ended March 31, 2023. This
expense primarily relates 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. The overall interest expense has
been trending downward due to the Company's ongoing optional repayments of the Revolving Facility made
each quarter;
Management's Discussion & Analysis
Sandstorm Gold Ltd.
33
2024 Annual Report
•
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, the Horizon Copper debentures, Bear Creek debentures and until recently, the
Versamet debenture. These gains and losses were recognized as follows:
– During the three months ended December 31, 2024, a loss of $2.1 million was recognized;
– During the three months ended September 30, 2024, a loss of $3.8 million was recognized;
– During the three months ended June 30, 2024, a gain of $7.4 million was recognized;
– During the three months ended March 31, 2024, a loss of $6.1 million was recognized;
– 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; and
– During the three months ended March 31, 2023, a gain of $3.1 million was recognized.
1.
Refer to section on non-IFRS and other measures of this MD&A.
Change in Total Assets
Total assets decreased by $29.4 million from September 30, 2024 to December 31, 2024 as a result of
cash outflows used in financing activities and depletion expense; partially offset by cash flows from
operating activities. Total assets decreased by $9.8 million from June 30, 2024 to September 30, 2024
as a result of cash outflows used in financing activities and depletion expense; partially offset by cash
flows from operating activities. Total assets decreased by $18.5 million from March 31, 2024 to June 30,
2024 as a result of depletion expense and the repayment of $27.0 million in debt outstanding on the
Company's Revolving Facility, net of draw downs in the period; partially offset by (i) cash flows from
operating activities and (ii) gains on the revaluation of the Company's investments. Total assets
decreased by $23.6 million from December 31, 2023 to March 31, 2024 as a result of depletion expense
and the repayment of $20.0 million in debt outstanding on the Company's Revolving Facility, net of
draw downs in the period; partially offset by cash flows from operating activities. In June 2024,
Versamet settled the remaining balance of its debenture due to Sandstorm by issuing common shares to
Sandstorm with a fair value of $14.2 million in accordance with the terms of the debenture agreement.
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
Management's Discussion & Analysis
Sandstorm Gold Ltd.
34
2024 Annual Report
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.
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.
In $000s
3 Months Ended
Dec. 31, 2024
3 Months Ended
Dec. 31, 2023
Year Ended
Dec. 31, 2024
Year Ended
Dec. 31, 2023
Total Revenue
$
47,400 $
44,498 $
176,283 $
179,636
Add:
Contractual income from streams, royalties and
other interests1
—
1,810
—
11,810
Equals:
Total Sales, Royalties, and Income from
other interests
$
47,400 $
46,308 $
176,283 $
191,446
Figure 1.1
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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
35
2024 Annual Report
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, 2024
3 Months Ended
Dec. 31, 2023
Year Ended
Dec. 31, 2024
Year Ended
Dec. 31, 2023
Total Sales, Royalties, and Income from other
interests
$
47,400 $
46,308 $
176,283 $
191,446
Less:
Revenue attributable to non-controlling interest
616
1,017
3,586
3,907
Total Sales, Royalties, and Income from other
interests attributable to
Sandstorm Gold Ltd. shareholders
$
46,784 $
45,291 $
172,697 $
187,539
Divided by:
Average realized gold price per ounce from the
Company's Gold Streams
2,640
1,948
2,372
1,929
Equals:
Total Attributable Gold Equivalent ounces1
17,721
23,250
72,810
97,245
1. 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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
36
2024 Annual Report
Figure 1.3
(In $000s)
(except for ounces and per ounce amounts)
3 Months Ended
Dec. 31, 2024
3 Months Ended
Dec. 31, 2023
Year Ended
Dec. 31, 2024
Year Ended
Dec. 31, 2023
Cost of Sales, excluding depletion1
$
4,319 $
4,898 $
19,994 $
21,677
Divided by:
Total Attributable Gold Equivalent ounces sold
17,721
23,250
72,810
97,245
Equals:
Average cash cost
(per Attributable Gold Equivalent ounce)
$
244 $
211 $
275 $
223
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, 2024
3 Months Ended
Dec. 31, 2023
Year Ended
Dec. 31, 2024
Year Ended
Dec. 31, 2023
Cash flows from operating activities
$
36,114 $
38,741 $
135,378 $
152,754
Less:
Changes in non-cash working capital
(732)
2,270
(3,591)
1,697
Equals:
Cash flows from operating activities excluding
changes in non-cash working capital
$
36,846 $
36,471 $
138,969 $
151,057
Management's Discussion & Analysis
Sandstorm Gold Ltd.
37
2024 Annual Report
Liquidity and Capital Resources
As of December 31, 2024, the Company had cash and cash equivalents of $4.4 million (December 31,
2023 — $5.0 million) and working capital (current assets less current liabilities) of $15.5 million
(December 31, 2023 — $37.6 million). As of the date of the MD&A, $340 million remains outstanding
under the Company’s Revolving Facility and the undrawn and available balance remaining is $285
million.
During the year ended December 31, 2024, the Company generated cash flows from operating activities
of $135.4 million compared with $152.8 million during the comparable period in 2023. When
comparing the change, the primary drivers were a decrease in the number of Attributable Gold
Equivalent ounces sold partially offset by an increase in the average realized selling price of gold.
During the year ended December 31, 2024, the Company had net cash inflows from investing activities
of $10.9 million which were primarily the result of cash receipts of $20.7 million related to the
disposition of investments including the Company's promissory note due from Americas Gold and Silver
and $14.4 million related to the sale of a package of royalties to Evolve Strategic Element Royalties Ltd.,
net of transaction costs, both as part of the Company’s strategy of monetizing its non-core assets;
partially offset by the acquisition of Stream, royalty and other interests and the acquisition of
investments. 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 Versamet.
During the year ended December 31, 2024, the Company had net cash outflows from financing activities
of $146.7 million primarily related to (i) the repayment of $102.0 million on its revolving credit facility;
(ii) interest expense payments of $32.7 million; (iii) $16.6 million in repurchases of the Company’s
shares in accordance with its normal course issuer bid and other; and (iv) dividend payments of $17.5
million; partially offset by a $22.0 million draw down on its revolving credit facility. 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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
38
2024 Annual Report
Commitments and Contingencies
In connection with its Streams, the Company has committed to purchase the following:
Stream
% of Life of Mine Gold
or Relevant Commodity
Per Ounce Cash Payment:
lesser of amount below and the then
prevailing market price of commodity
(unless otherwise noted)
Antamina
1.66%
2.5% of silver spot price
Black Fox1
8%
$613
Blyvoor2
10%
$572
Bonikro3
6%
$400
Cerro Moro4
20%
30% of silver spot price
CEZinc5
1%
20% of quarterly average zinc spot price
Chapada6
4.2%
30% of copper spot price
Entrée1,7,8
5.62% on Hugo North Extension
and 4.26% on Heruga
Varies
Greenstone9
2.375%
20% of gold spot price
Hod Maden10
20%
50% of gold spot price until 405,000
ounces of gold have been delivered,
then 60% of gold spot price thereafter
Karma
1.625%
20% of gold spot price
Mercedes11
14,300 ounces of gold
over 52 months and 4.4% thereafter
100% of silver produced
beginning in 2028
25% of gold spot price
25% of silver spot price
Platreef12
37.5%
Varies
Relief Canyon13
44,312 ounces over approximately 8
years
and 4% thereafter
Varies
Santa Elena1
20%
$482
South Arturo
40% on existing mineralized areas and
20% on new discoveries
20% of silver spot price
Vatukoula14
11,022 ounces over 4.5 years and
1.199%—1.363% thereafter
20% of gold spot price
Woodlawn15
Varies
Nil
1.
Per ounce cash payment subject to an annual inflationary adjustment.
2.
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.
3.
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. The Company is entitled to minimum
annual deliveries of 4,000–6,000 ounces in the 2024–2026 period and 2,000–3,000 ounces in the 2027–2029 period. 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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
39
2024 Annual Report
6.
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.
7.
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.
8.
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.
9.
For Greenstone, the Gold Stream on the project is for 2.375% of gold production from the Greenstone Mine 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 Mine, Sandstorm will pay $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, fixed ounce entitlement includes additional Stream funding advanced in 2023 and 2024. Beginning on the
fifth anniversary of the start of the Fixed Deliveries, 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.
Contractual obligations related to bank debt, interest, and leases on an undiscounted basis are as follows:
In $000s
Total
Less than one year
1 – 3 years
4-5 years
More than 5 years
Bank debt1
$
340,000 $
— $
— $
340,000 $
—
Estimated interest2,3
45,694
17,721
24,247
3,726
—
Leases4
21,910
2,533
4,288
4,047
11,042
Total3
$
407,604 $
20,254 $
28,535 $
347,773 $
11,042
1.
As at February 18, 2025, the Company had $340 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 December 9, 2028, assuming no extension periods and no optional
prepayments.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
40
2024 Annual Report
2.
The amounts drawn on the Revolving Facility are subject to an interest rate of SOFR plus 1.75%-2.75% per annum, and the undrawn portion
of the Revolving Facility is subject to a standby fee of 0.39% - 0.62% per annum, both of which are dependent on the terms of the Revolving
Facility and the Company's leverage ratio. The interest charges in the table above and in footnote 3 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 end of the reporting period.
3.
Estimated interest in the table above has been calculated on the basis that the Company makes estimated principal prepayments of
approximately $80-$95 million annually in accordance with its current forecasts over the term of the facility. If no prepayments are made and
the entire balance outstanding as of the date of the MD&A is repaid at maturity, total interest expense would be $83.0 million with $19.1
million due in less than one year, $43.5 million in 1-3 years and $20.4 million in 4-5 years. With those resulting figures, total contractual
obligations including debt, interest and lease payments would be $444.9 million; $21.6 million in less than 1 year, $47.8 million in 1-3 years,
$364.5 million in 4-5 years and $11.0 million in more than 5 years.
4.
The table above reflects the future minimum lease payments for the Company's leases related to offices in Vancouver, BC that have
commenced and does not include expected sublease income.
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.
Across its current streaming agreements, the Company has committed, subject to certain conditions and
the partners' continued good standing, to provide up to a maximum of $7.6 million in financing
annually over the next three years, if required.
In addition to its current leased office space, the Company is party to a 15-year lease for office space
which has not yet commenced. The Company has entered into agreements to fully sublet the space upon
commencement. Under the terms of this agreement the minimum lease payments for the entire space,
including the sublet areas, total approximately $25 million over the 15-year term.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
41
2024 Annual Report
Share Capital
As of February 18, 2025 the Company had 296,139,540 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 May 6, 2025, to
purchase up to 20 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, 2024 and under the
Company’s current and previous NCIB, the Company purchased and cancelled approximately 2.0
common shares for $10.9 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 2024 the Company declared a dividend of CAD0.02 per share payable to
shareholders of record as of January 21, 2025. The full amount of the dividend of $4.1 million was paid
in cash in January 2025.
The Company’s at-the-market equity program expired in October 2024, without any shares being issued
under the program.
A summary of the Company’s share purchase options as of February 18, 2025 is as follows:
Year of expiry
Number outstanding
Vested
Exercise price per share
(CAD)
2025
2,812,000
2,812,000
9.43
2026
2,968,000
2,968,000
7.18
2027
4,231,000
2,820,672
7.12
2028
4,101,417
1,367,146
6.53
14,112,417
9,967,818
7.711
1.
Weighted average exercise price of options that are exercisable.
As of February 18, 2025, the Company had 2,440,984 restricted share rights outstanding.
On December 12, 2024 the Board of Directors approved the grant of 614,500 performance share rights,
subject to shareholder and TSX approval, which is expected in 2025.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
42
2024 Annual Report
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
Year Ended
Dec. 31, 2024
Year Ended
Dec. 31, 2023
Salaries and benefits
$
2,464 $
1,630
Share-based payments
4,868
5,116
Total key management compensation expense
$
7,332 $
6,746
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 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 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, 2024.
Sandstorm also holds common shares of Versamet Royalties Corp. (previously called Sandbox Royalties
Corp.) 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 Versamet and
Horizon Copper; consequently, they are related parties of the Company and any transactions with these
entities are considered related party transactions.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
43
2024 Annual Report
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 and Bear Creek 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, 2024, a 1% increase (decrease) in nominal
interest rates would have increased (decreased) interest expense by approximately $0.9 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 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, 2024, a 10% increase (decrease) of the value of the Canadian dollar relative to
the United States dollar would increase (decrease) net income by $1.7 million and would not have a
material impact on other comprehensive income.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
44
2024 Annual Report
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, 2024 of $235.7 million
(December 31, 2023 — $258.9 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, 2024, a 10% increase
(decrease) in the equity prices of these investments would increase (decrease) other comprehensive
income by $1.9 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 27, 2024, 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,
the Hod Maden Project, Platreef, the Greenstone Mine, 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
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,
Management's Discussion & Analysis
Sandstorm Gold Ltd.
45
2024 Annual Report
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.
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.
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
Management's Discussion & Analysis
Sandstorm Gold Ltd.
46
2024 Annual Report
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
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, 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
Management's Discussion & Analysis
Sandstorm Gold Ltd.
47
2024 Annual Report
imposition of additional local or foreign parties as joint venture partners with carried or other interests.
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 2021-2022 taxation
years are under income 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
Management's Discussion & Analysis
Sandstorm Gold Ltd.
48
2024 Annual Report
reduction or cessation of revenue from those projects, and the Company might not be able to recover the
initial investment in Streams and royalties.
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.
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
Management's Discussion & Analysis
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2024 Annual Report
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.
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
Management's Discussion & Analysis
Sandstorm Gold Ltd.
50
2024 Annual Report
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 of 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.
In addition to these risks, the business is subject to risks arising from global trade uncertainties,
including the imposition of tariffs and other trade-related measures by various governments. Although
the Company does not directly engage in manufacturing or distribution, our royalty and streaming
revenues and production are derived from underlying operators who could be adversely affected by such
trade policies. For example, tariffs on imported raw materials or components may increase the
operating costs for our partners, disrupt supply chains, or reduce production volumes, which in turn
could delay or diminish our royalty payments or production under our streaming agreements. The effect
of evolving trade policies may exacerbate the uncertainties affecting the operators underlying our assets.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
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2024 Annual Report
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 2024 annual
consolidated financial statements describe all of the material accounting policies as well as the
significant judgments and estimates.
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, 2024, 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 Discussion & Analysis
Sandstorm Gold Ltd.
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2024 Annual Report
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;
•
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,
2024 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, 2024, 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, 2024
that have materially affected, or are likely to materially affect, the Company’s internal control over
financial reporting.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
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2024 Annual Report
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.
New Accounting Standards Issued But Not Yet Effective
The Company is currently assessing the impact of the following new and amended standards.
The International Accounting Standards Board has issued classification and measurement and
disclosure amendments to IFRS 9 and IFRS 7 which are effective for years beginning on or after January
1, 2026 with earlier application permitted. The amendments clarify the date of recognition and
derecognition of some financial assets and liabilities and introduce a new exception for some financial
liabilities settled through an electronic payment system. Other changes include a clarification of the
requirements when assessing whether a financial asset meets the solely payments of principal and
interest criteria and new disclosures for certain instruments with contractual terms that can change
cash flows (including instruments where cash flow changes are linked to environmental, social or
governance targets).
IFRS 18, Presentation and Disclosure in Financial Statements is a new standard that will provide new
presentation and disclosure requirements and which will replace International Accounting Standard
("IAS") 1, Presentation of Financial Statements. IFRS 18 introduces changes to the structure of the
statement of income; provides required disclosures in financial statements for certain profit or loss
performance measures that are reported outside an entity’s financial statements; and provides
enhanced principles on aggregation and disaggregation in financial statements. Many other existing
principles in IAS 1 have been maintained. IFRS 18 is effective for years beginning on or after January 1,
2027, with earlier application permitted.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
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2024 Annual Report
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, Hod Maden Project, Platreef, Greenstone Mine, 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, 2023 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, the Hod Maden
Project, Platreef, the Greenstone Mine, 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.
Sandstorm provides certain links to websites in this MD&A, including www.sandstormgold.com. No such websites are incorporated by reference
herein.
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.
Management's Discussion & Analysis
Sandstorm Gold Ltd.
55
2024 Annual Report
Consolidated Financial
Statements
For the Year Ended December 31, 2024
Sandstorm Gold Ltd.
56
2024 Annual Report
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 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 18, 2025
Sandstorm Gold Ltd.
57
2024 Annual Report
PricewaterhouseCoopers LLP
PwC Place, 250 Howe Street, Suite 1400, Vancouver, British Columbia, Canada V6C 3S7
T.: +1 604 806 7000, F.: +1 604 806 7806, Fax to mail: ca_vancouver_main_fax@pwc.com
“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders 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 (the Company) as of December 31, 2024 and 2023, and the related consolidated
statements of income (loss), of comprehensive income (loss), of changes in equity and of cash flows 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, 2024, 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, 2024 and 2023, and its financial
performance and its cash flows for the years then ended in conformity with International Financial
Reporting 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, 2024, 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 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 $1,489 million as of December 31, 2024. 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 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; and (ii) a high degree of auditor judgment, subjectivity
and effort in performing procedures and evaluating 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 18, 2025
We have served as the Company’s auditor since 2016.
Consolidated Statements of Financial Position
Expressed in U.S. Dollars ($000s)
Current
Cash and cash equivalents
$
4,395 $
5,003
Trade and other receivables
8
19,955
16,065
Short-term investments
7
7,123
28,400
Other current assets
212
4,310
$
31,685 $
53,778
Non-Current
Stream, royalty and other interests
5
$
1,489,353 $
1,560,416
Investments in associates
6
72,292
57,559
Investments
7
228,548
230,474
Other long-term assets
10 (b)
28,306
29,199
Total assets
$
1,850,184 $
1,931,426
LIABILITIES
Current
Trade payables and other
9
$
16,227 $
16,193
Non-Current
Bank debt
12
$
355,000 $
435,000
Deferred income tax and other liabilities
10
29,615
26,252
Total liabilities
$
400,842 $
477,445
EQUITY
Share capital
11
$
1,302,785 $
1,312,352
Reserves
32,987
28,716
Retained earnings
119,928
122,917
Accumulated other comprehensive loss
(30,029)
(34,984)
Equity attributable to Sandstorm Gold Ltd.’s shareholders
$
1,425,671 $
1,429,001
Non-controlling interests
23,671
24,980
Total liabilities and equity
$
1,850,184 $
1,931,426
ASSETS
Note
December 31, 2024
December 31, 2023
Commitments and contingencies (note 16)
Subsequent event (note 18)
The accompanying notes are an integral part of these consolidated financial statements.
On Behalf of the Board:
“Nolan Watson”, Director
“David De Witt”, Director
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Consolidated Statements of Income (Loss)
Expressed in U.S. Dollars ($000s)
Except for per share amounts
Note
Year Ended
December 31, 2024
Year Ended
December 31, 2023
Sales
17
$
107,742 $
106,584
Royalty revenue
17
68,541
73,052
Total revenue
$
176,283 $
179,636
Cost of sales, excluding depletion
17
19,994
21,677
Depletion
17
60,308
75,337
Total cost of sales
$
80,302 $
97,014
Gross profit
$
95,981 $
82,622
Expenses and other (income)
Administration expenses1
13
$
17,887 $
14,373
Project evaluation1
7,063
7,153
Finance expense
35,028
39,515
Loss (gain) on revaluation of investments
7
4,628
(15,671)
Loss (gain) on disposal and impairment of Stream, royalty and
other interests
3,689
(322)
Contractual income from Stream, royalty and other interests
17
—
(11,810)
Other
(1,848)
2,472
Income before taxes
$
29,534 $
46,912
Current income tax expense
8,490
8,706
Deferred income tax expense (recovery)
5,540
(4,503)
Total income tax expense
10
$
14,030 $
4,203
Net income for the year
$
15,504 $
42,709
Net income for the year attributable to:
Sandstorm Gold Ltd.’s shareholders
$
14,293 $
41,716
Non-controlling interests
1,211
993
Earnings per share attributable to Sandstorm Gold Ltd.’s shareholders:
Basic earnings per share
$
0.05 $
0.14
Diluted earnings per share
$
0.05 $
0.14
Weighted average number of common shares outstanding
Basic
11 (e)
297,489,424
297,406,309
Diluted
11 (e)
299,853,763
299,991,157
1.
Equity settled share-based compensation (a non-cash item) is included in
administration expenses and project evaluation
$
7,851 $
7,616
The accompanying notes are an integral part of these consolidated financial statements.
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Consolidated Statements of Comprehensive Income (Loss)
Expressed in U.S. Dollars ($000s)
Note
Year Ended
December 31, 2024
Year Ended
December 31, 2023
Net income for the year
$
15,504 $
42,709
Other comprehensive income (loss) for the year
Items that may subsequently be reclassified to net income:
Currency translation differences
$
(3) $
(65)
Items that will not subsequently be reclassified to net income:
Gain (loss) on FVTOCI investments and other
5,243
(8,520)
Tax (expense) recovery on FVTOCI investments
(285)
1,091
Total other comprehensive income (loss) for the year
$
4,955 $
(7,494)
Total comprehensive income for the year
$
20,459 $
35,215
The accompanying notes are an integral part of these consolidated financial statements.
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Consolidated Statements of Cash Flow
Expressed in U.S. Dollars ($000s)
Cash flow from (used in):
Note
Year Ended
December 31, 2024
Year Ended
December 31, 2023
OPERATING ACTIVITIES
Net income for the year
$
15,504 $
42,709
Items not affecting cash:
Depletion and depreciation
$
62,308 $
75,927
Interest expense and financing amortization
34,930
39,400
Share-based payments
7,851
7,616
Deferred income tax expense (recovery)
5,540
(4,503)
Loss (gain) on revaluation of investments
4,628
(15,671)
Loss (gain) on disposal and impairment of stream, royalty and other
interests
3,689
(322)
Unrealized foreign exchange (gain) loss
(1,158)
1,349
Interest income and other
5,677
4,552
Changes in non-cash working capital
14
(3,591)
1,697
$
135,378 $
152,754
INVESTING ACTIVITIES
Proceeds from disposal of investments and other
$
20,669 $
5,741
Proceeds from disposal of Stream, royalty and other interests
5
14,387
23,554
Acquisition of Stream, royalty, and other interests
(13,000)
(20,943)
Acquisition of investments and other assets
(11,112)
(30,534)
$
10,944 $
(22,182)
FINANCING ACTIVITIES
Bank debt repaid
$
(102,000) $
(104,000)
Bank debt drawn
22,000
41,500
Interest paid
(32,669)
(35,720)
Dividends paid
(17,509)
(17,736)
Redemption of common shares (normal course issuer bid) and other
(16,557)
(15,970)
$
(146,735) $
(131,926)
Effect of exchange rate changes on cash and cash equivalents
$
(195) $
(672)
Net decrease in cash and cash equivalents
$
(608) $
(2,026)
Cash and cash equivalents — beginning of the year
5,003
7,029
Cash and cash equivalents — end of the year
$
4,395 $
5,003
Supplemental cash flow information (note 14)
The accompanying notes are an integral part of these consolidated financial statements.
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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
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total equity
attributable to
Sandstorm
Gold Ltd.’s
shareholders
Non-
controlling
interests
Total
At January 1, 2023
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)
—
—
5,071
—
5,071
Vesting of restricted share
rights
463,506
2,516
(2,516)
—
—
—
—
—
Acquisition and cancellation
of common shares (normal
course issuer bid)
(2,787,995)
(14,385)
—
—
—
(14,385)
—
(14,385)
Share-based payments
—
—
7,616
—
—
7,616
—
7,616
Share issuance costs
—
(503)
—
—
—
(503)
—
(503)
Dividends declared
—
—
—
(17,720)
—
(17,720)
(2,718)
(20,438)
Total comprehensive income
(loss)
—
—
—
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
Options exercised
11 (b)
242,000
1,437
(1,140)
—
—
297
—
297
Vesting of restricted share
rights
458,094
2,440
(2,440)
—
—
—
—
—
Acquisition and cancellation
of common shares (normal
course issuer bid)
11 (a)
(1,965,925)
(10,852)
—
—
—
(10,852)
—
(10,852)
Automatic Share Purchase
Plan liability
11 (a)
—
(2,641)
—
—
—
(2,641)
—
(2,641)
Share-based payments
—
—
7,851
—
—
7,851
—
7,851
Share issuance costs
—
49
—
—
—
49
—
49
Dividends declared
11 (a)
—
—
—
(17,282)
—
(17,282)
(2,520)
(19,802)
Total comprehensive income
(loss)
—
—
—
14,293
4,955
19,248
1,211
20,459
At December 31, 2024
296,400,407 $ 1,302,785 $
32,987 $
119,928 $
(30,029) $ 1,425,671 $
23,671 $ 1,449,342
The accompanying notes are an integral part of these consolidated financial statements.
Sandstorm Gold Ltd.
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Notes to the Consolidated Financial
Statements
December 31, 2024 | 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 18, 2025.
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 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.
Financial Statements
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2024 Annual Report
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 income (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.
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2024 Annual Report
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
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. The life of the property
is estimated using life of mine models specifically associated with the mineral royalty or stream
properties which include proven and probable Mineral Reserves and may include a portion of Mineral
Resources expected to be converted into Mineral Reserves. Where life of mine models are not available,
the Company uses publicly available statements of Mineral Reserves and Mineral Resources for the
mineral royalty or stream properties to estimate the life of the property and portion of Mineral
Resources that the Company expects to be converted into Mineral Reserves covered by the agreement.
Where life of mine models and publicly available Mineral Reserve and Mineral Resource statements are
not available, depletion is based on the Company’s best estimate of the volumes to be produced and
delivered under the contract. The Company relies on information on Mineral Reserves and Mineral
Resources available to it under contracts with operators and/or public disclosures from the operators of
the producing mineral and stream interests.
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 Mineral Reserves
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2024 Annual Report
and the portion of Mineral Resources expected to be classified as Mineral Reserves as well as
exploration potential expected to be converted into Mineral 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
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 the
Company's 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.
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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 Versamet Royalties Corporation
("Versamet") (previously called Sandbox Royalties Corp.) investment in associate and the Company's
Horizon Copper Corp. (“Horizon” or “Horizon Copper”) investment in associate, the functional currency
is the U.S. dollar.
Transactions in foreign currencies are initially recorded in the entity’s functional currency at 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.
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, 2024 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, 2024 and
December 31, 2023.
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
Financial Statements
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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.
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
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2024 Annual Report
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 on 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
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,
performance share rights ("PSRs") and restricted share rights (“RSRs”) awarded to employees, officers
and directors based on the fair values of the share purchase options, PSRs and RSRs at the date of grant.
The fair values of share purchase options, PSRs and RSRs at the date of grant are expensed over the
vesting periods of the share purchase options, PSRs and RSRs, respectively, with a corresponding
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2024 Annual Report
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 the
PSRs, including any market performance conditions (such as the Company’s share price), is determined
using a Monte Carlo model with market related inputs as of the date of grant.
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).
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
Financial Statements
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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
(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 Standards Adopted by the Company
The Company has applied the following accounting standard amendment which is effective January 1,
2024. New and amended accounting standards that are not applicable to the Company have been
excluded from this note. The amendment listed below did not have any impact on the amounts
recognized in prior and current periods and is not expected to significantly impact future periods.
•
Classification of Liabilities as Current or Non-current and Non-current Liabilities with
Covenants — Amendments to IAS 1
New Accounting Standards Issued But Not Yet Effective
Certain new accounting standards and amendments to accounting standards have been published that
are not mandatory for the year ended December 31, 2024 and have not been early adopted by the
Company. New and amended accounting standards that are not applicable to the Company have been
excluded from this note. Sandstorm is currently assessing the impact of the following new and amended
standards:
•
The International Accounting Standards Board has issued classification and measurement and disclosure
amendments to IFRS 9 and IFRS 7 which are effective for years beginning on or after January 1, 2026 with
earlier application permitted. The amendments clarify the date of recognition and derecognition of some
financial assets and liabilities and introduce a new exception for some financial liabilities settled through an
electronic payment system. Other changes include a clarification of the requirements when assessing whether
a financial asset meets the solely payments of principal and interest criteria and new disclosures for certain
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instruments with contractual terms that can change cash flows (including instruments where cash flow
changes are linked to environmental, social or governance targets).
•
IFRS 18, Presentation and Disclosure in Financial Statements is a new standard that will provide new
presentation and disclosure requirements and which will replace International Accounting Standard ("IAS") 1,
Presentation of Financial Statements. IFRS 18 introduces changes to the structure of the statement of income;
provides required disclosures in financial statements for certain profit or loss performance measures that are
reported outside an entity’s financial statements; and provides enhanced principles on aggregation and
disaggregation in financial statements. Many other existing principles in IAS 1 have been maintained. IFRS 18
is effective for years beginning on or after January 1, 2027, with earlier application permitted.
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.
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 $1,489.4 million at December 31, 2024 (2023 — $1,560.4 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 Mineral Reserves and
Mineral Resources relating to each interest. Management estimates Mineral Reserves and Mineral
Resources based on information compiled by appropriately qualified persons. Mineral Reserves and
Mineral 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 Mineral Reserves and Mineral 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 Mineral Reserves and Mineral Resources may change based on additional knowledge
gained subsequent to the initial assessment. Changes in the estimates of Mineral Reserves or Mineral
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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 Mineral Reserves and Mineral 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 Mineral Resources to be converted into Mineral 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 affects 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.
•
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, Türkiye, 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 judgments and estimates made to recognize and
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measure the effect of uncertain tax treatments are reassessed whenever circumstances change or when
there is new information that affects those judgments. 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 Mineral Reserve and Mineral
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,
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 Mineral 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 Mineral 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.
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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 judgment 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 judgment. 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 judgment and include estimates of conversion of
Mineral Reserves and Mineral Resources acquired, estimated future production, future commodity
prices and discount rates. Estimates of Mineral Reserves and Mineral 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 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.
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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, 2024, the capital structure of the Company consisted of $1,425.7 million (December 31,
2023 — $1,429.0 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, 2024.
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 BSM based on relevant assumptions 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.
Financial Statements
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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, 2024 and December 31, 2023.
As at December 31, 2024:
In $000s
Total
Quoted prices in
active markets for
identical assets
(Level 1)
Significant other
observable inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
SHORT-TERM INVESTMENTS
Convertible debt
$
6,891 $
— $
6,891 $
—
LONG-TERM INVESTMENTS
Common shares held
$
18,507 $
18,507 $
— $
—
Warrants and other
2,286
—
2,286
—
Convertible debt
207,755
—
207,755
—
$
235,439 $
18,507 $
216,932 $
—
As at December 31, 2023:
In $000s
Total
Quoted prices in
active markets for
identical assets
(Level 1)
Significant other
observable inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
SHORT-TERM INVESTMENTS
Convertible debt
$
9,770 $
— $
9,770 $
—
LONG-TERM INVESTMENTS
Common shares held
$
17,682 $
17,682 $
— $
—
Warrants and other
1,628
—
1,628
—
Convertible debt
211,164
—
211,164
—
$
240,244 $
17,682 $
222,562 $
—
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, 2024 and December 31, 2023 due to their
short-term nature. The fair value of the Company’s bank debt, which is measured using Level 2 inputs,
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, 2024 and
the year ended December 31, 2023.
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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 and Bear Creek Mining Corporation
(“Bear Creek”) 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, 2024, the Company had cash and cash equivalents of $4.4 million (December 31, 2023 —
$5.0 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, 2024
of $235.7 million (December 31, 2023 — $258.9 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.
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.
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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, 2024, a 1% increase (decrease) in nominal interest
rates would have increased (decreased) interest expense by approximately $3.9 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, 2024, a 10% increase (decrease) of the value of the
Canadian dollar relative to the United States dollar would increase (decrease) net income by $1.7 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, 2024, a 10% increase (decrease) in the equity prices of these investments would increase
(decrease) other comprehensive income by $1.9 million and would not have a material impact on net
income.
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5. Stream, Royalty and Other Interests
A Carrying Amount
As of and for the year ended December 31, 2024:
Cost
Accumulated Depletion
In $000s
Opening
Net Additions
(Disposals)
Ending
Opening
Depletion
Disposals
Impairment
Ending
Carrying
Amount
Antamina, Peru
$
187,682 $
— $
187,682 $
2,834 $
5,284 $
— $
— $
8,118 $
179,564
Aurizona, Brazil
11,091
—
11,091
3,738
274
—
—
4,012
7,079
Blyvoor,
South Africa
106,332
—
106,332
2,069
1,103
—
—
3,172
103,160
Bonikro,
Côte d'Ivoire
37,773
—
37,773
8,904
6,806
—
—
15,710
22,063
Caserones, Chile
82,678
—
82,678
7,488
3,724
—
—
11,212
71,466
Cerro Moro,
Argentina
74,261
—
74,261
59,045
6,729
—
—
65,774
8,487
Chapada, Brazil
69,561
—
69,561
25,666
2,690
—
—
28,356
41,205
Fruta del Norte,
Ecuador
33,268
—
33,268
8,108
1,919
—
—
10,027
23,241
Greenstone,
Canada
107,234
6
107,240
—
1,527
—
—
1,527
105,713
Hod Maden,
Türkiye
206,995
12
207,007
—
—
—
—
—
207,007
Horne 5, Canada
78,934
—
78,934
—
—
—
—
—
78,934
Houndé, Burkina
Faso
45,120
—
45,120
17,935
1,594
—
—
19,529
25,591
Hugo North
Extension and
Heruga,
Mongolia
35,358
30
35,388
—
—
—
—
—
35,388
Mercedes,
Mexico
75,898
(25,448)
50,450
24,600
3,892
(6,524)
—
21,968
28,482
Platreef,
South Africa
187,000
—
187,000
—
—
—
—
—
187,000
Relief Canyon,
USA
37,458
10,504
47,962
18,592
9,282
—
—
27,874
20,088
Vale Royalties,
Brazil
117,787
—
117,787
6,407
2,424
—
—
8,831
108,956
Other1
595,579
(7,130)
588,449
344,207
9,911
(1,459)
(139)
352,520
235,929
Total2
$ 2,090,009 $
(22,026) $ 2,067,983 $ 529,593 $
57,159 $
(7,983) $
(139) $ 578,630 $ 1,489,353
1.
Includes Vatukoula, Black Fox, Highland Valley (disposed of during the year ended December 31, 2024, see note 5(c) below), Cortez
Complex (Robertson Deposit), CEZinc, Gualcamayo, Lobo-Marte and others.
2.
Stream, royalty and other interests includes non-depletable assets of $31.0 million and depletable assets of $1,458.4 million.
Financial Statements
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2024 Annual Report
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
—
11,091
3,246
492
—
—
—
3,738
7,353
Blyvoor,
South Africa
106,332
—
106,332
787
1,225
57
—
—
2,069
104,263
Bonikro,
Côte d'Ivoire
37,773
—
37,773
3,106
4,956
842
—
—
8,904
28,869
Caserones,
Chile
82,678
—
82,678
1,656
5,832
—
—
—
7,488
75,190
Cerro Moro,
Argentina
74,261
—
74,261
48,292
10,753
—
—
—
59,045
15,216
Chapada,
Brazil
69,561
—
69,561
22,905
2,761
—
—
—
25,666
43,895
Fruta del
Norte,
Ecuador
33,268
—
33,268
6,010
2,098
—
—
—
8,108
25,160
Greenstone,
Canada
107,234
—
107,234
—
—
—
—
—
—
107,234
Hod Maden,
Türkiye
206,969
26
206,995
—
—
—
—
—
—
206,995
Horne 5,
Canada
78,934
—
78,934
—
—
—
—
—
—
78,934
Houndé,
Burkina Faso
45,120
—
45,120
16,100
1,835
—
—
—
17,935
27,185
Hugo North
Extension and
Heruga,
Mongolia
35,352
6
35,358
—
—
—
—
—
—
35,358
Mercedes,
Mexico
70,809
5,089
75,898
8,144
15,787
669
—
—
24,600
51,298
Platreef,
South Africa
186,640
360
187,000
—
—
—
—
—
—
187,000
Relief
Canyon, USA
26,448
11,010
37,458
12,652
4,731
1,209
—
—
18,592
18,866
Vale
Royalties,
Brazil
117,787
—
117,787
3,981
2,426
—
—
—
6,407
111,380
Other1
609,670
(14,091)
595,579
328,343
13,865
372
—
1,627
344,207
251,372
Total2
$ 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, Cortez Complex (Robertson Deposit), CEZinc, Gualcamayo, Lobo-Marte and others.
2.
Stream, royalty and other interests includes non-depletable assets of $36.5 million and depletable assets of $1,523.9 million.
B Bear Creek Restructuring
In January 2024, Sandstorm completed the previously announced restructuring of its Mercedes gold
and silver streams and the refinancing of certain Bear Creek investments. The transaction was
accounted for as a partial disposition of the Company's Mercedes gold and silver stream interests. The
key terms and assumptions of the restructured agreements are as follows:
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REVISED GOLD STREAM
Effective January 1, 2024, Sandstorm obtained the right to purchase 275 gold ounces per month
through April 2028, followed by a 4.4% gold stream thereafter, in exchange for an ongoing cash
payment of 25% of the spot gold price for each ounce delivered. The fair value of the revised gold stream
was determined to be $24.9 million using a discounted cash flow model. Its carrying value, which
approximated fair value prior to the partial disposal, was reduced by $4.4 million. Key assumptions
used in the valuation included:
•
Discount rate: 5%
•
Long-term gold price: $1,800 per ounce
•
Estimated mine life: 8 years
REVISED SILVER STREAM
Effective January 1, 2024, the silver stream was suspended through April 2028 (the fixed gold delivery
period). Thereafter, Sandstorm will receive 100% of the silver produced for the life of the mine, in
exchange for an ongoing cash payment of 25% of the spot silver price for each ounce delivered. The fair
value of the revised silver stream was determined to be $7.3 million using a discounted cash flow model.
Its carrying value, which approximated fair value prior to the partial disposal, was reduced by $14.7
million. Key assumptions used in the valuation included:
•
Discount rate: 5%
•
Long-term silver price: $23 per ounce
•
Estimated mine life: 8 years
REVISED DEBT HOLDINGS
As part of the restructuring, Sandstorm converted its $22.5 million convertible debenture and
$14.4 million secured loan into 5-year convertible notes bearing 7% annual interest, convertible into
Bear Creek common shares at a strike price of CAD0.73 per share (the “Refinanced Sandstorm
Debentures"). Additionally, Sandstorm received $4.2 million in additional principal at closing.
The fair value of the Refinanced Sandstorm Debentures at restructuring was $38.4 million, measured
using a 9.5% discount rate, resulting in a $1.1 million loss on restructuring. These debentures are
measured at fair value through profit and loss.
Furthermore, in 2024, Sandstorm advanced the final $2.6 million in additional credit previously made
available to Bear Creek as part of the restructuring. The drawn amounts were added to the principal of
the Refinanced Sandstorm Debentures.
Financial Statements
Sandstorm Gold Ltd.
85
2024 Annual Report
ADDITIONAL CONSIDERATION RECEIVED
In consideration for the amendments, Sandstorm received the following:
Corani Royalty: a 1.0% net smelter returns ("NSR") royalty on Bear Creek’s wholly owned Corani project
in Peru. The fair value of the royalty was determined to be $12.0 million, using a discounted cash flow
model with the following key assumptions:
•
Discount rate: 7%
•
Long-term silver price: $23 per ounce
•
Long-term zinc price: $1.20 per pound
•
Long-term lead price: $0.91 per pound
•
Estimated mine life: 15 years
Bear Creek Shares: Sandstorm also received 28,767,399 Bear Creek common shares, with a fair value at
acquisition of $4.0 million.
C Evolve Transaction
On May 2, 2024, the Company entered into an agreement with Evolve Strategic Element Royalties Ltd.
(“Evolve”) to sell eight non-core, non-precious metals royalties for closing cash proceeds of $21 million
plus the retention of the next $10 million in royalty proceeds from the Company's 2.5%–5% NSR on a
portion of the Copper Mountain mine in British Columbia ("Copper Mountain"). In addition to the
Copper Mountain royalty, the portfolio included a 0.5% net profits interest on Teck Resources Ltd.’s
Highland Valley Copper project (“HVC”) and a 1.5% NSR on Green Technology Metals Limited’s
(“Green Technology”) Seymour Lake lithium development project ("Seymour Lake").
On May 13, 2024, the Company closed the sale of all royalties without preemptive rights (including
Copper Mountain and HVC) and received cash proceeds of $15.4 million from Evolve. The remaining
$5.6 million in cash, covering royalties with preemptive rights including Seymour Lake, was subject to
certain closing conditions. During the closing period, Green Technology asserted that it was not subject
to certain obligations underlying the royalty agreement for Seymour Lake. Consequently, the Company
was not able to close this portion of the transaction by the agreed-upon outside date. Sandstorm has
initiated arbitration proceedings to seek recourse from Green Technology and is actively pursuing its
rights under the agreement.
Financial Statements
Sandstorm Gold Ltd.
86
2024 Annual Report
D Prior Year Transactions
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 included the following: a
debenture with an initial 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 will retain a residual Antamina NPI, 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 described below. The carrying amount of the royalty retained at the closing date was
$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.
EL PILAR AND BLACKWATER DISPOSALS
In October 2023, Sandstorm closed its previously announced agreement to sell the El Pilar and
Blackwater Royalties to Versamet for total consideration of $25 million comprised of $10 million in cash
and $15 million in common shares of Versamet at a price of CAD0.70 per share. A gain of $4.0 million
was recognized by Sandstorm on disposal of the royalties.
Financial Statements
Sandstorm Gold Ltd.
87
2024 Annual Report
6. Investments in Associates
The following table summarizes the changes in the carrying amount of the Company’s investments in
associates:
In $000s
Versamet
Royalties Corp.
Horizon
Copper Corp.
Total Investments
in Associates
At December 31, 2022
$
18,278 $
8,987 $
27,265
Capital investment
—
2,279
2,279
Additions
30,183
—
30,183
Company's share of net loss of associate
(1,202)
(939)
(2,141)
Currency translation adjustments and other
38
(65)
(27)
At December 31, 2023
$
47,297 $
10,262 $
57,559
Additions
14,187
164
14,351
Company's share of net income loss of associate
(573)
(2,448)
(3,021)
Dilution gains
3,228
—
3,228
Currency translation adjustments and other
180
(5)
175
At December 31, 2024
$
64,319 $
7,973 $
72,292
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 Versamet and Horizon Copper;
consequently, they are related parties of the Company and any transactions with these entities are
considered related party transactions.
A Versamet Royalties Corp.
The Company holds 26.2% of the common shares of Versamet, 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 Versamet's profit or loss including adjustments, where appropriate, to
give effect to uniform accounting policies.
In 2024, Versamet settled its outstanding debenture to Sandstorm by issuing 24,179,193 common
shares with a fair value of $14.2 million, in accordance with the terms of the debenture agreement (see
note 7). The fair value of the shares received was recorded as an addition to Sandstorm's investment in
associate balance. After accounting for other share transactions at Versamet, Sandstorm's equity
ownership decreased from 34.0% to 26.2%. The reduction in ownership resulted in a $3.2 million
dilution gain, which was recognized in other income.
During the year ended December 31, 2023, additions to the Versamet investment in associate relate to
Versamet shares received in consideration for the sale of the El Pilar and Blackwater royalties to
Versamet, as discussed in note 5, and Versamet shares received as partial repayment of the convertible
promissory note owed from Versamet to Sandstorm in the period, as discussed in note 7.
Financial Statements
Sandstorm Gold Ltd.
88
2024 Annual Report
Summarized financial information for the Company’s interest in Versamet 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
Year Ended
December 31, 2024
Year Ended
December 31, 2023
Revenue
$
10,695 $
1,845
Depletion and cost of sales
(9,557)
(945)
Administration expenses
(5,665)
(5,762)
Other income (expenses)
1,743
(293)
Total net loss
$
(2,784) $
(5,155)
Other comprehensive income
563
248
Total comprehensive loss
$
(2,221) $
(4,907)
Company's share of comprehensive net loss of associate
$
(393) $
(1,164)
In $000s
At December 31, 2024
At December 31, 2023
Current Assets
$
9,557 $
11,349
Non-current Assets
222,079
147,256
Total Assets
$
231,636 $
158,605
Current Liabilities
17,718
414
Non-current Liabilities
5,356
44,790
Total Liabilities
$
23,074 $
45,204
Net Assets
$
208,562 $
113,401
Company’s share of net assets of associate
54,701
38,556
Adjustments to Sandstorm’s share of net assets
9,618
8,741
Carrying amount of investment in associate
$
64,319 $
47,297
Summarized financial information in respect of the Company's Versamet investment in associate as at
and for the year ended December 31, 2024 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, 2024, adjusted for material transactions during the three months ended December 31,
2024, and for adjustments made by the Company in applying the equity method, including fair value
adjustments on acquisition of the interest in the associate.
Financial Statements
Sandstorm Gold Ltd.
89
2024 Annual Report
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 $19.7 million at December 31, 2024.
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
Year Ended
December 31, 2024
Year Ended
December 31, 2023
Revenue
$
12,781 $
4,054
Depletion
(7,699)
(4,536)
Administration expenses
(1,660)
(1,456)
Other expenses
(10,651)
(824)
Total net loss
$
(7,229) $
(2,762)
Other comprehensive loss
(8)
(192)
Total comprehensive loss
$
(7,237) $
(2,954)
Company's share of comprehensive net loss of associate
$
(2,453) $
(1,004)
In $000s
At December 31, 2024
At December 31, 2023
Current Assets
$
12,615 $
20,750
Non-current Assets
500,796
499,495
Total Assets
$
513,411 $
520,245
Current Liabilities
$
7,010 $
10,401
Non-current Liabilities
557,678
504,465
Total Liabilities
$
564,688 $
514,866
Net Assets (Liabilities)
$
(51,277) $
5,379
Company’s share of net assets (liabilities) of associate
(17,363)
1,829
Adjustments to Sandstorm’s share of net assets
25,336
8,433
Carrying amount of investment in associate
$
7,973 $
10,262
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.
Financial Statements
Sandstorm Gold Ltd.
90
2024 Annual Report
7. Investments
As of and for the year ended December 31, 2024:
In $000s
Jan. 1, 2024
Additions
Disposals
Transfers
Fair Value
Adjustment
Accretion
Dec. 31, 2024
SHORT-TERM INVESTMENTS
Convertible debt instruments1
$
9,770 $
— $
(6,954) $
9,701 $
(5,626) $
— $
6,891
Loans receivable3
18,630
210
(19,047)
—
—
439
232
Total short-term investments
$
28,400 $
210 $ (26,001) $
9,701 $
(5,626) $
439 $
7,123
LONG-TERM INVESTMENTS
Common shares2
$
17,682 $
11,009 $
(15,246) $
— $
5,062 $
— $
18,507
Warrants and other1
1,628
84
—
—
574
—
2,286
Convertible debt instruments1
211,164
20,222
(14,354)
(9,701)
424
—
207,755
Total long-term investments
$ 230,474 $
31,315 $ (29,600) $
(9,701) $
6,060 $
— $
228,548
Total investments
$ 258,874 $
31,525 $ (55,601) $
— $
434 $
439 $
235,671
1.
Fair value adjustment recorded within Net Income (loss) for the period.
2.
Fair value adjustment recorded within Other Comprehensive Income (loss) for the period.
3.
Accretion recorded within Net Income (loss) for the period.
In January 2024, Sandstorm restructured its existing Mercedes streams and certain Bear Creek
investments; refer to note 5 for further details. As a result of the amendment, the Company
derecognized a $14.4 million loan receivable and recognized additions to the Bear Creek convertible
debentures of $18.3 million, recorded at fair value through profit and loss.
In June 2024, Versamet settled the remaining balance of its debenture due to Sandstorm by issuing
common shares to Sandstorm with a fair value of $14.2 million in accordance with the terms of the
debenture agreement; refer to note 6 for further details.
Financial Statements
Sandstorm Gold Ltd.
91
2024 Annual Report
As of and for the year ended December 31, 2023:
In $000s
Jan. 1, 2023
Additions
Disposals
Transfers
Fair Value
Adjustment
Accretion
Dec. 31, 2023
SHORT-TERM INVESTMENTS
Convertible debt instruments1
$
1,272 $
8,875 $
(6,573) $
6,196 $
— $
— $
9,770
Loans receivable3
2,501
16,439
(1,054)
—
—
744
18,630
Total short-term investments
$
3,773 $ 25,314 $
(7,627) $
6,196 $
— $
744 $
28,400
LONG-TERM INVESTMENTS
Common shares2
$
19,025 $
8,590 $
(1,376) $
— $
(8,557) $
— $
17,682
Warrants and other1
2,088
—
(540)
—
80
—
1,628
Convertible debt instruments1
105,004
114,001
(17,236)
(6,196)
15,591
—
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
1.
Fair value adjustment recorded within Net Income (loss) for the period.
2.
Fair value adjustment recorded within Other Comprehensive Income (loss) for the period.
3.
Accretion recorded within Net Income (loss) for the period.
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, unless it is agreed by both parties that these
amounts can be retained and used for Hod Maden development costs and other expenditures. 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, Versamet 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 Versamet to Sandstorm.
Financial Statements
Sandstorm Gold Ltd.
92
2024 Annual Report
8. Trade and Other Receivables
In $000s
At December 31, 2024
At December 31, 2023
Trade receivables
$
18,648 $
15,154
Other receivables
1,307
911
Total trade and other receivables
$
19,955 $
16,065
9. Trade Payables and Other
In $000s
At December 31, 2024
At December 31, 2023
Accounts payable and accrued liabilities
$
4,970 $
5,741
Dividends payable
4,154
4,537
Withholding taxes payable
1,821
726
Other payables1
5,282
5,189
Total trade payables and other
$
16,227 $
16,193
1.
Includes a $1.9 million payable to Horizon Copper Corp. at December 31, 2023 which was fully repaid as of December 31, 2024.
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
Year Ended
December 31, 2024
Year Ended
December 31, 2023
Income before income taxes
$
29,534
$
46,912
Canadian federal and provincial income tax rates
27 %
27 %
Income tax expense based on the above rates
$
7,974
$
12,666
Increase (decrease) due to:
Non-deductible expenses and permanent differences
$
4,286
$
5,149
Non-taxable portion of capital gain or loss
767
(1,827)
Withholding taxes
4,006
2,821
Change in unrecognized temporary differences and other
(3,003)
(14,606)
Income tax expense
$
14,030
$
4,203
Financial Statements
Sandstorm Gold Ltd.
93
2024 Annual Report
The deferred tax liabilities are shown below:
In $000s
At December 31, 2024
At December 31, 2023
Non-capital losses
$
40,997 $
50,160
Investments and other
878
957
Stream, royalty and other interests
(56,722)
(60,122)
Total deferred income tax liabilities
$
(14,847) $
(9,005)
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, 2024 of $134.5 million (2023 — $183.8 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
Year Ended
December 31, 2024
Year Ended
December 31, 2023
Balance, beginning of the year
$
(9,005) $
(14,784)
Recognized in net income (loss) for the year
(5,540)
4,503
Recognized in equity
(17)
185
Recognized in other comprehensive income (loss) for the year
(285)
1,091
Balance, end of year
$
(14,847) $
(9,005)
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, 2024 are
$13.4 million (2023 — $12.9 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
The Company leases office space in Vancouver, Canada, with the majority of the lease having
commenced in 2023. Right-of-use assets related to the leased office space, included in other long-term
assets on the statement of financial position, totaled $20.4 million as of December 31, 2024 (December
31, 2023 - $22.8 million). As of December 31, 2024, lease liabilities amounted to $16.1 million
(December 31, 2023 - $18.5 million), of which $2.6 million is current and included in trade payables
and other (December 31, 2023 - $1.3 million), with the remaining balance classified under deferred tax
and other liabilities on the statement of financial position.
Financial Statements
Sandstorm Gold Ltd.
94
2024 Annual Report
11. Share Capital and Reserves
A Authorized Share Capital
The Company is authorized to issue an unlimited number of common shares without par value.
Under the Company's normal course issuer bid ("NCIB"), the Company is able, until May 6, 2025, to
purchase up to 20 million of its 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, 2024, the
Company purchased and cancelled approximately 2.0 million common shares. Subsequent to December
31, 2024, the Company purchased and cancelled an additional 266,000 common shares for
consideration of approximately $1.5 million.
In 2024, the Company has established an Automatic Share Purchase Plan (“ASPP”) to facilitate the
repurchase of its issued and outstanding common shares under its NCIB. The ASPP allows for the
purchase of up to 10 million common shares during periods when the Company would otherwise be
restricted from making purchases due to regulatory constraints or self-imposed blackout periods. As of
December 31, 2024, the Company recorded a $2.6 million liability related to the ASPP, representing the
Company’s obligation under the plan while the existing blackout period is in effect.
The Company’s at-the-market equity program expired in October 2024, without any shares being issued
under the program.
In 2024, the Company declared dividends of CAD0.08 per common share (2023 - CAD0.08).
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,
2024 no share options were granted.
Financial Statements
Sandstorm Gold Ltd.
95
2024 Annual Report
A summary of the Company’s options and the changes for the period is as follows:
Number of options
Weighted average exercise
price per share (CAD)
Options outstanding at December 31, 2022
16,356,022
7.50
Granted
4,101,417
6.53
Exercised
(1,147,066)
(5.99)
Expired
(2,009,933)
(6.07)
Options outstanding at December 31, 2023
17,300,440
7.54
Exercised
(242,000)
(1.66)
Expired
(2,946,023)
(8.57)
Options outstanding at December 31, 2024
14,112,417
7.42
The weighted average remaining contractual life of the options as at December 31, 2024 was 2.62 years
(year ended December 31, 2023 — 3.05 years). The weighted average share price, at the time of exercise,
for those share options that were exercised during the year ended December 31, 2024 was CAD5.85 per
share (year ended December 31, 2023 — CAD6.71).
A summary of the Company’s options as of December 31, 2024 is as follows:
Year of expiry
Number outstanding
Vested
Exercise price per share
(CAD)1
2025
2,812,000
2,812,000
9.43
2026
2,968,000
2,968,000
7.18
2027
4,231,000
2,820,672
7.12
2028
4,101,417
1,367,146
6.53
14,112,417
9,967,818
7.71
1.
The weighted average exercise price of options that are exercisable is CAD7.71.
C Restricted Share Rights
The Company has a restricted share plan (the “Restricted Share Plan”) whereby the Company may grant
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, 2024, the Company granted 549,500 RSRs with a grant date fair
value of $3.1 million, a three year vesting term, and a weighted average grant date fair value of $5.69 per
unit. As of December 31, 2024, the Company had 2,446,317 RSRs outstanding.
Financial Statements
Sandstorm Gold Ltd.
96
2024 Annual Report
D Performance Share Rights
On December 12, 2024 the Board of Directors approved the grant of 614,500 performance share rights,
subject to shareholder and TSX approval, which is expected in 2025.
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, 2024
Year Ended
December 31, 2023
Net income attributable to Sandstorm’s shareholders for the year
$
14,293 $
41,716
Basic weighted average number of shares
297,489,424
297,406,309
Basic earnings per share
$
0.05 $
0.14
Effect of dilutive securities
Stock options
305,353
644,651
Restricted share rights
2,058,986
1,940,197
Diluted weighted average number of common shares
299,853,763
299,991,157
Diluted earnings per share
$
0.05 $
0.14
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 CAD7.43 during the year ended December 31, 2024 (December 31, 2023 — CAD7.10).
Year Ended
December 31, 2024
Year Ended
December 31, 2023
Stock Options
4,254,583
12,896,931
Warrants
87,940
242,000
Restricted Share Rights
30,027
—
Financial Statements
Sandstorm Gold Ltd.
97
2024 Annual Report
F Compañia Minera Caserones
Sandstorm holds a 67.5% interest in 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
At December 31, 2024
At December 31, 2023
Current Assets
$
2,750 $
2,356
Non-current Assets
71,466
62,852
Total Assets
$
74,216 $
65,208
Current Liabilities
1,383
767
Non-current Liabilities
—
—
Total Liabilities
$
1,383 $
767
Net Assets
$
72,833 $
64,441
Year Ended
December 31, 2024
Year Ended
December 31, 2023
Revenue
$
11,033 $
12,022
Depletion
(3,724)
(4,875)
Administration expenses and other
(7)
(92)
Income tax expense
(3,575)
(4,000)
Total net income and comprehensive income
$
3,727 $
3,055
Total net income and comprehensive income
attributable to non-controlling interests
$
1,211 $
993
12.Revolving Facility and Deferred Financing Costs
In December 2024, 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 December 2028.
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 December 2028, 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 1.75%–2.75% per
annum, and the undrawn portion of the Revolving Facility is subject to a standby fee of 0.39%–0.62%
per annum, both of which are dependent on the Company’s leverage ratio. The Revolving Facility
includes 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.
Financial Statements
Sandstorm Gold Ltd.
98
2024 Annual Report
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, 2024, the Company was in compliance with the
covenants and the balance of the Revolving Facility was $355 million.
Deferred financing costs are amortized on a straight-line basis over the term of the Revolving Facility.
At December 31, 2024, deferred financing costs, net of accumulated amortization, was $4.0 million
(December 31, 2023 — $4.3 million).
13. Administration Expenses
The administration expenses for the Company are as follows:
In $000s
Year Ended
December 31, 2024
Year Ended
December 31, 2023
Corporate administration
$
5,060 $
3,643
Employee benefits and salaries
3,910
3,878
Professional fees
2,708
2,375
Depreciation
2,162
589
Administration expenses before share-based compensation
$
13,840 $
10,485
Equity settled share-based compensation (a non-cash expense)
4,047
3,888
Total administration expenses
$
17,887 $
14,373
14.Supplemental Cash Flow Information
In $000s
Year Ended
December 31, 2024
Year Ended
December 31, 2023
Change in non-cash working capital:
Trade receivables and other
$
(2,577) $
1,494
Trade payables and other
(1,014)
203
Net (decrease) increase in cash
$
(3,591) $
1,697
Significant non-cash transactions:
Financial instrument received on disposal of
Stream, royalty and other interests
$
— $
122,745
Versamet common shares received in consideration
for a convertible debenture payment
14,187
17,249
Versamet common shares received on disposal of
Stream, royalty and other interests
—
14,988
Additional disclosure of non-cash transactions is included in notes 5 and 7.
Financial Statements
Sandstorm Gold Ltd.
99
2024 Annual Report
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
Year Ended
December 31, 2024
Year Ended
December 31, 2023
Salaries and benefits
$
2,464 $
1,630
Share-based payments
4,868
5,116
Total key management compensation expense
$
7,332 $
6,746
16.Commitments and Contingencies
In connection with its Streams, the Company has committed to purchase the following:
Stream
% of Life of Mine Gold
or Relevant Commodity
Per Ounce Cash Payment:
lesser of amount below and the then
prevailing market price of commodity
(unless otherwise noted)
Antamina
1.66%
2.5% of silver spot price
Black Fox1
8%
$601
Blyvoor2
10%
$572
Bonikro3
6%
$400
Cerro Moro4
20%
30% of silver spot price
CEZinc5
1%
20% of quarterly average zinc spot price
Chapada6
4.2%
30% of copper spot price
Entrée1,7,8
5.62% on Hugo North Extension
and 4.26% on Heruga
Varies
Greenstone9
2.375%
20% of gold spot price
Hod Maden10
20%
50% of gold spot price until 405,000
ounces of gold have been delivered,
then 60% of gold spot price thereafter
Karma
1.625%
20% of gold spot price
Mercedes11
14,300 ounces of gold over 52 months
and 4.4% thereafter
100% of silver produced beginning in
2028
25% of gold spot price
25% of silver spot price
Platreef12
37.5%
Varies
Relief Canyon13
44,312 ounces over approximately 8
years
and 4% thereafter
Varies
Santa Elena1
20%
$482
South Arturo
40% on existing mineralized areas and
20% on new discoveries
20% of silver spot price
Vatukoula14
11,022 ounces over 4.5 years and
1.199% – 1.363% thereafter
20% of gold spot price
Woodlawn15
Varies
Nil
Financial Statements
Sandstorm Gold Ltd.
100
2024 Annual Report
1.
Per ounce cash payment subject to an annual inflationary adjustment.
2.
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.
3.
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. The Company is entitled to minimum
annual deliveries of 4,000–6,000 ounces in the 2024–2026 period and 2,000–3,000 ounces in the 2027–2029 period. 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.
6.
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.
7.
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.
8.
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.
9.
For Greenstone, the Gold Stream on the project is for 2.375% of gold production from the Greenstone Mine 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 Mine, Sandstorm will pay $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, fixed ounce entitlement includes additional Stream funding advanced in 2023 and 2024. Beginning on the
fifth anniversary of the start of the fixed deliveries, 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.
Financial Statements
Sandstorm Gold Ltd.
101
2024 Annual Report
Contractual obligations related to bank debt, interest and leases on an undiscounted basis are as follows:
In $000s
Total Less than one year
1–3 years
4–5 years
More than 5 years
Bank debt1
$
355,000 $
— $
— $
355,000 $
—
Estimated Interest2,3
50,302
21,257
24,970
4,075
—
Leases4
21,910
2,533
4,288
4,047
11,042
Total3
$
427,212 $
23,790 $
29,258 $
363,122 $
11,042
1.
As at December 31, 2024, the Company had $355 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 December 9, 2028, assuming no extension periods and no optional
prepayments.
2.
The amounts drawn on the Revolving Facility are subject to an interest rate of SOFR plus 1.75%–2.75% per annum, and the undrawn portion
of the Revolving Facility is subject to a standby fee of 0.39% - 0.62% per annum, both of which are dependent on the terms of the Revolving
Facility and the Company's leverage ratio. The interest charges in the table above and in footnote 3 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 end of the reporting period.
3.
Estimated interest in the table above has been calculated on the basis that the Company makes estimated principal prepayments of
approximately $80- $95 million annually in accordance with its current forecasts over the term of the facility. If no prepayments are made
and the entire balance outstanding as of December 31, 2024 is repaid at maturity, total interest expense would be $89.8 million with $23.1
million due in less than one year, $45.4 million in 1-3 years and $21.3 million in 4-5 years. With those resulting figures, total contractual
obligations including debt, interest and lease payments would be $466.8 million; $25.7 million in less than 1 year, $49.7 million in 1-3 years,
$380.4 million in 4-5 years and $11.0 million in more than 5 years.
4.
The table above reflects the 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 2025 to May 2035 and does not include expected sublease
income.
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.
Across its current streaming agreements, the Company has committed, subject to certain conditions and
the partners' continued good standing, to provide up to a maximum of $7.6 million in financing
annually over the next three years, if required.
In addition to its current leased office space, the Company is party to a 15-year lease for office space
which has not yet commenced. The Company has entered into agreements to fully sublet the space upon
commencement. Under the terms of this agreement the minimum lease payments for the entire space,
including the sublet areas, total approximately $25 million over the 15-year term.
Financial Statements
Sandstorm Gold Ltd.
102
2024 Annual Report
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:
For the year ended December 31, 2024:
Antamina, Peru
Copper, Other1
$
– $
2,932 $
– $
2,783 $
– $
149 $
3,832
Silver
5,021
154
129
2,501
–
2,545
5,046
Aurizona, Brazil
Gold
–
8,566
–
274
–
8,292
8,216
Blyvoor,South Africa
Gold
4,874
–
1,178
1,160
–
2,536
3,719
Bonikro, Côte d'Ivoire
Gold
16,932
–
2,894
7,648
–
6,390
14,513
Caserones, Chile
Copper
–
11,033
–
3,724
–
7,309
7,762
Cerro Moro, Argentina
Silver
16,224
–
4,881
6,729
–
4,614
11,343
Chapada, Brazil
Copper
14,903
–
4,489
2,690
–
7,724
10,415
Fruta del Norte, Ecuador
Gold
–
9,899
–
1,919
–
7,980
6,001
Greenstone, Canada
Gold
5,025
–
1,056
1,527
–
2,442
3,893
Houndé, Burkina Faso
Gold
–
5,844
–
1,594
–
4,250
4,909
Mercedes, Mexico
Gold, Silver2
9,478
–
2,124
4,561
404
2,389
7,514
Relief Canyon, United States
Gold
20,786
–
–
10,491
–
10,295
20,786
Vale Royalties, Brazil
Iron Ore
–
5,792
–
2,424
–
3,368
5,391
Other3
Gold
8,464
18,337
2,056
4,894
(139)
19,990
20,202
Copper, Other
6,035
5,984
1,187
5,389
3,424
2,019
11,335
Total Segments
$ 107,742 $
68,541 $
19,994 $
60,308 $
3,689 $
92,292 $ 144,877
Corporate:
Administration and Project evaluation expenses
$
– $
– $
– $
– $
– $
(24,950) $
(16,459)
Loss on revaluation of investments
–
–
–
–
–
(4,628)
–
Finance expense
–
–
–
–
–
(35,028)
–
Other
–
–
–
–
–
1,848
6,960
Total Corporate
$
– $
– $
– $
– $
– $ (62,758) $
(9,499)
Consolidated
$ 107,742 $
68,541 $
19,994 $
60,308 $
3,689 $
29,534 $ 135,378
In $000s
Product
Sales
Royalty
revenue
Cost of sales
excluding
depletion
Depletion
Loss (gain)
on disposal
and
impairment
of Stream,
royalty and
other
interests
Income (loss)
before taxes
Cash flows
from
operating
activities
1.
Royalty revenue from Antamina consists of $2.2 million from copper and $0.7 million from other base metals.
2.
Sales revenue from Mercedes consists of $9.2 million from gold and $0.3 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 (disposed of during the year ended December 31, 2024), Black Fox, CEZinc, Gualcamayo and others. Includes revenue
from Stream, royalty and other interests located in Canada of $22.9 million, Mexico of $1.5 million, Brazil of $2.8 million, Türkiye of
$5.5 million, Argentina of $3.2 million and other of $2.9 million. Includes revenue from gold of $26.8 million, copper of $3.1 million,
diamonds of $2.0 million and other base metals of $6.9 million.
Financial Statements
Sandstorm Gold Ltd.
103
2024 Annual Report
For the year ended December 31, 2023:
In $000s
Product
Sales
Royalty
revenue
Cost of sales
excluding
depletion
Depletion
Contractual
income from
Stream,
royalty and
other
interests
Loss (gain) on
disposal and
impairment of
Stream,
royalty and
other
interests
Income (loss)
before taxes
Cash flows
from
operating
activities
Antamina, Peru
Copper, Other1
$
– $
12,040 $
– $
7,215 $
– $
2,039 $
2,786 $
11,455
Silver
2,222
547
55
1,361
–
–
1,353
2,714
Aurizona, Brazil
Gold
–
9,825
–
492
–
–
9,333
9,025
Blyvoor,
South Africa
Gold
4,431
–
1,313
1,225
–
–
1,893
2,994
Bonikro,
Côte d'Ivoire
Gold
9,223
–
1,919
4,956
–
–
2,348
7,619
Caserones, Chile
Copper
–
12,022
–
5,832
–
–
6,190
8,365
Cerro Moro,
Argentina
Silver
26,197
–
7,853
10,753
–
–
7,591
18,345
Chapada, Brazil
Copper
13,469
–
4,074
2,761
–
–
6,634
9,395
Fruta del Norte,
Ecuador
Gold
–
7,722
–
2,098
–
–
5,624
5,434
Houndé,
Burkina Faso
Gold
–
5,731
–
1,835
–
–
3,896
4,474
Mercedes,
Mexico
Gold, Silver2
24,757
–
2,258
15,787
–
–
6,712
24,511
Relief Canyon,
United States
Gold
9,396
–
–
4,731
–
–
4,665
9,395
Vale Royalties,
Brazil
Iron Ore
–
5,988
–
2,426
–
–
3,562
5,005
Other3
Gold
11,412
10,790
3,054
6,790
(11,810)
940
23,228
30,068
Copper, Other
5,477
8,387
1,151
7,075
–
(3,301)
8,939
12,644
Total Segments
$ 106,584 $
73,052 $
21,677 $
75,337 $
(11,810) $
(322) $
94,754 $
161,443
Corporate:
Administration and Project
evaluation expenses
$
– $
– $
– $
– $
– $
– $
(21,526) $
(13,321)
Gain on revaluation of
investments
–
–
–
–
–
–
15,671
–
Finance expense
–
–
–
–
–
–
(39,515)
(115)
Other
–
–
–
–
–
–
(2,472)
4,747
Total Corporate
$
– $
– $
– $
– $
– $
– $ (47,842) $
(8,689)
Consolidated
$ 106,584 $
73,052 $
21,677 $
75,337 $
(11,810) $
(322) $
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.
Sales 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 (disposed of during the year ended December 31, 2024), 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, Brazil of $0.6 million, Türkiye of
$4.2 million, Argentina of $0.7 million and other of $3.7 million. Includes revenue from gold of $22.2 million, other base metals of
$5.9 million, diamonds of $3.3 million and copper of $4.7 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.
Financial Statements
Sandstorm Gold Ltd.
104
2024 Annual Report
Total assets as of:
In $000s
December 31, 2024
December 31, 2023
Antamina
$
179,564 $
185,748
Aurizona
10,129
10,053
Blyvoor
103,160
104,380
Bonikro
22,063
30,035
Caserones
74,216
77,540
Cerro Moro
8,487
15,217
Chapada
41,205
43,895
Fruta del Norte
26,341
26,761
Greenstone
105,789
107,234
Hod Maden
207,007
206,996
Horne 5
78,934
78,934
Houndé
26,454
28,341
Hugo North Extension and Heruga
35,388
35,358
Mercedes
28,482
52,132
Platreef
187,000
187,000
Relief Canyon
20,088
20,074
Vale Royalties
111,556
114,529
Other1
242,616
255,276
Total Segments
$
1,508,479 $
1,579,503
Corporate:
Cash and cash equivalents
$
4,395 $
5,003
Investments
235,671
258,874
Other assets2
101,639
88,046
Total Corporate
$
341,705 $
351,923
Consolidated
$
1,850,184 $
1,931,426
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 (disposed of during the year ended December 31, 2024), Cortez Complex (Robertson Deposit), CEZinc, Gualcamayo,
Lobo-Marte and others.
2.
Includes Versamet and Horizon Copper investments in associates.
Financial Statements
Sandstorm Gold Ltd.
105
2024 Annual Report
Non-current assets by geographical region as of:
In $000s
December 31, 20241
December 31, 20231
North America
Canada
$
280,132 $
304,169
Mexico
30,904
54,344
USA
75,812
75,836
South & Central America
Peru
$
192,646 $
186,339
Brazil
177,183
180,380
Chile
73,926
77,650
Argentina
40,472
47,750
Ecuador
23,241
25,161
French Guiana
5,154
5,160
Africa
South Africa
$
292,298 $
293,562
Burkina Faso
29,285
34,135
Côte d'Ivoire
22,063
28,869
Other
Türkiye
$
209,162 $
210,162
Mongolia
36,031
36,001
Australia
16,105
16,177
Fiji
13,203
13,622
Other
42
298
Consolidated
$
1,517,659 $
1,589,615
1.
Includes Stream, royalty and other interests and Other long-term assets.
18.Subsequent Event
Subsequent to year-end, the Company executed an option agreement with Vatukoula Gold Mines PTE
Limited’s (“VGML”) Vatukoula mine. Under the terms of the agreement, Sandstorm received $4 million
in cash in return for an option allowing VGML to repurchase the gold stream. If VGML or its affiliates
make an additional cash payment of $10 million in the first quarter of 2025 and comply with customary
conditions, Sandstorm will terminate its stream and royalty interests on the property.
Financial Statements
Sandstorm Gold Ltd.
106
2024 Annual Report