SAND - Earnings call transcript Q1 2021

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Operator

Good morning. My name is Kreda [ph] and I will be your conference operator today. At this time, I would like to welcome everyone to the Sandstorm Gold Royalties' First Quarter Conference Call. All lines have been placed on mute to prevent any background noise. Please be aware that some of the commentary may contain forward-looking statements. such assurance actual statements could results from anticipated no be prove differ be those as accurate and in can that will forward-looking to materially There statements. future events be After the question-and-answer a speakers' session. there'll remarks, Instructions] you. [Operator Thank Mr. Watson, you your begin may conference.

Nolan Watson

everyone, morning, for into call thank you Good this Kreda. for quarter first you, and Thank earnings XXXX. calling

you then And to questions, that, the the the will question-and-answer time, Dave the quarter questions you that to Erfan, our then anyone normal this does morning, provide ensure I'll and need we'll an first get has provide be on from this will after any assets. for not we if portal. it the a At is PowerPoint prepare Q&A, ask Awram call. web company a to can through walk going to get portal. update part As presentation results, of web each live that the be a through this question those the operator And and response brief we'll update going on there some over through going us CFO, direct period. the on we're turn of After

million, over to the of of able annual XX,XXX to So, if so range equivalent record our ounces; for we XX,XXX a revised reason Overall, well. that it's is up into the was had this record end XX,XXX XX,XXX there and business all attention equivalent fantastic. $XX had had our flows raising is sold excluding we're our first now. capital we gold turn million. ounces. revenue you're please performing guidance, to quarter your ounces the guidance accounts, working By between We Sandstorm production that And bottom operating gold $XX of for number ounces cash record of

Faso second an to in that we're for annual starting sales. period still has important of the delivery another effect the quarter, six stream Advanced Karma contract. have done that the X.X% track NSR. of year we the in It's the note on So, has Burkina on now of firm gold now record mine

the the expected quarter So, per lower forward. going by are Karma ounces to X,XXX be deliveries from

of have other assets next the in at we a and you of in and over are development many production stages any expecting However, of aware of more streaming competitors. development our number various we're royalty other annual growth years

stand or amounts other of to earnings and over in $XXX or Now, has have to capital and last equity here today, if approximately deals plus new be. bank, share need [technical difficulty] either call, record liquidated Sandstorm as million the And that can investments has dividends On all be million allocate debt Sandstorm we quarter's available companies buybacks. of $XX mining we

Operator

is This call do the [Operator resume momentarily. resume please Instructions] will the not You conference. may disconnect, operator, your

Nolan Watson

All drop your for everybody work just here. patience We our right. off Thanks here. had line

we I'm it myself So, in almost, have filling --. for

to So, and dividends you and what the year and have articulate off the be can that we discusses and share material on the number alternatives, allocating new for about earnings was last I I cancelled. I was quarter, our now I talking slide buybacks. running going Sandstorm where during four shares to trying all three was mentioned buyback back We a got pick part. almost to to each a a and are share think share And bought million that we're we've them first deals able I here see, of was this of capital call, years up the shares what left quarter buybacks

been share is average has cost only past the over years, four to per value continuing per remaining shareholders And share the So, our for $X.XX. increase.

of job to picking going So, been we good in us continue think we're prudent And forward. for of the our a we allocations and think a going capital it's spots. we've spirit form done very

portfolio the flow only exploration perspective, incredibly excited from things the not of a story doing that upside over One makes us how is generating to own shares but to also our cash unfold time. well well how buyback the continues is

those Year-after-year not it continues mined figures and new these on has with the number And records set straight to been is completed netted our crunching is found is one conservative that reserve exciting have also amazing believe of a temporarily that against to finally have the track We exploration. that us. team ounces decided In an off ounce chosen was been the ounces interesting attributed to portfolios done what of actual XXXX, equivalent gold the and what record was higher replace XX,XXX take all but the last we be and that the the we've row on attributable technical out royalty in number ounces XXXX found found through Sandstorm grounds and XX,XXX is received their have find it what more ounces new Sandstorm a that of XX,XXX cash represents new found mined. the year because ounces how to Sandstorm to our compared for more even This the I a and we conservative more decreased was number ounces turns ounces attributable have a we've so and And than streams, in net revenue calculation figure. set to true that fifth new ounces we ounces found, has to ounces only XX,XXX production on flow, our under year books. show continuing being of found. of gold assumptions to even ounces

see it I over assets starting few with Sandstorm everyone [Indiscernible]. of remind hand in like to our important Before I for Erfan, one to we a would catalysts that of XXXX, key

a build EIA the in imminently still the with study an later said year. I've to study granted asset be It's second mine expected granting granting to feasibility EIA past, quarter. the and for the both in As to feasibility in expectation year occur of the which with contract expected catalyst both the should that is XXXX a our of the and the EPCM the be

this to the contain However, has we're a Government virus, lockdown if of any, expected assessing and implemented COVID, to impact will what on still week the timelines. Turkey countrywide the due this have

slight We and it's stay all timelines. means think safe I in that partners and to delay this we say tired COVID. of therefore we're want certainly a safe our understand

Another year level past of important actually few new done years for they're until the above won't the potential belabor I I'm year average be and deals likely us. point, -- for said highest that, to year but deals. an catalyst this this still expecting Having is done. this aren't deals

further next share themselves. dividends. for already So, I'll deals actual to buybacks which touched the year the had recently return end discussing is year. this shareholders at I've catalyst any, remembering, Board of worth early than another we're if one benefit not, or to that's the let either decision by and of We've targeting the a of on the or next this speak The level capital if way

sustainable cash we our see to pleased my fantastic sheet, belief incredibly that’s that small, and is is We portfolio. well very but grow and performing growing record with the I'm generating balance portfolio strong dividends. and it's dividend effectively flow the how diversified opportunities portfolio a so have paying an and

hand it to going over to I'm that, Erfan. with so And

Erfan Kazemi

of joining time well It's as left more to Sandstorm us chart a Nolan the as like you, some The on financial the to so attributable revenue Great, equivalent everyone thank Hello today. sold and last in great Nolan. walk through been mentioned. Sandstorm's as four detail. this quarters. for gold the for ounces royalty I'd quarter sales take to results slide,

a this that to breaking the upheaval, XXXX of change on recall pleased we record once Sandstorm regular mentioned realizing a Sandstorm global record. that tuning If hit you that and After these new of say quarterly a been has excited a into while, At quarterly end I'm were calls to basis. you've unprecedented time, for records year trend conference for the was I may again at continue.

quarterly to of the new year, between the to first per XX,XXX next the revenue $XX XX% By compared a the with million, in and price compared period here, financial year. with quarter XXXX. an supported same quarter, record realized first increase gold the of an Moving first increase stronger this slide, market quarter quarter first sold listed ounce. record in $X,XXX to in a XXXX. a make compared Total metrics at XX% few gold These were equivalent strong an by Attributable Sandstorm's we same the was was gold performance the XXXX. ounces period of a last relatively can average of results in comparisons ounces, of to XXXX the all

first quarterly stream has Sandstorm flow an for compared a of breakdown in increase gold $XXX of a cash ounces quarterly the This of per to the the million $XX slide silver of again of first by in in silver per Norte in equivalent to related quarter average Karma came delay in Bracemac-McLeod in stream, approximately benefited deliveries amount the mine, For which per del first to compared quarter the was attributable in compared price. the increase The mine. in $XX.X to silver notable attributable Canyon to quarter both during average per with which copper Production stream. compared Burkina sold. of gold under an was from sales of of an per was XXXX. ounce translates first ounce, in Average compared silver compared $X,XXX and story quarter $X the for in assets. deliveries increase royalty $XX prior from over the selling Faso A Sandstorm increase activities. copper told quarter of comparison, the ounces increase from last record the of in XX% total the in of to the price was The stream. silver realized number first addition $X,XXX XXXX. from Net received Chapada XXXX. margins of Cerro to the production, and operating XXXX, include the The million result increase XX% first the changes realized the Moro And million the which of average ounce. stream income results commercial of when of the increased X,XXX partly production equivalent May once the just to copper mine price the a revenue new approximately the sold in realized from of Fruta during Other February flowing can quarter leader $XX.X a of XXXX. Chapada also a operating at X,XXX ounce the commenced quarter began ounces cash gold represents and in in net sold year, quarter from next production attributed a timing the previous XXXX XXXX. pound in year. The price XXXX. An quarter selling loss cash compared be the the production cost ounce to to cash XX% attributable to quarter similar provides a in Sandstorm

Karma streams XX% over diversified payment. forecast invested. balance finished our the And quarter ready quarter, of of Operator operating the mine with operating per gold support the came providing allows in closer to nearly start type. in end American million metal Again, Nolan same is metals Sandstorm shareholders. revenues slide the in mine XX,XXX from very existing year for we've also titled company the produce April gold to is produced and the of and sheet final cash for prices. between by the exposure stream for ounces agreement around of the at gold gold region million this of the XXXX. purchase as another of silver, year the of from to Karma revenues copper to that depicts gold globe. master and stream XXXX. based roadmap operations XX,XXX ounce Overall, to be X.XX% Karma attributable X, attributable Mining from over with first XX% revenues equal The first good We to the the portfolio came of with equity quarter revenues between which Sandstorm The mines the spot marks The quarter in Americas, metal to per per quarter, for Sandstorm’s mine. and gold ounces price. in XX,XXX, strong Endeavour ounce the revenues now to precious ounces of majority forecasting North XX% well royalties. mines of for Sandstorm on one-third company's ongoing XX,XXX sold ounces payments half five first with ongoing from jurisdictions stable mentioned gold period continuously XX,XXX XX% XXX the in rising be under XX coming updated it was base from good approximately came with In a

I'll that, turn Dave. over with So to Dave? things

David Awram

projects Erfan. after couple Thanks, quarter a us asset this the in them. about two be focus much back of on that updates will talking limelight not My of as brief I years are

third but working first on with million. to tonne but they're current billion But with The its Fast it expected be Greenfield achieved. the copper copper on after on and almost could is up States. additional by the spun exploration in largest NPV Hudbay in project X.X project mine in pound carries Hudbay discount is recently years, project out Hudbay. increase we're price. be per was extend the Hudbay $XXX Entrée mine of The tax working two Americas pipeline United that The and once into results the indicated is in potentially of a expected the is one need will purchased still XXXX. asset assets put XX% has And own the years released copper resource life the largest Obviously, using Resources, measured $X we in nascent along once XX and the asset that. to rate. PA later, was and This forward line projects vehicle the an are a of to rose eventually at operating. and development the X.XX copper into

to potential double output. the have almost copper does it Hudbay’s However,

higher. Sandstorm of clearly, one on ARPU copper assets. $X.XX So at $XX based With of X.X% project right important up to is be low million has deals This could proceeds on going could great the at effective the to the NSR collect the that's growth another study most obviously price, example in pipeline. a the Sandstorm in it accessing PDA be stage early been lot cost how on projects

we great like as even that Sandstorm. as much And take time this originally surprised nearly that to for doesn't sometimes one, value thought we're show

The X% I last forward with what of projects a in Lake XX other under Windfall projects, consistently XX,XXX and provided now There's was for originally large talk X.X%. very the results. has Barry Gladiator. The Barry, month Bachelor part of approximately property flow and about doing three been within quickly stream, now These the Moroy years. Bonterra goldmine to District per amount package pushing are cash want the Bonterra which Today, which us are all over been tremendous we hold Gladiator on Lake land from meters great has to royalties when getting and Quebec. management.

future. to and has zone, is PA the still X.X open appears is start the year. Barry be expected the at year. step in of resource the joining latest It receive to We've in for deposit be to X.X the more here not X.X distant also our development the before tonne strike grams updated and through amount of per depth. grams is the sample royalty too and QX plan begun each hopefully, will an large stage project of XX.X Some bulk expected likely meters mineralization a found, Intercepts and taken underground But entering last payment that are end meters to along

years within Intercepts, begun The the to to Bonterra Two outline the showing produce chasing another this you grams. is be two to has discovery Bachelor holes [ph] Lake grams ground, a O’Brien up made within side, Mill. only kilometers continued has not X.X have of over Bachelor mine this Moroy X.X on and of Moving few XX.X original only new XX combined good discovery institution of This goes meters beginning to to just sets only Moroy show very understood. discovery that ago, perspective with years

Of well is And process, a expansion and Lake XXX increase Bachelor per soon. to on expansion. Mill start are tonnes permitted course, to find the that good still news could themselves as through operate Bonterra able tonnes it's tailings day expansions X,XXX day. in the to new Old approved per mill The also to position

that all from see X.X% on sooner to chance areas. Sandstorm the revenue a For means these discovered get NSR we newly

pass So call royalties for it Question-and-Answer the free I'll questions over to Session with that, the over back ask operator Please streams. feel any our and to Q&A. about

Operator

with Wainwright. question our Ihle And Heiko first [Operator H.C. Instructions] comes from

Heiko Ihle

for taking I'm questions. you glad on the Thanks made Hi, there. call. it my that

Nolan Watson

Me too.

Heiko Ihle

delay in the for lockdown. in was to first prior of by obviously, on there the this to months? went nine to read you In can XXXX. early guys about? production that you're know particularly I is you're building this, was the And the longer the XXXX. XX be How first by I ahead, on that you the MD&A six production not And you And that, you with call, out. end the a thinking delay, the time know, from mean, maybe XX but much just pride some Maden. lead Hod completed Turkey a maybe days, color working feasibility months, concerned study half into year, issues And of of months, pose outlook just diligently this but put end said the you really timeline on that getting on still impact contrast,

Nolan Watson

Yes.

So announced couple was the a just ago. days lockdown

for foresee days. only to moment, we those when been tell it's think asset some don't a in the it's answers, -- of into the we So will effect changing of a production. for it At bit early because us get couple

going would still that go. contractors the work getting up forestry are their things which items, that of signed like where irrespective And of ongoing system full is lockdown. permits, being their are ready then way bids them but Some And EPCM submitting most And of and is digital the force. to work people still still had. phone are the working and work long that's be calls also lead through ahead

of next in was EIA permit items at But might government showing was lead up their for that next down. the the fact desk expected at nobody's a and that a these slow if not, long So down. are long be slowing lead just It's really lot granted never to month item. month,

at updating So material. to we're not don't the or it. And we're be guidance, -- any, waiting to think if just because moment, it'll see impact we how it'll our

Heiko Ihle

figured. what locked so That's if there's they and I just I the Because how Yes. a Okay. days. in for XXXX see future, mean, timeline. I don't far even change XX the will that down

Nolan Watson

the people Yes. that And pushing at their are though even so work work is to desktop the a same at more now at pace of level, lot right the forward, is, and stage is be they project the the homes. in happen still

Heiko Ihle

Got it.

of much I'm the you're the you question, mean, XXX move sure you renewed average and how presentation priced paid especially, that's that Second few this I NCIB. I past that And to had. when the your saw willing I not over years you're think say. right obviously the

you're to actually use we're You the a far, if I through the I done way in so don't you that. anything know program on mean, willing reasonably and Have quarter. able QX comment aggressively QX. third in

Nolan Watson

haven't QX in financial mostly QX, of In we statements. blackout far, because so we were preparing

anyway, allowed So we to weren't so. legally

Heiko Ihle

to get back I'll Thank enough. you. Fair queue.

Nolan Watson

you. Thank

Operator

Hilary Genuity. question next Canaccord And Chak from comes our with

Hilary Chak

my taking for Thanks question. Hi.

increasing that rationale So that? on wondering the been able size investment. you're the behind speak and to I Entrée you've had was I the just And see actually about gold, if a question

Nolan Watson

we that a at very tremendous And at. there's value price at worth now think their of on a and past that Suggest lot on a own liquidity, very think it's we what selling not we is Yes. company already the some feasible a percentage every then significant question actually based a that we of that calls. company's than trading that It's in their amount more of our answered is reasonable moment. there, and get

not have the past. shy We publicly been that say in to

position, buy picking we that think building them, of below away that wants we we interests. get Or nobody our us benefit shares effectively dividends their so a gives sure XX% their value to well stronger and come XX% for partially then them it if of equity and the if shares. how someone in making along their value we diluted are And a buys own the we'll of get basis, goes. see And company from

there. is, we the think So happy. either us whatever available capital to see it's and given we're capital allocation the us way, outcome we intelligent And have volume you

Hilary Chak

Okay. run Thanks. on the guidance, last one just in bottom an question is that end increased a know, decline? Karma based you rate expecting That the about I sense. is like QX high the of XX,XXX guidance. implies of expected above Or to guidance, which end And other ounces, quarters. conservative are annual and When on makes assets coming you said is that decrease you any the estimate? to this

Nolan Watson

assets I imminent would think don't we I if to of Karma, have expecting say, any say I from our anything conservativeness the other in our on and estimates, conservative wouldn't try tell. We that comment our be there's you to of know Erfan guidance. to tough than I declines -- that sometimes it's other many we're

Erfan Kazemi

think figures. in that I the is impacts guidance and our conservative just than but one we have side, our commodity guidance on mix potentially fair more our

that. year the on clarity provide as we'll more goes So on,

Hilary Chak

Okay. Awesome. That's Thanks. it for me.

Operator

from And next with comes Securities. Ma Derick our TD question

Derick Ma

land question percent maybe Thank pretty to relates from Chapada earnings, land you. positive of increase QX results My in their exploration inputs division.

covered believe but of at by still confirm Southwest the the the that that stream exploration the specifically, are most they're Formiga I and more I Looking mine area covered you property near guess, looking is in the can areas [indiscernible]. North at maps, area,

Nolan Watson

Yes.

that they land agreement. time at restructured under on all is So had the Chapada fall agreement that way our that the the

discovery So at that the our was time the agreement. comes under owned is on land the if it

the have border. area of kilometers interest that outside -- concept an another for we three that, to of expanding addition In

correct, [Technical land have So kilometers [Technical almost not if [Technical they picked XXX Difficulty]. did under of new up Difficulty] our previously me square falls Difficulty] they land that

Derick Ma

shutdown page we some should -- [Technical to to question related expect are now? Chapada we firm in deals More that stand the through decreasing QX Difficulty]

Nolan Watson

in Difficulty] and [Technical the in Difficulty] at [Technical ounces [Technical copper material the year. end decrease equivalent of through gold QX Difficulty]

I we're [Technical get going copper [Technical of for So do think year pounds Difficulty]. the to Difficulty] our

Derick Ma

Thank much. you very

Operator

Tumazos, from comes question next Independent Research. Now Very John

John Tumazos

update In Good Hod do presentations rates, morning. It's recovery earlier delayed [Technical John complications [Technical is a COVID Maden. was comment? world? been changes for with that study and that Tumazos. quarter possibly Has Difficulty] you so CapEx [Technical in Difficulty] or can there in Difficulty] feasibility in a Or still the or other rates anything that

Nolan Watson

for Yes. Thanks that.

So in work terms still work. It's of tracking is it of well. Most desktop tracking the feasibility study, still fast. is the

a think don't impact timeline, Turkey we So impact timeline. the maybe have was in material should have announced lockdown the on it that will on just small

on studies are robust ounces an the based and far total when to have will going of it's with recoveries, net-net, study, that. a incredible pretty number mind similar. I'm feasibility down, So some reviewing we're in last to fairly account actually a ounces, the with I year, And of still also sent feasibility be in study night, inbox. this are take previous to QX late show it's going you knowledge as payable sections expecting fact expecting and that similar incredibly the start be some so an the of grade the in definitely up, half going going of me but mind, first as actually payable I into reported And number But that. first some my being to of got drafted we're that's total

John Tumazos

very Thank much. you

Nolan Watson

Thank you.

Operator

Raymond our comes And next Brian with question James. from MacArthur

Brian MacArthur

Good morning.

ounces Just enough you Maden. kind up of question, on the John's following were Hod on to comment since

and lira original out operating something just One remind it any to I ongoing getting of done everything you rate have a of with looking can was on lira to It because going it's things costs, how the was much be your comment impact turned eight the give if you're Can your how to could better I guess, on or changes, or capital lira. any a to me was there's outlay better can I of or i.e. else Turkish Turkish curious project. just that. ounces X.X. same, that's you don't the know a you study just if now. about and sensitive guidance

Nolan Watson

Look, much the inflation is some comment Yes. but on is I generally value lira, but won't specifically, we're the in lira seeing is of what there too going cost the down.

expected capital in And is pretty our dollars US so similar.

Brian MacArthur

very Thank you. That's helpful.

Operator

this time. Mr. at I'll over questions further no conference turn back Watson. the Nolan to are There

Nolan Watson

Great. [ph]. to for joining Well, held in everyone Thank the thank cell have thank us like And apologies Kreda the phone everyone today's little questions, free but you any always, day. call. shout you. at my a you And I feel office. And in you hope if hiccup, good has for there. give a here

Operator

for This no are participation. there conference further you Thank your today's time. And questions at conclude this does call.

You disconnect. may now

Sandstorm Gold (SAND) 30 Apr 212021 Q1 Earnings call transcript