SAND - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Michelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sandstorm Gold Royalties 2022 First Quarter Results 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 will After the on to time. up queue a that session be at and how provided have will speaker's instructions question-and-answer we remarks, turn like I over Mr. would to now to conference the Watson.

You may begin your conference, sir.

Nolan Watson

earnings talk able morning, for in minutes, calling our record XXXX to the QX the about Thank to And you into be specifics Erfan talk to again thank you, QX results. call. everyone, Michelle. a pleased and I'm about hand Good results. going Kazemi, once We're it of to this few CFO, to over

believe portfolio at the revenue transforming we're their primary precious forward but expecting US$X.X company. those and flow acquisitions our Sandstorm highest because of it like of a what and that record royalty quality will we'll will from produce excited new royalties in investors And now totaling we of come. results going that years can go-to help to for. mid-tier to through I look to with be the to to terms new week, streams mines and have understand many comprehensive As are how future. company but few in use aware, presentation billion. would it transactions, these today's and XX% I only better you underlying believe of streaming they We of addition announced this Not quarter, will be that cash acquisitions, we everyone details low expect week, this call, underlying I won't financial When key last Sandstorm revenue went with therefore, product revenue to what in on really the assets what approximately for can a remind these be time, results going these flow two we at last the and like cash announced through a cost metals the records transactions do be be opportunity we

In total bottom costs. will production sustaining from in of fact, quartile Sandstorm's be assets that all-in the produce XX% of coming

portfolio think the the of XX% amount highest finally, average their only of our growth diversified. And our most now now coming our is assets, majors, Our industry the about top portfolio. NAV also not into is with in coming assets. the entire five really it diversified when from NAV you Even built have XX% which only five from we of

and a As a one quick are the our acquisition company an deal reminder million a and of Both all-share built a transactions million of as that this but BaseCore. approximately well of morning's I as acquisition on won't on of companies was called from these US$XXX of called royalties an valued Nomad announcement go for at streaming into US$XXX portfolio peer two are detail call, portfolios since to talked our I that into most exciting royalty long-life low-cost, portfolio. these deals. will now growth the are largest, that talking bringing in been institutional pleased high-quality, be of Sandstorm the very liquid the institutional our to them many of be the shareholders investors of XXX% and mines. have of I've on favor we're It's highest transaction, to announcement And material company.

all and the including trading despite broader gold that apart, especially off, markets see to rewarding despite companies Sandstorm. stock falling it's So,

and of now that largest the down enough, are Sandstorm's is what by from And will this growth a per our after royalty stable of U.S. by of but expected the company, life, to cash the supportive couple a are growth be and cash look Our slow to before you of what be and and new tax Sandstorm's both diversified the much profitable will to accretive very the speaking And growth million like. it's shareholders believe further XXXX, be to expectation like see cash have look these still go Sandstorm to enough to enough prices, institutional to will we reasons. acquisitions exceed of flow that Sandstorm my going moving close I of of even flow us enough like, than Once new Sandstorm this come. and our the investors strong year. value they year lot substantial intermediate add a these flow chart at large for is majors. be ahead diversified. our to one And years we're deals, where able company phase very also will in have like we we $X,XXX most we be we actual production. US$XXX into But higher rewarding become gold can

now, are going Firstly, because then. buy and expect higher we're between even prices to be continuing be but because royalties now I and commodity to than strength secondly, they to

the gross So proud it you will Sandstorm driving with I royalty the the I'll And upon become. acquisitions, has can of the results, that mid-tiers of hand Erfan? what that, liquid but be quarterly that these world. to company tell closing about Erfan talk the to and Sandstorm hope in largest, over I'm most highest both

Erfan Kazemi

quarter first announcements of number number It big exciting records. with Company. of the broke an also Nolan. for was for a a where quarter another certainly It Sandstorm Sandstorm Thanks, was

these at new look in records Let's more detail. of some

our us revenue slide you're webcast, and the If this production shows last the via numbers from first quarters. joining four

number its also from that an to production Sandstorm, growth for assets, is selling XX,XXX in Nolan guidance a see moment. same The in of and in revenues to was Diavik XXXX. in ounces, prices revenue to between the Sandstorm. partially to and of announced a copper began XXXX. to revenue revenues gold increase equivalent rise This record. had to of see attributable approximately XXX,XXX deliveries the the to compared Vale price in production additions mine to XX,XXX including Vale and season of and Sandstorm gold In which the of year stream. new due a XXXX, another increase increase also particular, Sandstorm's stream. higher be that sold. be quarter a Sandstorm in on increase and record portfolio equivalent of The was revenue Chapada the before to stream the December. This exciting Vatukoula a The range quarterly Royalties XXXX described. first in was number gold in ounces part commodity prices in It's XX% $XX this Vatukoula million XX,XXX royalties last period Chapada to the had making clear of ounces added some copper Subject increase sold touch to the transactions, and in shaping gold copper ounces, the pounds to a It's During of $XX.X million due in record increased to decreases XXXX. we The to contributed factors, up quarter acquisitions the this those attributable diamond certain XX,XXX revenues of of in realized and same also compared the period for royalty the by in has increased the increasing Company of is offset rise mine were June when in the closing revenue transformative significant I'll

revenue royalty see in attributable slide, The next the a respectively. the in to XXXX. up first came X%, Revenues $XX in of and results same On revenue. million and and equivalent of million ounces $XX.X summary million compared the sales XX% were you'll $XX.X period quarter gold by from

remarkable Moving $XXX, down costs average which period when per ounce the seeing fronts, average In for And of to margins gold three-month resulted margins all $X,XXX the realized testament this. list, business first gold like price the a ounce. I cost The to per think per see cash a the was in operating $XX.XX inflationary we're model. cash was streams from on increasing it's royalty the the Company's for it's time attributable quarter operating ounce.

was Sandstorm. XX% operating in the This represents million. quarter, quarter record excluding working $XX.X XXXX changes from first of capital, It another new up activities, flows for at cash noncash from

XX% net This primarily the as increase an the the through was to revaluation of increase $X.X well that Finally, as an recognized in the compared of revenue was Company's is about the in income go period XXXX. million, in increase by on driven same which investments P&L. when gains the

pleased its to shareholders. second shareholders. As allocate paid you paying know, able way out We're began be recently to to to and first may add dividend Sandstorm back very quarterly capital this to year dividend the another

mine as the silver for at the Looking assets Yamana the Moro equivalent at ounces. gold quarter, on X,XXX first largest we the attributable see the stream producer, approximately which is contributing Cerro

to compared to and the in offset equivalent and previously been gold with the underlying the The now the a by of partly to discussed was production. Elena in the the production due XXXX is due Stream stream. mine as the is sold Canyon, ounces, the sold accordance at period X.X% Relief discussed delivery Santa the The which well Diavik, Moro primarily the earlier. of conclusion this I in the mine Karma Elena was timing Chapada Karma tenant a Vale from has sales. the by year. mine diversification At of announcements Cerro a mine. Santa in decrease quarter Next of to in Sandstorm was decrease X,XXX ounces in fixed approximately the five-year first decrease the Karma, at and partially mine Royalties with decrease terms Portfolio gold as key followed copper increase ounces

that to close from will low-cost very transactions be royalty I over XXXX, year these different these this portfolio stream the The assets will assets. next more existing As complement X/X of production We'll from think and and adding North ounces breakdown towards Sandstorm's Sandstorm's high-quality a slide a South America to in list the of of quarter nearly course attributable with which mining provides nicely came look now. I one assets Approximately weighted XX% be gold equivalent in mine by was region. contributing Americas, quarter's of located production. America, Canada. attributable to the largely continues expect

US$XXX want credit facility has mention to transaction. announced facility Sandstorm BaseCore-Nomad to to I commitment that alongside a upsized million. we our the revolving Finally, upsize credit existing the

for accordion Dave? announced. have the And for also requirements we a to conditional for over highlight In Nomad pricing, announced the included capacity feature the with US$XXX made credit royalty closing be accordion uncommitted this we acquisition. closing the meeting last I'll some we've $XXX in on capacity million assets and credit sustainably for million. The future first the upside The features mic announcements that, BaseCore maintains addition, incentive is the fall, a linked of Dave contingent company. transaction to on which in quarter. to total facility ensures continues positioned new credit transactions of that recently turn Sandstorm the increase with growth This even the we'll the

David Awram

in Erfan. South and Africa talk we of now, like see BaseCore operators Thanks, the enough new about South today. and Obviously, of asset attending team travel assets of impressive been six package getting a last Great. for the lots in to chance busy royalties. data the assets mining in of a bunch I'd these for the big to our main a in about and It's Platreef, first, which I'll African to portfolio. person. months our were both acquisitions, right assets me for quarter speak of technical of I'm new -- Bloemhof, of Antamina, speak But lucky a sandstone to the as new actually

it's the is the management the top The teams that that ESG mining is production executive For commissioning the fact top have is owned mining great of and mine as commonly A terms know with XX in as a a molybdenum expansion almost don't The in the years the silver started in a country. concentrates, ranks their to copper those skarn mine. the this and employer regional that zinc, by Peru meet world in of and that addition the has team Glencore, large been world-class mine best but to they in a asset, BHP, elite was Mitsubishi. pleasure mines the mine of local now this of XXXX, zinc and in all is always a Teck primarily regarded ago, the jointly was proud the chance produces mine as within Lima. Peru true and volume. polymetallic largest the amazing about located exactly regarded Since that are second Antamina operates in meeting Getting and a copper, lead a great relationship sale is team deposit producer communities. With operation region Ancash of entire to XX and products.

the rather by aspects tailings of truck XXX-kilometer low-cost limited The is by to by reserves current an storage, approximately This Antamina which or are of to the transported the addressed port train. key mine. of being the concentrates are pipeline All the produced one than production by team. is

available, at, With already is even for is people the future looking small is a a preliminary decades is ample true proud still of expansions. further. the options extend be to there planning is planning are mine space additional treasure have tailings, to decades which Antamina to the the With pit life The mine stake to Antamina and underground them. Peruvian team for because mine alongside Sandstorm room is they likely provide of material open good

but South northern limb largest XX platinum with X close set life. X the in is enormous another or and indicated nickel the of Production copper has near mine Reserves resource, resources. and sits begin producers platinum ounces and deposit XX has a Platreef a and already has XX-year Shaft already million group equivalent world. content fraction of to famous are just million of inferred QX to plus to and element of This completed group to some project significant the currently with Complex is resource PGM on the of in Moving QX begun. a XXXX gold project The as Shaft Bushveld construction of on measured located ounces this deposit the well. metal Africa gold, is an Platreef. and

blast remainder lateral spending blast the April on our in The lateral was completed of first -- and is Ivanhoe million of development planning XXXX for XXXX. $XXX

world million will and an throughput, With world, installed development Platreef plant potential to palladium, is Phase be more be per with front, with the throughout to I, much tons XX X.X this meters than tonnage places being getting some to the on add mined the for task production, is this is rank today. responsible operated meters no XX It mining ton The solar Also, array XX per than Platreef tons ESG mining year. Africa's hope in the with ore future and largest II asset heavily thickness will plans in stick This projects portfolio. ore planned fleet on great -- first accomplished they'll team be most the to mining tons small worldwide ordered. lines of the PGM for to in of per one of years, amongst in platinum electric-only million XX the the million of amongst lines. our X projects average. rhodium, will with year. per potentially top neighboring throughput safe up equipment by is groups project nickel mining On rely asset become the the and and mining This body productivity XX,XXX power a levels developing bulk in The up but and we of potentially discovery in Platreef the producing allows and operation into throughout discovering best and last gold fortunately, annum PGM Phase for methods body XXX,XXX beginning those. built ounces higher Ivanhoe annum annum Platreef is will low already of

of portfolio last the purchasing. Sandstorm other So on highlights I'll the a is slide, the touch few in

part categorize X mine operators deliver Greenstone life the Gold XXXX, was and of publicly Equinox a XXX,XXX too industry don't of a at and total per Allied On excited conditional as Equinox metals an per to in asset complex. XXX,XXX ounces Ontario are expected on private of key Gold. gold the production in This an growth asset, a as gold constructed years, gold Robertson over does within over the is Cortez expect year of the d'Ivoire this we as first annual five but in talk one is currently as on being first asset half lots operated to in their news defined expected much a The Mines they elaborate permits. asset this the of is to of Barrick the is build a year of Tier sees Canada's Cortez by Gold. the is of gold mine the largest production least portfolio, project curve. Bonikro see costs cash life, ex-Newcrest XX-year lower annual which complex be precious minimum developed asset of the ounces one designed that company, equation, With project QX side the first in latest to about the is the of Nevada by that production I'm mines. Cote mine in

resources tremendous should contribution ounces With delivered an a Blyvoor years. are big current layback expansion reemerging experienced potential. the a and is exposed to underway, well exceptionally next team it and mine with new make a Sandstorm to few the the

continues ramp past African high this have South glory We hopes to space. and seize the that project its in mining up

the This on the side, Argentina growth. is by expected the Southern just operated years. of excited project over border its emerging a $XXX Prove by part Chile, hard district last and Japanese not key lies development is the El copper Nippon. a Pilar discoveries in getting companies be to spent the making lending near-term is with in Copper that successful by to group XXXX which so few straddles the that it's On And new operated million their of get near the Caserones mine the group, has about been

in the portfolio on what largest years Highland copper have our And being the royalty for that province. Valley. mine with mind XX comes and Sandstorm home brief me this in Columbia flow from. flow me in Lastly, this is first overview. Anyhow, it would home mention in province Teck thanks Despite old, behoove the and that cash to British from not cash bearing to our

tell, on can set phase portfolio. really about new It's we're so such asset you even expose our have It much great this. these up growth beyond of growth an the all of in As excited us wonderfully assets. helps assets in to high-quality

So any with feel Q&A. about questions streams. call to royalties the operator, that, for I'll Please Michelle, the pass free ask to our the of and over

Operator

Turnbull of comes [Operator Trevor Instructions] from ahead. go Your first Scotiabank. Please question

Trevor Turnbull

had just next of I steps. timing a on and couple questions

respect with Hod first The to Maden.

into you've gotten should of just moving that of be the phase And you Hod that permitting you're approvals. a with the we for watching maybe could milestones provide environmental if on final and more since mentioned a what entails I sense give us wondered, You Maden? detail little

Nolan Watson

expect Yes, absolutely. the forestry they're based on year be few which a be working getting going going by going government. to get permit, There's will accounts of things My that is well. this conversations on One the they is of end the the finalization understanding the on. by to that all is with

In they're things. of and the some on those smaller transformers miner Forestry Department of already having fact, things from types upgrade electrical to like getting permits their

give year, And for. at cash is are permits item important providers money. us in together coming debt those advanced. actually notices, an cash draw tunnel. complete And already their planning of they the process time end putting milestone construction can and on we on of us a the be to call for They're won't actually first the And is That's So, they're advance, first trigger well which given this including the ever, building good if actually when watch beginning and then doing notices that the long from in they're looking our the to things. items this have the they see lead looking that pulling sign. towards department, is syndicated

things pretty well there. So, tracking are

Trevor Turnbull

bit Great. And question a transitions maybe into about that my Horizon Copper.

timing just getting to transaction, of and on a answered that completed. of, you've There's any already versus details you you said QX I the that be say, on close this, curious expect to -- that you've have that wondered year. the do me forgive but further if color second half number finalized? that on Just need of in QX this

Nolan Watson

the maybe Erfan, Yes, want respect in the weeds guidance that -- you is with most to -- Erfan, to? so

Erfan Kazemi

are going existing the Yes, I'd be the shareholders. One through Horizon vote couple process. things is shareholder fee, process which with a well. There's of There's happy is TSX to that a answer required going Copper's regulatory that. with

QX. closing we anticipate the so [indiscernible] meetings once the Antamina to with occur Hod that transaction shareholder the Maden and will middle towards And held respect that late the of to

Trevor Turnbull

Okay.

the happen shareholder like time? the happening, obviously, in track Horizon all Copper sounds would fairly So soon? for it's obviously, on some So, QX be to it vote entity

Erfan Kazemi

cooperation well. Yes, well. that Antamina having the the things it's we've lot of shareholder Venture to going Exchange But kind timetable and transaction resets a of had Certainly, the are announcement of vote. the respective going with

Operator

are lines. There Instructions] further [Operator the to conference would turn closing questions to Watson from back over for like I no phone Mr. the remarks.

Nolan Watson

thanks, for today's and if questions questions. in day. you to Great. calling Thanks, Have we're have here Michelle, great much. you a everybody, call. answer to always, very ready Thank and as any And follow-up

Operator

and would conclude We to you this for you your ask and Ladies call your that for gentlemen, thank disconnect please today. conference lines. participating like does

Nolan Watson	President & Chief Executive Officer
Erfan Kazemi	Chief Financial Officer
David Awram	Co-Founder, SVP & Non-Independent Director
Trevor Turnbull	Scotiabank

Sandstorm Gold (SAND) 12 May 222022 Q1 Earnings call transcript