Loading ...Sandstorm Gold Royalties Announces Record 2019 Annual Results and Uplisting to the New York Stock Exchange
4:46 pm ET February 13, 2020 (Accesswire) Print
Fourth Quarter Highlights
- Attributable gold equivalent ounces sold1 of 16,113 ounces (Q4 2018 – 14,182 ounces);
- Revenue of $24.0 million (Q4 2018 – $17.5 million);
- Cash flows from operating activities, excluding changes in non-cash working capital1of $15.2 million (Q4 2018 – $11.2 million);
- Net income of $5.3 million (Q4 2018 – $2.7 million);
- Credit Facility Amendment: The Company’s revolving credit facility was amended allowing the Company to borrow up to $225 million with an additional uncommitted accordion of up to $75 million, for a total facility of up to $300 million for acquisitions and general corporate purposes. The tenure of the facility is four years and is extendable by mutual consent of Sandstorm and the banking syndicate.
Full Year Highlights
- Record attributable gold equivalent ounces sold1 of 63,829 ounces (FY 2018 – 57,646 ounces);
- Record revenue of $89.4 million (FY 2018 – $73.2 million);
- Average cash cost per attributable gold equivalent ounce of $286 resulting in cash operating margins1 of $1,115 per ounce (FY 2018 – $278 per ounce and $991 per ounce respectively);
- Record cash flows from operating activities, excluding changes in non-cash working capital1 of $60.7 million (FY 2018 – $49.1 million);
- Net income of $16.4 million (FY 2018 – $5.9 million);
- Significant acquisitions withnear term cash flow, strong counterparties, and significant exploration upside:
- In January 2019, the Company acquired a 0.9% NSR on the precious metals produced from the Fruta del Norte gold project in Ecuador, which is currently under construction and owned by Lundin Gold Inc. The royalty was acquired from a private third party for $32.8 million in cash and covers more than 644 square kilometres, including all 30 mining concessions held by Lundin Gold.
- In April 2019, the Company announced that it had entered into a $42.5 million financing package with Americas Gold and Silver Corporation (“Americas Gold”) which includes a $25 million precious metal stream and an NSR on the Relief Canyon gold project in Nevada, U.S.A., a $10 million convertible debenture and a $7.5 million private placement. Under the terms of the precious metals stream, Sandstorm is entitled to receive 32,022 ounces of gold over a 5.5 year period, after which, the Company will purchase 4% of the gold or silver produced from the Relief Canyon project for ongoing per ounce cash payments equal to 30%-65% of the spot price of gold or silver. In addition, Sandstorm will also receive a 1.4%-2.8% NSR on the area surrounding the Relief Canyon mine.
- Normal Course Issuer Bid: Under Sandstorm’s normal course issuer bid, the Company purchased and cancelled approximately 8.7 million common shares in 2019 for total consideration of $46.5 million.