Sandstorm Gold Ltd N — Sandstorm Gold — Investor Presentation (November 2023)
37 slides from Sandstorm Gold Ltd N's investor presentation, November 2023
Slide 1: A Brighter Way to Invest in Gold
INVESTOR PRESENTATION NYSE SAND TSX SSL A Brighter Way to Invest in Gold N OV E M B E R 2 0 2 3
Slide 2: Cautionary Note Regarding Forward-Looking Information and Non-IFRS Measures
C AU T I O N A RY N OT E R E G A R D I N G F O R WA R D - LO O K I N G I N F O R M AT I O N A N D N O N - I F R S M E A S U R E S Except for the statements of historical fact contained herein, the information presented constitutes “forward-looking statements”, within the meaning of the U.S. Securiti
Slide 3: Hundreds of Royalties. One Investment.
INVESTOR PRESENTATION Hundreds of Royalties. One Investment. Gold focused Diversified SANDSTORMGOLD.COM High-quality, long life mines 03
Slide 4: Sustainable Long-Term Production
INVESTOR PRESENTATION Sustainable Long-Term Production 1 +125k Peak Production2 + MARA + Platreef Expansion + Fruta del Norte Exploration & Expansion + Lobo Marte 110,000 ounces 95k + Woodlawn 15-Year Annual Average + Chapada Exploration & Expansion 82k + Horne 5 68k + Troilus 64k 58k + Gualcamayo D
Slide 5: Portfolio Cash Flows
INVESTOR PRESENTATION $165M–$175M Record Cash Flow $160 Peak Cash Flow $156 $122 PORTFOLIO CASH FLOWS 1 in US$ Millions Cash flows from Horizon Copper Debentures $93 Gold $76 $69 $1,800/oz $58 $50 $54 Silver $22/oz Copper SANDSTORMGOLD.COM $3.90/lb 2016 2017 2018 2019 2020 2021 2022 2023 Mid-Term Ou
Slide 6: Leverage to Incremental Cash Flows From Higher Commodity Prices
INVESTOR PRESENTATION $210M–220M Peak Cash Flow Leverage to Incremental Cash Flows From Higher Commodity Prices Commodity Prices $178 PORTFOLIO CASH FLOWS 1 $122 in US$ Millions $93 Gold $2,200/oz $69 $76 $58 $50 $54 Silver $25/oz Copper SANDSTORMGOLD.COM $5.00/lb 2016 2017 2018 2019 2020 2021 2022
Slide 7: Sandstorm's Future is in Construction
INVESTOR PRESENTATION First Gold Pour First Production First Production Commercial Production Greenstone Platreef Robertson Hod Maden (Cortez Complex) Equinox Gold Ivanhoe Mines SSR Mining Barrick Gold H1 / 2024 H2 / 2024 2027 2027 Sandstorm’s Future is in Construction SANDSTORMGOLD.COM Production t
Slide 8: Revenue by Metal
INVESTOR PRESENTATION Precious Metals REVENUE BY METAL1 Gold Silver Copper Other Focused 70% 74% 80% 10% 9% 6% 14% 17% 20% 49% 7% 59% 15% 73% 21% SANDSTORMGOLD.COM 2023 2025 LONG-TERM 1 Commodity Price Assumptions: $1,800/oz Au, $22/oz Ag, $3.90/lb Cu 08
Slide 9: Principal Assets % of NAV
INVESTOR PRESENTATION PRINCIPAL ASSETS % OF NAV Diversified Hod Maden1 12% + Antamina1 8% + Platreef Vale 8% 6% Portfolio + Blyvoor 6% No asset greater than 12% of NAV No country greater than 14% of NAV + Greenstone 5% Chapada 4% + Recent Acquisitions + Caserones 4% Aurizona 4% SANDSTORMGOLD.COM Oyu
Slide 10: Proven Record of Strong Returns
INVESTOR PRESENTATION Proven Record of Strong Returns $75M $23M $70M $159 $70 $229M $85 $18 $103M $56 $83 $139M Aurizona 2009 Santa Elena 2009 Chapada 2015 $22M $200M $45 $20 $50 $15 $85M $221 $56 $277M $29 $39 $68M Teck Portfolio 2016 Hod Maden 2017 Houndé 2018 Investment $33M $116M Cash Flow SANDS
Slide 11: Never a Better Time to Own a Mid-Tier Royalty Company
INVESTOR PRESENTATION Never a Better Time to Own a Mid-Tier Royalty Company 2023 ESTIMATED PRODUCTION1 CONSENSUS P/NAV2 Total Number of Royalties 2023 Avg Daily Trading Value (US$M)3 All Others 670koz 660koz Asset 5 Asset 4 Asset 3 419 34 Asset 2 Asset 1 2.3x 1.8x 1.8x 333koz 303koz 1.2x 182 654 $12
Slide 12: Mid-Tier Royalty Companies P/NAV
INVESTOR PRESENTATION 1.4x 20% Upside on 1.2x Trading Multiple 1.0x Normalization 0.8x 0.6x MID-TIER ROYALTY COMPANIES P/NAV1 0.4x Private Equity Ownership (%) 16% 0% 67% 0.2x SANDSTORMGOLD.COM 0.0x Sandstorm Osisko Triple Flag P/NAV P/NAV P/NAV 1 Based on consensus NAV estimates. Share price as of
Slide 13: Production Outlook
INVESTOR PRESENTATION PRODUCTION OUTLOOK1 (GEO KOZ) The Value 175 Long-Term Potential Long-Term Long-Term +35koz Choice Amongst 150 Potential Potential optionality Guidance outside Guidance guidance 125 Guidance 100 Peers 75 50 25 2023 2023 2023 SANDSTORMGOLD.COM 0 Osisko Triple Flag Sandstorm 13 1.
Slide 14: Approach to Guidance and Long-Term Optionality
INVESTOR PRESENTATION Approach to Guidance and Long-Term Optionality GOLD EQUIVALENT PRODUCTION1 (KOZ) 35k 160koz 160 Current Long-Term Guidance 140 68k 125koz 120 Platreef accelerated Ph. 2 95koz 38k 100 80 60 ~30koz ~20koz 40 Stream step-downs / Nomad asset ramp-up SANDSTORMGOLD.COM fixed deliveri
Slide 15: All-In Sustaining Cost Profile
INVESTOR PRESENTATION SANDSTORM 54% Lowest Cost WHEATON 33% Mines TRIPLE FLAG 25% FRANCO-NEVADA ALL-IN SUSTAINING COST PROFILE 11% Top 10 Assets by Quartile 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile ROYAL GOLD 10% OSISKO SANDSTORMGOLD.COM Source: BMO Capital Markets Equity Research at stre
Slide 16: Industry Leading Diversification
INVESTOR PRESENTATION Industry Leading 62% 65% 67% 68% Diversification 49% 42% MINERAL PROPERTY VALUE CONTRIBUTION Top 5 Assets Assets 6–10 Other 1st Cost Quartile 2nd Cost Quartile 3rd Cost Quartile 4th Cost Quartile SANDSTORMGOLD.COM Sandstorm Triple Flag Franco Osisko Royal Gold Wheaton Nevada BM
Slide 17: Development & Exploration Assets
INVESTOR PRESENTATION Development & Exploration Assets Portfolio of streams & royalties with over 40 Producing Assets cash flowing assets Globally Diversified SANDSTORMGOLD.COM 17
Slide 18: Growing Asset Portfolio
INVESTOR PRESENTATION 245 Growing Asset 230 Producing Portfolio 200 187 190 Development 174 Adv. Exploration 135 TOTAL NUMBER OF ROYALTIES PER YEAR 75 Exploration 45 33 SANDSTORMGOLD.COM 7 12 5 2010 2022 18
Slide 19: Metres Drilled on Sandstorm Properties
INVESTOR PRESENTATION 2013 2022 METRES DRILLED ON SANDSTORM PROPERTIES 0m Drilling Success 100,000 m 200,000 m Thousands of metres drilled at no 300,000 m additional cost to shareholders. 400,000 m 500,000 m 600,000 m 658,000 m SANDSTORMGOLD.COM 700,000 m approx. 340,000 metres drilled on producing
Slide 20: Sandstorm's Gold Attributable Ounces
INVESTOR PRESENTATION 105 97 SANDSTORM’S GOLD ATTRIBUTABLE OUNCES Produced Discovered 85 82 71 68 Discovered 58 64 52 54 Ounces (ounces in 000’s) Sandstorm properties have a consistent track record of replacing and discovering SANDSTORMGOLD.COM more ounces than mined. 2018 2019 2020 2021 2022 20
Slide 21: Sandstorm Does Not Need to Compete With Major Royalty Companies for Growth
INVESTOR PRESENTATION Sandstorm does not need to compete with major royalty companies for growth Organic Growth MARA Gold Stream Partnership with Greenstone, Platreef, Exclusive option to Horizon Copper Hod Maden acquire $225 million Precious metal stream by-product streams SANDSTORMGOLD.COM 21
Slide 22: Debt
INVESTOR PRESENTATION $700M Debt Available Credit Facility $600M Repayment $500M $400M Price Scenario 1 $300M Gold Silver Copper $1,800/oz $22/oz $3.90/lb $200M Price Scenario 2 $100M SANDSTORMGOLD.COM Gold Silver Copper $2,200/oz $25/oz $5.00/lb 2 1 $0 2024 2025 2026 2027 2028 current1 1 Bank debt
Slide 23: Debt and Investments
INVESTOR PRESENTATION Debt and Investments (US$ Millions) Bank Debt1 $457 Loans to Mining Companies2 –$234 Debt, Net of Investments $223 SANDSTORMGOLD.COM 1 Bank debt as at August 3, 2023. 2 Fair value as at June 30, 2023. 23
Slide 24: ESG Highlights
INVESTOR PRESENTATION ESG Highlights First royalty company with ESG linked MSCI Rating: AA1 credit facility CCC B BB BBB A AA AAA Near 50/50 balance of women and men PARTICIPANT MEMBER Ranked low risk by Sustainalytics 2023 SANDSTORMGOLD.COM 1 As of 2022, Sandstorm received an MSCI ESG Rating of AA.
Slide 25: SANDSTORMGOLD.COM
INVESTOR PRESENTATION with leverage to rising commodity prices with long-life assets reducing asset and jurisdictional risk development assets and optionality SANDSTORMGOLD.COM 25
Slide 26: Appendix
INVESTOR PRESENTATION NYSE SAND TSX SSL APPENDIX N OV E M B E R 2 0 2 3
Slide 27: Gold 247 Initiatives
INVESTOR PRESENTATION INITIATIVES GOLD 2 4 7 Gold Bar Integrity Programme WGC/LBMA pilot Distributed ledger (blockchain) technology Foundation for a more accessible and fungible market WHAT IS GOLD 247? Accessible to all The World Gold Council’s strategic vision for transforming Enabling a digital t
Slide 28: Black Fox
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 1 Black Fox McEwen Mining Canada PRODUCING 8% Au @ $589/oz 2 CEZinc Glencore plc Canada PRODUCING 1% Zn @ 20% spot until Jun 2030 or 68 Mlbs 3 Diavik Rio Tinto Canada PRODUCING 1.0% GPR 4 Highland Valley Teck Resources Canada PRODU
Slide 29: Antamina
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 28 Antamina Compañia Minera Antamina SA Peru PRODUCING 1.66% Ag @ 2.5% spot 29 Antamina Compañia Minera Antamina SA Peru PRODUCING 0.55% NPI 30 Caserones Lundin Mining Corporation Chile PRODUCING 0.63% NSR* 31 Cerro Moro Pan Americ
Slide 30: MARA (Agua Rica)
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 56 MARA (Agua Rica) Glencore plc Argentina DEVELOPMENT 0.25% NSR 57 Chapada (Suruca Deposit) Lundin Mining Corp. Brazil DEVELOPMENT 2.0% NSR 58 Itabira (Southeastern System) Vale S.A. Brazil DEVELOPMENT 0.05% Net Fe Sales Royalty (
Slide 31: Goldwedge
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 84 Goldwedge Scorpio Gold Corp. USA ADV. EXPLORATION 2.0% NSR 85 Pony Creek Contact Gold USA ADV. EXPLORATION 3.0% NSR 86 Whistler GoldMining USA ADV. EXPLORATION 2.0% NPI 87 Omai Omai Gold Mines Corp. Guyana ADV. EXPLORATION 1.0%
Slide 32: Forrest Kerr
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 113 Forrest Kerr Aben Minerals Ltd. Canada EXPLORATION 0.5%–1.0% NSR 114 Fostung Transition Metals Corp. Canada EXPLORATION 1.0% NSR 115 Frontline 1 Renegade Gold Inc. Canada EXPLORATION 0.5% NSR 116 Gold Bridge Blackstone Minerals
Slide 33: Sheerness
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 143 Sheerness Westmoreland Coal Company Canada EXPLORATION 5.0% GRR 144 Skinner Prosper Gold Corp. Canada EXPLORATION 7.5% NPI 145 Summit Lake Rainy Mountain Royalty Canada EXPLORATION 1.9% NSR 146 Tami Skeena Resources Limited Can
Slide 34: Rock Creek
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 173 Rock Creek Contact Gold USA EXPLORATION 3.0% NSR 174 Santa Renia Clover Nevada USA EXPLORATION 3.0% NSR 175 Shotgun TNR Gold USA EXPLORATION 5.0% NPI 176 Sno Contact Gold USA EXPLORATION 4.0% NSR 177 Toy SSR Mining USA EXPLORAT
Slide 35: Los Tambos
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 203 Los Tambos Pucara Gold Ltd. Peru EXPLORATION 1.0% NSR 204 Lourdes Pucara Gold Ltd. Peru EXPLORATION 1.0% NSR 205 Lucero Element79 Gold Corp. Peru EXPLORATION 0.5% NSR 206 Mario Agnico Eagle Mines Limited Peru EXPLORATION 2.0% N
Slide 36: Ergama
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 233 Ergama AMG Ergama Madencilik Türkiye EXPLORATION 2.0% NSR 234 Hasandagi Newmont Altin Madencilik Türkiye EXPLORATION 2.0% NSR 235 Karaağaç Anadolu Export Maden Sanayi ve Ticaret Türkiye EXPLORATION 1.5% NSR 236 Muratdagi Kenz E
Slide 37: NYSE SAND TSX SSL
NYSE SAND TSX SSL
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