Sandstorm Gold Ltd N — Sandstorm Gold — Investor Presentation (May 2023)
35 slides from Sandstorm Gold Ltd N's investor presentation, May 2023
Slide 1: A Brighter Way to Invest in Gold
INVESTOR PRESENTATION NYSE SAND TSX SSL A Brighter Way to Invest in Gold M AY 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: Transformative Acquisitions
INVESTOR PRESENTATION Transformative COMPANY ACQUISITION Acquisitions Nomad Royalty Company 20 A High Growth Precious Increases Sandstorm’s scale Streams and Metals Royalty Company Royalties Fortifies portfolio diversification Adds long-life, high-quality assets PORTFOLIO ACQUISITION BaseCore Royalt
Slide 5: 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 + Chapada 15-Year Annual Average Exploration & Expansion + Horne 5 82k + Troilus 68k + Gualcamayo DCP 64k 58k + Montag
Slide 6: Record Cash Flow
INVESTOR PRESENTATION $170–$180M Record Cash Flow 5yr Peak Cash Flow $167 $158 $122 PORTFOLIO CASH FLOWS 1 in US$ Millions Cash flows from Horizon Copper Debentures $93 Gold $76 $69 $1,800/oz $58 $54 $50 Silver $22/oz Copper SANDSTORMGOLD.COM $4.50/lb 2016 2017 2018 2019 2020 2021 2022 2023 5-Year O
Slide 7: Leverage to Incremental Cash Flows From Higher Commodity Prices
INVESTOR PRESENTATION $190–$210M 5yr Peak Cash Flow Leverage to Incremental Cash $186 Flows From Higher Commodity Prices Commodity Prices $122 PORTFOLIO CASH FLOWS 1 in US$ Millions $93 Gold $76 $2,200/oz $69 $58 $54 $50 Silver $25/oz Copper SANDSTORMGOLD.COM $5.00/lb 2016 2017 2018 2019 2020 2021 2
Slide 8: Revenue by Metal
INVESTOR PRESENTATION Precious Metals 77% Focused 7% REVENUE BY METAL1 (in 2028) 16% Gold Silver Copper Other 7% 70% SANDSTORMGOLD.COM 1 Commodity Price Assumptions: $1,800/oz Au, $22/oz Ag, $4.50/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: Long Term Gold Equivalent Production Forecast
Gold Equivalent Production (koz) INVESTOR PRESENTATION LONG TERM GOLD EQUIVALENT PRODUCTION FORECAST1 1000koz The Value 900koz Wheaton Franco- Nevada Choice Amongst 800koz 700koz Peers 600koz 500koz Royal Gold 400koz 300koz Osisko Triple Flag 200koz Sandstorm 100koz SANDSTORMGOLD.COM 0koz MARKET CAP
Slide 12: Mid-Tier Royalty Companies
INVESTOR PRESENTATION MID-TIER ROYALTY COMPANIES1 1.6x 35% upside on 1.4x trading multiple 1.2x normalization 1.0x 0.8x 0.6x 0.4x 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 May 5, 2023. 12
Slide 13: Lowest Cost Mines
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 14: 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 15: Development & Exploration Assets
INVESTOR PRESENTATION Development & Exploration Assets Portfolio of streams & royalties with 40 cash Producing Assets flowing assets Globally Diversified SANDSTORMGOLD.COM 15
Slide 16: Growing Asset Portfolio
INVESTOR PRESENTATION 250 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 16
Slide 17: Metres Drilled on Sandstorm Properties
INVESTOR PRESENTATION 2013 2022 METRES DRILLED ON SANDSTORM PROPERTIES (IN 000’S) 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
Slide 18: Sandstorm's Gold Attributable Ounces
INVESTOR PRESENTATION 97 SANDSTORM’S GOLD ATTRIBUTABLE OUNCES Produced Discovered 85 Discovered 79 71 68 55 58 64 52 54 Ounces (ounces in 000’s) More ounces were discovered than mined on Sandstorm properties in 2017–2021. SANDSTORMGOLD.COM 2017 2018 2019 2020 2021 18
Slide 19: Sandstorm Does Not Need to Compete 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 19
Slide 20: Debt
INVESTOR PRESENTATION $700M Debt Available Credit Facility $600M Repayment $500M $400M Price Scenario 1 $300M Gold Silver Copper $1,800/oz $22/oz $4.50/lb $200M Price Scenario 2 $100M SANDSTORMGOLD.COM Gold Silver Copper $2,200/oz $25/oz $5.00/lb 2 1 $0 2024 2025 2026 2027 current1 1 Approximate Net
Slide 21: Debt and Investments
INVESTOR PRESENTATION Debt and Investments (US$ Millions) Net Debt1 $455 Equity Investments2 –$48 Loans to Mining Companies2 –$239 Debt, Net of Investments $167 SANDSTORMGOLD.COM 1 Net debt, investments, and loans in mining companies assumes closing of Horizon Copper RTO Part B, including $20 millio
Slide 22: 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 23: With Leverage to Rising Commodity Prices
INVESTOR PRESENTATION with leverage to rising commodity prices with long-life assets reducing asset and jurisdictional risk development assets and optionality SANDSTORMGOLD.COM 23
Slide 24: Appendix
INVESTOR PRESENTATION NYSE SAND TSX SSL APPENDIX M AY 2 0 2 3
Slide 25: 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 26: Black Fox
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 1 Black Fox McEwen Mining Canada PRODUCING 8% Au @ $589/oz 2 CEZinc Glencore 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 PRODUCING
Slide 27: Antamina
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 28 Antamina** Compañia Minera Antamina SA Peru PRODUCING 1.66% Ag @ 2.5% spot; 0.55% NPI 29 Caserones Lundin Mining Corporation Chile PRODUCING 0.63% NSR* 30 Cerro Moro Pan American Silver Corp. Argentina PRODUCING 20% Ag @ 30% of
Slide 28: MARA (Agua Rica)
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 56 MARA (Agua Rica) Pan American Silver Corp. 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 Sa
Slide 29: Alemão
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 84 Alemão Vale S.A. Brazil ADV. EXPLORATION 0.06% Net Sales Royalty on Cu-Au 85 Alto Paraná Uranium Energy Paraguay ADV. EXPLORATION 1.0% NSR 86 Las Calandrias Cerrado Gold Inc. Argentina ADV. EXPLORATION 2.0% NSR 87 Abu Marawat At
Slide 30: Frontline 1
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 113 Frontline 1 Pacton Gold Inc. Canada EXPLORATION 0.5% NSR 114 Gold Bridge Blackstone Minerals Limited Canada EXPLORATION 1.0% NSR 115 Gold Cap Pacific Ridge Exploration Canada EXPLORATION 1.0% NSR 116 Golden Loon Pacton Gold Inc
Slide 31: Skinner
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 143 Skinner Prosper Gold Corp./Sabina Gold & Silver Canada EXPLORATION 7.5% NPI 144 Summit Lake Rainy Mountain Royalty Canada EXPLORATION 1.9% NSR 145 Tami Skeena Resources Limited Canada EXPLORATION 2.0% NSR 146 Ten Mile Creek Ber
Slide 32: Rain
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 173 Rain Newmont Corporation/Premier Gold Mines USA EXPLORATION 1.5% NSR 174 RF #1-8 (Railroad) Gold Standard Ventures USA EXPLORATION 3.0% NSR 175 Rochester (Expansion) Coeur Mining Inc. USA EXPLORATION 3.0% NSR 176 Rock Creek Con
Slide 33: Huiñac Punta
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 203 Huiñac Punta Condor Resources Peru EXPLORATION 0.5% NSR 204 Huiniccasa Volcan Compañía Minera Peru EXPLORATION 1.25% NSR 205 Humaya Condor Resources Peru EXPLORATION 0.5% NSR 206 Los Tambos Pucara Gold Ltd. Peru EXPLORATION 1.0
Slide 34: Nefasit
INVESTOR PRESENTATION PROJECT OPERATOR COUNTRY STATUS INITIAL TERMS* 233 Nefasit Sun Peak Metals Corp. Ethiopia EXPLORATION 1.0% NSR 234 Terer Sun Peak Metals Corp. Ethiopia EXPLORATION 1.0% NSR 235 Kiskama Talga Resources Sweden EXPLORATION 1.0% NSR 236 Masugnsbyn Talga Resources Sweden EXPLORATION
Slide 35: NYSE SAND TSX SSL
NYSE SAND TSX SSL