Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or the “Company”) (NYSE: SAND, TSX: SSL) has released its results for the first quarter ended March 31, 2023 (all figures in U.S. dollars).

FIRST QUARTER HIGHLIGHTS
Record attributable gold equivalent ounces1 of 28,368 ounces (Q1 2022 — 18,741 ounces);
Record revenue of $44.0 million (Q1 2022 — $35.4 million);
Record total sales, royalties, and income from other interests1 of $54.0 million (Q1 2022 — $35.4 million);
Record cash flows from operating activities, excluding changes in non-cash working capital1 of $42.7 million (Q1 2022 — $26.7 million);
Net income of $15.6 million (Q1 2022 — $9.1 million);
Average cash cost per attributable gold equivalent ounce1 of $230 resulting in cash operating margins1 of $1,652 per ounce (Q1 2022 — $283 per ounce and $1,604 per ounce respectively);
SSR Mining assumes operational control of Hod Maden project: SSR Mining Inc. (“SSR Mining”) recently announced that it has reached an agreement with Lidya Madencilik (“Lidya”) to acquire up to a 40% interest in Hod Maden and assume operational control of the project. SSR Mining is an experienced international mining company with producing assets located in the United States, Türkiye, Canada and Argentina. SSR Mining has expertise in project exploration, construction, mining and processing as well as an existing partnership with Lidya on the producing Çöpler mine. SSR Mining will continue early-works construction activities at Hod Maden with its development team mobilizing to site immediately. SSR Mining will assume the project finance process that is currently underway while working to advance Hod Maden to a full construction decision in 2024. SSR Mining anticipates commercial production to commence in 2027.
Renewal of Normal Course Issuer Bid: In April, Sandstorm renewed its normal course issuer bid allowing the Company to purchase up to 24.0 million of the Company’s common shares from time to time when Sandstorm’s management believes that the shares are undervalued by the market.
OUTLOOK
Based on the Company’s existing royalties, attributable gold equivalent ounces for 2023 are forecasted to be between 90,000 and 100,000 ounces. The Company’s production forecast is expected to reach approximately 125,000 attributable gold equivalent ounces within the next five years, with a sustainable average annual production of approximately 110,000 attributable gold equivalent ounces over the next 15 years.

FINANCIAL RESULTS
For the three months ended March 31, 2023, the Company realized record quarterly revenue of $44.0 million compared with $35.4 million for the comparable period in 2022. The Company also had record total sales, royalties, and income from other interests of $54.0 million during the quarter ($35.4 million for the comparable period in 2022), which includes $10.0 million in other contractual income related to a one-time contractual payment from the Company's Mt. Hamilton royalty. The increase in revenue is largely attributable to a 23% increase in attributable gold equivalent ounces sold, excluding attributable ounces related to the Mt. Hamilton contractual payment.

Net income and cash flows from operating activities were $15.6 million and $39.9 million, respectively, compared with net income of $9.1 million and cash flows from operating activities of $22.4 million for the comparable period in 2022. The increase is partially attributable to an $8.6 million increase in revenue (as described above) as well as the $10.0 million in contractual income related to the Mt. Hamilton contractual payment and a $2.9 million increase in the gains recognized on the revaluation of the Company’s investments mostly driven by an increase in the fair value of the Horizon Copper debenture. The increases were partially offset by a $9.3 million increase in finance expense, primarily related to interest paid on the Company’s revolving credit facility, and a $6.9 million increase in depletion expense, partly driven by an increase in attributable gold equivalent ounces sold.

STREAMS & ROYALTIES
Of the gold equivalent ounces sold by Sandstorm during the first quarter of 2023, approximately 9% were attributable to mines located in Canada, 32% from the rest of North America, 49% from South America, and 10% from other countries.

Revenue
(in millions) Gold Equivalent
Ounces
Canada $5.0 2,641
North America excl. Canada $6.8 8,947
South America $26.7 13,883
Other $5.5 2,897
Total $44.0 28,368
Canada
Streams and royalties on Canadian mines contributed 20% less gold equivalent ounces to Sandstorm when compared to the first quarter of 2022. The change is primarily due to a decrease in royalty revenue from the Diavik mine in the Northwest Territories, driven by the timing of sales, production rates, and diamond prices, as well as a decrease in royalty revenue from the Bracemac-McLeod mine in Quebec, which discontinued operations in the second half of 2022. The decrease was partially offset by an increase in gold equivalent ounces received and sold from the CEZinc smelter in Quebec, which was acquired as part of the Nomad Royalty acquisition in August 2022.

North America Excluding Canada
The gold equivalent ounces sold from operations located within North America, but outside of Canada, contributed 93% more gold equivalent ounces when compared to the first quarter of 2022, excluding attributable ounces related to the Mt. Hamilton contractual payment which is included in Other Income. The change was primarily driven by an increase in gold equivalent ounces received and sold from the Mercedes mine in Mexico, which commenced making deliveries to Sandstorm in the second quarter of 2022, and an increase in the number of attributable ounces sold from the Santa Elena mine in Mexico, partly due to the timing of sales. The increase was partially offset by a decrease in ounces received and sold from the Relief Canyon mine in Nevada, largely due to the timing of sales.

South America
Operations in South America contributed 22% more gold equivalent ounces sold when compared to the first quarter of 2022. The increase was largely driven by an increase in royalty revenue from the Antamina mine in Peru and the Caserones mine in Chile, both of which were acquired in the second half of 2022, as well as an increase in royalty revenue attributable to the Fruta del Norte mine in Ecuador and the Aurizona mine in Brazil. The change was partially offset by a decrease in the number of ounces received and sold attributable to the Cerro Moro mine in Argentina and revenue attributable to the Vale Royalties, largely due to the timing of sales.

Other
Streams and royalties on mines in other countries contributed 36% more gold equivalent ounces sold when compared to the first quarter of 2022. This change is primarily due to an increase in gold equivalent ounces received and sold from the Blyvoor mine in South Africa and the Bonikro mine in Côte d’Ivoire. The Blyvoor and Bonikro streams were acquired as part of the Nomad Royalty acquisition in August 2022.

WEBCAST & CONFERENCE CALL DETAILS
A conference call will be held on Thursday, May 11, 2023, starting at 8:30am PDT to further discuss the first quarter results. To participate in the conference call, use the following dial-in numbers and conference ID, or join the webcast using the link below:

International: (+1) 416-764-8688
North American Toll-Free: (+1) 888-390-0546
Conference ID: 22359231
Webcast URL: https://bit.ly/3LK1FYz

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AND
Sandstorm Gold Ltd. (“Sandstorm Gold Royalties”, “Sandstorm” or the “Company”) (NYSE: SAND, TSX: SSL) is pleased to provide updates on certain development assets including SSR Mining’s acquisition of an operating interest in the Hod Maden gold-copper project.

SSR MINING TO ACQUIRE OPERATING INTEREST
IN HOD MADEN
SSR Mining Inc. (“SSR Mining”), a leading diversified gold company, has reached an agreement with Lidya Madencilik (“Lidya”), to acquire up to a 40% interest in the Hod Maden gold-copper project in Türkiye (“Hod Maden”), and assume operational control of the asset upon closing of the transaction. SSR Mining will pay cash consideration of US$270 million (the “Transaction”) as follows:

US$120 million in cash paid on closing for a 10% interest in Hod Maden;
US$150 million in earn-in structured cash milestone payments, linked to construction and commercial production milestones at Hod Maden, to acquire an additional 30% interest in the project.
In addition, SSR Mining will pay US$84 million to Lidya in the form of a contingent Mineral Reserve and Resource payment upon discovery of an additional 500,000 ounces of gold equivalent Reserves1 at Hod Maden beyond those currently identified as Mineral Reserves and Mineral Resources. Assuming the terms of the earn-in milestone payments of the Transaction are fulfilled, SSR Mining will hold a 40% operating interest in Hod Maden, with the remaining passive ownership held by Lidya (30%) and Horizon Copper Corp. (“Horizon Copper”) (30%). Sandstorm maintains a 2.0% net smelter returns (“NSR”) royalty on 100% of Hod Maden and a gold stream on Horizon Copper’s interest that entitles the Company to purchase 20% of the gold produced at Hod Maden on a 100% basis2.

“We are very pleased to welcome a seasoned operator like SSR Mining to the development team at Hod Maden,” said Nolan Watson, Sandstorm’s President & CEO. “We believe the addition of SSR Mining will complement the work that Lidya has undertaken over the last several years, working meticulously to de-risk Hod Maden through permitting and securing regulatory approvals. SSR Mining has a successful, long-standing partnership with Lidya at the Çöpler mine in Türkiye. Çöpler has been in production since 2010 and SSR Mining continues to daylight exploration upside at the asset and extend its mine life. We are excited to see this proven partnership add similar value to Hod Maden.”

For more information regarding the details of the Transaction, please see SSR Mining’s press release dated May 8, 2023 available on their website at www.ssrmining.com.

About SSR Mining
SSR Mining is a leading diversified mining operator with producing assets in the USA, Türkiye, Canada, and Argentina. The company’s portfolio has produced, on average, over 700,000 gold equivalent ounces annually over the last three years. With expertise across various mining and processing skillsets, including open pit and underground operations, SSR has a track record of creating value through discovery, project development, and operations. The company is free cash flow-focused and, as at March 31, 2023, has a robust balance sheet with a cash and cash equivalent balance of US$561.8 million.

Development and Production Outlook
Upon the closing of the Transaction, SSR Mining will continue early-works construction activities at Hod Maden with its development team mobilizing to site immediately. Early works activities for 2023 are to focus on site access and earthworks at an expected cost of approximately US$30 million (on a 100% basis). SSR Mining will assume the project finance process that is currently underway. SSR Mining expects to advance Hod Maden to a full construction decision in 2024 following a process to maximize project readiness and synergies. SSR Mining anticipates commercial production to commence in 2027.

Reflecting the indicative development schedule provided by SSR Mining, Sandstorm’s annual portfolio production is expected to reach approximately 125,000–130,000 gold equivalent ounces within the next five years, with sustainable average annual production of approximately 110,000 gold equivalent ounces over the next 15 years.

IVANHOE MINES LOOKS TO OPTIMIZE PLATREEF PHASE 2 EXPANSION
Ivanhoe Mines Ltd. (“Ivanhoe”) provided an update on the Platreef development project in South Africa. Surface construction activities are underway, while lateral underground mine development is progressing well. Construction for Platreef’s Phase 1 concentrator has commenced, with the first production on schedule for Q3 2024. Construction of Platreef’s first solar-power plant commenced in Q3 2022 with commissioning expected in 2023. The solar-generated power from the plant, which is expected to have a rated capacity of 5 megawatts, will be used for mine development and construction activities.

Ivanhoe has initiated optimization work to identify value-accretive options for installing hoisting capacity in Shaft 3. Shaft 3, which is currently under construction and was originally planned as a ventilation-only shaft, is now planned to be equipped for hoisting providing an alternative option to remove ore and waste from the underground mine. Ivanhoe expects this to de-risk the development and ramp-up of the Phase 1 mine and may be used to accelerate the ramp-up of underground mining activities for Phase 2, in advance of the completion of Shaft 2, which is expected in 2027.

For more information, visit the Ivanhoe Mines website at www.ivanhoemines.com and see the press release dated March 13, 2023.

Sandstorm holds a gold stream on the Platreef project whereby Sandstorm is entitled to purchase 37.5% of payable gold produced from Platreef until 131,250 gold ounces have been delivered, then 30% of payable gold produced until an aggregate of 256,980 ounces are delivered, then 1.875% thereafter. Sandstorm will make ongoing cash payments of US$100 per ounce of gold until 256,980 ounces have been delivered, and then 80% of the spot price of gold for each ounce delivered thereafter.

GREENSTONE PROJECT ON TRACK FOR GOLD PRODUCTION IN FIRST HALF 2024
Equinox Gold Corp. (“Equinox”) reports that construction at the Greenstone project is approximately 73% complete and remains on track to pour gold in the first half of 2024. At the end of Q1 2023, 83% of the total construction budget had been contracted and 65% of the total construction budget had been spent. All buildings have been enclosed and construction is focused on mechanical, piping, and electrical installations. Other completed construction items include the Ministry of Transportation Patrol Yard, the Goldfield Creek diversion, and the permanent effluent water treatment plant. Equinox reported that the 14-kilometre natural gas pipeline is complete and ready for commissioning in the second quarter of 2023. Mining commenced ahead of schedule in the third quarter of 2022 and is operating 24/7.

In March, Equinox announced up to $200 million in gold prepay and gold purchase and sale agreements, which provides the company additional cash liquidity as it continues to fund its 60% interest for construction of the Greenstone project.

For more information, see Equinox’s 2023 First Quart Report published May 2, 2023, and the press release dated May 2, 2023, both of which are available on the company’s website at www.equinoxgold.com.

Sandstorm holds a gold stream on the Greenstone project pursuant to an agreement with an affiliate of Orion Mine Finance, who holds a 40% interest in the Greenstone project in a joint venture with Equinox (holding the remaining 60%). Under the terms of the gold stream, Sandstorm is entitled to purchase 2.375% of the gold produced at the project (on a 100% basis) until 120,333 ounces are delivered, then 1.583% of gold produced (on a 100% basis). Sandstorm will make ongoing payments equal to 20% of the spot price of gold per ounce plus an additional payment of up to $30 per ounce in ESG contributions.

Notes

Contingent payment relates to discovery of 500,000 gold equivalent ounces of new Resources at Hod Maden, which are subsequently upgraded to either Proven or Probable Reserves. Conversion of existing Measured, Indicated, and Inferred Resources as at the date of the Transaction does not count towards the 500,000 gold equivalent ounce milestone.

See Sandstorm’s press release dated February 17, 2022, for details regarding the Hod Maden gold stream.
CONTACT INFORMATION
For more information about Sandstorm Gold Royalties, please visit our website at www.sandstormgold.com or email us at info@sandstormgold.com