Sandstorm Gold Announces 2017 Third Quarter Results

Sandstorm Gold Ltd. (“Sandstorm” or the “Company”) (NYSEAMERICAN: SAND, TSX: SSL) has released its results for the third quarter ended September 30, 2017 (all figures in U.S. dollars).
As quoted in the press release:

— Third Quarter Highlights

• Attributable gold equivalent ounces sold¹ of 14,293 ounces (Q3 2016 – 12,588 ounces);

• Revenue of $17.9 million (Q3 2016 – $16.8 million);

• Average cash cost per attributable gold equivalent ounce of $246 resulting in cash operating margins¹ of $1,009 per ounce (Q3 2016 – $255 per ounce and $1,081 per ounce respectively);

• Operating cash flow of $11.9 million (Q3 2016 – $10.3 million);

• Net income of $4.8 million (Q3 2016 – net income of $6.9 million);

• New Anchor Asset: Sandstorm completed its previously announced arrangement to acquire all the issued and ordinary share capital of Mariana Resources Ltd. (“Mariana”). Under the terms of the arrangement and as consideration for the acquisition, the Company issued 32.7 million common shares and paid an additional $47.3 million in cash. The transaction and the addition of the 30% Hot Maden profit interest to the Company’s portfolio of royalties provides for:

  • approximately 100% increase in estimated future production for only 19% dilution;

  • an anchor asset that is high-grade and low-cost with significant exploration upside;

  • a strong local partner with experience in exploring, developing, permitting and operating projects in Turkey; and

  • exploration properties in Côte d’Ivoire, Turkey, and Argentina. Sandstorm has begun the process to sell the exploration properties and expects to retain net smelter returns (“NSR”) royalties as well as equity in the spin-out.

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