SANDSTORM ACQUIRES 56 ROYALTIES FROM TECK FOR US$22 MILLION - - PowerPoint PPT Presentation
SANDSTORM ACQUIRES 56 ROYALTIES FROM TECK FOR US$22 MILLION - - PowerPoint PPT Presentation
SANDSTORM ACQUIRES 56 ROYALTIES FROM TECK FOR US$22 MILLION CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking
Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements", within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Sandstorm Gold Ltd. (“Sandstorm”). Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, the estimation of mineral reserves and resources, realization
- f mineral reserve estimates, the timing and amount of estimated future production. Forward-looking statements can generally be identified by the use of
forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans”, or similar terminology. Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Sandstorm to be materially different from future results, performances or achievements expressed or implied by such
- statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment
in which Sandstorm will operate in the future, including the price of gold and anticipated costs. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, gold price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks relating to the parties which produce the gold Sandstorm will purchase, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global economic climate, dilution, share price volatility and competition. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Sandstorm to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact of general business and economic conditions, the absence of control over mining operations from which Sandstorm will purchase gold and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined, risks in the marketability of minerals, fluctuations in the price of gold, fluctuation in foreign exchange rates and interest rates, stock market volatility, as well as those factors discussed in the section entitled “Risks to Sandstorm” in Sandstorm’s annual report for the financial year ended December 31, 2014 available at www.sedar.com. Although Sandstorm has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Sandstorm does not undertake to update any forward looking statements that are contained or incorporated by reference, except in accordance with applicable securities laws.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Transaction Overview
PAYMENT TO TECK: SANDSTORM RECEIVES:
projects in North America projects in South America projects in Europe project in Asia
33 09 03 11
price based on 10-day VWAP
56
Royalties
US$22 million
US$1.4M in Cash US$20.6M in SSL Shares
PAGE 03
IMMEDIATE CASH FLOW WITH GROWTH POTENTIAL
US$1.5 million to US$2.0 million in immediate cash
- flow. Key Assets have potential to reach US$10 million
to US$15 million+ in cash flow per year.
TRANSACTION OVERVIEW Advantages to Sandstorm
STRONG COUNTERPARTIES ASSET DIVERSIFICATION
Exploration
35
Advanced Exploration
08
Producing Development Stage
09 04
LONG-TERM OPTIONALITY
PAGE 04
PROJECT OPERATOR LOCATION STATUS TERMS
Hot Maden Mariana Resources Ltd. Turkey Advanced Exploration 2% NSR Hackett River Glencore plc Canada Development 2% NSR Lobo-Marte Kinross Gold Corp. Chile Development 1.75% NSR Burhaniye Tümad Madencilik A.Ş. Turkey Development 2% NSR Copper Mountain Copper Mountain Mining Canada Producing 5% NSR Agi Dagi/Kirazli Alamos Gold Inc. Turkey Development US$10/oz Oksut Centerra Gold Inc. Turkey Development 0.5%–1.5% NSR
7 Key Assets
PAGE 05
ROYALTY:
2% NSR
LOCATION:
HOT MADEN Mariana Resources Ltd.
103m @ 9 g/t Au, 2.2% Cu 82m @ 20.4 g/t Au, 1.9% Cu 13m @ 88 g/t Au, 2.5% Cu
RECENT DRILL RESULTS: STATUS:
Advanced Exploration High grade gold-copper mineralization discovered
Resource delineation drilling within and around the main mineralized zone is ongoing.
North Eastern, Turkey
PAGE 06
800m 750m 700m 650m 600m 550m
OPEN OPEN
- verburden
HTD-10 HTD-5 HTD-18
N 50m
Au-Cu Zone Zn Zone
Mineral Reserves and Resources HOT MADEN
As at August 2015
High Grade “Ultra” High Grade Low Grade INDICATED Total High Grade “Ultra” High Grade Low Grade Peripheral INFERRED MT gpt Au %Cu
- z Au
M lb Cu
1.03 4.00 3.20 1.80 0.48 1.00 4.71
Total
2.20 0.33 3.30 2.29 2.00 0.82 1.00 0.22 0.40 3.65 29.2 5.2 0.9 10.0 36.2 3.1 0.8 1.8 5.5 1.80 967,000 537,000 14,000 1,518,000 379,000 228,000 21,000 13,000 640,000 90 123 11 224 24 99 18 2 143
43m @ 11.7 g/t Au, 2.2% Cu 8m @ 15.1 g/t Au, 1.46% Cu 22m @ 46.2 g/t Au, 3.06% Cu 9m @ 12.4 g/t Au, 0.8% Cu 117.3m @ 13.9 g/t Au, 2.04% Cu 100.2m @ 5.6 g/t Au, 1.3% Cu 108.2m @ 3.0 g/t Au, 1.3% Cu 2m @ 8.6 g/t Au, 5.4% Cu 12m @ 6.4 g/t Au, 2.8% Cu PAGE 07
740400E 4542400N 4542200N 4542000N 4541800N 4541600N 740600E 740800E
N 200m
Gold-Copper
MINERALISED ZONES
Zinc
OPEN TO SOUTH NEW SOUTHERN ZONE
1 a e g h b c d f 2 3 5 14 15 17 16 12 18 i 13 4 6 8 7 9 10 11
INTERPRETED POST MINERALISATION FAULT
HOT MADEN Drill Results Summary
NEW SOUTHERN ZONE
a HTD-21 64.1m @ 0.8 g/t Au, 0.3% b HTD-27 39m @ 5.8 g/t Au, 0.7% Cu c HTD-25 25.2m @ 7.3 g/t Au, 0.47% Cu d HTD-23 28.7m @ 1.8% Zn e HTD-03 1m @ 7.9 g/t Au, 0.2% Cu; 1m @ 19.9 g/t Au, 0.4% Cu f HTD-19 12.1m @ 2.1 g/t Au, 0.7% Cu g HTD-07 8m @ 1.6 g/t Au; 3m @ 2.1 g/t Au; 1m @ 4.8 g/t Au; 1m @ 3.0 g/t Au h HTD-01 1m @ 5.5 g/t Au, 0.4% Cu; 1m @ 121 g/t Au, 1.2% Cu; 1m @ 9.5 g/t Au, 0.6% Cu i HTD-26 12.5m @ 4.1% Zn 1
- 2
HTD-08 7.2m @ 2.1 g/t Au, 1.6% Cu, 8.0m @ 1.8% Cu
3 HTD-20 88.5m @ 1.8 g/t Au, 2.3% Cu 4 HTD-04 103m @ 9.0 g/t Au, 2.2% Cu
5 HTD-17 83m @ 13.4 g/t Au, 3.88% Cu
6 HTD-09 22m @ 3.1 g/t Au, 0.3% Cu 7 HTD-18 108.2m @ 3.0 g/t Au, 1.3% Cu
8 HTD-15 117.3m @ 13.9 g/t Au, 2.04% Cu
9 HTD-10 100.2m @ 5.6 g/t Au, 1.3% Cu 10 HTD-24 36.3m @ 21.7 g/t Au, 5.5% Cu 11 HTD-02 1.3m @ 9.9 g/t Au, 0.3% Cu 12
- 13
HTD-05 82m @ 20.4 g/t Au, 1.9% Cu 14 HTD-13 109.9m @ 11.9 g/t Au, 1.13% Cu
15 HTD-16 100.7m @ 2.3 g/t Au, 1.84% Cu 16 HTD-11 107.7m @ 4.2 g/t Au, 0.9% Cu 17 HTD-22 43.8m @ 7.7 g/t Au, 1.2% Cu 18 HTD-12 38m @ 3.0 g/t Au, 1.74% Cu
LOCATION: STATUS:
Development-staged VMS deposit One of the world’s largest undeveloped zinc projects
will also produce lead, copper, gold and silver byproducts
ROYALTY:
2% NSR
MINE LIFE:
15+ yrs
HACKETT RIVER Glencore plc
230M lbs
- f zinc
35M lbs
- f lead
25M lbs
- f copper
ESTIMATED AVERAGE ANNUAL PRODUCTION:
8.5M ozs
- f silver
14K ozs
- f gold
Royalty cashflow estimated to be US$8 million per year.
Nunavut, Canada
PAGE 09
* Please refer to Mineral Reserves & Resources on Glencore’s website for complete information relat- ing to mineral reserves and mineral resources indicating tonnage and grade for the project.
ZINC: SILVER:
As at December 31, 2014
Inferred Indicated
1.2 B lbs 181 M ozs 57M ozs
Total
5.2 B lbs 237M ozs 4.0B lbs
Mineral Reserves and Resources HACKETT RIVER
PAGE 10
LOBO-MARTE Kinross Gold Corp.
ROYALTY:
1.75% NSR capped at US$40 million 350,000 ozs of gold
ESTIMATED AVERAGE ANNUAL PRODUCTION: STATUS:
Development-ready Large gold copper intrusive hosted deposit. Over 7 million
- unces M&I resources
LOCATION:
GRADE (g/t):
As at August 2015
Indicated Measured
1.22
Measured & Indicated
1.18 1.13
OUNCES (kozs):
3,525 3,489 7,014
TONNES (kt):
96,646 88,720 185,366 MINERAL RESOURCES:
* Please refer to Mineral Reserves & Resources on the Kinross website for complete information relating to min- eral resources indicating tonnage and grade for the project.
Atacama, Chile
PAGE 11
US$1 million
ESTIMATED ANNUAL CASHFLOW:
12,000,000 tonnes
(0.34% Cu, 1.2 g/t Ag, 0.15 g/t Au) * Virgina pit
INDICATED RESOURCE:
11,800,000 tonnes
(0.27% Cu, 0.94 g/t Ag, 0.13 g/t Au) * Virgina pit
INFERRED RESOURCE: STATUS:
In Production Open-pit, milling operations
COPPER MOUNTAIN Copper Mountain Mining
ROYALTY:
5% NSR on Virginia pit and Alabama pit
LOCATION:
British Columbia, Canada
PAGE 12
AGI DAGI & KIRAZLI Alamos Gold Inc.
143K ozs
- f gold
271K ozs
- f silver
99K ozs
- f gold
ESTIMATED AVERAGE ANNUAL PRODUCTION:
Agi Dagi Agi Dagi Kirazli Kirazli
601K ozs
- f silver
ROYALTY (Agi Dagi):
$10/oz up to 600kozs
expected mine life of 7 years
ROYALTY (Kirazli):
$10/oz up to 250kozs
expected mine life of 5 years
STATUS:
Development-staged Open-pit, heap leach operations
LOCATION:
Western, Turkey
PAGE 13
49 OTHER TECK ROYALTIES
Sheerness Westmoreland Coal Company Canada Producing 5% GRR Magmont The Doe Run Resources Corporation USA Producing 1.25% NSR Altintepe Bahar Madencilik Sanayi ve Ticaret A.S. Turkey Producing 1.5% NSR Ajax KGHM Polska Miedz Canada Development 1.5% NSR Keno Hill Alexco Resources Corp. Canada Development 25% NPI Ruddock Creek Imperial Metals Corporation Canada Development 1% NSR Los Verdes Minera Alamos Sonora S.A. de C.V. Mexico Development 2% NSR Box Fortune Bay Corp Canada Advanced Exploration 1.5% NSR Homestake Ridge Homestake Resource Corporation Canada Advanced Exploration 2% NSR Railroad Gold Standard Ventures Corporation USA Advanced Exploration 3% NSR Whistler Brazil Resources Inc. USA Advanced Exploration 2% NPI Karaagac Anadolu Export Maden Sanayi ve Ticaret A.S. Turkey Advanced Exploration 1.5% NSR Tac/Corak Cengiz Kaya Turkey Advanced Exploration 1.5%-2% NSR Tavsan (Red Rabbit) Ariana Resources plc Turkey Advanced Exploration 2% NSR Abitibi/Sarah Lake Commander Resources Ltd. Canada Exploration 1% NSR Big Bulk LCT Holdings Inc. Canada Exploration 1.5% NSR Butterfly Lake North Arrow Minerals Inc. Canada Exploration 0.71% GOR Caramelia Huakan International Mining Inc. Canada Exploration 2% NSR CT Kreft Resources Ltd. Canada Exploration 0.75% NSR Lorrain Canadian Silver Hunter Inc. Canada Exploration 2% NSR Mainstreet Beaufield Resources Inc. Canada Exploration 1.2% NSR New Afton New Gold Inc. Canada Exploration 2% NSR Rossland Rossland Resources Inc. Canada Exploration 1%-2% NSR Snip 2 Colorado Resources Ltd. Canada Exploration 2% NSR Summit Lake Rainy Mountain Royalty Corp. Canada Exploration 1.9% NSR
PROJECT OPERATOR LOCATION STATUS TERMS
PAGE 14
Continued
Ten Mile Creek Bernie Kreft Canada Exploration 1.5% NSR Tsacha Independence Gold Corp. Canada Exploration 2% NSR Wrigley Devonian Metals Inc. Canada Exploration 2% NSR Aurora Carlin Resources LLC USA Exploration 2% NSR Big W Barrick Gold U.S. Inc. USA Exploration 3% NSR Cabin Creek McEwen Mining Inc. USA Exploration 10% NPI Cherry Creek McEwen Mining Inc. USA Exploration 1.5% GOR Lichen Silver Phoenix Resources Inc. USA Exploration 2% NSR Shotgun TNR Gold Corp. USA Exploration 5% NPI Van Stone Equinox Resources (WASH), Inc. USA Exploration 1.5% NSR Amapari Mineracao Amapari S.A. Brazil Exploration 3% NPI Rio Novo South Rio Minas Mineracao S.A. Brazil Exploration 0.75% NSR Gatita Compania Minera Potosi S.A. Peru Exploration 1% NSR Huajoto Alturas Minerals Corp. Peru Exploration 0.5%-1% NSR Mario Fortuna Silver Mines Inc. Peru Exploration 2% NSR Arcas Altius Minerals Corporation Chile Exploration 1% NSR Celeste Coro Mining Corp. Chile Exploration 2% NSR Pampa Lina Sierra Gorda Sociedad Contractual Minera Chile Exploration 0.3% NSR Kiskama Talga Resources Ltd. Sweden Exploration 1% NSR Masugnsbyn Talga Resources Ltd. Sweden Exploration 1% NSR Vittangi Talga Resources Ltd. Sweden Exploration 1% NSR Hasandagi Newmont Mining Corporation Turkey Exploration 2% NSR Muratdagi Kenz Enerji ve Madencilik San. Ve Tic A.S. Turkey Exploration 2% NSR Tombul Elazig Baskil Madencilik A.S. Turkey Exploration 2% NSR
PROJECT OPERATOR LOCATION STATUS TERMS
49 OTHER TECK ROYALTIES
PAGE 15
2014 2015 2016
98 NEW STREAMS & ROYALTIES
US$1.6 Million
1 royalty buy back
Pinecrest Resources
US$30 Million
Karma Stream
J A N F E B M A R A P R M A Y J U N J U L A U G S E P O C T N O V D E C J A N M A Y A P R J U N J U L A U G S E P O C T N O V D E C M A R F E B J A N
US$4.6 Million
13 royalties
Gold Royalties
US$1 Million
Akorade Royalty
US$400,000
8 royalties
Nyrstar
US$44 Million
8 streams/royalties
SND Acquisition
US$0.5 Million
3 royalties
Pacific Ridge
US$22 Million
56 royalties
Teck
US$152 Million
2 Streams + 1 NSR
Yamana
Alexandria Minerals
US$50,000
8 Nevada Royalties
US$3 Million
Bomboré Royalty
US$52.2 Million
Diavik Royalty
underground option
US$10 Million
SilverCrest
2 royalties
US$1 Million
In Last 24 Months
Streams & Royalties
34 13
Producing Assets Streams & Royalties
132 19
Producing Assets
24 MONTHS AGO TODAY