SANDSTORM ACQUIRES 56 ROYALTIES FROM TECK FOR US$22 MILLION - - PowerPoint PPT Presentation

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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


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SLIDE 1

SANDSTORM ACQUIRES 56 ROYALTIES FROM TECK FOR US$22 MILLION

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SLIDE 2

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

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SLIDE 3

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

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SLIDE 4

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

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SLIDE 5

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

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SLIDE 6

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

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SLIDE 7

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

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SLIDE 8

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

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SLIDE 9

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

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SLIDE 10

* 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

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SLIDE 11

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

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SLIDE 12

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

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SLIDE 13

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

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SLIDE 14

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

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SLIDE 15

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

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SLIDE 16

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

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SLIDE 17

Streams & Royalties

34 13

Producing Assets Streams & Royalties

132 19

Producing Assets

24 MONTHS AGO TODAY