Core Insights - Gold prices have surged recently, exceeding $3,000 per ounce, driven by uncertainties surrounding tariffs and escalating geopolitical tensions [1] Group 1: Market Trends - The rising gold prices are often seen as beneficial for gold mining companies, indicating a potential growth opportunity in the sector [1] Group 2: Investment Philosophy - Mountain Valley Value Investments focuses on identifying undervalued companies with strong growth potential across various sectors, emphasizing long-term value and strategic buying [1] - The company employs deep industry insights and rigorous analysis to uncover investment opportunities that can deliver strong returns [1] - The investment approach is grounded in disciplined research and a commitment to highlighting risks that may impact investment theses [1]

Core Insights - Sandstorm Gold Ltd. is actively involved in various developments and exploration highlights within its diversified stream and royalty portfolio [1] Group 1: Erdene Resource Development Corp. - Erdene has secured a $50 million working capital facility from the Development Bank of Mongolia for the Bayan Khundii gold project [2] - The company expects to produce its first gold from the Bayan Khundii project in mid-2025, with commercial production anticipated in the third quarter of 2025 [2][3] - Sandstorm holds a 1.0% net smelter returns (NSR) royalty on the Bayan Khundii project [3] Group 2: Lundin Gold Ltd. - Lundin Gold has reported high-grade drill results from the Fruta del Norte mine in Ecuador, including 173.98 g/t gold over 8.45 metres [7] - The near-mine drill program aims to extend the mine life by expanding mineral resources, with inferred mineral resources at FDNS estimated at 2.09 million ounces at an average grade of 5.25 g/t gold [6] - Sandstorm holds a 0.9% NSR royalty on the precious metals produced at the Fruta del Norte mine [9] Group 3: Entrée Resources Ltd. - Entrée has released significant assay results from drilling at the Hugo North Extension and Heruga deposit at the Oyu Tolgoi mine in Mongolia [10] - The highlighted drill results from the Heruga deposit include 409.9 metres grading 0.36% copper and 0.32 g/t gold [13] - Sandstorm has a copper and precious metal stream with Entrée, allowing it to purchase a percentage of the copper and gold produced [14] Group 4: Omai Gold Mines Corp. - Omai has reported significant assay results from its 2024 drill program at the Omai gold mine, including 4.48 g/t gold over 57 metres at the Wenot deposit [15][17] - The company plans to conduct an updated mineral resource estimate (MRE) and a preliminary economic assessment (PEA) in 2025 [16] - Sandstorm holds a 1.0% NSR royalty on the Omai gold mine [19] Group 5: Bonterra Resources Inc. - Bonterra has released high-grade assay results from the Moss target at the Phoenix JV, with Gold Fields restarting drilling at the project [20][24] - The project is under a joint-venture agreement with Gold Fields, which has spent approximately C$16 million to date [21] - Sandstorm holds an NSR royalty ranging from 0.5% to 3.9% on portions of the Phoenix JV property [25]

Core Viewpoint - Sandstorm Gold Ltd. provides updates on its diversified stream and royalty portfolio, highlighting significant developments in its associated mining projects and the overall investment landscape in the mining sector [1]. Group 1: Lundin Gold - Fruta del Norte Mine - Lundin Gold reported a 59% increase in Inferred Resources at the Fruta del Norte mine, totaling 2.36 million ounces of contained gold at an average grade of 5.27 g/t [2]. - Measured and Indicated Resources increased to 7.06 million ounces from 30.62 million tonnes at an average grade of 7.17 g/t, while Proven and Probable Mineral Reserves grew to 5.54 million ounces from 22.06 million tonnes at an average grade of 7.81 g/t [2]. - Lundin Gold expects production in 2025 to be between 475,000 and 520,000 ounces at an average head grade of 9.2 g/t [2]. Group 2: Ivanhoe Mines - Platreef Mine - Ivanhoe Mines announced positive results from studies on the Platreef mine, targeting Phase 1 production in late 2025 and Phase 2 expansion in late 2027 [4]. - The Phase 1 concentrator is expected to process 770,000 tonnes per annum, with annualized gold production averaging approximately 6,900 ounces initially, increasing to about 29,000 ounces with Phase 2 [4]. - The Feasibility Study estimates an after-tax NPV (8%) of $1.4 billion and an IRR of 20% over a 35-year mine life [4]. Group 3: Argentine Investment Incentives - Argentina's new Promotional Regime for Large Investment (RIGI) aims to stimulate capital investment by offering various benefits for investments exceeding $200 million [9]. - Minas Argentinas SA submitted a $1 billion investment plan under RIGI for the Gualcamayo Deep Carbonates Project, expected to yield approximately 120,000 ounces of gold annually for at least 17 years [10]. - Glencore plans to submit a RIGI application for the MARA copper-gold project, with an estimated production of approximately 200,000 tonnes of copper equivalent per year [12]. Group 4: Sandstorm Gold Royalties - Sandstorm holds a 0.9% net smelter returns (NSR) royalty on the precious metals produced at the Fruta del Norte mine [3]. - The company has a gold stream on the Platreef mine, allowing it to purchase 37.5% of payable gold produced until 131,250 ounces are delivered, then 30% until 256,980 ounces are reached [7]. - Sandstorm anticipates annual average gold deliveries of 1,000–2,000 ounces during Phase 1 of Platreef, increasing to 10,000 ounces with Phase 2 production [8].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported strong revenue of $47 million and operating cash flow of $36 million, driven by gold equivalent production of 17,721 ounces, which is consistent with previous quarters [5][34] - Total revenue for 2024 was approximately $176 million, despite a drop in attributable gold equivalent ounces sold from 97,000 ounces in 2023 to approximately 73,000 ounces in 2024 [34][35] - Cash costs in 2024 were $275 per attributable ounce, resulting in cash operating margins of approximately $2,100 per ounce, leading to strong cash flows from operating activities of $139 million [36] Business Line Data and Key Metrics Changes - The Greenstone mine began production, contributing approximately 2,000 gold ounces in 2024, with expectations of 8,000 to 10,000 ounces per year once at full capacity [40] - The Bonikro stream was a top contributor in 2024, benefiting from higher grades and optimization efforts, with minimum annual deliveries expected between 4,000 and 6,000 ounces in 2025 and 2026 [41] - At the Antamina mine, operations were extended through to 2036, with potential throughput expansion of up to 40% anticipated [45] Market Data and Key Metrics Changes - Attributable production in 2024 was predominantly from South America (45%), followed by North America (35%), and other countries (20%), with 75% of production being precious metals [49] - The company expects increasing gold exposure as Greenstone ramps up and other gold streams begin contributing over the next few years [49] Company Strategy and Development Direction - The company plans to increase share buybacks significantly, prioritizing this over debt reduction once debt falls below $300 million [30][81] - Long-term production is expected to increase to over 150,000 gold equivalent ounces per year over the next five years, driven by ramp-ups at Greenstone and other development projects [18][51] - The company is focused on maintaining a strong balance sheet and capital allocation strategy, with a conservative guidance range for 2025 of 65,000 to 80,000 ounces [12][51] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2024 was a dip year in production due to several mines underperforming, but expressed confidence in future production increases and cash flow [9][10] - The management emphasized the importance of conservative guidance to avoid missing targets two years in a row due to fluctuating gold prices [12][104] - The company is optimistic about the future, with expectations of strong cash flows and potential upside surprises based on market conditions [16][22] Other Important Information - The company has reduced its debt from $640 million to $340 million, with expectations to drop below $300 million by mid-2025 [26][29] - A buyout option for the Vatukoula stream has been agreed upon, which could lead to a recovery of capital and profit for the company [27] Q&A Session Summary Question: What was the motivation behind the Vatukoula stream and royalty buyback? - The operator had been insolvent, and a larger Chinese company is coming in as a shareholder on the condition that they buy out the stream [70] Question: What gives the team confidence in incorporating Gualcamayo into formal guidance? - The operator is a well-capitalized multi-billion dollar Argentinian company, and the upfront capital required is manageable [73] Question: What are the priorities once the company hits the $300 million debt threshold? - The priority will be share buybacks, followed by debt reduction and potential acquisitions [81] Question: What type of deal opportunities could impact Sandstorm? - The company is not looking at significant deals currently, focusing instead on smaller opportunities that could yield substantial returns in the future [84] Question: What is the timeline for deposits related to the MARA project? - The option is indefinite until a Board-approved decision is made to start building the mine, which would trigger the payment structure [88] Question: What is causing the expected drop in production in 2027 and 2028? - The drop is attributed to the Woodlawn stream, which is capped and will see a significant reduction in contributions after 2027 [96]

Core Viewpoint - Sandstorm Gold Ltd. reported strong financial results for the year ended December 31, 2024, driven by robust commodity prices, despite a decrease in attributable gold equivalent ounces sold compared to the previous year [2][11]. Financial Highlights - The company achieved annual revenue of $176.3 million, a slight decrease from $179.6 million in 2023, with approximately 73% of revenue from precious metals, 18% from copper, and 9% from other commodities [11]. - Annual production totaled 72,810 attributable gold equivalent ounces, down from 97,245 ounces in 2023, with a cash operating margin of $2,097 per ounce for the year [8][13]. - The company made net debt repayments of $80 million in 2024, with an outstanding balance of $340 million on its revolving credit facility as of February 18, 2025 [2][12]. Shareholder Returns and Capital Allocation - In 2024, Sandstorm returned over $28 million to shareholders, including $17.5 million in dividends and $10.9 million in share repurchases, totaling approximately 2.0 million common shares purchased and canceled [4][6]. - The company plans to ramp up its share buyback program in 2025, depending on market conditions and available capital [6]. Asset Portfolio Developments - Sandstorm's key producing assets include the Greenstone gold mine, which produced approximately 111,700 ounces of gold in 2024, and the Antamina mine, which received approval for a $2 billion investment to extend operations through 2036 [9][20]. - The company anticipates first production from several development mines in 2025, including the Woodlawn mine in Australia and the Bayan Khundii gold mine in Mongolia [25]. Production Guidance and Long-term Outlook - For 2025, Sandstorm forecasts attributable gold equivalent ounces to be between 65,000 and 80,000, with a long-term production target of approximately 150,000 ounces by 2030 [10][9]. - The company expects to benefit from advancements in its development portfolio, including increased production from the Greenstone mine and the Gualcamayo Deep Carbonates Project [10][19].

Financial Performance - Revenue for the year ended December 31, 2024, was $176.3 million, a decrease from $179.6 million in 2023, while net income fell to $15.5 million from $42.7 million[60]. - Total revenue for the year ended December 31, 2024, was $176.283 million, a decrease of 1.9% from $179.636 million in 2023[174]. - Net income attributable to Sandstorm shareholders was $14.293 million in 2024, down 65.7% from $41.716 million in 2023[174]. - Cash flows from operating activities decreased to $135.378 million in 2024 from $152.754 million in 2023, a decline of 11.4%[174]. - Total revenue for Q4 2024 was $47.4 million, with attributable gold equivalent ounces at 17,721[194]. - Net income for the three months ended December 31, 2024, was $3.1 million, down from $24.5 million in the comparable period in 2023, primarily due to a $23.6 million decrease in gains from investment revaluation[199][200]. - Cash flows from operating activities for Q4 2024 were $36.1 million[194]. - The company recognized a loss of $2.1 million on investment revaluation in Q4 2024, compared to a gain of $21.4 million in Q4 2023[200]. Production and Sales - Attributable Gold Equivalent ounces for the year ended December 31, 2024, were 72,810 ounces, down from 97,245 ounces in 2023[60]. - Average realized gold price per ounce increased to $2,372 in 2024, up 23% from $1,929 in 2023[174]. - Total Attributable Gold Equivalent ounces for the three months ended December 31, 2024, were 17,721, down from 23,250 in the same period of 2023[217]. - The average realized selling price of gold increased by 23% for the year ended December 31, 2024, partially offsetting the decrease in ounces sold[204]. - Revenue from the Relief Canyon Stream increased by $4.7 million in Q4 2024 due to an additional 1,500 ounces of gold received[200]. - Revenue from the Bonikro Gold Stream increased by $2.5 million, driven by higher attributable gold equivalent ounces sold[203]. Cash Flow and Debt Management - Cash flows from operating activities for the year ended December 31, 2024, were $139.0 million, compared to $151.1 million in 2023[60]. - The outstanding balance of the Revolving Facility was reduced to $355 million as of December 31, 2024, down from $435 million a year earlier[200][205]. - The Company had net cash outflows from financing activities of $146.7 million in 2024, an increase from $131.9 million in 2023, mainly due to repayments on its revolving credit facility and interest expense payments[224]. - The Company renewed its revolving credit agreement, allowing borrowing up to $625 million, with interest rates reduced by 75 basis points at the upper end compared to the previous agreement[173]. - The Company has $340 million outstanding under its Revolving Facility, with an undrawn and available balance of $285 million[221]. Investments and Acquisitions - Sandstorm holds a 0.25% NSR on the MARA copper-gold project, along with a Gold Stream conversion option[153]. - The Company has committed to provide up to a maximum of $7.6 million in financing annually over the next three years across its current streaming agreements, subject to certain conditions[234]. - The Company has agreed to make available additional funds to Horizon up to a maximum of $150 million, with a maturity date of August 31, 2032[233]. - The Company’s investments in other companies had a combined fair market value of $235.7 million as of December 31, 2024, down from $258.9 million in 2023[252]. Operational Highlights - The Greenstone Gold Stream commenced commercial production on November 6, 2024, with Sandstorm entitled to purchase 2.375% of the gold produced until 120,333 ounces are delivered[59]. - The Houndé gold mine has a Proven and Probable Reserve containing 2.6 million ounces of gold within 52.1 million tonnes of ore, with an average grade of 1.57 grams per tonne gold[95]. - The Caserones Mine is expected to produce approximately 110,000 tonnes of copper annually, with a mine life through 2037[106]. - The Bonikro Mine has Proven and Probable Mineral Reserves of 571,000 ounces of gold and Mineral Resources of 1.39 million ounces as of December 31, 2023[127]. - The Gualcamayo DCP project includes a $1 billion investment plan, with a projected annual production of approximately 120,000 ounces of gold over an initial 17-year mine life[123]. Dividends and Shareholder Returns - In December 2024, Sandstorm declared a dividend of CAD0.02 per share, paid on January 31, 2025[64]. - The Company declared a dividend of CAD0.02 per share in December 2024, totaling $4.1 million paid in cash in January 2025[239]. - The Company initiated its first automatic share purchase program, allowing for the repurchase of up to 10 million common shares[66]. Legal and Regulatory Matters - The Company intends to defend against a legal claim estimated at approximately $8 million related to severance owed to former employees of a subsidiary, asserting the case is without merit[232].

Core Viewpoint - The market anticipates Sandstorm Gold (SAND) will report a year-over-year decline in earnings despite an increase in revenues when it releases its results for the quarter ended December 2024 [1] Financial Expectations - Sandstorm Gold is expected to post quarterly earnings of $0.04 per share, reflecting a year-over-year decrease of 50% [3] - Revenues are projected to be $47.4 million, which is an increase of 6.5% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial estimates during this period [4] - The Most Accurate Estimate for Sandstorm Gold is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +15.39%, suggesting a bullish outlook from analysts [10] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8] - Sandstorm Gold currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11] Historical Performance - In the last reported quarter, Sandstorm Gold was expected to earn $0.03 per share but only achieved $0.02, resulting in a surprise of -33.33% [12] - Over the past four quarters, the company has beaten consensus EPS estimates two times [13] Industry Comparison - Agnico Eagle Mines (AEM), another player in the gold mining industry, is expected to report earnings of $1.17 per share for the same quarter, representing a year-over-year increase of 105.3% [17] - Agnico's revenues are projected to be $2.1 billion, up 19.4% from the previous year [17] - Despite a recent upward revision of 3.8% in the consensus EPS estimate for Agnico, a lower Most Accurate Estimate has resulted in a negative Earnings ESP of -2.02%, making it difficult to predict an earnings beat [18]

Core Viewpoint - Sandstorm Gold Ltd. reported mixed financial results for the fourth quarter and 2024, with a year-over-year increase in fourth-quarter revenues but a decline in overall revenues for 2024, alongside improved cash operating margins [1][4]. Group 1: Fourth Quarter Performance - In the fourth quarter, Sandstorm Gold sold approximately 17,700 attributable gold equivalent ounces (GEOs), a 24% decrease from 23,250 GEOs sold in the same quarter of 2023 [2]. - Preliminary revenues for the fourth quarter reached $47.4 million, reflecting a 7% increase from $44.5 million in the prior year [2]. - The preliminary cost of sales (excluding depletion) was reported at $4.3 million, down from $4.9 million in the fourth quarter of 2023 [3]. - The cash operating margin for the quarter was $2,397 per attributable GEO, which is a 38% increase compared to $1,737 per attributable GEO in the prior year [3]. Group 2: 2024 Financial Overview - For the full year 2024, Sandstorm Gold sold nearly 72,800 attributable GEOs, representing a 25% decline year-over-year [4]. - Preliminary revenues for 2024 totaled $176 million, down from $179.6 million in 2023 [4]. - The preliminary cost of sales (excluding depletion) for 2024 was $20 million, lower than the $21.7 million recorded in 2023 [4]. - The cash operating margin increased by 23% year-over-year to $2,097 per attributable GEO in 2024 [4]. Group 3: Debt Management and Future Outlook - Throughout 2024, Sandstorm Gold focused on reducing its debt levels, with an outstanding balance on its revolving credit facility of approximately $355 million as of December 31, 2024 [5]. - The company also purchased and canceled around 2 million shares for a total consideration of $10.8 million during the year [5]. - Sandstorm Gold affirmed its long-term production target of around 125,000 attributable GEOs over the next five years, with a production forecast for 2025 to be announced on February 19, 2025 [6]. Group 4: Stock Performance - Sandstorm Gold's shares have increased by 16.3% over the past year, compared to the industry's growth of 17.2% [7].

Core Viewpoint - Sandstorm Gold Ltd. reported its preliminary sales and revenue figures for the fourth quarter and full year of 2024, indicating a decrease in both attributable gold equivalent ounces sold and revenue compared to 2023, while maintaining a focus on growth and deleveraging its balance sheet [2][3][4]. Annual Preliminary Sales and Revenue - For the full year 2024, the company sold approximately 72,800 attributable gold equivalent ounces and realized preliminary revenue of $176.3 million, compared to 97,245 ounces and $179.6 million in 2023, reflecting a decrease of 25% in ounces sold and a slight decrease in revenue [2]. - The preliminary cost of sales for 2024 was $20.0 million, resulting in cash operating margins of approximately $2,097 per attributable gold equivalent ounce, compared to $21.7 million and $1,706 per ounce in 2023 [2]. Fourth Quarter Preliminary Sales and Revenue - In the fourth quarter of 2024, the company sold approximately 17,700 attributable gold equivalent ounces and realized preliminary revenue of $47.4 million, down from 23,250 ounces and $44.5 million in the same period of 2023 [3]. - The preliminary cost of sales for this quarter was $4.3 million, leading to cash operating margins of approximately $2,397 per ounce, compared to $4.9 million and $1,737 per ounce in the fourth quarter of 2023 [3]. Long-Term Outlook and Capital Allocation - Sandstorm Gold reiterated its long-term production forecast, expecting to reach approximately 125,000 attributable gold equivalent ounces within the next five years based solely on existing streams and royalties [4]. - The company focused on deleveraging its balance sheet throughout 2024, with an outstanding balance on its revolving credit facility of approximately $355 million and an undrawn balance of $270 million as of December 31, 2024 [5]. - Additionally, the company purchased and canceled approximately 2.0 million shares for a total consideration of approximately $10.8 million during the year [5].

Core Insights - Sandstorm Gold Ltd. is pleased to announce exploration advancements in its diversified stream and royalty portfolio [1] Group 1: Lundin Gold Inc. Developments - Lundin Gold reported additional high-grade results from its Fruta del Norte gold mine in Ecuador, confirming the continuity and high-grade nature of the mineralized system [2] - A total of 45,325 metres have been drilled across 120 holes as part of the near-mine program, focusing on extending the mine's life by expanding Mineral Resources [2][4] - Notable drilling highlights include 22.67 g/t gold over 41.6 metres and 15.26 g/t gold over 38.0 metres from recent drill results [3][4] Group 2: Allied Gold Corporation Updates - Allied Gold reported exploration and resource drilling at the Bonikro mine in Côte d'Ivoire, completing 231 holes totaling 12,696 metres at the Hire mining license [7] - The Oume Exploration License saw 66 holes totaling 10,283 metres of drilling, focusing on upgrading Inferred Resources [8] - Sandstorm holds a gold stream on the Bonikro mine, entitled to purchase 6% of gold produced until certain thresholds are met [10] Group 3: Antipa Minerals Limited Scoping Study - Antipa released an updated Scoping Study for its Minyari Dome project, showing a 33% increase in the gold resource base to 2.3 million ounces [11] - Initial gold production of 1.3 million ounces is expected at an average annual rate of 130,000 ounces for the first 10 years [11] - A Phase 2 drilling program of up to 11,000 metres has commenced, with multiple growth-focused drilling programs planned for 2025 [12] Group 4: Awalé Resources Limited Drilling Results - Awalé reported significant assay results from its Odienné project, with high-grade mineralization confirmed at the Charger Zone, including 14.7 g/t gold over 59 metres [15] - The BBM Zone also reported high-grade results, with 27 metres at 1.9 g/t gold, indicating strong grade continuity [17] - Sandstorm holds a 2.0% NSR royalty on the Odienné project [18] Group 5: Troilus Gold Corp. Financing Efforts - Troilus Gold has secured Letters of Intent from various agencies for a total of up to $1.3 billion to support the development of its copper-gold project in Quebec [19] - The financing represents a substantial portion of the estimated capital expenditures for the Troilus project [19] - Sandstorm holds a 1.0% NSR royalty on the Troilus project [20]