An anonymous director reports

SANDSTORM GOLD ROYALTIES ANNOUNCES RECORD REVENUE AND STRONG OPERATING RESULTS IN SECOND QUARTER 2023

Sandstorm Gold Ltd. has released its results for the second quarter ended June 30, 2023 (all figures are in U.S. dollars).

Second quarter highlights:

• Record revenue of $49.8-million (Q2 2022: $36.0-million);
• Attributable gold equivalent ounces of 24,504 ounces (Q2 2022: 19,276 ounces);
• Cash flows from operating activities, excluding changes in non-cash working capital of $38.0-million (Q2 2022: $21.9-million);
• Average cash cost per attributable gold equivalent ounce of $228 resulting in cash operating margins of $1,744 per ounce (Q2 2022: $273 per ounce and $1,593 per ounce, respectively);
• Net income of $2.7-million (Q2 2022: $39.7-million);
• Sale of Antamina NPI and closing of Horizon Copper Corp. transaction: in June, Sandstorm closed the final component of its previously announced arrangement with Horizon Copper to sell a portion of the company's Antamina royalty in consideration for a silver stream, debt, equity and cash; the transaction furthers Sandstorm's strategy to acquire precious metal streams on high-quality copper assets; with the closing of the Antamina sale, Horizon Copper is positioned as a competitive copper company with a portfolio of high-quality cash-flowing and development-stage copper assets;
• Share buybacks: During the six months ended June 30, 2023, and under the company's normal course issuer bid, the company purchased and cancelled approximately 2.8 million common shares for total consideration of $14.2-million.

Outlook

Based on the company's existing streams and 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.

Record revenue and operating cash flow

For the three months ended June 30, 2023, the company realized record quarterly revenue of $49.8-million compared with $36.0-million for the comparable period in 2022. The increase in revenue is largely attributable to a 27-per-cent increase in attributable gold equivalent ounces sold.

The company had record cash flows from operating activities of $42.1-million and net income of $2.7-million for the three-month period, compared with cash flows from operating activities of $33.2-million and net income of $39.7-million for the comparable period in 2022. The change is due to a combination of factors, including a $22.9-million gain that was recognized during the three months ended June 30, 2022, related to the sale of a portfolio of royalties to Sandbox Royalties Corp., and a $12.5-million gain on the sale of the company's equity interest in Entree Resources Ltd. to Horizon Copper that was also recognized during the comparable period in 2022. Other contributing factors to the change include a $10.8-million increase in depletion expense partly driven by an increase in attributable gold equivalent ounces sold and a $9.1-million increase in finance expense, primarily related to interest paid on the company's credit facility that was drawn down to finance acquisitions made in 2022. The change in net income and cash flows from operating activities was partially offset by a $13.9-million increase in revenue and a $5.7-million decrease in income tax expense.

Webcast and conference call details

A conference call will be held on Friday, Aug. 4, 2023, starting at 8:30 a.m. PDT, to further discuss the second quarter results. To participate in the conference call, use the following dial-in numbers and conference ID, or join the webcast.

International:  1-416-764-8688

North American toll-free:  1-888-390-0546

Conference ID:  86332521

About Sandstorm Gold Ltd.

Sandstorm is a precious-metal-focused royalty company that provides upfront financing to mining companies and receives the right to a percentage of production from a mine for the life of the mine. Sandstorm holds a portfolio of 250 royalties, of which 40 of the underlying mines are producing. Sandstorm plans to expand and diversify its low-cost production profile through the acquisition of additional gold royalties.

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