VANCOUVER, BC, June 12,
2023 /CNW/ - Sandstorm Gold Ltd. ("Sandstorm Gold
Royalties", "Sandstorm" or the "Company") (NYSE: SAND) (TSX: SSL)
is issuing a clarifying statement in response to the ICE Data
Indices, LLC's (the "Index Manager") recent rebalancing
announcement for the NYSE Arca Gold Miners Index (the "GDM" or the
"Index"). On Friday June 9, 2023, the
Index Manager announced that Sandstorm would be deleted from the
Index effective for the rebalancing period ending June 20, 2023.
Sandstorm has no information on the rationale for the deletion
and understands that the Index Manager does not release details on
how its assessments are made. Based on the Index Manager's
published Index criteria below, it is unclear to the Company why it
would not meet the inclusion requirements, but can provide no
assurance if the Index Manager will reconsider their decision and
retain the Company to the index.
According to the Index Manager's index rules, the GDM is a
rules-based index and includes constituents that meet the following
criteria:
Market Capitalization
Index Manager's index rules: Companies with market
capitalization greater than US$750
million (not adjusted for free float). For companies already
in the Index, the market capitalization requirement is US$450 million.
- As at June 9, 2023 Sandstorm's
market capitalization was US$1.55
billion.
Average Daily Volume
Index Manager's index rules: Companies with average
daily trading volume of at least 50,000 shares over the past three
months, or 30,000 shares for companies already included in the
Index.
- During the three months ended March
31, 2023, Sandstorm's average daily trading volume on the
New York Stock Exchange and Toronto Stock Exchange combined was
approximately 3 million shares.
Average Daily Traded Value
Index Manager's index rules: Companies that have an
average daily trading volume of at least an average daily traded
value of US$1 million over the past
three months are eligible, or US$600,000 for companies already included in the
Index.
- During the three months ended March
31, 2023, Sandstorm's average daily traded value on the New
York Stock Exchange and Toronto Stock Exchange combined was
approximately US$17 million.
Revenue Mix
Index Manager's index rules: The index includes
companies that derive at least 50% of their revenues from gold
mining and related activities. There will be a 10% buffer built in
so that companies already existing in the index will only be
removed from the index in the next review if their gold mining
revenues fall below the 40% level.
The Index maintains exposure to companies with significant
revenue exposure to silver in addition to gold, defined as either:
(i) companies with revenue from silver that is greater than 50%, or
(ii) companies with greater silver revenues than gold revenues with
combined gold and silver revenues of at least 50%. The Index
Manager will ensure, solely through the company selections in the
index rebalances, that the percentage of the index weight that will
consist of these "silver-tilted" companies will not exceed
20%.
- In the fiscal year ended December 31,
2022, 69% of the Company's royalty revenues and sales came
from precious metals, with over 49% deriving from gold. During the
three months ended March 31, 2023,
gold and silver accounted for 60% of the Company's royalty revenues
and sales, with 43% deriving from gold. Upon closing of the sale of
the Antamina royalty to Horizon Copper Corp., the Company expects
the percentage of royalty revenues and sales from gold to increase
from current levels. Please refer to the Company's audited
consolidated financial as at, and for the year ended, December 31, 2022 and the unaudited condensed
consolidated interim financial statements as at March 31, 2023, and for the three months ended
March 31, 2023 and the related
management's discussion and analyses for additional financial
information.
CONTACT INFORMATION
For more information about Sandstorm Gold Royalties, please
visit our website at www.sandstormgold.com or email us at
info@sandstormgold.com.
ABOUT SANDSTORM GOLD ROYALTIES
Sandstorm is a precious metals-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 grow and
diversify its low cost production profile through the acquisition
of additional gold royalties. For more information visit:
www.sandstormgold.com.
CAUTIONARY STATEMENTS TO U.S. SECURITYHOLDERS
The financial information included or incorporated by reference
in this press release or the documents referenced herein has been
prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards
Board, which differs from US generally accepted accounting
principles ("US GAAP") in certain material respects, and thus are
not directly comparable to financial statements prepared in
accordance with US GAAP.
This press release and the documents incorporated by reference
herein, as applicable, have been prepared in accordance with
Canadian standards for the reporting of mineral resource and
mineral reserve estimates, which differ from the previous and
current standards of the United
States securities laws. In particular, and without limiting
the generality of the foregoing, the terms "mineral reserve",
"proven mineral reserve", "probable mineral reserve", "inferred
mineral resources,", "indicated mineral resources," "measured
mineral resources" and "mineral resources" used or referenced
herein and the documents incorporated by reference herein, as
applicable, are Canadian mineral disclosure terms as defined in
accordance with Canadian National Instrument 43-101 — Standards of
Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy and Petroleum (the "CIM") — CIM
Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended (the "CIM Definition
Standards").
For United States reporting
purposes, the United States Securities and Exchange Commission (the
"SEC") has adopted amendments to its disclosure rules (the "SEC
Modernization Rules") to modernize the mining property disclosure
requirements for issuers whose securities are registered with the
SEC under the Exchange Act, which became effective February 25, 2019. The SEC Modernization Rules
more closely align the SEC's disclosure requirements and policies
for mining properties with current industry and global regulatory
practices and standards, including NI 43-101, and replace the
historical property disclosure requirements for mining registrants
that were included in SEC Industry Guide 7. Issuers were required
to comply with the SEC Modernization Rules in their first fiscal
year beginning on or after January 1,
2021. As a foreign private issuer that is eligible to file
reports with the SEC pursuant to the multi-jurisdictional
disclosure system, the Corporation is not required to provide
disclosure on its mineral properties under the SEC Modernization
Rules and will continue to provide disclosure under NI 43-101 and
the CIM Definition Standards. Accordingly, mineral reserve and
mineral resource information contained or incorporated by reference
herein may not be comparable to similar information disclosed by
United States companies subject to
the United States federal
securities laws and the rules and regulations thereunder.
As a result of the adoption of the SEC Modernization Rules, the
SEC now recognizes estimates of "measured mineral resources",
"indicated mineral resources" and "inferred mineral resources." In
addition, the SEC has amended its definitions of "proven mineral
reserves" and "probable mineral reserves" to be "substantially
similar" to the corresponding CIM Definition Standards that are
required under NI 43-101. While the SEC will now recognize
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources", U.S. investors should not assume that
all or any part of the mineralization in these categories will be
converted into a higher category of mineral resources or into
mineral reserves without further work and analysis. Mineralization
described using these terms has a greater amount of uncertainty as
to its existence and feasibility than mineralization that has been
characterized as reserves. Accordingly, U.S. investors are
cautioned not to assume that all or any measured mineral resources,
indicated mineral resources, or inferred mineral resources that the
Company reports are or will be economically or legally mineable
without further work and analysis. Further, "inferred mineral
resources" have a greater amount of uncertainty and as to whether
they can be mined legally or economically. Therefore, U.S.
investors are also cautioned not to assume that all or any part of
inferred mineral resources will be upgraded to a higher category
without further work and analysis. Under Canadian securities laws,
estimates of "inferred mineral resources" may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. While
the above terms are "substantially similar" to CIM Definitions,
there are differences in the definitions under the SEC
Modernization Rules and the CIM Definition Standards. Accordingly,
there is no assurance any mineral reserves or mineral resources
that the Company may report as "proven mineral reserves", "probable
mineral reserves", "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under NI 43-101 would
be the same had the Company prepared the reserve or resource
estimates under the standards adopted under the SEC Modernization
Rules or under the prior standards of SEC Industry Guide 7.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This press release contains "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 "forward-looking information" within the meaning of
applicable Canadian securities legislation, concerning the
business, operations and financial performance and condition of
Sandstorm Gold Royalties. Forward-looking statements include but
are not limited to the expectation that the Company's royalty
revenues and sales from gold will increase beyond current levels;
the future price of gold, silver, copper, iron ore and other
metals, the estimation of mineral reserves and resources,
realization of mineral reserve estimates, and 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
Gold Royalties 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 Gold Royalties will operate in
the future, including the receipt of all required approvals, the
price of gold and copper 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, failure to receive necessary
approvals, changes in business plans and strategies, market
conditions, share price, best use of available cash, gold and other
commodity 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 or other commodity
the Company 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
the Company 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 the
Company will purchase gold, other commodities or receive royalties
from, 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 and
other commodities, 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 the
Company's annual report for the financial year ended December 31, 2022 and the section entitled "Risk
Factors" contained in the Company's annual information form dated
March 23, 2023 available at
www.sedar.com. Although the Company 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. The Company does not
undertake to update any forward-looking statements that are
contained or incorporated by reference, except in accordance with
applicable securities laws.
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SOURCE Sandstorm Gold Ltd.