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Sandstorm Gold (SAND) Provides an Update on Its Asset Portfolio
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Sandstorm Gold Ltd. (SAND - Free Report) announced the completion of the previously announced sale of its 1.66% interest in net profits in the Antamina copper mine to Horizon Copper.
Horizon Copper is Sandstorm's strategic expansion partner. Sandstorm Gold received $20 million in cash from Horizon Copper as well as a 1.66% life-of-mine silver stream from the Antamina silver production.
Further, in exchange for the net profits in Antamina, SAND got a secure long-term convertible note with a principal amount of $149.1 million and 2,329,849 Horizon common shares, maintaining its 34% stake in Horizon.
Moreover, Sandstorm retained a residual royalty with payments which is equal to one-third of the total Antamina NPI. The company is likely to use stream financing on precious metal by-products to help fund future copper asset acquisitions.
Sandstorm Gold further provided an update on various of its assets.
It announced that Rio Tinto Group (RIO - Free Report) , the operator of its Hugo North Extension project, began underground production at the Oyu Tolgoi copper mine in Mongolia. By 2030, Oyu Tolgoi is projected to be the world's fourth-largest copper mine, operating in the first quartile of the copper equivalent cost curve.
Lundin Mining Corporation (LUNMF - Free Report) , the operator of SAND’s Caserones mine, announced it has entered into a binding purchase agreement to buy 51% of the Caserones copper-molybdenum mine in Chile. Sandstorm is entitled to a 0.63% NSR royalty on the Caserones mine when copper prices exceed $1.25 per pound and fluctuating NSR when copper prices are less than $1.25 per pound.
The operator of the Robertson project, Barrick Gold Corporation (GOLD - Free Report) , has finished a Pre-Feasibility Study for the Robertson open pit project at Nevada's Cortez Complex. Robertson‘s growth strengthens Barrick's plan for the deposit to contribute significantly to Cortez's production profile and extend beyond the 10-year outlook.
Argentina’s Las Calandrias project operator, Cerrado Gold Inc., announced that heap leach operations began at the mine in April. The first gold pour is expected in June.
Sandstorm Gold expects attributable gold equivalent ounces between 90,000–100,000 ounces in 2023. Within the next five years, the company expects to produce approximately 125,000 attributable gold equivalent ounces, with a sustainable average annual production of around 110,000 attributable gold equivalent ounces over the next 15 years.
Price Performance
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have lost 18.9% in the past year against the industry’s growth of 7.6%.
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Sandstorm Gold (SAND) Provides an Update on Its Asset Portfolio
Sandstorm Gold Ltd. (SAND - Free Report) announced the completion of the previously announced sale of its 1.66% interest in net profits in the Antamina copper mine to Horizon Copper.
Horizon Copper is Sandstorm's strategic expansion partner. Sandstorm Gold received $20 million in cash from Horizon Copper as well as a 1.66% life-of-mine silver stream from the Antamina silver production.
Further, in exchange for the net profits in Antamina, SAND got a secure long-term convertible note with a principal amount of $149.1 million and 2,329,849 Horizon common shares, maintaining its 34% stake in Horizon.
Moreover, Sandstorm retained a residual royalty with payments which is equal to one-third of the total Antamina NPI. The company is likely to use stream financing on precious metal by-products to help fund future copper asset acquisitions.
Sandstorm Gold further provided an update on various of its assets.
It announced that Rio Tinto Group (RIO - Free Report) , the operator of its Hugo North Extension project, began underground production at the Oyu Tolgoi copper mine in Mongolia. By 2030, Oyu Tolgoi is projected to be the world's fourth-largest copper mine, operating in the first quartile of the copper equivalent cost curve.
Lundin Mining Corporation (LUNMF - Free Report) , the operator of SAND’s Caserones mine, announced it has entered into a binding purchase agreement to buy 51% of the Caserones copper-molybdenum mine in Chile. Sandstorm is entitled to a 0.63% NSR royalty on the Caserones mine when copper prices exceed $1.25 per pound and fluctuating NSR when copper prices are less than $1.25 per pound.
The operator of the Robertson project, Barrick Gold Corporation (GOLD - Free Report) , has finished a Pre-Feasibility Study for the Robertson open pit project at Nevada's Cortez Complex. Robertson‘s growth strengthens Barrick's plan for the deposit to contribute significantly to Cortez's production profile and extend beyond the 10-year outlook.
Argentina’s Las Calandrias project operator, Cerrado Gold Inc., announced that heap leach operations began at the mine in April. The first gold pour is expected in June.
Sandstorm Gold expects attributable gold equivalent ounces between 90,000–100,000 ounces in 2023. Within the next five years, the company expects to produce approximately 125,000 attributable gold equivalent ounces, with a sustainable average annual production of around 110,000 attributable gold equivalent ounces over the next 15 years.
Price Performance
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have lost 18.9% in the past year against the industry’s growth of 7.6%.