Q4 2023 Sandstorm Gold Ltd Earnings Call

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[music].

Ina: My name is Ina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sandstorm Gold Royalties 2020 Annual and Fourth Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise.

Ina: Please be aware that some of the commentary may contain forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad.

Good morning, My name is <unk> and I will be your conference operator today at this time I would like to welcome everyone to the sandstorm gold royalties to telephones budgets, he annual and fourth quarter results Conference call.

All lines have been placed a mute to prevent any background noise. Please be aware that some of the commentary may contain forward looking statements. There can be no assurance that forward looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. After the Speakers' remarks, there will be a question and.

Ina: If you would like to withdraw your question, please press the star and then the number two. Thank you. Mr. Watson, you may begin your conference. Thank you, Ina. Good morning, everyone.

Mr. Watson: And thank you for calling into our Q4 and 2023 year-end earnings call. As usual, in a few minutes, I'll hand things over to Irfan, our CFO, to review the earnings highlights. But before I do that, I'd like to take the time to give an update on Sandstorm's business, and the things that I will specifically focus on, which I believe are important to shareholders, are fivefold. The first one being our updated guidance, not only for 2024 specifically, but also our longer five-year term guidance. As part of this guidance, we'll also be talking about the timing of our two growth projects being provided for in the MARA project. Number two, our current debt levels, including our projected debt repayments, as well as the non-core asset sale process that we're going to use to achieve this.

Answer session. If you would like to ask a question. During this time simply press Star then the number one on your telephone keypad. If you would like to withdraw your question. Please press. The Star then the number two thank you. Mr. Watson you may begin your conference.

Thank you Ian good morning, everyone and thank you for calling into our Q4 and 2023 year end earnings call as usual in a few minutes I'll hand things over tariff at our CFO to review the earnings highlights, but before I do that I'd like to take the time to give an update of sandstorms business and the things that I will specifically focus on which I can.

These are important to shareholders. There are five fold the first one being our updated guidance not only for 2024, specifically, but also are longer than five year term guidance.

Mr. Watson: Number three, our current share buyback plans once we have achieved certain debt repayment thresholds. Number four, what this production guidance means in terms of cash flow expectations at today's gold price. And finally, a real quick summary of the key catalysts that we believe Sandstorm shareholders can look forward to. So, starting off with our updated guidance. This chart shows the updated production expectations for the next 15 years. And as you can see, over the next 15 years, we have substantial growth that we can look forward to.

As part of this guidance will also be talking about the timing of our two growth projects being quiet about it and tomorrow project.

Number two.

Debt levels, including our projected debt repayments as well as the non core asset sales process that we're going to use to achieve this.

Number three our current share buyback plans once we have achieved certain debt repayment thresholds.

Number four what this production guidance range in terms of cash flow expectations at todays gold price.

A real quick summary of the key catalysts that we believe sandstorm shareholders can look forward to so.

Mr. Watson: Our current expectation for 2024 production in our internal sandstorm budget is approximately the midpoint of the range that we are giving for guidance, which is 75,000 to 90,000 ounces, which is a slight pullback from our 2023 numbers. As a reminder, on our Q3 earnings call, we explained that investors should expect a slight pullback this year because, in 2023, we had approximately 5,000 ounces from a one-time payment from the Mount Hamilton royalty that's non-recurring, as well as reduced deliveries on the Mercedes stream because of the restructuring of the stream to drop fixed to monthly deliveries. So there are a couple of other small things.

Turning off with our updated guidance.

This chart shows the updated production expectations for the next 15 years and as you can see over the next 15 years, we have substantial growth that we can look forward to it.

Our current expectation for 2020 for production and our internal sandstorm budget is approximately the midpoint of the range that we're giving for guidance, which is 75000 to 90000 ounces, which is a slight pullback, but by 2023 numbers as a reminder, on our Q3 earnings call. We explained that investors should expect a slight pull back this year.

Because in 2023, we had approximately 5000 ounces from a one time payments on the mountain Hamilton royalty, that's nonrecurring as well as reduced deliveries on the Mercedes stream because of the restructuring of the stream to drop extra monthly deliveries. So there's a couple of other small things. So 'twenty 'twenty four is a bit of a dip year. However towards the end of this year.

Mr. Watson: So 2024 is a bit of a dip year, however, towards the end of this year, we expect Equinox to have its Greenstone mine up and running, and Ivanhoe to have its Flat Reef mine up and running, so production should increase in future years from these high-quality, long-life mines. In our financial statements and press release, we gave a very wide range for 2024 production guidance, and I apologize for such a wide But the goal is that each quarter, we'll take that range of 75,000 to 90,000 ounces, and we'll materially narrow it every quarter to give more and more accurate and meaningful information.

We expect equinox to habit screens don't mine up and running and I haven't heard of habits like brighten up and running so production should increase in future years for these high quality long life mine.

Okay.

Our financial statements in press release, we gave a very wide range for 2024 production guidance and I apologize for such a wide range, but the goal is that each quarter will take that range of 75000 to 90000 ounces and will materially narrow it every quarter to.

To give more and more accurate and meaningful information. The reason for the wider range. This year is primarily due to two factors that affect the ability of our gold equivalent house sales or ability to predict it with those two primary factors being.

Mr. Watson: The reason for the wider range this year is primarily due to two factors that affect our gold equivalent ounce sales and our ability to predict them, with those two primary factors being, Number one, we're having to estimate how many ounces we will get this year from the new Greenstone stream as the mine completes construction and begins ramping up into commercial production. This is a very important stream for us and for our future, and once it's fully up and running, it should bring 10,000 ounces of gold equivalent production per year to Sandstorm, which will be fantastic. However, mine ramp-ups are notoriously challenging to predict, and it's hard for us to predict the timing, so we're giving ourselves a greater range this year.

Number one we're having to estimate how many ounces we will get this year for the new greenstone stream as the mine completes construction and begins ramping up into commercial production. This is a very important stream for us and for our future and once it's fully up and running it should be 10000 ounces of gold equivalent production per year to sandstorm, which will be fantastic. However.

Mine ramp ramp ups are notoriously challenging to predict and it's hard for us to predict the timing. So we're giving ourselves a greater range. This year.

Mr. Watson: The second issue is that our guidance is gold equivalent. And this means that we have to take our silver and our copper revenue and turn it into gold equivalent. And the economy is in a dynamic phase right now, and commodity prices are changing rapidly.

The second issue is that our guidance is gold equivalent and this means that we have to take our silver and copper revenue and turn it into gold equivalent and the economy isn't a dynamic phase right now and commodity prices are changing rapidly and I'm very very bullish on the price of gold over the next year. The irony is if the gold price goes up we make more money.

Mr. Watson: And I'm very, very bullish on the price of gold over the next year. The irony is, if the gold price goes up, we make more money, and it's great for Sandstorm, but that means that the silver and the copper turn into fewer ounces of gold equivalent. So overall, right now, if the gold prices go up, it's great for us, but I don't want us to miss the bottom end of our guidance because of it. So again, it's a wider sales range, and we'll tighten that guidance range every quarter.

And it's great for sandstorm.

That means that the silver and the copper carry into less ounces of gold equivalent. So overall right now.

If the gold prices go up it's great for US based on what has to Miss the bottom end of our guidance because of it. So again, it's a wider sales range, we will tighten that guidance range every quarter in future years, it will be easier for us to predict gold equivalent ounces because every single major asset that we have in construction.

Mr. Watson: In future years, it will be easier for us to predict our current gold equivalent ounces because every single major asset that we have in construction, and we're going into construction soon, is a gold stream of royalty. And soon, over 80% of our revenue will be from gold. So there'll be fewer fluctuations in our calculations due to fluctuations in gold prices.

Going into construction soon as a gold stream of royalty and soon over 80% to our revenue will be from gold so there'll be less fluctuations in our calculations due to fluctuations in gold price.

Going forward from this chart you can see that one's hard modern and Mara have been built our gold equivalent production should go to over 140000 ounces per year for now it's very important to note that our official guidance of 125000 ounces per year within the next five years includes hide Martin.

Mr. Watson: Going forward from this chart, you can see that once Hod Modern and Mara have been built, our gold equivalent production should go to over 140,000 ounces per year. For now, it's very important to note that our official guidance of 125,000 ounces per year within the next five years includes Hod Modern, but it excludes Mara being built, just until we have more definitive timing from Glencore on the Mara project. If Mara is built and Hod Modern is delayed, it would be closer to 110,000 ounces per year and then ramped up from there. If Hod Modern is built and Mara is delayed, then it would be the 125,000 ounces per year that's in our current guidance. And again, if both mines are built, that puts us over 140,000 ounces a year. There are many possible permutations.

But it excludes Mara being built just until we have more definitive timing from Glencore on the Bayou project. If Mara is built and hot button is delayed it would be closer to 110000 ounces per year, and then ramping up from there.

Martin is bell Tomorrow is delayed then it would be the 125000 ounces per year that Jim.

Our current guidance and again at both mines are built that puts us over 140000 ounces a year. There are many possible permutations. However, it's worth noting that despite what happened to SSR. This week. The HUD Mountain mine, which is fully permitted and are slated for full construction. This year can be delayed for up to an entire year and we would still hit this guidance.

Mr. Watson: However, it's worth noting that despite what happened to SSR this week, the Hod Modern mine, which is fully permitted and is slated for full construction this year, can be delayed for up to an entire year, and we would still hit this guidance. So there's plenty of time for delays and for our current guidance to still be achieved. Speaking of SSR, I think it's worth me addressing this because I've been getting a number of questions about it. For those of you who have not been following this situation, SSR, who is the project operator of PodModem, had a sad and unfortunate slip of their heap bleach pad at an entirely different mine named Tribbler. At the moment, our only contact with them has been to express our sincere condolences for what has happened. As a result, we don't have any more information than the public does about this event.

So there's plenty of time for delays and for our current guidance does still be achieved.

Speaking of SSR I think it's worth be addressing that should have been getting a number of questions about it.

For those of you who have not been following the situation SSR, who is the project operator of Hot button is had a sad and unfortunate slip of the heap leach pad at an entirely different by named Trippler.

At the moment are only contact with them has been to.

Express our sincere condolences for what has happened.

As a result, we don't have any more information in the public.

About this event and as the mine has nothing to do with sandstorm or any of our investments other than the fact that SSR owns 10% and has the right to earn into 40% of hard modern and the market is worried that these challenges may mean that hot money gets delayed a bit until issues get worked out.

Mr. Watson: And as the mine has nothing to do with Sandstorm or any of our investments, other than the fact that SSR owns 10% and has the right to earn up to 40% of HODMODEN, and the market is worried that these challenges may mean that HODMODEN gets delayed a bit until issues get worked out, again, I don't have better information than the public, and therefore, I won't be taking any questions on this call about Tripler or attempt But what I can say and will address and answer questions about is that even if there is a full delay, we would still hit our guidance, and we can talk about timing related to that. It's worth noting that the two mining technical issues, a tripler being a heap leach slip and possibly cyanide, have nothing to do with hot moden. There is no heap leach at hot moden, and the mine was specifically designed to have no cyanide so it would be environmentally friendly.

I don't have better information in the public therefore, I won't be taking any questions on this call about trippler or attempt to guess what happened to triple or or what will happen with SSR, but what I can say and we will address and answer questions on is that even if there is a full delay we would still hit our guidance and we can talk about tightening really.

To that.

Worth, noting that the two mining technical issues at Trippler being a heap leach slipped and possibly cyanide has nothing to do with like modern there is no heap leach of Hot Martin and the mine was specifically designed to have no cyanide, so it'd be environmentally friendly.

Mr. Watson: So if there is some reverberation in the mining industry for this incident, these technical issues are not applicable to hot moden. On the day this triple event was announced, Sandstorm's stock price dropped 10%, and I think, quite ganderily, it's a crazy overreaction by people who don't understand. Sandstorm was already trading at a discount to our inherent value because of Hot Modern. However, Hot Modern is only 12% of our NAV, and it isn't our only growth asset, as we have Mars starting to come into the picture, and Mars will eventually be a much bigger part of our NAV than Hot Modern because it has a 30-year mine life already. So I believe the market reaction was to take the entire value of Hadam Hadam out of our market cap again, even though it was already mostly out of our value. Doing some simple math.

There is some reverberation the mining industry for this incident. These technical issues are not applicable to us.

On the data Striffler event was announced chancellor of stock price dropped, 10% and I think quite candidly, it's a crazy overreaction by people who don't understand.

Sandstorm was already trading at a discount to our carrying value because of hot button.

It is only 12% of our NAV and it isn't our only growth asset as we have the Morris starting to come into the picture and wire will eventually be a much bigger part of our now got a hard one because it is a 30 year mine life already.

So I believe the market reaction was to take the entire value of hot button out over market cap again, even though it was already mostly out of our value.

Some simple math the worst case for sandstorm is that the project is delayed maybe it goes on time, maybe it's delayed six months, maybe it's delayed a year or two they will go into production, one way or another operator or another.

Mr. Watson: The worst case for a sandstorm is that the project is delayed. Maybe it goes on time, maybe it's delayed six months, maybe it's delayed a year or two. It will go into production one way or another, one operator or another. If it's worth 12% of our NAV, assuming it goes into construction this year, then a two-year delay only reduces our company's NAV by 1.3% due to the loss of the time value of money. So a 10% drop in share prices is happening because one or more people aren't thinking about this critically.

And it's worth 12% of our now assuming it goes into construction this year than a two year delay only reduces our company's now by one 3% from the loss of the time value of money. So.

So a 10% drop in share prices happening.

Because what I'm, where people aren't thinking about this correctly Fortunately for us our balance sheet continues to strengthen and soon we'll be buying back our own shares.

Mr. Watson: Fortunately for us, our balance sheet continues to strengthen, and soon, we will be buying back our own shares. And this brings me to my next point, which is the progress that we're making on our debt repayment and how close we are to beginning to repurchase our own shares. Spoiler alert: we're very close to being able to do that.

Yeah.

And this brings me to my next point, which.

Which is the progress that we're making on our debt repayment and how close we are to beginning to repurchase our own shares.

Spoiler alert, we're very close to being able to do that.

Mr. Watson: At December 31st, our balance sheet showed that we had our debt down to $436 million, but we've been aggressively paying it off, and we recently sold another $7 million worth of other mining companies' equity from our portfolio, which, combined with capital from operations, we now have debt down to $419 million as of this morning. And we remain on target to get our debt down to below $350 million by the end of the year.

At December 31st or balance sheet showed that we had our debt down to $436 million, but we've been aggressively paying it off and.

And we've recently sold another $7 million worth of other mining companies equity from our portfolio, which combined with cash flow from operations. We now have that down to $419 million as of this morning, and we remain on target to get our debt down to below $350 million by the end of the year.

Mr. Watson: We have stated that as part of this objective, we'll sell a minimum of $40 million of non-core assets to help with this debt repayment, and hopefully, higher. And we have now completed $17 million, with another $23 plus million to go. And we're now well into that process, and we have good visibility on where that additional money is going to be coming from, so we're confident in hitting that debt production target by the end of the year. Why is this so significant?

We have stated that as part of this objective will sell a minimum of $40 million of noncore assets to help with this debt repayment and hopefully higher and we've now completed 17 million with another 23 plus million to go and we're now well into that process and we have good visibility on where that additional money is going to be coming from so were confident in hitting.

Net debt reduction target by the end of the year.

Why is this so significant.

Mr. Watson: For those who haven't heard me say this before, we have chosen $350 million as a figure that we believe the debt is so comfortably low at. We can then begin dividing future cash flows between debt repayments and share repurchases. We believe this will happen right at a time when the Fed is in full pivot mode, interest rates are coming down, we'll have the wind at our back from a monetary policy perspective, right when our Greenstone mine and Flat Reef streams are coming online, our debt is lower, and with share repurchases, I believe our share price will trade up materially, and I look forward to it greatly. In the past month, I've talked to a number of institutional investors in Sandstorm that represent approximately 30% of our investor base, and 100% every single one of them is signed up to this plan and approves this plan, and they're looking forward to this inflection point where Sandstorm's balance sheet will be at a place where we can continue to reduce debt and buy back our own shares.

For those who haven't heard me say this before we have chosen $350 million as a figure that we believe that that is so comfortably low at we can then begin dividing future cash flows between debt repayments and share repurchases. We believe this will happen right at a time when the fed is in full pivot mode interest rates are coming down we will have the wind at our back.

From a monetary policy perspective, right winter greenstone mine in fiery extremes are coming online are debt lower and with share repurchases I believe our share price would trade up materially and I look forward to it greatly.

In the past months I've talked to a number of institutional investors at sandstorm that represent.

Approximately 30% of our Investor base and 100% every single one of them are signed up to this planned and approved this plan and Theyre looking for is this inflection point, where sandstorms balance sheet will be at a place where we can continue to reduce debt and buy back your own shares.

Mr. Watson: Real quickly, speaking of cash flow, this brings me to my next point about record cash flow. The Sandstorm portfolio is expected to continue to generate substantial cash flow, and this number is only going to grow as Greenstone, Flat Reef, Robertson, Turquoise Hill, Hot Rodden, and Mara all start producing for us over time. At SPOT Gold prices, we see a portfolio generating cash flow of up to $140 million per year, growing to over $200 million per year five years from now. And lastly, I think it's worth summarizing Sandstorm's catalysts going forward very quickly. Those things being, again, as I mentioned, getting debt to below $350 million by the end of the year, us beginning to repurchase our own shares, first production from Greenstone and Platte Reef, and odd modern commercial construction beginning. Even if it's a bit delayed, its value has been entirely taken out of our market cap.

Real quickly and speaking of cash flow. This brings me to my next point about record cash flow Samsung portfolio is expected to continue to generate substantial cash flow.

And this number is only going to grow as greenstone plat Reef Robertson Turquoise Hill Hot button Tomorrow, I'll start producing for us overtime.

At spot gold prices, we see a portfolio generating cash flow of up to $140 million per year growing to over $200 million per year five years from now.

And lastly, I think it's worth summarizing sandstorms catalysts going forward very quickly those things being again as I mentioned getting debt to below $350 million by the end of the year as beginning to repurchase our own shares.

First production from greenstone imply reef hard modern commercial construction beginning even if it is a bit delayed its value has been entirely taken out of our marshy cap. So any clarity on timing or any progress will be a catalyst from here forward.

Irfan: So any clarity on timing or any progress will be a catalyst from here forward. A new feasibility is coming out on Mara from Glencore, and there will be timing clarity from that. Our fundamentals are strong, our balance sheet is now strong and getting stronger, our cash flow is strong, and it's growing, our debt is dropping, and share buybacks are around the corner. So with that, I'm going to hand it over to Irfan to discuss the specific results. Thank you, Nolan.

A new feasibility coming out tomorrow from Glencore and <unk>.

Timing clarity from that.

Fundamentals are strong our balance sheet is now strong and getting stronger our cash flow is strong and our.

Growing and our debt is dropping and share buybacks are around the corner.

So with that I'm going to hand, it over to a fan to discuss the specific results.

Thank you Nolan.

Irfan: Despite a challenging market in 2023, I'm happy to report that Sandstorm's financial results set several new records for the company and reflect the strength of an outstanding cash flowing royalty portfolio. In 2023, Sandstorm had sales, royalties, and income from other interests of over $190 million, of which nearly $180 million was from sales and royalty revenue. The delta between these two numbers primarily reflects a one-time contractual payment associated with the company's Mount Hamilton royalty that was received in the first quarter of 2023. Sandstorm set a new record in terms of production as well, selling over 97,000 attributable gold equivalent ounces during the year.

Despite a challenging market in 2023 I'm happy to report the Sandstorms financial results set several new records for the company and reflect the strength of an outstanding cash flowing royalty portfolio.

In 2023 Sandstorm had sales.

Royalties and income from other interests of over $190 million of which nearly 180 million was from the sales and royalty revenue today.

The Delta between these two numbers primarily reflects the onetime contractual payment associated with the company's mountain Hamilton royalty that was received in the first quarter of 2023.

Sandstorm set a new record in terms of production as well selling over 97000 attributable gold equivalent ounces. During the year. This is an 18% increase in ounces sold year over year.

Irfan: This is an 18% increase in ounces sold year over year. Looking at the annual financial results in a bit more detail, this table shows the breakdown of total revenue, including $107 million attributable to sales from our stream assets and $73 million from royalty revenue. Compared to 2022, the average realized gold price from the company's gold streams was approximately 7% higher in 2023, while the average cash cost per trivial ounce was slightly lower at $223 per ounce. This calculates the cash operating margins of over $1,700 per ounce. Nearly 90% profit margins on each ounce sold by the company. In total, cash flows from operating activities, excluding changes in non-cash working capital, were just over $150 million.

Looking at the annual financial results in a bit more detail. This table shows the breakdown of total revenue, including $107 million attributable to sales from upstream assets.

And $73 million from royalty revenues.

Compared to 2022, the average realized gold price from the company's gold streams with approximately 7% higher in 2023, while the average cash cost per attributable ounce was slightly lower at $223 per ounce.

This calculates the cash operating margins of over $1700 per ounce.

Nearly 90% profit margins on each ounce sold by the company.

Total cash flows from operating activities, excluding changes in noncash working capital were just over $150 million.

As Nolan discussed we've been concentrating on deleveraging the company's balance sheet.

Irfan: As Nolan discussed, we've been concentrating on deleveraging the company's balance sheet following a number of growth acquisitions in 2022, using the company's strong cash flows to pay down bank debt as quickly as possible. With each passing quarter, Sandstorm's financial position continues to strengthen, and we currently have over $200 million in capital available to us. Net income for the year ended 2023 was $42.7 million compared to $78.5 million in 2022. The decrease in net income is due to a combination of factors, including certain gains recognized in 2022 that did not occur in 2023, namely $37 million in gains resulting from the sale of the company's hot modern interest and equity interest and entry resources to Horizon Copper and $25.8 million in gains on the disposal of certain assets primarily related to the sale of This is all occurring in 2022. In 2023, there was a $22.2 million increase in finance expense primarily related to interest paid on the company's revolving facility, which was drawn down in the third quarter of 2022 to finance an acquisition. We anticipate that these interest payments will decline as we continue to pay down debt.

Following a number of growth acquisitions in 2022 using the company's strong cash flows to pay down bank debt as quickly as possible.

With each passing quarter sandstorms financial position continues to strengthen and we currently have over $200 million in capital available to us.

Net income for the year ended 2023 was $42 $7 million compared to $78 $5 million in 2022.

The decrease in net income is due to a combination of factors, including certain gains recognized in 2022 that did not occur in 2023, namely $37 million in gains, resulting from the sale of the company's hop modern interest and equity interests in entre resources to horizon copper.

And $25 8 million in gains on the disposal of certain assets primarily related to the sale of a portfolio of royalties to in a sandbox royalties all occurring in 2022.

In 2023, there was a $22 2 million dollar increase in finance expense primarily related to interest paid on the company's revolving facility, which was drawn down in the third quarter of 2022, the finance or in acquisitions.

We anticipate that these interest payments will decline as we continue to pay down debt.

The decrease in net income was partially offset by a $39 million increase in revenue.

Irfan: The decrease in net income was partially offset by a $30.9 million increase in revenue, a $13.9 million increase in the gains recognized on the revaluation of the company's investments, $11.8 million gain in revenue recognized primarily related to the company's Mount Hamilton royalty under total sales, royalties, and other contractual income amounts, and a $4 million gain on the disposal of the company's Blackwater and Alpilar royalties to Sandbox. Drilling down to the fourth quarter financial results, the company sold 23,250 gold equivalent ounces, resulting in revenue of $44.5 million for the quarter, an increase of 7% and 16%, respectively, when compared to the fourth quarter of 2022. Cash operating margins per ounce for the quarter were nearly 90%, in line with the average for the fiscal year, resulting in cash flow from operating activities, excluding changes in non-cash working capital, of $36.5 million, an increase of 22% compared to the same period in the prior year. Net income for the fourth quarter was $24.5 million, compared to a loss of $2.1 million during the same period in 2022.

$13 $9 million increase in the gain recognized on the revaluation of the company's investments.

11.8 million gain in.

In revenue recognized primarily related to the company's Mount Hamilton royalty under total sales royalties and other contractual income amounts and a $4 million gain on the disposal of the company's Blackwater and alcohol royalties to sandbox royalties.

Drilling down to the fourth quarter financial results. The company sold 23250 Golden equivalent ounces, resulting in revenue of $44 $5 million for the quarter, an increase of 7% and 16% respectively when compared to the fourth quarter in 2022.

Cash operating margins per ounce for the quarter were nearly 90% in line with the average for the fiscal year, resulting in cash flow from operating activities. Excluding changes in noncash working capital of $36 5 million, an increase of 22% compared to the same period in the prior year.

Sure.

Net income for the fourth quarter was $24 $5 million compared to a loss of $2 1 million during the same period of 2022.

Irfan: The increase in net income was due to a number of factors, including gains recognized on the company's investments, mostly due to an increase in the fair value of the company's Sandbox and Horizon Copper debentures, an increase in revenue for the quarter, and a decrease in senior management compensation. In terms of where gold equivalent production came from in 2023, this chart shows a breakdown by asset. Cerro Moro was a top-producing asset with over 13,500 attributable ounces sold. From Mercedes, the company sold 12,800 gold equivalent ounces.

The increase in net income was due to a number of factors, including gains recognized on the company's investments, mostly due to an increase in the fair value of the company's sandbox and horizon copper debentures.

<unk> revenue for the quarter and a decrease in senior management compensation.

In terms of where gold equivalent production came from in 2023. This chart shows the breakdown by asset.

Cerro Moro with the top producing asset with over 13500 attributable ounces sold.

From Mercedes the company sold 12800 gold equivalent ounces.

In January 2020 for Sandstorm closed its previously announced transaction to amend its existing Golden silver stream agreements on the Mercedes mine with Bear Creek mining.

Irfan: In January 2024, Sandstorm closed its previously announced transaction to amend its existing gold and silver stream agreements on the Mercedes mine with Bear Creek Mining. The amended stream terms are effective January 1st, 2024. In June 2023, Sandstorm completed the final part of his transaction with Verizon Copper, where Verizon acquired a portion of the Antimina 1.66% MPI royalty. Sandstorm received a 1.66% silver stream referenced the silver production of Antimina and retained a portion of the residual royalty. During 2023, over 7,700 gold equivalent ounces were tributable to the Antimena Asset. We were also thrilled to see news this morning where the mine had received approval of its modified EIA, which extends the mine life another decade to 2036, highlighting the truly world-class nature of the asset. The fourth largest contributor to production was Lundin Mining's Chapada Project. In 2023, Lundin completed additional drilling at the Suave deposit, which is located within Sandstorm Stream. It reported 25% growth and measured and indicated copper mineral resources at Suave.

The amended stream terms are effective Jan one 2024.

In June 2023, Sandstorm completed the final part of this transaction with Verizon copper, where horizon acquired a portion of that and do you mean, a 1.66% NPI royalty.

Sandstorm received of 166% silver stream referenced the silver production and to Mena and retained a portion of the residual royalty during.

During 2023 over 7700 gold equivalent ounces were tree beautiful to the anthem in assets.

We were also thrilled to see news coming out this morning, where the mine had received approval, but modified EIA, which extends the mine life another decade to 2036.

Delighting the truly world class nature of the asset we look forward to further updates and extensions.

The fourth largest contributor to production with Lundin Mining's, Japan project.

In 2023, London completed additional drilling at the swab deposit, which is located within Sandstorm stream, London reported 25% growth in measured and indicated copper mineral resources at Schwab.

Irfan: Lundin is continuing to evaluate options for future processing, which might include, among other options, integrating the material into Chapada's processing facility. Looking at annual production in terms of regional metal breakdown, production from assets in North America contributed nearly 40% to gold equivalent ounces sold and 47% from South American mines. Precious metals continue to be Sandstorm's focus. In 2023, over 70% of production came from gold and silver, while 19% of gold equivalent production came from copper assets. With several key gold projects in development, we expect 80% of revenues to come from gold and silver by 2028. For 2024, based on the company's existing streams and royalties, attributable gold equivalent ounces are forecasted to be $75,000 and 90,000 ounces. The company's production forecast is expected to reach approximately 125,000 attributable gold equivalent ounces within the next five years. And with that, I'll pass it over to Dave to discuss some of our assets and a few highlights. Dave

Lundin has continue to evaluate options for future processing, which might include among other options integrating the material into Japan is processing facility.

Looking at annual production in terms of regional metal breakdown production from assets in North America contributed nearly 40% to gold equivalent ounces sold and 47% from South American mines.

Precious metals continue to be sandstorms focus in 2023 over 70% of production came from Golden Silver, while 19% of gold equivalent production came from copper assets.

With several key gold projects in development, we expect 80% of revenues that come from gold and silver by 2028.

For 2024 based on the company's existing streams and royalties attributable gold equivalent ounces are forecasted to be 75000.

And 90000 ounces.

The company's production forecasts expect to reach approximately 125000 attributable gold equivalent ounces within the next five years.

And with that I'll pass it over to Dave to discuss some of our assets and a few highlights David.

Dave: Great. Thanks, Irfan, and good morning, everyone. Today, I'm focusing on a couple of assets that are rarely touched upon. But before diving into that, let's discuss the updated guidance from Fruta del Norte. Freda Ilnorti continues to shine brighter with each passing update.

Great. Thanks, they're fun and good morning, everyone.

Today I'm focusing on a couple of assets that are rarely touched upon but for diabetes into that let's discuss the updated guidance from crude adult nortek.

<unk> continues to shine brighter with each passing update since construction began management has consistently exceeded market expectations and the full year of 2023 was no exception with lundin gold overseeing production of over 481000 ounces of gold.

Dave: Since construction began, management has consistently exceeded market expectations, and the whole year of 2023 was no exception, with Lundin Gold overseeing production of over 481,000 ounces of gold. The good news continues as Lending Gold guides for up to 500,000 ounces of production in 2024 and up to 520,000 ounces of production in both 2025 and 2026. This increase is attributed to ongoing investments in plant throughput, aiming for a nameplate of about 5000 tons per day, and upgrades to concentrators to enhance metallurgical recovery.

The good news continues as lending gold guides for up to 500000 ounces with production in 2024 and up to 520000 ounces of production in both 2025 and 2026. This increase is attributed to ongoing investments in plant.

Throughput aiming for a nameplate of about 5000 tonnes per day and upgrades concentrated to enhance metallurgical recovery.

Dave: In addition to mill upgrades, Blending Gold intends to release new reserves based on their resource conversion program in 2023. They also plan to continue an aggressive near-mine exploration program that performed exceptionally well in 2023. The 2024 program is expected to cost $30 million with intended drilling of 46,000 meters from both surface and underground platforms, including successful targets from 2023, such as FDNS in Bonanza sewer. Furthermore, Lunding Gold will continue exploration on regional targets in the Suarez Basin with an additional 10,000m to join.

In addition to mill upgrades lending gold intends to release new reserves based on our resource conversion program in 2023.

Also plan to continue an aggressive near mine exploration program that performed exceptionally well in 'twenty two 'twenty three 'twenty.

'twenty 'twenty four program is expected to cost $30 million with intended drilling of 46000 meters from both surface and underground platforms, including successful targets from 2020 threes, such as F. D N S and Bonanza sewer.

Furthermore, lending gold will continue exploration on regional targets in the <unk> basin with an additional 10000 meters chili's.

Dave: Moving on to Horn 5 operated by Fonko Resources, the project has undergone a significant transition following the recent announcement of the operating license and indemnity agreement with Glencore. This marks a major milestone allowing the project to move into a focus permitting phase and preparation for construction. As a reminder, the Horn Mine located just outside the Historical Mining Center of Uvunnoranda is a Pras producer and the Horn V deposit is a polymetallic extension of the original mine designed to be one of the lowest cost underground gold producers in the world based on the 2021 feasibility study, with over 11 million ounces of gold and over 1.1 million tons of copper produced historically, project currently boasts over 80 million tons of reserves with a grade of 2.24 grams per ton gold equivalent and a further 24 million tons of inferred resources at 2.22 grams per ton gold equivalent.

Moving onto Horne five operated by Falco resources. The project has undergone a significant transition following the recent announcement of the operating license and indemnity agreement with Glencore. This virus, a major milestone, allowing the project to move into a focused permitting phase and <unk>.

Reparation poor construction.

As a reminder, the horn mine located just outside of historical mining Center proven Noranda is a past producer and the Horne five deposit is a poly metallic extension of the original mine designed to be one of the low lowest cost underground gold producers in the world based on the 20 <unk>.

'twenty one feasibility study.

With over 11 million ounces of gold and over $1 1 million tonnes of copper produced historically.

Project currently Boes over 80 million tons of reserves with a grade of 224 grams per ton gold equivalent and a further 24 million tonnes of inferred resources at 222 grams per ton gold equivalent.

Dave: Now that the important OLIA agreement is in place with Glencore, 2024 will focus on pushing forward permitting and exploring project financing options. The Falco team has worked tirelessly to reach this point, and we eagerly await the next catalyst in the asset development. Our 2% NSR on this massive deposit has the potential to cash flow for a generation or more but has yet to be worked into our future production guidance. However, with the recent development, it gets closer and closer to a definitive time. Lastly, let's discuss EINHN. Reflecting on our involvement in this asset, two thoughts come to mind. Sandstorm has been around longer than I realized, and the Royalty Company model is truly powerful.

Now that the important O L. I E agreement is in place with Glencore.

24 will focus on pushing for permitting and exploring project financing options to Falco team has worked tirelessly to reach this point and we eagerly await the next catalyst in the assets development are 2% Dennis <unk> on this massive deposit has it.

As the potential to cash flow for a generation of more but has yet to be worked into our future production guidance. However, with the recent development it gets closer and closer to a definitive timeline.

Lastly, let's discuss pine Hyundai.

But as gene on our involvement in the SaaS at Toussaud's come to mind sandstorm has been around longer than I realized and the royalty company model is truly powerful we first invest in a bind Hyundai and <unk> resource Corp. After just the first few drill holes were completed on this asset and her dean was considered.

Dave: We first invested in buying Hyundai and Erdene Resource Corp. after just the first few drill holes were completed on this asset, and Erdene was considered an early-stage explorer with a good first-mover advantage in Mongolia. Today, the project boasts a billion-dollar partner in the Mongolian Mining Corporation and is well into its construction just eight years after discovery. Fully financed to production, the project is expected to operate as one of the highest-grade open pit gold projects in the world within the next 18 months. For Sandstorm, we hold a 1% NSR in this asset, along with an additional 1% NSR on their exciting exploration project Altenar. As the company develops this mine and realizes potential expansion, we may see this as a sustainable long-term resource source of revenue from one of the more well-established companies in a prolific mineral jurisdiction.

Early stage explore with a good first mover advantage in Mongolia today. The project goes a $1 billion partner and the Mongolian mining Corporation and is well into its construction just eight years after discovery.

Fully financed to production. The project is expected to operate as one of the highest grade open pit gold projects in the world within the next 18 months for Sandstorm, we hold a 1% MSR this asset along with an additional 1% MSR on their exciting exploration project Dalton.

As the company develops this mine it realizes expansion potential expansion.

We may see this as a sustainable long term resource source of revenue from one of the more well established companies and a prolific mineral jurisdiction.

Although in the last eight years have not been easy to develop mines Youre Dean has done a remarkable job of moving the project forward and we are delighted to see a project moves so quickly from discovery to production.

Dave: Although the last eight years have not been easy to draw on minds, your dean has done a remarkable job in moving the project forward, and we're delighted to see a project move so quickly from discovery to production. So with that, I'll hand over the call to Ina, the operator, for a Q&A session. Please feel free to ask questions about the royalties and streams of the project. Thank you. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the number on your telephone keypad. You will hear a three-tone sound acknowledging your request. Questions will be taken in the order received. Should you wish to cancel the request, please press the star followed by two. If you are using a speakerphone, please leave the handset before pressing any keys.

So with that I'll hand over the call to the operator for a Q&A session.

Please feel free to ask questions about the royalties and streams are projects. Thank you.

Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by one on your telephone keypad.

Hey, Tom.

Tom Technology request questions will be taken in the order received should you wish to cancel your request. Please press. The star followed we did do if you're using a speaker phone. Please keep the handset before pressing any keys one moment. Please for your first question.

Ina: One moment, please, for your first question. Your first question comes from the line of Heiko Ihle from HC Wainwright. Please go ahead. Hello, everybody.

Your first question comes from the line of Heiko <unk> from H C. Wainwright. Please go ahead.

How low everybody good morning, and thanks for taking my questions.

Heiko Ihle: Good morning, and thanks for taking my question. I'll preface the whole thing, the SSR thing; most of my questions were sort of going into that direction, but as per your request, I'll hold off. So I have a few other ones as well.

I appreciate the whole thing the SSR thing most of my questions were sort of going into that direction, but as per your request I'll hold off so I got a few other ones as well.

Heiko Ihle: When it comes to the monetization of the $40 to $100 million of non-core assets, are there any that stand out in regards to market interest, and can you maybe provide some color on the discount rates that you're seeing buyers apply or, for that matter, you apply to things? And, in general, just how are the offers coming in in regards to cash versus? Good question. So, I would say, starting off, yes, we put out sort of a tender to have a bunch of companies look at a number of different royalties, but there's certainly ones that do stand out within that package. Just because it's in a competitive process right now, I don't want to specifically point those things out.

When it comes to the monetization of the $40 million to $100 million of non core assets are there any that stand out in regards to market interest and can you maybe provide some color on the discount rates that youre seeing buyers a player that's for that matter you apply to things and in general just how are the offers coming in in regards to cash versus.

Stock please.

Hey, good question, So I would say starting off yes, it's what we put out sort of a tender to have a bunch of companies look at a number of different royalties, but theyre certainly ones that do stand out within that package just because it's in a competitive process right now specifically pointed those out.

We're trying to keep our cards close to our chest with respect to people who were negotiating with right now.

Mr. Watson: We're trying to keep our cards close to our chest with respect to people that we're negotiating with right now, but what I can say from what we see is that it's a robust process. We see where we're going to get to the minimum and potentially higher, and there may or may not be some things that take it well well over that number, and we're working on it right now. Yeah. Sorry, your next question was about the... The, the, how, how are the offers, uh, cash?

But what I can say from what we see is that it's a robust process, we see where we're going to get to the middle of the potentially higher there may or may not be some things that take it well well over that number.

We're working on that.

Right now.

Alright.

Question was about the.

How are the offers cash versus stock.

Yeah. So great question again, so all stock or all cash we're not accepting any stock as part of this process for many companies. So everything in there is cash.

Mr. Watson: Yeah, so great question again. So all cash, we're not accepting any stock as part of this process for many companies. So everything in there is cash. Okay, that's actually interesting.

Okay. That's that's that's actually interesting okay. I may have missed this in the past them.

Heiko Ihle: Okay, I may have missed this in the past. Fair enough. And then just moving on to something more or less in the same direction, $436 million in December, $419 million as of this morning. Hall said, "What are your plans, quarter by quarter, for the remainder of the year?" And if you can't fully break it down, I wouldn't blame you.

Fair enough and then just moving onto something.

More or less in the same direction, one or $36 million in December $419 million as of this morning.

Let's call that said what are your plans quarter by quarter for the remainder of the year and if you can't fully break it down I wouldn't blame you any idea at least where you expected that to be at the end of the first quarter and indeed just.

Heiko Ihle: Any idea at least where you expect the debt to be at the end of the first quarter? And maybe just show us how contingent all of this is based on the sale of non-core assets or how much of it is. Sale of Non-core Acids, please.

Show Us how contingent all of this is based on the sale of non core assets or how much of it is contingent on the sale of noncore assets. Please thank you very much.

Mr. Watson: Thank you very much. Yeah, so I think it's because some of the non-core asset processes are lumpy, and there's a couple of things in there; it's hard to predict which quarter they're going to land in. So I'll talk more about the whole year. So, to get below $350 million by December sometime this year, we only need another $20 million and change in the North Core Asset Sale process, and we have multiple different ways to get there, and we'll get there. It's harder to tell quarter by quarter just because, you know, there are different swings and things and payables.

Yeah. So I think it's because some of the noncore asset processes are lumpy and there's a couple of things in there, it's hard to predict which quarter, they're going to land and so I'll talk more on the whole year or so.

To get below $350 million <unk>.

December sometime this year, we only need another $20 million and change in the non core asset sale process and we have multiple different ways to get there.

Yes.

We'll get there.

It's harder to tell quarter by quarter, just because theres different suites, so payables that are.

Mr. Watson: One of the things that moves around is our interest expenses are constant quarter over quarter, but when we actually pay the interest versus when the interest accrues sometimes flips over quarter, so it's hard to predict at an exact quarter. But we're at $419 million now. We'll obviously be lower than that in... six weeks when the quarter ends, and then we'll just continue to bring it down.

One of the things that goes around us our interest expenses is constant quarter over quarter, but when we actually pay the interest versus when the interest accrues, sometimes flips over quarter. So it's hard to predict at an exact quarter or 419 million now will obviously be lower than that.

Six weeks when the quarter ends and then we'll just continue to bring it down. So we're really comfortable that we will hit that 350 by Zimmer.

Mr. Watson: So we're really comfortable that we'll hit that 350 by December. Thanks for taking my questions. I'll get back to you.

Okay. Thanks for taking my questions I'll get back in queue.

Heiko Ihle: Thank you. And your next question comes from the line of Derek Ma from Kitty Securities. Please go ahead. Good morning, and thank you.

Thank you and your next question comes from the line of Derek MA from TD Securities. Please go ahead.

Good morning, and thank you I had a question on the 15 year outlook that you guys posted on the presentation. It looks like there is a drop in 2027 tons of Geos 10 to 15000 ounces have kind of been sprinkled into the 2030 can you talk about what drove that change in thinking.

Derek Ma: I had a question on the 15-year outlook that you just posted. Presentation. It looks like there's a drop in 2027 in terms of geo, 15,000 ounces that have kind of been sprinkled into the 2030s. Talk about what drove the change in thinking.

In 2027 and is that a reflection of Hod maden.

Derek Ma: 2027, and is that a reflection of, So there's SSR has come out with guidance related specifically to Hadamard and in 2027 with respect to the ramp up, so that current chart is showing that guidance that came from SSR, which is a ramp-up year with strong production but not a full year of production. And then Robertson, is that included in 2027? And how many annual geos I'm expected to get from Robertson? No, Robertson's not in 2027. If everything is correct in our budget, Robertson kicks in in 2029, and Annual Geos, what's the... It's going to depend on your, I don't have the mine plan in front of me, but it's going to be a few thousand ounces a year, I believe. And then, finally, on Mara.

Okay.

So theres a SSR has come out with guidance related specifically to HUD bought it in 2027 and with respect to the ramp up so that great chart is showing that guidance that came from SSR.

Okay.

Got it which is <unk>, which is a wrap up a ramp up year with with strong production Botox all your production.

Alright.

And then Robertson is that included in 2027 and how many anglogold.

Unexpected Kathryn.

Robertson is not in 2027, if memory serves me correct in your budget Robertson kicks in in 2020.

Calls.

And annual deals whats the range you guys expect to get from Robertson.

It's gonna depend here, you're right I don't have the regulator frankly, but it's going to be a few thousand ounces year lease.

Okay, and then finally on Mara.

Mr. Watson: Can you remind us on the timing of when you guys execute that option on Mara? Is it a one-time payment where you... Up to $225 million, or is it an initial payment and then federal? That's a really important question actually. So for those who aren't familiar with it, the way it used to work when we originally signed the option agreement with Umana was that they had to get the mine one third built. And at that point in time, they would knock on our door and say, Sandstorm, you have your option.

Remind us on the timing of payments when you guys execute that option on Mara is that a one time payment where you pay up to $225 million at an initial payment and then spread out over construction.

That's a that's a really important question actually.

So for those who aren't familiar with it when it used to work when we originally signed the option agreement with Humana is that they had to get the mind. One third are built and at that point in time, they would knock on our door and say to answer when you have your option. If we say, yes, then we have to pay the $225 million right away.

Mr. Watson: If we say yes, then we have to pay the $225 million right away. When Glencore came in and bought out the minority interest, they came back to us and said, "We would like to rework that so that Sandstorm, can you make your election, whether you're in or out, at the time that our board is making the board-approved decision to begin construction. So we said, okay, we'll do that. We would then make the payments as you build the mine. And so we've reworked the agreement with Glencore so that when we say yes, we then slowly start paying as they build the mine. So we'll just do it with cash flow from operations. So we don't have to worry about getting our balance sheet to a point where we're ready to make that payment. Because when we say yes, we'll just start doing it with cash flow.

When Glencore came in and bought a minority interest he came back to US and said, we would like to rework that so that sandstorm can you make your election, whether you're in or out at the time that our board is making the board approved decision to begin construction.

Construction shall we say.

Okay, well do that we would like to make the payments.

As you build combined.

We've reworked the agreement with Glencore. So when we say, yes, we then slowly start paying as they build the bikes will just do it with cash flow from operations. So we don't have to worry.

Worrying about getting our balance sheet to a place where we're ready to make that payment because when we say, yes, we'll just start doing with gaslog.

Okay perfect. Thank you I appreciate that.

Yes.

Thank you once again should you have a question. Please press the star followed by Don on your telephone Keypad. Your next question comes from the line of Brian Macarthur from Raymond James. Please proceed.

Derek Ma: Thank you. Thank you. Once again, should you have a question, please press the star 4 by the 1 on your telephone keypad. Your next question comes from the line of Brian McArthur from Raymond James. Please proceed. Good morning, and thank you for taking my questions. First one, and I apologize, you may have said it, I think you cut out, but just on Falco, you spent a lot of time talking about it, and it could be significant, but did you say it's not in any of that guidance out to 2038? And if not, why is that?

Good morning, and thank you for taking my questions.

First one and I apologize you may have said it I think you did cut out just on all call. You spent a lot of time talking about it and it could be significant but did you say, it's not in any of that guidance out to 2038 and if not.

Why is that.

Brian McArthur: Do you not feel you have some time horizon when this might come in? Yeah, correct. We don't have it in the guidance at this point. What we're waiting for is for them to really secure permits, secure a project to finance on it.

So you have some time horizon when this might come in.

Yeah, you're correct, we don't have it in the guidance at this point.

What we're waiting for is for them to really secure permits secure project financing on it that's typically.

Mr. Watson: That's typically what some of the minimum standards that we're looking for before we include anything in the guidance. So until that gets finalized and we have more of a definitive timeline, we won't include it in the guidance. Fair enough. Second question, I was just looking through, for your guidance this year of 75 to 90,000 ounces, there's a footnote on the 125,000 ounces that that was done at 1,800 gold, 23 silver, and 390 copper. Did you use the same numbers?

Some of the the minimum standards that were looking for before being cleared anything into the guidance. So until that gets finalized and we have more of a definitive timeline, we want inclusion guidance.

Fair enough.

Second question.

I was just looking through for your guidance this year of $75 to 90000 ounces in the footnote on the 125000 ounces that we've done at 1800 Gould 23 celebrated 390, <unk> or did you use the same numbers.

Brian McArthur: for the guidance this year because Northern Edge has gone through one of the challenges, to this desperate moment. It's all these CEOs with relative prices. And maybe a second part, just philosophically, is that the right way we are doing this as an industry anymore, these GEOs, or should we just be focusing on free cash? I'll answer the latter part first.

This year, because <unk> gone through one of the challenges.

In this sector at moment, it's all these CEO with relative prices and maybe a second part just philosophically is that the right way we should be doing this with an industry anymore of these geo is there should we just be focusing on free cash flow.

[laughter] I'll answer the latter part first I think we see the focus on free cash flow.

Mr. Watson: I think we should be focusing on free cash flow. We're just trying to disclose things in an understandable industry way. But I agree with you, free cash flow is more important.

We're just trying to disclose thing.

Understandable industry, where English I agree with your free cash flow.

Mr. Watson: Yes, we've run the numbers currently at $1,800 gold, and that sort of is the midpoint of our guided range. So if the gold prices stay here or go up, there will be slightly fewer ounces than at the midpoint of that range. Having said that, we have some; even since we set that number, we've had some phone calls from people. We are not expecting any ounces from this year, but we're going to get some ounces. So even with gold prices where they are today.

Yes, we ran the numbers currently at 1800 dollar.

Kohls and that's sort of point of our guidance range. So if gold prices stay here or go up there it would be slightly fewer ounces than the midpoint of that range, having said that we have some even since we set that number we've had some phone calls from people who were not expecting.

Ounces from this year, we're going to get some some ounces so even with gold prices, where they are today I still think the actual numbers.

Brian McArthur: I still think the actual numbers are coming up at that point there. Right, so that's very helpful. And my final question is just on the investments, just so I understand where everything is, because I think, you know, sandbox goes one place and associates, but in those investments, we have all the convertible debt and you have a total of $258 million. I assume what's in there are the Anthemina, Hoth, Madden, and... Bear Creek convertible to be the main stuff, and then there's a little bit of shares Is there anything else major in there that I'm missing? The things you just listed are over 90 percent of it.

Yeah.

Great. Thanks, that's very helpful and my final question is just on the investments just Hawaii.

I understand where everything is because I think.

Sandbox go with one place and associate but in those investments we have all of the convertible debt and you have a total of $258 million.

Jim what in their R&D.

Put it this way the anthem Hot Madden and Bear Creek Convertibles will be main stop and then theres a little bit of shares of which 17 million you sold seven is there anything else major in there that I'm missing here.

The things you just listed are over 90% of it.

Brian McArthur: Perfect. Thank you very much. Thank you. Once again, should you have a question, please press the star 4.01 on your telephone keypad. There are no further questions at this time; please proceed. Alright, well, thank you again everyone for phoning in to today's call, and, like always, we'll be around. Feel free to phone us at the office and ask further questions as they come up, and I hope everybody has a good day. Thank you. Ladies and gentlemen, this concludes our conference for today. Thank you all for participating. You may now disconnect. Thank you for watching!

Perfect. Thank you very much that's very helpful.

Yeah.

Thank you once again should you have a question. Please press the star followed by the one on your telephone keypad.

There are no further question at this time. Please proceed.

Alright, well. Thank you again, everyone for phoning in today's call and like always we'll be around and feel free to photos at the opposite.

Further questions as they come up and hope everybody has a good day.

Thank you, ladies and gentlemen that does conclude our conference for today. Thank you all for participating you may all disconnect.

Okay.

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Okay.

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