Q2 2024 Sandstorm Gold Ltd Earnings Call

Joanna: Good morning, my name is Joanna, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sandstorm Gold Royalty's 2024 second quarter results conference call. All lines have been placed on mute to prevent any background noise.

Joanna: Good morning, my name is Joanna, and I will be a conference operator today.

Joanna: Good morning, my name is Joanna and I will be your conference operator today. At this time, I would like to welcome everyone to the Sandstorm Gold Royalty's 2024 Second Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise.

Joanna: At this time, I would like to welcome everyone to the Sandstorm Gold Royalty's 2024 second quarter results conference call. All lines have been placed on me to prevent any background noise. Please be aware that some of the commentary may contain forward-looking statements.

Unknown Executive: Please B.I.Y. that some of the commentary may contain forward-looking statements. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Joanna: 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.

Speaker Change: 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.

Joanna: After this week's remarks, there will be a question-and-answer session. If you would like to ask a question during the time, simply press start, then the number one on your telephone keypad. If you would like to withdraw your question, please press start too.

Joanna: 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 1 on your telephone keypad. If you would like to withdraw your question, please press star 2. Thank you, Mr. Watson. You may begin your conference.

Speaker Change: 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 1 on your telephone keypad. If you would like to withdraw your question, please press star 2.

Joanna: Thank you, Mr. Watson; you may begin your conference.

Nolan Watson: Thank you, Joanna. Good morning, everyone. And thank you for calling into our Q2 earnings call. As usual, in a few minutes, I'll hand things over to Erfan, our CFO, to review our quarterly financial earnings and highlights. And before I do that, I would like to give a brief update on our business and specifically hone in on four key points. Those being, number one, an explanation of our Q2 production, which was below budget.

Nolan Watson: Thank you, Joanna. Good morning, everyone, and thank you for calling into our Q2 earnings call. As usual, in a few minutes, I'll hand things over to Erfan, our CFO, to review our quarterly financial earnings in the highlights. Before I do that, I would like to give a brief update on our business and specifically hone in on 4 key points. Those being number one, an explanation of our Q2 production, which was below budget. Two, a status of where our debt is and is expected to be by the end of the year, three, an update on our share buy-back plans and four, and finally I'd like to talk about our next steps of growth as a company.

Mr. Watson: Thank you, Mr. Watson. You may begin your conference.

Speaker Change: Thank you, Joanna. Good morning, everyone, and thank you for calling into our Q2 earnings call.

Speaker Change: As usual, in a few minutes, I'll hand things over to Erfan, our CFO , to review our quarterly financial earnings and highlights. And before I do that, I would like to give a brief update on our business and specifically hone in on four key points.

Nolan Watson: 2. A status of where our debt is and is expected to be by the end of the year. 3. An update on our share buyback plans. 4. And finally, I'd like to talk about our next steps of growth as a company. So with respect to number one in our Q2 production, I would describe it as an uncharacteristically weak and hopefully unlikely to reoccur quarter. During the second quarter, there were a number of temporary effects that caused the quarter to be below our expectations, including Arizona having problems with its Beaba Pit, Saramoro and Chapada moderately underperforming, and Greenstone taking longer to begin delivering first gold to Sandstorm than originally budgeted.

Nolan Watson: But I would like to reassure everyone that each of these items is all temporary and not only are we expecting these mines to rebound, but the Greenstone mine is now up and running and delivering gold to Sandstorm under our street. We did not receive any material amounts from Greenstone in Q2.

Speaker Change: Those being, number one, an explanation of our Q2 production, which was below budget.

Speaker Change: 2. A status of where our debt is and is expected to be by the end of the year, 3. An update on our share buyback plans, and 4. And finally, I'd like to talk about our next steps of growth as a company.

Nolan Watson: So, with respect to number one, in our Q2 production, I would describe it as an uncharacteristically weak and hopefully unlikely to reoccur a quarter. During the second quarter, there were a number of temporary effects that caused the quarter to be below our expectations, including Arizona having problems with its behalf of pit. I would like to reassure everyone that each of these items are all temporary and are not only expecting these mines to rebound. The greenstone mine is now up and running and delivering gold to stands for our under our stream. We did not receive any material amounts from Greenstone and Q2; however, even here in July and now in August, we're seeing the ounces starting to come from that gold stream.

Speaker Change: So with respect to number one in our Q2 production, I would describe it as an uncharacteristically weak and hopefully unlikely to reoccur order.

Speaker Change: During the second quarter, there were a number of temporary effects that caused the quarter to be below our expectations, including Arizona having problems with its Beaba Pit, Saramoro and Chapada moderately underperforming, and Greenstone taking longer to begin delivering first gold to Sandstorm than originally budgeted.

Speaker Change: I would like to reassure everyone that each of these items are all temporary and not only are we expecting these mines to rebound, the Greenstone mine is now up and running and delivering gold to Sandstorm under our stream.

Nolan Watson: However, even here in July and now into August, we're seeing the ounces starting to come from that gold stream. So Q3 should be our first quarter with some Greenstone production. And as they continue to commission and ramp up their mine, our gold sales will ramp up correspondingly. One of the other reasons for the dip in gold equivalent production in Q2 relates to the recent significant increase in the price of gold relative to silver and copper.

Speaker Change: We did not receive any material amounts from Greenstone in Q2. However, even here...

Nolan Watson: So Q3 should be our first quarter with some greenstone production, and as they continue to commission and ramp up their mine, our gold sales will ramp up correspondingly. One of the other reasons for the dip in gold equivalent production in Q2 relates to the recent significant increase in the price of gold relative to silver and copper. Specifically, our annual gold equivalent ounce production estimates were based on $1,800 per ounce gold, which was close to the gold price at the time that we set our budget at numbers. Now that the gold prices increase significantly above $2400 an ounce, it means that our silver revenue and copper revenue turns into fewer gold equivalent ounces at this high gold price.

Speaker Change: In July and now into August , we're seeing the ounces starting to come from that gold stream.

Speaker Change: So Q3 should be our first quarter with some greenstone production, and as they continue to commission and ramp up their mine, our gold sales will ramp up correspondingly.

Speaker Change: One of the other reasons for the dip in gold equivalent production in Q2 relates to the recent significant increase in the price of gold relative to silver and copper.

Nolan Watson: Specifically, our annual gold equivalent ounce production estimates were based on $1,800 per ounce gold, which was close to the gold price at the time that we set our budgeted numbers. Now that the gold price has increased significantly above $2,400 an ounce, it means that our silver revenue and copper revenue turn into fewer gold equivalent ounces at this high gold price. In fact, our Q2 gold equivalent ounces are lower by more than 2,000 ounces just from this pricing effect of converting copper and silver into gold equivalent ounces.

Speaker Change: Specifically, our annual gold equivalent ounce production estimates were based on $1800 per ounce gold, which was close to the gold price at the time that we set our budgeted numbers.

Speaker Change: Now that the gold price has increased significantly above $2,400 an ounce, it means that our silver revenue and copper revenue turns into fewer gold equivalent ounces at this high gold price.

Nolan Watson: In fact, our Q2 gold equivalent ounces are lower by more than 2,000 ounces just from this pricing effect of converting copper and silver into gold equivalent ounces. I, for one, though, I'm not complaining about high gold prices. In his gold prices are now around $2,500 almost. We're still expecting, even with these high gold prices, our 2024 gold equivalent ounces to be between 75,000 to 85,000 ounces per year. With these figures expected to increase eventually to 155,000 ounces per year once both Hot Mod and Marah have the bill.

Speaker Change: In fact, our Q2 gold equivalent ounces are lower by more than 2,000 ounces just from this pricing effect of converting copper and silver into gold equivalent ounces.

Nolan Watson: I, for one, though, am not going to complain about high gold prices. And its gold prices are now almost $2,500. We're still expecting, even with these high gold prices, our 2024 gold equivalent ounces to be between 75,000 and 85,000 ounces per year, with these figures expected to increase eventually to 155,000 ounces per year once both Hadamard and Mara have been built. This is nearly a 100% increase in gold equivalent production over the next five years. Point number two, the status of our debt. We continue to use the majority of our cash flow to pay down our debt.

Speaker Change: I, for one, though, am not going to complain about high gold prices.

Speaker Change: And his gold prices are now around $2,500 almost.

Speaker Change: We are still expecting, even with these high gold prices, our 2024 gold equivalent ounces to be between 75,000 to 85,000 ounces per year, with these figures expected to increase eventually to 155,000 ounces per year once both Hadamard and Mara have been built.

Nolan Watson: This is nearly 100% increase in gold equivalent production over the next five years. Point number two: at the status of our debt, we continue to use the majority of our cash flow to pay down our debt, and as I sit here this morning, our debt balance is down to $383 million US. Therefore, our goal is getting debt down to $350 million by the end of the year as well, on track. And that leads me to point number three, which is because of high gold prices, we've been able to not only bring our debt down as anticipated, we have also been able to simultaneously buy back some of our own shares.

Speaker Change: This is nearly a 100% increase in gold equivalent production over the next five years.

Speaker Change: Point number two.

Nolan Watson: And as I sit here this morning, our debt balance is down to $383 million U.S. And therefore, our goal of getting debt down to $350 million by the end of the year is well on track. And that leads me to point number three, which is that, because of high gold prices, we've been able to not only bring our debt down as anticipated, but we have also been able to simultaneously buy back some of our own shares.

Speaker Change: At the status of our debt, we continue to use the majority of our cash flow to pay down our debt, and as I sit here this morning, our debt balance is down to $383 million U.S., and therefore our goal of getting debt down to $350 million by the end of the year is well on track.

Speaker Change: And that leads me to point number three, which is, because of high gold prices, we've been able to not only bring our debt down as anticipated, we have also been able to simultaneously buy back some of our own shares.

Nolan Watson: We have a small share buy back plan in place, which is approximately 10,000 shares per trading day as long as we're not in blackout. For example, today we are in blackout because of the earnings release, so we can't buy shares today, but on Monday we'll be back in the market buying small amounts of shares. This plan may change from time to time as we're currently focusing the majority of our cash flow on paying down debt, and we'll continue to do so with the goal of getting our balance sheet ready for our next lake of growth, which brings me to my final point four.

Nolan Watson: We have a small share buyback plan in place, which is approximately 10,000 shares per trading day, as long as we're not in a blackout. For example, today we are in a blackout because of the earnings release, so we can't buy shares today, but on Monday, we'll be back in the market buying small amounts of shares. This plan may change from time to time, as we're currently focusing the majority of our cash flow on paying down debt, and we'll continue to do so with the goal of getting our balance sheet ready for our next leg of growth.

Speaker Change: We have a small share buyback plan in place, which is approximately 10,000 shares per trading day, as long as we're not in blackout. For example, today we are in blackout because of the earnings release, so we can't buy shares today, but on Monday we'll be back in the market buying small amounts of shares.

Speaker Change: This plan may change from time to time as we are currently focusing the majority of our cash flow on paying down debt and will continue to do so with the goal of getting our balance sheet ready for our next Lego growth.

Nolan Watson: We're in a fortunate position to already own growth assets in Greenstone, Flat Reef, Robertson, and Hot Modern, and we have the right to purchase the Marist Dream, which we anticipate doing. These assets should nearly double our production from where we are today, so the future is bright at Sandstorm. If you take a look at this slide, which is our current best estimate of our top seven assets by value, you can see that four of these seven assets were not even in production yet during this Q2 results that we're talking about this morning. Hot modern, flat reef, greenstone, and Mario will all be very important contributors to Sandstorm's future, and we're looking forward to that very bright future.

Nolan Watson: We're in a fortunate position to already own growth assets in Greenstone, Platte Reef, Robertson, and Hod Modden, and we have the right to purchase the Marist Dream, which we anticipate doing. These assets should nearly double our production from where we are today. So the future is bright at Sandstorm. If you take a look at this slide, which is our current best estimate of our top seven assets by value, you can see that four of these seven assets were not even in production yet during these Q2 results that we're talking about this morning.

Speaker Change: Which brings me to my final point, 4.

Speaker Change: We are in a fortunate position to already own growth assets in Greenstone, Platte Reef, Robertson, and Hod Mawden, and we have the right to purchase the Marist Dream, which we anticipate doing.

Speaker Change: These assets should nearly double our production from where we are today, so the future is bright at Sandstorm.

Speaker Change: If you take a look at this slide, which is our current best estimate of our top seven assets by value, you can see that four of these seven assets were not even in production yet during this Q2 result that we're talking about this morning.

Nolan Watson: Odd Modern, Platte Reef, Greenstone, and Morrow will all be very important contributors to Sandstorm's future, and we're looking forward to that very bright future. Another way of looking at it is that in Q2 of this year, only 55% of Sandstorm's nav was in production.

Speaker Change: Odd Modern, Platte Reef, Greenstone, and Morrow will all be very important contributors to Sandstorm's future, and we're looking forward to that very bright future.

Nolan Watson: Another way of looking at it is that in Q2 of this year, only 55% of Sandstorm's NAV was in production. By the end of next year, that number should be up to 72% as Greenstone ramps up and Flat Reef comes online, and then by 2029 we expect 88% of our NAV to be in production. Our portfolio is maturing quickly, and as a reminder of the cash flow generating capacity of that portfolio, you can see that once those ramp ups do happen by 2029, we expect our portfolio to be able to generate after tax cash flows of close to a quarter billion dollars per year.

Speaker Change: Another way of looking at it is that in Q2 of this year, only 55% of Sandstorm's nav was in production.

Nolan Watson: By the end of next year, that number should be up to 72% as Greenstone ramps up and Flat Reef comes online. And then, by 2029, we expect 88% of our NAF to be in production. Our portfolio is maturing quickly, and as a reminder of the cash flow-generating capacity of that portfolio, you can see that once those ramp-ups do happen by 2029, we expect our portfolio to be able to generate after-tax cash flows of close to a quarter billion dollars per year.

Speaker Change: By the end of next year, that number should be up to 72% as Greenstone ramps up and Flat Reef comes online. And then by 2029, we expect 88% of our NAF to be in production.

Speaker Change: Our portfolio is maturing quickly.

Speaker Change: And as a reminder of the cash flow generating capacity of that portfolio, you can see that once those ramp-ups do happen by 2029, we expect our portfolio to be able to generate after-tax cash flows of close to a quarter billion dollars per year.

Nolan Watson: Now, we're continuing to pay down our revolving debt facility, and as we do that, we're opening up room on it for potential future acquisitions that would grow our production even further. And we're starting to once again look at such potential transactions. What I want to emphasize, however, is that we are not contemplating any transactions that would cause us to have to raise equity. We want to decrease our share count, not increase it.

Nolan Watson: Now we're continuing to pay down our revolving debt facility, and as we do that, we're opening up room on it for potential future acquisitions that would grow our production even further, and we're starting to once again look at such potential transactions. What I want to emphasize, however, is that we are not contemplating any transactions that would cause us to have to raise equity. We want to decrease our share of current, not increase it, and also we're not contemplating any transactions that would cause us to have to draw down too much on a revolver to the point where we would no longer be comfortable buying back our own shares.

Speaker Change: Now we're continuing to pay down our revolving debt facility and as we do that we're opening up room on it for potential future acquisitions that would grow our production even further and we're starting to once again look at such potential transactions.

Speaker Change: What I want to emphasize, however, is that we are not contemplating any transactions that would cause us to have to raise equity.

Nolan Watson: And also, we're not contemplating any transactions that would cause us to have to draw down too much on a revolver to the point where we would no longer be comfortable buying back our own shares. Overall, I want to be clear that with our significant free cash flow, we are still predominantly focused on debt reduction with the purpose of recharging our balance sheet so we can eventually begin our next leg of acquisition growth and grow from a position of financial strength while avoiding dilution.

Speaker Change: We want to decrease our share count, not increase it, and also we're not contemplating any transactions that would cause us to have to draw down too much on our revolver to the point where we would no longer be comfortable buying back our own shares.

Nolan Watson: Overall, I want to be clear that with our significant free cash flow, we are still predominantly focused on debt reduction with the purpose of recharging our balance sheet so we can eventually begin our next leg of acquisition growth and grow from a position of financial strength while avoiding delusion. We are very fortunate to be in this position to be able to do this while having a nearly 100% increase in production coming from our existing portfolio. It's a good place to be.

Speaker Change: Overall, I want to be clear that with our significant free cash flow, we are still predominantly focused on debt reduction with the purpose of recharging our balance sheet so we can eventually begin our next leg of acquisition growth and grow from a position of financial strength while avoiding dilution.

Nolan Watson: We are very fortunate to be in this position to do this while having a nearly 100% increase in production coming from our existing portfolio. It's a good place to be. And with that, I'll hand it over to Erfan.

Speaker Change: We are very fortunate to be in this position to be able to do this while having a nearly 100% increase in production coming from our existing portfolio.

Erfan Kazemi: And with that, we'll hand it over to Irving.

Speaker Change: It's a good place to be.

Erfan Kazemi: Thanks, Nolan. Looking at the financial results for the three-month period and the June 30 gold equivalent production total just over 17,400 trivial ounces. As Nolan mentioned, there were a few factors that resulted in slightly softer production numbers when compared to the previous quarters. Some of these I'll discuss in a little minute.

Speaker Change: And with that, we'll hand it over to Erfan.

Erfan Kazemi: Looking at the financial results for the three-month period ended June 30th, gold equivalent production totaled just over 17,400 trivial ounces. As Nolan mentioned, there were a few factors that resulted in slightly softer production numbers when compared to the previous quarters.

Erfan: Thanks, Nolan.

Erfan: Looking at the financial results for the three-month period ended June 30th, gold equivalent production totaled just over 17,400 trivial ounces.

Erfan: As Nolan mentioned, there were a few factors that resulted in slightly softer production numbers when compared to the previous quarter.

Erfan Kazemi: Some of these I'll discuss in a minute, but the company remains on track to achieve a trivial production between 75,000 and 85,000 gold clone ounces in 2024. Stronger gold prices boosted revenues during the second quarter, where the company recognized over $41 million. Elevated commodity prices have been a welcome tailwind against the mining industry in the first half of this year.

Erfan Kazemi: But the company remains on track to achieve a trivial production between 75,000 and 85,000 gold equivalent ounces in 2024. Strong gold prices boosted revenues during the second quarter, where the company recognized over $41 million. Elevated commodity prices have been a welcome tailwind against the mining industry in the first half of this year. While during the second quarter, the Sandstorm realized average gold prices of $2,313 per ounce from the company's gold streams and achieved a new record for cash operating margins of over $2,040 per trivial ounce.

Erfan: Some of these I'll discuss in a little minute, but the company remains on track to achieve a trivial production between 75,000 and 85,000 gold clone ounces in 2024.

Erfan: Stronger Gold prices boosted revenues during the second quarter, where the company recognized over $41 million.

Erfan: Elevated commodity prices have been a welcome tailwind against the mining industry in the first half of this year.

Erfan Kazemi: While during the second quarter, Sandstorm realized average gold prices of $2,313 per ounce from the company's gold streams and achieved a new record for cash operating margins of over $2,040 per trivial ounce. As Nolan discussed, shareholders have a lot to look forward to over the next few years as the company's portfolio continues to mature. Over the near term, we anticipate stronger production as the Greenstone mine continues to ramp up following its first gold pour in May.

Erfan: Well, during the second quarter, the Sandstorm realized average gold prices of $2,313 per ounce from the company's gold streams and achieved a new record for cash operating margins of over $2,040 per trivial ounce.

Erfan Kazemi: As Nolan discuss, shareholders have a lot to look forward to over the next few years as the company portfolio continues to mature. Over the near term, we had to space stronger production as the greenstone mine continues to ramp up following its first gold for in May. The Greenstone gold stream was purchased as part of the company's acquisition of Nomad Royalties in 2022. And one of the most material development assets from that acquisition to come online. Once fully ramped up, Greenstone expected to contribute between 8,000 and 10,000 gold ounces annually to Sandstorm. Quarterly revenue was comprised of 25.8 million in sales from streaming contracts and 15.5 million in royalty revenue.

Erfan: As Nolan discussed, shareholders have a lot to look forward to over the next few years as the company's portfolio continues to mature. Over the near term, we anticipate stronger production as the Greenstone mine continues to ramp up following its first gold pour in May.

Erfan Kazemi: The Greenstone Gold Stream was purchased as part of the company's acquisition of Nomad Royalties in 2022 and is one of the most significant development assets from that acquisition to come online. Once fully ramped up, Greenstone is expected to contribute between 8,000 and 10,000 gold ounces annually to Sandstorm.

Erfan: The Greenstone Gold Stream was purchased as part of the company's acquisition of Nomad Royalties in 2022. And it's one of the most material development assets from that acquisition to come online.

Erfan: Once fully ramped up, Greenstone expected to contribute between 8,000 and 10,000 gold ounces annually to Sandstorm.

Erfan Kazemi: Quarterly revenue was comprised of $25.8 million in sales from streaming contracts and $15.5 million in royalty revenue. With strong operating margins, the company had $32.6 million in cash flow from operating activities, excluding changes in non-cash working capital. These exceptional cash flows continue to support our effort in deleveraging the company's balance sheet. Debt repayment has been our primary focus over the last 24 months following various asset acquisitions in 2022. During the second quarter, the company made net debt repayments of 27 million on its revolving credit facility.

Erfan: Quarterly revenue was comprised of $25.8 million in sales from streaming contracts and $15.5 million in royalty revenue.

Erfan Kazemi: With strong operating margins, the company has 32.6 million in cash flow from operating activities, excluding changes in non-cash working capital. These exceptional cash flows continue to support our effort in de-leveraging the company's balance sheet.

Erfan: With strong operating margins, the company had $32.6 million in cash flow from operating activities, excluding changes in non-cash working capital.

Erfan: These exceptional cash flows continue to support our effort in deleveraging the company's balance sheet.

Erfan Kazemi: That repayment has been our primary focus over the last 24 months following various asset acquisitions in 2022. During the second quarter, the company made net debt repayments of 27 million on its revolving credit facility. And as Nolan mentioned, we have 383 million debt outstanding as of now, and an undrawn and available balance of 242 million. Net income for the quarter was 10.5 million compared to 2.7 million for the comparable period in 2023. The increase was partially driven by a fair value evaluation gain of approximately 7 million as a result of the settlement of the company's debenture due from VersaMet Royalties, which was formerly known as Sandbox Royalties.

Erfan: Debt repayment has been our primary focus over the last 24 months following various asset acquisitions in 2022.

Erfan: During the second quarter, the company made net debt repayments of $27 million on its revolving credit facility. And as Nolan mentioned, we have $383 million debt outstanding as of now, and an undrawn and available balance of $242 million.

Erfan Kazemi: And as Nolan mentioned, we have 383 million debt outstanding as of now and an undrawn and available balance of 242 million. Net income for the quarter was $10.5 million compared to $2.7 million for the comparable period in 2023.

Nolan: Net income for the quarter was $10.5 million compared to $2.7 million for the comparable period in 2023.

Erfan Kazemi: The increase was partially driven by a fair value revaluation gain of approximately $7 million as a result of the settlement of the company's debenture due from Bersamit Royalties, which was formerly known as Sandbox Royalties. The debenture was settled by way of conversion to common shares of Versamet, resulting in the gain. In June, Versamet announced a transaction with B2Gold, which subsequently valued Versamet at nearly $300 million. The settlement of Sandstorm's debenture highlights the next step in daylighting value for Sandstorm's shareholders, which was the underlying investment thesis back in 2022.

Speaker Change: The increase was partially driven by a fair value revaluation gain of approximately 7 million as a result of the settlement of the company's debenture due from BursaMet Royalties, which was formerly known as Sandbox Royalties.

Erfan Kazemi: The debenture was settled by way of conversion to common shares of VersaMet, resulting in the gain. In June, VersaMet announced a transaction with B2 Gold, which subsequently values VersaMet nearly 300 million.

Speaker Change: The debenture was settled by way of conversion to common shares of VersaMet, resulting in the gain. In June , VersaMet announced a transaction with B2Gold, which subsequently values VersaMet at nearly $300 million.

Erfan Kazemi: The settlement of Sandbox Royalties, the debenture, highlights the next step in daylighting value for Sandbox Royalties, which was the underlying investment thesis back in 2022. As previously disclosed, Sandbox Royalties were bid in May and was actually buying back shares throughout the second quarter. For the three months ended June 30th, the company bought back and canceled nearly 460,000 common shares for total consideration of 2.5 million. Subsequent to quarter-end, the company has a purchase of approximately 90,000 additional shares, while not in blackout.

Speaker Change: The settlement of Sandstorm's debenture highlights the next step in daylighting value for Sandstorm shareholders, which was the underlying investment thesis back in 2022.

Erfan Kazemi: As previously disclosed, Sandstorm renewed its normal course issuer bid in May and was actively buying back shares throughout the second quarter. For the three months ending on June 30th, the company bought back and cancelled nearly 460,000 common shares for a total consideration of $2.5 million. Subsequent to quarter end, the company has purchased approximately 90,000 additional shares, while not in the black. We expect this level of buyback activity to continue for the remainder of the year, as Nolan mentioned, and we're pleased to once again be able to return capital to shareholders via share buybacks in addition to our quarterly cash dividends.

Speaker Change: As previously disclosed, Sandstorm renewed its normal course issuer bid in May and was actively buying back shares throughout the second quarter.

Speaker Change: For the three months end of June 30th, the company bought back and cancelled nearly 460,000 common shares for total consideration of $2.5 million.

Speaker Change: Subsequent to quarter end, the company is a purchase of approximately 90,000 additional shares, while not in blackout.

Erfan Kazemi: We expect this level of buyback activity to continue for the remainder of the year, as Nolan mentioned, and we're pleased to once again be able to return capital to shareholders, be a share buyback in addition to a quarterly cash dividend. Gold equivalent ounces for Q2 reflected lower production at some of the underlying assets in the portfolio when compared to the second quarter in 2023. A trivial production at Sarah Moro reflected a decrease in head grades in the corresponding decrease in silver sales. This was partially offset by an increase in the average realized selling price at silver, which is approximately $28 compared to $25 per ounce in the second quarter of 2023.

Speaker Change: We expect this level of buyback activity continue for the remainder of the year as Nolan mentioned and we're pleased to once again be able to return capital to shareholders via share buybacks in addition to our quarterly cash dividend.

Erfan Kazemi: Gold equivalent ounces for Q2 reflected lower production at some of the underlying assets in the portfolio when compared to the second quarter in 2023. The Trivial Production at Saramoro reflected a decrease in head grades and the corresponding decrease in silver sales.

Speaker Change: Gold equivalent ounces for Q2 reflected lower production at some of the underlying assets in the portfolio when compared to the second quarter in 2023.

Speaker Change: A trivial production at Saramoro reflected decrease in head grades and the corresponding decrease in silver sales.

Erfan Kazemi: This was partially offset by an increase in the average realized selling price of silver, which is approximately $28 compared to $25 per ounce in the second quarter of 2023. The realized selling price of silver is reflective of the silver market in early April, as Sandstorm typically receives its material silver deliveries, including deliveries from Cerro Moro early in the quarter. In April, Equinox reported displacement of material in the Piaba Pit at the Arizona Mine, resulting in restricted access to the pit. As a result, Equinox paused mining at Piaba to establish a remediation plan.

Speaker Change: This was partially offset by an increase in the average realized selling price of silver, which is approximately $28 compared to $25 per ounce.

Erfan Kazemi: The realized selling price of silver is reflective of the silver market in early April. Sandstorm typically received its material silver deliveries, including deliveries from Sarah Moro early in the quarter. In April, Equinox reported displacement of material in the Piaba pit at the Orazona mine, resulting in the stristed axis of the pit. As a result, Equinox paused mining a Piaba to establish a remediation plan. Milling and gold production continued from ore stockpile through April while mining activity commenced at the Orazona Tata Juba pit, which is also within Sandstorm's royalty claim. Equinox anticipated ramp up of mining activities at Tata Juba to boost ore for plant feed in June going forward.

Speaker Change: in the second quarter of 2023. The realized selling price of silver is reflective of the silver market in early April , as Sandstorm typically receives its material silver deliveries, including deliveries from Cerro Moro early in the quarter.

Speaker Change: In April , Equinox reported displacement of material in the Piaba Pit at the Arizona mine, resulting in restricted access to the pit.

Erfan Kazemi: Milling and gold production continued at the Ore Stockpile through April, while mining activity commenced at the Arizona Tatajuba Pit, which is also within Sandstorm's royalty claim. Equinox anticipated a ramp-up of mining activities at Tadajuba to Bruce Orr for plant feed in June and going forward. Partially offsetting the decrease in sales and royalty revenue with this 56% increase in the number of copper pounds sold from the Chapada copper mine. The average realized selling price of copper also increased to $4.22 per pound compared to $4 per pound in the same period in 2023.

Speaker Change: As a result, Equinox paused mining at Piaba to establish a remediation plan. Milling and gold production continued from Ore Stockpile through April , while mining activity commenced at the Arizona Tatajuba Pit, which is also within Sandstorm's royalty claim.

Speaker Change: Equinox anticipated ramp-up of mining activities at Tatajuba to Bruce Orr for plant feed in June going forward.

Erfan Kazemi: Partially offsetting these decreases in sales and royals to revenue with the 56% increase in the number of copper pounds sold from the Chappata copper mine. The average relied selling price of copper also increased to $4.22 per pound compared to $4.00 per pound in the same period in 2023.

Speaker Change: Partially offsetting the decrease in sales and royalty revenue was the 56% increase in number of copper pounds sold from the Chapada copper mine. The average realized selling price of copper also increased to $4.22 per pound compared to $4 per pound in the same period in 2023.

Erfan Kazemi: Finally, taking a quicker look or a quick look at a breakdown of our attributable gold equivalent ounce sold during the second quarter, over 80% of our ounces sold came from operations in the Americas, 17% of which came from operations in Canada. We expected this to increase over the coming months and years as the greenstone ramps up to commercial production. Sandstorm continues to be a precious metal focused company with nearly 70% of a trivial production coming from precious metal and only increasing more with time. While our material copper-aspists, Chappata and Tamiya and Casarona continue to provide excellent exposure to our preferred base metal.

Erfan Kazemi: Finally, taking a quicker look, or a quick look at a breakdown of our attributable gold equivalent ounce sold during the second quarter, over 80% of our ounces sold came from operations in the Americas, 17% of which came from operations in Canada. We expect this to increase over the coming months and years as Greenstone ramps up to commercial production. Sandstorm continues to be a precious metal-focused company, with nearly 70% of its production coming from precious metals and only increasing with time. While our copper assets, chapata, antimida, and casaronis, continue to provide excellent exposure to our preferred base metal. With that, I'll pass it over to Dave for a few updates. Great.

Speaker Change: Finally, taking a quicker look, or a quick look, at a breakdown of our attributable gold equivalent ounce sold during the second quarter, over 80% of our ounces sold came from operations in the Americas, 17% of which came from operations in Canada.

Speaker Change: We expected this to increase over the coming months and years as Greenstone ramps up to commercial production.

Speaker Change: Sandstorm continues to be a precious metal focused company with nearly 70% of retrieval production coming from precious metal and only increasing more with time.

Dave: While our material copper assets, chapata, antimida, and casaronis continue to provide excellent exposure to our preferred base metal. And with that, I'll pass it over to Dave for a few updates.

Erfan Kazemi: With that, I'll pass. Great.

Dave: Great. Thanks, Erfan. Good morning, everyone.

Erfan Kazemi: Thanks, Sir Fenn.

Erfan Kazemi: Good morning, everyone. Today, I'll speak to Troilus' new feasibility study and Devers' expanded drill program at Hyundai and also an interesting chart regarding the big increase in attributable reserves and resources. Sandstorm has realized in the last couple of years.

Dave: Great. Thanks, Erfan. Good morning, everyone. Today, I'll speak to Troilus' new feasibility study.

Dave: Endeavor's Expanded Drill Program at Hyundai, and also an interesting chart regarding the big increase in attributable reserves and resources Sandstorm has realized in the last couple of years. But first, a quick discussion on drilling at Hugo North Extension.

Dave: Today, I'll speak to Troilus' new feasibility study, Endeavour's expanded drill program at Hyundai, and also an interesting chart regarding the big increase in attributable reserves and resources Sandstorm has realized in the last couple of years. First, a quick discussion on drilling at Hugo North Extension. So Entrez Resources recently released drilling results from both surface and underground locations at Hugo North Extension on Utogoi Joint Venture ground. Although the drilling took place in 2022 and 2023, Entrez received results only a few weeks ago, but they're definitely worth the wait.

Erfan Kazemi: First, a quick discussion on drilling at Hugo North Extension. So, once Ray Resources recently released, drilling results from both surface and underground locations at Hugo North Extension on where you told Goy to join venture ground. Although the drilling took place in 2022 and 2023, Entrez received results only a few weeks ago, but they're definitely worth the wait. Highlights from surface drilling include one hole with 398 meters of about 2% copper equivalent and another with 400 meters of about 1.4% copper equivalent. Highlights from underground drilling include two holes that graded about 3.7% copper equivalent: one being 244 meters and a separate one being 114 meters.

Dave: Highlights from Surface Drilling include one hole with 398 meters of about 2% copper equivalent and another with 400 meters of about 1.4% copper equivalent. Highlights from underground drilling include two holes that graded about 3.7% copper equivalent, one being 124 meters and a separate one being 114 meters. There were also a number of very wide intercepts underground, with two notably wide ones, one over 574 meters grading almost 1.9% copper equivalent, and one almost 365 meters of 2.5% copper.

Dave: Entrez Resources recently released drilling results from both surface and underground locations at Hugo North Extension on Utogoi Joint Venture ground.

Speaker Change: Although the drilling took place in 2022 and 2023, Entrez received results only a few weeks ago, but they're definitely worth the wait. Highlights from surface drilling.

Speaker Change: is include one hole with 398 meters of about 2% copper equivalent.

Speaker Change: and another with 400 meters of about 1.4% copper equivalent.

Speaker Change: Highlights from underground drilling include two holes that graded about 3.7% copper equivalent, one being 124 meters and a separate one being 114 meters.

Erfan Kazemi: There was also a number of very wide intercepts underground, with two notably wide ones: one over 574 meters, grading almost 1.9% copper equivalent, and one almost 365 meters of 2.5% copper equivalent. Of course, each of these had higher grade intervals within, but when you look at all the holes and where they sit relative to the current reserve and resource, it paints a great picture of how special this deposit is and how Rio Tinto, the operator, is finally looking to expand the ore body. A primary direction is to the north, the long trend, which is, of course, the ground on which our streams apply.

Speaker Change: There was also a number of very wide intercepts underground, with two notably wide ones, one over 574 meters, creating almost 1.9% copper equivalent.

Speaker Change: and one almost 365 meters of 2.5% copper equivalent.

Dave: Of course, each of these had higher grade intervals within them, but when you look at all the holes and where they sit relative to the Kern Reserve and Resort, it paints a great picture of how special this deposit is and how Rio Tinto, the operator, is finally looking to expand the ore box. A primary direction is to the north along Trent, which is, of course, the ground on which our streams apply.

Speaker Change: Of course, each of these had higher grade intervals within, but when you look at all the holes and where they sit relative to the current reserve and resource...

Speaker Change: It paints a great picture of how special this deposit is and how Rio Tinto, the operator, is finally looking to expand the ore body.

Speaker Change: A primary direction is to the north along Trent, which is, of course, the ground on which our streams apply.

Erfan Kazemi: In addition to the eye-winter and drill results, Entrez also offered an update on the underground development. Shaps three and four have reached their final deaths. The shafts are key for support of panels one and two of the blockade and will allow for a greater level of development. Entrez also got in that development work on the JB ground begins in Q4 2024, which is exciting to see the very first underground work beginning in the area covered by the stream.

Dave: In addition to the eyewatering drill results, Entrez also offered an update on the underground development. Shafts 3 and 4 have reached their final depths. These shafts are key for the support of panels 1 and 2 of the block cave and will allow for a greater level of development. Entrez is also guiding that development work on the JV ground begins in Q4 2024, which is exciting to see the very first underground work beginning in the area covered by the. After a long wait, Sandstorm has started to see the light at the end of the tunnel, and I expect to see more regular updates on work and ultimately production from the Oyutogoi Joint Venture ground.

Speaker Change: In addition to the eyewatering drill results, Entrez also offered an update on the underground development. Shafts 3 and 4 have reached their final depths. These shafts are key for support of panels 1 and 2 of the block cave and will allow for a greater level of development.

Speaker Change: Entrez is also guiding that development work on the JV ground begins in Q4 2024, which is exciting to see the very first underground work beginning in the area covered by the stream.

Erfan Kazemi: After a long way, sandstorm has started to see the light at the end of the tunnel, and I expect to see more regular updates on work and ultimately production from that Oetogoy joint venture ground.

Speaker Change: After a long wait, Sandstorm has started to see the light at the end of the tubble and I expect to see more regular updates on work and ultimately production from that OU Tolgoi Joint Venture ground.

Erfan Kazemi: So, moving on to the recently announced feasibility study on the Troy List deposit in northern Quebec, which we own a 1% dinosaur on. The study revealed 6.7 million ounces of gold equivalent to be mined over 22 years from this past producer. Troy List is looking to produce and sell a concentrate that has average annual production of 303,000 gold equivalent ounces over those 22 years, with a peak of production of over 536,000 gold equivalent ounces. The overall MPV 5 using April 2024 average prices for gold conference silver is over 1.5 billion dollars US. So, the economics are great for this project.

Dave: So moving on to the recently announced feasibility study on the Troilus deposit in northern Quebec, which we own a 1% NSR on. The study revealed 6.7 million ounces of gold equivalent to be mined over 22 years from this past producer. Troilus is looking to produce and sell a concentrate that has an average annual production of 303,000 gold equivalent ounces over those 22 years, with a peak of production of over 536,000 gold equivalent ounces.

Speaker Change: So, moving on to the recently announced feasibility study on the Troilus deposit in northern Quebec, which we own a 1% NSR on.

Speaker Change: The study revealed 6.7 million ounces of gold equivalent to be mined over 22 years from this past producer.

Speaker Change: Troilus is looking to produce and sell a concentrate that has an average annual production of 303,000 gold equivalent ounces over those 22 years, with a peak of production of over 536,000 gold equivalent ounces.

Dave: The overall NPV5, using April 2024 average prices for gold, copper, and silver, is over $1.5 billion U.S., so the economics are great for this project. Troilus is shaping up to be another big Canadian gold project, and we can't wait to see it move forward. The next steps on the project are the finalization of the environmental and social impact assessment and continued exploration of the project. Moving on to Hyundai, I certainly want to speak to the success of exploration that Endeavor Mining is having on the project.

Speaker Change: The overall NPV5, using April 2024 average prices for gold, copper and silver, is over $1.5 billion U.S.

Erfan Kazemi: Troy list is shaping up to be another big Canadian gold project, and we can't wait to see it move forward.

Speaker Change: So, the economics are great for this project, Troilus is shaping up to be another big Canadian gold project and we can't wait to see it move forward.

Erfan Kazemi: Next steps on the project is finalization of the environmental and social impact assessment and continued exploration of the property.

Speaker Change: Next steps on the project is finalization of the environmental and social impact assessment and continued exploration of the property.

Erfan Kazemi: Moving on to Hyundai, I certainly want to speak to the success of exploration than Endeavor Mining is having on the project. Now, our royalty does not cover all the areas that they've been exploring, but so far it seems that there has been an important focus on the ground that our royalty does cover. Endeavor had originally budgeted $7 million for exploration at Hyundai in 2024. However, with the success at Vindaloo, they have increased that to $10 million for the year. It seems that the Vindaloo deep target is looking very promising for potential underground operation, but they also stress exploration success and resource delineation at Coho Man, Coho East, and Vindaloo North, which are all encompassed by our royalty.

Speaker Change: Moving on to Hyundai, I certainly want to speak to the success of exploration that Endeavor Mining is having on the project.

Dave: Now, our royalty does not cover all the areas that they've been exploring, but so far, it seems that there has been an important focus on the ground that our royalty does cover. Endeavor had originally budgeted $7 million for exploration at Hyundai in 2024. However, with the success at Findaloo, they have increased that to $10 million for the year. It seems that Vindaloo Deep's target is looking very promising for potential underground operations, but they also stress exploration success and resource delineation at Coho Main, Coho East, and Vindaloo North, which are all encompassed by our Royalty. Hyundai continues to impress on the exploration side, and it feels like almost every target they have is open in one way or another.

Speaker Change: Now, our royalty does not cover all the areas that they've been exploring, but so far it seems that there has been an important focus on the ground that our royalty does cover.

Speaker Change: Endeavor had originally budgeted $7 million for exploration at Hyundai in 2024. However, with the success at Findaloo, they have increased that to $10 million for the year.

Speaker Change: It seems that the Vindaloo Deep's target is looking very promising for potential underground operation, but they also stress exploration success and resource delineation at Coho Main, Coho East, and Vindaloo North, which are all encompassed by our royalty.

Erfan Kazemi: Hunde continues to impress on the exploration side, and it feels like almost every target they have is open in one way or another.

Speaker Change: Hyundai continues to impress on the exploration side and it feels like almost every target they have is open in one way or another. I certainly expect to see the resources continue to grow on this generational asset.

Dave: I certainly expect to see the resources continue to grow on this generational asset. For my last item, I wanted to take a look at a bigger picture of our acquisitions over the last couple of years. In slide 16, we're trying to illustrate how Sandstorm has transformed its diverse portfolio through its acquisitions of BaseCore and Nomad. The first important point is that after the acquisitions of these companies. We now have an average mine life of 25 years for our top 10 assets in the portfolio.

Erfan Kazemi: I certainly expect to see the resources continue to grow on this generational asset.

Erfan Kazemi: For my last item, I wanted to take a look at a bigger picture of our acquisitions for the last couple of years. On slide 16, we're trying to illustrate how Sandstorm has transformed its diverse portfolio through its acquisitions of Base Core and Nomad. The first important point is that posting acquisitions of these companies, we now have an average mine life of 25 years for our top 10 assets in the portfolio. And as the years pass, those mine lives are increasing with exploration success rather than just depleting. Second, with the reserves and resources that these two major transactions and the success of subsequent exploration at the underlying assets, we've seen attributable reserve royalty gold equivalent ounces almost double.

Speaker Change: For my last item, I wanted to take a look at a bigger picture of our acquisitions for the last couple of years.

Speaker Change: On slide 16, we're trying to illustrate how Sandstorm has transformed its diverse portfolio through its acquisitions of BaseCore and Nomad.

Speaker Change: The first important point is that post the acquisitions of these companies

Speaker Change: We now have an average mine life of 25 years for our top 10 assets in the portfolio. And as the years pass, those mine lives are increasing with exploration success, rather than just depleting.

Dave: And as the years pass, those mine lives are increasing with exploration success rather than just depleting. Second, with the reserves and resources that these two major transactions and the success of subsequent exploration at the underlying assets, we've seen attributable reserve royalty gold equivalent ounces almost double. And resources, both measured and indicated and inferred categories, have almost doubled as well.

Speaker Change: Second, with the reserves and resources that these two major transactions and the success of subsequent exploration at the underlying assets, we've seen attributable reserve royalty gold equivalent ounces almost double.

Erfan Kazemi: And resources, both measured and indicated and inferred categories, have almost doubled as well. We like to use this indicator as a way of demonstrating how important and effective those acquisitions were to a creed of growth of Sandstorm.

Speaker Change: And resources, both measured and indicated and inferred categories, have almost doubled as well.

Dave: We'd like to use this indicator as a way of demonstrating how important and effective those acquisitions were to the creative growth of Sandstorm Gold. So, with that, I'll hand over the call to Joanna, the operator, for our Q&A session. Please feel free to ask questions about any of our royalties and streams. Thank you.

Speaker Change: We like to use this indicator as a way of demonstrating how important and effective those acquisitions were to a creative growth of Sandstorm.

Joanna: So, with that, I'll hand over the call to Joanna, the operator, for a Q&A session. Please feel free to ask questions about any of our royalties and streams. Thank you. Thank you.

Speaker Change: So with that, I'll hand over the call to Joanna, the operator, for a Q&A session. Please feel free to ask questions about any of our royalties and streams. Thank you.

Joanna: Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the one on your touchstone phone. You will hear a three-tone prompt acknowledging your request. If you would like to withdraw your question, please press star followed by two. And if you are using a speaker phone, please lift the handset before pressing any keys.

Joanna: 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 touchtone phone. You will hear a three-tone prompt acknowledging your request. If you would like to withdraw your question, please press star followed by. And if you are using a speakerphone, please lift the handset before pressing any keys. The first question comes from Heiko Ihle at HC Rainway. Please go ahead. Hey there, thank you all.

Speaker Change: Thank you.

Joanna: Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request.

Heiko Ihle: First question comes from Haiko Ile at HC Rainway. Please go ahead. Hey there. Thank you all for taking my questions on a very interesting and soft market. Thank you. You're right. Yep. Perfect. Your state of goal is to get the debt down to $350 million by the end of the year. I mean, goals effectively at an all-time high, especially if you look at some non-USD currencies. You may share about that client at 5:50 that seems quite appealing. But with the debt and given current goal prices and the commensurate cash flow, is there any stretch goal that you think is achievable given the cash flow that you're getting with the current commodity prices?

Speaker Change: The first question comes from Heiko Ihle at HC Rainway. Please go ahead.

Heiko Ihle: Hey there, thank you all for taking my questions on the very interesting stock market. Your stated goal is to get the debt down to $350 million by the end of the year. I mean, goals are effectively at an all-time high, especially if you look at some non-USD currencies. You mentioned your share value plan at $550 million. That seems quite appealing. But with the debt and given current gold prices and the commensurate cash flow, is there any stretch goal that you think is achievable given the cash flow that you're getting with the current commodity prices? Do you think we could get this to call it $330, $335 by the end of the year?

Heiko Eli: Hey there, thank you all for taking my questions on a very interesting stock market.

Speaker Change: Can you hear me?

Speaker Change: Yeah, yep. Okay, your stated goal is to get the debt down to 350 million bucks by the end of the year. I mean goals effectively at an all-time high, especially if you look at some non-USD currencies.

Speaker Change: You mentioned your share value at $5.50, that seems quite appealing. But with the debt and given current gold prices and the commensurate cash flow, is there any stretch goal that you think is achievable given the cash flow that you're getting with the current commodity prices?

Nolan Watson: Do you think we could get this to call a $3.30, $3.35 by the end of the year? Yeah, I'm not going to throw a dark board with changing commodity prices and stuff like that. But the goal of getting it to below $350 by the end of the year; originally, the goal was to get it to $350 and then start buying back our own shares because the goal price has gone up so much and our cash flow has been higher than was anticipated. We're buying back shares even before we get there, and we're still going to get it to below $350 by the end of the year.

Speaker Change: Do you think we could get this to call it $3.30, $3.35 by the end of the year?

Nolan Watson: Yeah, I'm not, I'm not going to throw darts at changing commodity prices and stuff like that. But the goal of getting it to below 350 by the end of the year, originally, the goal was to get it to 350 and then start buying back our own shares. Because the gold price has gone up so much, our cash flow has been higher than anticipated. We're buying back shares even before we get there, and we're still going to get it to below 350 by the end of the year.

Speaker Change: Yeah, I'm not going to throw out dart boards with, you know, changing commodity prices and stuff like that, but...

Speaker Change: You know, the goal of getting it to below $350,000 by the end of the year, originally the goal was to get it to $350,000 and then start buying back our own shares. Because the gold price has gone up so much and our cash flow has been higher than was anticipated.

Nolan Watson: And if we continue to get these strong commodity prices, hopefully, we'll get it below there and continue to buy back shares and just recharge that balance sheet. There is a lot of cash flow coming in, and it's kind of a fun job having to allocate it between a bunch of intelligent ways to do so.

Speaker Change: We're buying back shares even before we get there, and we're still going to get it to below $350,000 by the end of the year. And if we continue to get these strong commodity prices, hopefully we get it below there and continue to buy back shares and just recharge that balance sheet.

Nolan Watson: And if we continue to get these strong commodity prices, hopefully we get it below there and continue to buy back shares and just recharge that balance sheet. There's a lot of cash flow coming in, and it's kind of a fun job having to allocate. Let's fair. I know you stated you don't intend to monetize assets in the press release, but nonetheless, have there been some conversations at least, even just early stage with might operators that want to buy back streams on their own assets, even though they may not have the contractual right to do it, just given that the current gold prices have changed their internal calculations a bit?

Speaker Change: There's a lot of cash flow coming in and it's kind of a fun job having to allocate it between a bunch of intelligent ways to do so.

Nolan Watson: That's fair. I know you stated you don't intend to monetize assets in the press release, but nonetheless, have there been some conversations, at least at the early stage with mine operators that want to buy back streams on their own assets, even though they may not have the contractual right to do so, just given that the current gold prices have changed their internal calculations a bit?

Speaker Change: That's fair. I know you stated you don't intend to monetize assets in the press release, but nonetheless, have there been some conversations at least, even just early stage with mine operators that want to buy back streams on their own assets?

Speaker Change: [inaudible]

Nolan Watson: No, not at all. It's something that we don't really engage in. If the money company ever asks to buy back a stream of royalty, we say no very quickly, and I think all the other streaming royalty companies do as well, and people know that. They'd stop FD. Okay, here enough; that's what I assume you would say.

Nolan Watson: No, not at all. It's something that we don't really engage in. If a mining company ever asks to buy back a stream of royalty, we say no very quickly. And I think all the other royalty companies do as well. And people know that they'd stop.

Speaker Change: Nope, not at all. It's something that we don't really engage in. If a mining company ever asks to buy back a stream of royalty, we say no very quickly, and I think all the other stream of royalty companies do as well, and people know that they'd stop asking.

Nolan Watson: Okay. Yeah. Okay.

Nolan Watson: Okay, fair enough. That's what I assumed you would say. Thanks so much. I'll get back to you.

Heiko Ihle: Thanks so much; I'll get back to you.

Speaker Change: Okay, fair enough. That's what I assumed you would say. Thanks so much. I'll get back to you.

Galvan Lee: Thank you. Next question comes from Galvan Lee at Scotia Bank; please go ahead. Hey, good morning. I know that it's been days; thank you for taking my question. So, following on with that reduction, you're probably 15, and by year, and do you have any longer term currently beyond 24? Yeah, the way we look at it is once we're below 350, we're just going to continue to pay off that debt as quickly as possible because it's a revolving line of credit, and we can redraw on it at any time to make acquisitions. So our goal is to get that number as low as possible before we start swinging big for our next series of transactions because we want to we want to grow methodically. We want to do it from a position of strength.

Delvin Lee: Thank you. The next question comes from Delvin Lee at Scotiabank. Please go ahead.

Speaker Change: Thank you. Next question comes from Delvin Lee at Scotiabank. Please go ahead.

Nolan Watson: Hey, good morning, Nolan, Erfan, and Dave. Thank you for taking my question, following on this tabloid talk show. So you're targeting $3.5 million by year, and do you have any longer-term targets beyond 2024?

Delvin Lee: Hey, good morning, Nolan, Erfan, and Dave. Thank you for taking my question. So, following on with W. Chang.

Delvin Lee: So, you're targeting $3.5 million by year, and do you have any longer-term targets beyond 2024?

Nolan Watson: Yeah, the way we look at it is, once we're below 350, we're just going to continue to pay off that debt as quickly as possible because it's a revolving line of credit, and we can redraw on it at any time to make acquisitions. So our goal is to get that number as low as possible before we start swinging big for our next series of transactions because we want to grow methodically; we want to do it from a position of strength. We never want to be viewed as overleveraged again, so we're really focusing on just getting that number as low as possible while we continue.

Speaker Change: Yeah, the way we look at it is...

Speaker Change: Once we're below 350, we're just going to continue to pay off that debt as quickly as possible because it's a revolving line of credit and we can redraw on it at any time to make acquisitions.

Speaker Change: Our goal is to get that number as low as possible before we start swinging big for our next series of transactions, because we want to grow methodically, we want to do it from a position of strength. We never want to be viewed as over-levered again, so we're really focusing on just getting that number as low as possible while we continue to work for deals.

Nolan Watson: We never want to be viewed as overlevered again, so we're really focusing on just getting that number as low as possible while we continue to produce.

Galvan Lee: Right, that's fair. Thank you.

Nolan Watson: Right. Thank you. In terms of the M&A strategy, firstly, is your GL size still mostly in the range of 100 to 300 million?

Nolan Watson: Thank you. In terms of the seven major strategies, firstly, is your CLI still mostly the manager 100 to 100 million? Yeah, in terms of things that we think we could do now without overlevering ourselves, it would certainly be things that are 100 million dollars or less. As we continue to pay down our debt, that number, that number grows. I think the core debt team is spending my time on cash flowing as the other half on as well, long-term, early stage optionality as the whole truth. Right now, we've given our corporate development team the guidance that if we're going to do a material transaction, it needs to be something as either cash flowing now or being built and will be cash flowing within a year or so.

Speaker Change: Right, thank you. In terms of the M&A strategy, firstly, is your deal size still mostly your range of 100 to 300 mil?

Nolan Watson: Yeah, in terms of things that we think we could do now without over-levering ourselves, it would certainly be things that are $100 million or less. As we continue to pay down our debt, that number will grow.

Speaker Change: Yeah, in terms of things that we think we could do now without over-levering ourselves, it would certainly be things that are $100 million or less. As we continue to pay down our debt, that number grows.

Nolan Watson: I think the Corp dev team is spending like half the time on cash flowing assets and the other half on long term, earlier stage optionality assets, like I told you.

Speaker Change: All right. Yeah.

Speaker Change: I think the core dev team is spending like half the time on cash-flowing assets and the other half on long-term, early-stage optionality assets. Do you guys still hold true?

Nolan Watson: Right now, we've given our corporate development team the guidance that if we're going to do a material transaction, it needs to be something that's either cash flowing now or is being built and will be cash flowing within a year or so. We're not looking at deploying material amounts of capital for things that are long-dated optionality. What we are looking for simultaneously are really small dollar, small royalty transactions, trying to find them at the point of discovery where we can build in rights of first refusal to do the stream financing, if and when they eventually go to build the mine. So those contracts are small, but they do take a lot of time to find those opportunities that are hard to find, and so we're looking sort of at both ends of the spectrum that way.

Speaker Change: If right now, we've given our corporate development team the guidance that if we're going to do a material transaction, it needs to be something that's either cash flowing now or is being built and will be cash flowing within a year or so, we're not looking at deploying material amounts of capital for things that are long dated optionality.

Nolan Watson: We're not looking at deploying material amounts of capital for things that are long-dated optionality. But we are looking for simultaneously, though, our really small dollar, small royalty transactions trying to find them at the point of discovery where we can build and write the first refusal to do the stream financing if and when they eventually go to build a mine. So those contracts are small dollars, but they do take a lot of time to find those opportunities that are hard to find. And so we're looking sort of both ends of the spectrum.

Speaker Change: What we are looking for simultaneously, though, are really small dollar, small royalty transactions, trying to find them at the point of discovery where we can build in rights of first refusal to do the stream financing if and when they eventually go to build the mine. So those contracts are small dollars.

Speaker Change: But they do take a lot of time to find, those opportunities are hard to find, and so we're looking sort of both ends of the spectrum that way.

Nolan Watson: So my last question is about the sheer buyback. So it's fair to assume, you know, you continue to buy back pretty much two million, two and a half million, so a quarter to the rest of 24 and 25, on the buyback and what their assumptions are.

Galvan Lee: So, my last question is about shared by that. So, the fair to seem like, no, you continue to buy back too much, too nearly, and to have the quarter to the red 24 and 25 on the, you know, by that, and would it be a fair assumption? Yeah, our plan right now is, we're sticking with sort of 10,000 shares a day. If we see big swings in our share price, you know, for example, you know, today's a big down day, even though gold is really strong and the fundamentals are strong. You know, we reserve the right to change that and make decisions on the fly that we think are intelligent capital allocation decisions.

Speaker Change: So my last question is about the sheer buyback.

Speaker Change: So is it fair to assume, like, you know, you continue to buy back pretty much, you know, $2 million, $2.5 million per quarter to the rest of 2024 and 2025 from the, you know, buybacks, and would that be a fair assumption?

Nolan Watson: Keep it to your fans, you know, David. I'm sure I'm sure you're there.

Speaker Change: Keep it to yourself, David. I'm sure I'll kill you there.

Nolan Watson: Yeah, our plan right now is we're sticking with sort of 10,000 shares a day. If we see big swings in our share price, you know, for example, today's a big down day even though gold is really strong and fundamentals are strong, you know. We reserve the right to change that and make decisions on the fly that we think are intelligent capital allocation decisions, but right now, the plan is to use the bulk of the capital to pay down debt and a small portion of it for buybacks.

David: Yeah, our plan right now is we're sticking with sort of 10,000 shares a day. If we see big swings in our share price, you know, for example, you know, today's a big down day, even though gold is really strong and fundamentals are strong, you know,

Speaker Change: We reserve the right to change that and and make decisions on the fly that we think are intelligent capital allocation decisions but right now the plan is to use the bulk of the capital to pay down debt and And a small portion of it for buying back shares

Nolan Watson: But right now, the plan is to use the bulk of the capital to pay down debt and a small portion of it for buying back shares.

Delvin Lee: I appreciate it, Tara. Thank you so much. Those are all my questions.

Galvan Lee: I appreciate the comments.

Galvan Lee: Thank you so much.

Galvan Lee: That's all my questions.

Speaker Change: All right. Appreciate it, Tara. Thank you so much. Those are all my questions. Thank you.

Joanna: Thank you.

Joanna: Thank you, ladies and gentlemen. As a reminder, should you have any questions, please press star 1. The next question comes from Derick Ma at TD Cowan. Please go ahead. Thank you.

Joanna: Thank you, ladies and gentlemen.

Joanna: As a reminder, should you have any questions, please press store one.

Speaker Change: Thank you. Thank you, ladies and gentlemen. As a reminder, should you have any questions, please press star 1.

Derick Ma: Next question comes from Derick Ma at TV Cowan. Please go ahead. Thank you.

Derick Ma: Thank you. In terms of Arizona, what is the company's expectation for geos in the second half of the year?

Speaker Change: Next question comes from Derick Ma at TD Cowan. Please go ahead.

Nolan Watson: In terms of our zone out, what is the company's expectation for geos in the second half here? Yeah, we have some internal numbers that we're not going to give specific guidance on on that mine, but my understanding is that our zone, they have opened up and have started mining. We've got a lot of data that we're not going to give, but we've got a lot of data that we're not going to give. We've got a lot of data that we're not going to give, we've got a lot of data that we're not going to give, we've got a lot of data that we're not going to give, we've got a lot of data that we're not going to give, we've got a lot of data that we're not going to give, we've got a lot of data that we're not going to give.

Derek Ma: Thank you. In terms of Arizona, what is the company's expectation for geos in the second half of the year?

Nolan Watson: Yeah, we have some internal numbers that we're not going to give specific guidance on for that mine. But my understanding is that in Arizona, they have opened up and started mining Tata Juba, and they are turning back on the mill. And so we are expecting production to get back, maybe not quite up to normal, but closer to normal for the backlog took us to the Q1 level.

Speaker Change: Yeah, we have some internal numbers that we're not going to give specific guidance on that mine, but my understanding is that in Arizona they have opened up and have started mining Tata Juba and they are turning back on the mill and so we are expecting...

Speaker Change: production to get back maybe not quite up to normal but closer to normal for the back half of the year.

Nolan Watson: took us to the Q1 levels.

Speaker Change: Took a look through the Q1 levels.

Nolan Watson: Potentially, but not necessarily. And we'll see how it goes. I mean, we just don't have the data to tell us. Okay, fair.

Speaker Change: [inaudible]

Speaker Change: Potentially, but not necessarily, and we'll see how it goes. I mean, we just don't have the data to tell us what to say.

Nolan Watson: Okay, fair. And then, in terms of the valet royalties, the southeastern system, when should we expect Sandstorm to start receiving royalties on that in 2025?

Speaker Change: Okay, fair. And then, in terms of the valet royalties, the southeastern system, when in 2025 should we expect Sandstorm to start receiving royalty payments on that?

Nolan Watson: Actually, we expect customers to start receiving real deep payments from that. I'll have to double check, but the timing happens on those payments, kind of on a rotating basis. So it should be, I think, in keeping with almost where it's been for the last several years. Yeah, we get paid to any of the early. So when that kicks in, it'll get caught up in whatever is the next semi.

Nolan Watson: I'll have to double check, but...

Speaker Change: I'll have to double-check, but...

Nolan Watson: Yeah, the time the timing happens on those payments, kind of on a rotating basis, so it should be, I think, in keeping with almost where it's been for the last several years.

Speaker Change: yeah

Speaker Change: Yeah, the timing happens on those payments, kind of on a rotating basis, so it should be, I think, in keeping with almost where it's been for the last several years.

Nolan Watson: We get paid semi-annually, so when that kicks in, it'll get caught up in whatever is the next semi-annual payment. Right?

Speaker Change: We get paid semi-annually, so when that kicks in, it'll get caught up in whatever is the next semi-annual payment.

Nolan Watson: Right, so if it's the second half, that could happen in 2026, yes. Got it. Okay. And then finally, on the evolved royalty sales, the remaining portion of the cash proceeds that you expect to receive, what is the correspondence that you're having with green technologies? Do they have a right to buy back the royalty, or is it something else?

Nolan Watson: Right, so the second half that could happen in 2026. Yeah, got it.

Speaker Change: Right, so if it's second half, that could happen in 2026.

Nolan Watson: Okay, and then finally, on the evolved royalty sales, the remaining portion of the cash proceeds that you expect to receive. What is the correspondence that you're having with green technology? Do they have a right to buy back the royalty or something else? It's something else, which I'm not going to get into details about, but that's the, yeah, the last remaining $5 million piece of transaction. We're trying to close it, and there's a chance that it may not. and I'm not going to get into details of it. Yeah, okay. All right. Thank you very much.

Speaker Change: Yeah.

Speaker Change: Okay, and then finally, on the evolved royalty sales, the remaining portion of the cash proceeds that you expect to receive, what is the correspondence that you're having with green technologies? Do they have a right to buy back the royalty or is it something else?

Nolan Watson: It's something else, which I'm not going to get into the details of, but that's the last remaining $5 million piece of that transaction. We're trying to close it, and there's a chance that it may not. I'm not going to get into the details of it. Yeah, okay, all right.

Speaker Change: It's something else, which I'm not going to get into the details of, but that's the last remaining $5 million piece of that transaction. We're trying to close it, and there's a chance that it may not.

Derick Ma: Yeah, okay. All right. Thank you very much.

Speaker Change: I'm not going to get into the details of it. Yeah. Okay. All right. Thank you very much.

Brian Macarthur: Thank you, and the next question comes from Brian MacArthur at Lehman James. Please go ahead. Good morning, and thank you for taking my question.

Brian Macarthur: Brian MacArthur. Good morning, and thank you for taking the time to join us today.

Speaker Change: Thank you, and the next question comes from...

Brian Macarthur: Good morning, and thank you for taking my question. One of mine is about Evolve 2.

Speaker Change: This question comes from Brian MacArthur at Lehman James.

Nolan Watson: One of mine is around evolved too. Where is it on the balance sheet? Given this uncertainty, is it in short-term investments, or is it in something else at the moment? It's in cash. So even the six, even the five million is in cash? So if you don't get it, the cash goes back out? No. So the original transaction was $20 million all cash in two payments. The first one is 15 million cash; the second is five of cash. They paid 15. We've closed that part, and it's the second part that may or may not close.

Speaker Change: Go ahead.

Brian Macarthur: Good morning and thank you for taking my question. One of mine is around Evolve 2. Where is it on the balance sheet, given this uncertainty? Is it in short-term investments or is it in something else at the moment?

Speaker Change: It's in cash.

Speaker Change: So even the $5 million is in cash? So if you don't get it, the cash goes back out? No.

Brian Macarthur: Where is it on the balance sheet, given this uncertainty? Is it in short-term investments, or is it in something else at the moment? And Thin Cash. So even the $5 million is in cash? So if you don't get it, the cash goes back out? No.

Brian Macarthur: So the original transaction was $20 million in cash, in two payments. The first one was $15 million in cash, and the second was $5 million in cash. They paid $15, we've closed that part, and it's the second part that may or may not close. If it doesn't close, there will be no shares, so there's no Evolve sitting in our investments anywhere. Okay, thank you.

Speaker Change: So the original transaction was 20 million dollars all cash in two payments

Speaker Change: The first one is $15 million of cash, the second is $5 million of cash.

Speaker Change: They paid $9.15, we've closed that part, and it's the second part that may or may not close. If it doesn't close, there will be...

Nolan Watson: If it investments anywhere.

Brian Macarthur: Okay, thank you. And just my second one goes back to VersaMet because you mentioned it was a $300 million valuation right now, but I'm just trying to match it again to the financials because you're carrying a value of 65, and I think you own 28%, which implies it's worth more than 85. There's been something that happened since quarter end that's changed that because I thought the other convertible was done in the quarter. I'm just trying to reconcile where the 300 comes from.

Nolan Watson: Okay.

Nolan Watson: Thank you.

Speaker Change: [inaudible]

Nolan Watson: And just my second one goes back to the versament because you mentioned it was $300 million valuation right now, but I'm just trying to match it again to the financials because you're carrying value 65 and I think you're on 28 percent, which implies worth more than 85. There's been something that's happened since quarter end that's changed that because I thought the other convertible was done in the quarter. I'm just trying to reconcile where the 300 comes from. Yeah, that's referencing enterprise value, and the amounts that you see in investment associates are carried at cost. So they don't get into a revaluation of your initial investments and accounting kind of unique component to market.

Speaker Change: I'm just trying to match it again to the financials because your carrying value is 65 and I think you own 28% which implies it's worth more than 85.

Speaker Change: Something that's happened since quarter end that's changed that because I thought the other convertible was done in the quarter I'm just trying to reconcile where the 300 comes from

Brian Macarthur: Yeah, that's referencing enterprise value, and the amount that you see in investment associates is carried at cost. So they don't get into a revaluation of your initial investment and accounting kind of unique components, not mark to market. Okay, great.

Speaker Change: Yeah that's referencing enterprise value and the amounts that you see in investment associates are carried at cost and so they don't get into revaluation of your initial investments and accounting kind of unique components on mark to market.

Nolan Watson: Okay, great. Thank you very much. That's very helpful.

Brian Macarthur: Okay, great. Thank you very much. That's very helpful.

Speaker Change: Okay, great. Thank you very much. That's very helpful.

Nolan Watson: Thank you.

Joanna: Thank you. We have no further questions. You may proceed.

Joanna: We have no further questions. You may proceed. All right.

Speaker Change: Thank you. We have no further questions. You may proceed.

Nolan Watson: Alright, well, thank you everyone for calling in, and, as usual, if you have any questions, feel free to call us here at the office, and have a good day.

Nolan Watson: Well, thank you everyone for calling in, and as usual, if you have any questions, feel free to phone us here at the office, and have a good day. Thank you.

Speaker Change: Alright, well thank you everyone for calling in and as usual if you have any questions feel free to phone us here at the office and have a good day.

Joanna: Ladies and gentlemen.

Joanna: Ladies and gentlemen, this concludes your conference for today.