Q4 2024 Sandstorm Gold Ltd Earnings Call

2020 for fourth quarter results conference call.

All lines have been please mute to prevent any background noise.

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.

Actual results and future events could differ materially from those anticipated in such statements.

After the Speakers' 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.

Watson: If you would like to withdraw your question. Please press star followed by the number two thank you. Mr. Watson you may begin your conference.

Mr. Watson: Thank you Ina.

Mr. Watson: Morning, everyone and thank you for calling into our Q4 and annual 2024 earnings call.

Speaker Change: Before I hand things over to <unk>, our CFO to review the financial statements highlights I'd like to give an update on a number of things in our business.

Speaker Change: Specifically number one a brief characterization of our Q4 production and what we're seeing so far in Q1 of 2025.

Speaker Change: Number two I'd like to provide an explanation of our 2025 guidance as well as our long term production outlook.

Speaker Change: Number three with that backdrop I'd like to talk about our cash flow expectations and our balance sheet strength and then four I'd like to explain our latest strategy for capital allocation because well.

As I walk through each of these points Youll see that we have a strong balance sheet lots of cash flow and therefore, a significant capital allocation decisions and I think it's important for shareholders to understand how we are allocating capital and why.

Speaker Change: So starting off with a brief characterization of our Q4 sales we had strong revenue of $47 million U S.

Speaker Change: Operating cash flow of $36 million being driven by gold equivalent production of 17721 ounces, which is similar ounces to the past couple of quarters.

Speaker Change: What's worth noting is that there were a couple of onetime events in Q4, one of which increased in ounces and one of which was a onetime decrease in ounces that effectively offset each other.

Speaker Change: Specifically during the quarter Americas Gold and silver were successfully completed their merger and they raised capital and brought in a new management team and as part of that they requested to deliver some gold to us early so that they can reduce their indebtedness and show a stronger balance sheet.

Speaker Change: Therefore in Sandstorms Q4, there was an extra 500 ounces from Americas gold and silver.

Speaker Change: We made an adjustment to our stream in the future to allow for a corresponding lower delivery over time for the remaining portion of the stream.

Also during Q4 at both Casoron us and Japan.

Speaker Change: Both lending mining assets there was an abnormal one time drop in deliveries of copper to sandstorm because during their Q3, even though production was normal there were delays when they shipped and sold the concentrates and under our contracts the deliveries and payments that sandstorm are entitled to in Q4 are based on what we.

Speaker Change: Shipped and sold in Q3, therefore that delay resulted in a material drop in our Q4 sales.

Specifically number one brief characterization of our Q4 production and what we're seeing so far in Q1 of 2025.

The good news is that the production at the underlying mines was normal through these period. So for Lindeen in Q4, they sold more concentrates than during a normal quarter, which means that sandstorm will get catch up deliveries in Q1. So we're expecting a relatively strong Q1 to start off 2025.

Number two I'd like to provide an explanation of our 2025 guidance as well as our long term production outlook.

Number three with that backdrop I'd like to talk about our cash flow expectations and our balance sheet strength and then four I'd like to explain our latest strategy for capital allocation because once I walk through each of these points, you'll see that we have a strong balance sheet lots of cash flow and therefore significant capital allocation decisions.

Speaker Change: So moving on to item, two and our 2025 guidance and long term outlook.

Speaker Change: 2024 was a dip year in production for us with a fewer mines, having lower than average years from a production perspective.

I think it's important for shareholders to understand how we are allocating capital and why.

Speaker Change: But also soaring gold prices meant that our silver and copper revenue turned into fewer gold equivalent ounces than originally anticipated.

Yeah.

So starting off with a brief characterization of our Q4 sales, we got strong revenue of $47 million U S.

Speaker Change: When we set our budget for 2024, we assumed 1800 dollar gold prices.

Operating cash flow of $36 million being driven by gold equivalent of production of <unk>.

Speaker Change: And internally, we were expecting 83000 ounces as a base case.

<unk> thousand 721, elses, which is similar to the past couple of quarters.

Speaker Change: But with gold prices going up so much our silver and copper revenue turned into fewer gold equivalent ounces than expected.

What's worth noting is that there were a couple of one time events in Q4, one of which increased in ounces and one of which was a one time decrease in ounces it effectively offset each other.

Speaker Change: In the end for 2024, we missed our internal Geo's production.

Speaker Change: Targets by 10700 ounces.

Specifically during the quarter Americas gold and silver were successfully completed their merger.

Speaker Change: <unk> 8300 ounces of that nearly 80% of the Miss was from price fluctuations in.

And they raised capital and brought in a new management team and as part of that they requested to deliver some goals to us early so that they can reduce their indebtedness and show a stronger balance sheet.

Speaker Change: And the 15 year history of Sandstorm, we've hit our annual guidance range 13 out of 15 times and the only two times. We missed were won during Covid. When a number of the mines were temporarily shut down and two in 2024 because of soaring gold prices, we want to be able to give guidance to the market that investors can be confident in.

Therefore in Sandstorms Q4, there was an extra 1500 ounces for Americas gold and silver.

We made an adjustment to our stream in the future to allow for a corresponding lower delivery overtime for the remaining portion of the stream.

Speaker Change: So that we do not Miss two years in a row because of soaring gold prices. So we've decided to provide a very conservative range guidance for 2025 of 65000 to 80000 ounces.

Also during Q4 at both cats erode S in Jakarta.

Both lending mining assets there was an abnormal one time drop in deliveries of copper to sandstorm because during their Q3, even though production was normal there were delays when they shipped and sold the concentrates and under our contracts the deliveries and payments that same store, we're entitled to in Q4 are based on what was.

Speaker Change: That might seem low to some people, but please know that part of this is us trying to ensure that we don't make the same mistake twice back to back as gold prices continue to go up which will be absolutely amazing for our business and as for our cash flow and for our balance sheet and I want to make sure that our reputation as far as guidance is concerned stay strong even.

Shipped and sold in Q3, therefore that delay resulted in a material drop in our Q4 sales.

The good news is that the production at the underlying minds was normal through these periods. So for Lindeen in Q4, they sold more concentrates than during a normal quarter, which means that sandstorm will get catch up deliveries in Q1. So we're expecting a relatively strong Q1 to start off 2025.

Speaker Change: If gold prices continue to go up which I certainly hope they do.

Speaker Change: We definitely don't expect to have production close to 65000 ounces for the year. However, there if there are unexpected softness in deliveries for some of our assets.

Speaker Change: Bear Creek has trouble delivering their ounces or of greenstone has unexpected challenges ramping up and then simultaneously gold prices go through the roof.

So moving on to item, two and our 2025 guidance and long term outlook.

Speaker Change: Ain't a picture of a scenario or Geo production could look soft.

'twenty 'twenty four was a dip here in production for us with if your minds, having lower than average years from a production perspective, but also soaring gold prices meant that our silver and copper revenue turned into fewer gold equivalent ounces than originally anticipated.

Speaker Change: I think it's also important to note that guiding this way is a double edged sword, because there are scenarios, where the mines do what we think they do and gold prices soften a bit and we.

Speaker Change: Could dramatically miss guidance to the upside.

When we set our budget for 'twenty 'twenty four we assumed 1800 dollar gold prices and.

Speaker Change: For example, we ran a scenario where the mines delivered according to their public guidance.

And internally, we were expecting 83000 ounces as a base case.

Speaker Change: Silver prices stayed above $30 an ounce in the copper prices stayed somewhere in the mid fours and we said well what if gold prices to go down to $2000, an ounce and our model kicked out a number of 90000 gold equivalent ounces for the year way outside of our guidance range to the upside.

But with gold prices going up so much our silver and copper revenue turned into fewer gold equivalent ounces and expected.

In the end for 'twenty 'twenty four we missed our internal G E O production targets by 10700 ounces.

All of this to say that I believe we are guiding conservatively and.

But 8300 ounces of that nearly 80% of the Miss was from price fluctuations.

Speaker Change: And either way, our cash flow will be strong and there are scenarios for upside surprises.

Speaker Change: I'll talk more about this later, but one of the things that I love about now having a strong balance sheet is it if the market doesn't understand this dynamic and how strong we are in our share price dips because of the conservative guidance, we're happy to step into the market in size now and buyback our shares and canceled them.

And the 15 year history of Sandstorm, we've hit our annual guidance range 13 out of 15 times and the only two times. We missed were won during Covid. When a number of the mines were temporarily shut down and two in 'twenty 'twenty four because of soaring gold prices, we want to be able to give guidance to the market that investors can be confident in.

Speaker Change: It's days like today for example, where if we werent in blackout because of our earnings that we would be in the market insider buying and canceling those shares so tomorrow when we come out of blackout, we will be stepping into the market to the maximum we are allowed and buying back shares for investors, who don't get the big picture and we will cancel those shares that the remaining <unk>.

So that we do not Miss two years in a row because of soaring gold prices. So.

We've decided to provide a very conservative range guidance for 2025.

65000 to 80000 ounces.

That might seem low to some people, but please know that part of this is just trying to ensure that we don't make the same mistake twice back to back as gold prices continue to go up which would be absolutely amazing for our business and as for our cash flow and for our balance sheet and I want to make sure that our reputation as far as guidance is concerned stays strong.

Speaker Change: <unk> will own a higher percentage of our company and therefore, we will get a higher percentage of our future growth.

Speaker Change: As time to backup the truck on share buybacks and that's what we're going to do.

Speaker Change: One of the reasons, we're particularly happy to buy back shares and canceled them is because of our belief in our long term guidance.

If gold prices continue to go up which I certainly hope they do.

Speaker Change: Based on what we're hearing from our mining partners at the moment, it's our expectation that our production will increase to over 150000 gold equivalent ounces per year over the next five years.

We definitely don't expect to have production close to 65000 ounces for the year. However, there if there are unexpected softness in deliveries for some of our assets or Bear Creek has trouble delivering their ounces or if greenstone has unexpected challenges ramping up and then simultaneously gold prices go through the roof you.

Speaker Change: Again this is from a ramp up of greenstone, which is now in production as well as a phase to build approach to Ivanhoe as plat Reef mine, which is now in construction in Ivanhoe updated the market. This morning on their progress at <unk> and that's consistent with our guidance as.

You can paint a picture of a scenario, where a G E O production could look soft.

Speaker Change: As well as Barrick's Robertson mine, which just got his permits and is expected to be completed in 2027 as well as the hog modern mine, which based on my most recent understanding SSR will be giving updated development timelines and capital commitment decisions and guidance to the market within the next month.

I think it's also important to note. The guiding this way is a double edged sword, because there are scenarios, where the mines do what we think they do and gold prices soften a bit.

It dramatically miss guidance to the upside.

For example, we ran a scenario where the mines delivered according to their public guidance.

Speaker Change: And our growth also now includes the development of the deep carbonates project at <unk>, which Dave is going to talk about in later detail on this call.

Silver prices stay at about $30, an ounce in the copper prices stayed somewhere in the mid fours and we said well what if gold prices to go down to $2000, an ounce and our motto kicked out a number of 90000 gold equivalent ounces for the year way outside of our guidance range to the upside.

Speaker Change: Around the same time the glaucoma Io is coming online should also be when Glencore is Mara mine will be coming towards completion, which I believe is our most valuable stream and our whole portfolio and I'm told this morning, Gary Nagle. The CEO of Glencore mentioned that they would be putting in their ritchie application in Argentina in the <unk>.

All of this to say that I believe we are guiding conservatively.

And either way, our cash flow will be stronger and there are scenarios for upside surprises.

I'll talk more about this later, but one of the things that I love about now having a strong balance sheet is it if the market doesn't understand this dynamic and how strong we are at our share price dips because of the conservative guidance, we're happy to step into the market in size now and buyback our shares and canceled them.

Speaker Change: Next six months.

Speaker Change: Shortly after that Rio Tinto should be mining on the entre joint venture ground I know you're totally in Mongolia, which is one of the world's most significant copper mines and it will be a significant stream for us for many years to come.

Speaker Change: Based on all of this you can see how yes, we have strong cash flow now we have a strong balance sheet finally, but the future is in construction and it's going to be incredible.

It's days like today for example, where if we weren't in blackout because of our earnings that we would be in the market insider buying and canceling those shares so tomorrow when we come out of blackout, we will be stepping into the market to the maximum we were allowed and buying back shares for investors, who don't get the big picture and we will cancel those shares that the remaining <unk>.

Speaker Change: You can see on this updated production forecast chart, where we know color coded the production that we expect from our different growth assets.

Speaker Change: You can see that these assets come online and as they come online our production will double and stay high for a longer period of time.

There's a load of higher percentage of our company and therefore will get a higher percentage of our future growth.

It's time to back up the truck with share buybacks and that's what we're going to do.

Speaker Change: 25, there will be continuous key catalysts as each of these big projects keep getting pushed forward.

One of the reasons, we're particularly happy to buy back shares and canceled them is because of our belief in our long term guidance.

Speaker Change: As an exciting year for us.

Speaker Change: When you look at what that production profile can generate in terms of annual cash flows. We have this updated slide to show that our portfolio can now generate after tax cash flows of around $150 million per year based on $2600 gold.

Based on what we're hearing from our mining partners at the moment, it's our expectation that our production will increase to over 150000 gold equivalent ounces per year over the next five years.

Ivanhoe: Again this is from a ramp up of greenstone, which is now in production as well as a phased build approach to Idaho's plat Reef mine, which is now in construction in Ivanhoe updated the market. This morning on their progress at flat rate, that's consistent with our guidance.

Speaker Change: And by the way coal prices are much higher than that now and we're just trying to be conservative with our figures but.

Speaker Change: But that cash flow ramps up so that by 2030, it should be closer to $260 million U S per year and again, that's a $2600 gold $30 silver for all our copper.

Ivanhoe: As well as Burton Robertson mine, which just got to get permits and is expected to be completed in 2027 as well as the hot modern mine, which based on my most recent understanding SSR will be giving updated development timelines and capital commitment decisions and guidance to the market within the next month.

Speaker Change: At today's spot prices, the cash flow would be closer to $300 million U S per year.

Speaker Change: So you can see based on that.

Speaker Change: So confidence in our balance sheet right now.

Speaker Change: A couple of years ago at the peak of our debt, we owe to $640 million, we now only O $340 million and we expect that number to go below $300 million.

Ivanhoe: And our growth also now includes the development of the deep Carbonates project, a quagmire, which Dave is going to talk about in later detail on this call.

Speaker Change: Sometime between the end of Q2, and Q3 of this year and to continue dropping rapidly.

Ivanhoe: Around the same time that glaucoma Iowa's coming online should also be when Glencore is Mara mine will be coming towards completion, which I believe is our most valuable stream and our whole portfolio and I'm told this morning, Gary Nagle, the CEO of Glencore mentioned that they would be putting in their ritchie application in Argentina.

Speaker Change: One of the things that will help accomplish this is that for VAT of Cola stream, which has been a nonperforming stream for some time and for which we have not been recognizing revenue we have.

Speaker Change: Come to an agreement for a buyout option of $14 million, which in order to be used has to be exercised shortly.

Ivanhoe: Next six months.

Ivanhoe: Shortly after that Rio Tinto should be mining on the entre joint venture ground, although you're totally in Mongolia, which is one of the world's most significant copper mines and it'll be a significant stream for us for many years to come.

Speaker Change: The stream has not been paying us for an extended period, but with the incremental $14 million. We would then have all of our capital back plus a profit on this deal so not a bad situation for us and we'll use those proceeds to repay debt.

Ivanhoe: Based on all of this you can see how yes, we have strong cash flow now we have a strong balance sheet finally, but the future is in construction and it's going to be incredible.

Speaker Change: Once our debt is below $300 million.

Speaker Change: That is the point, where we are extremely comfortable and happy to stay at indefinitely, if necessary. If our shares continue to trade at a material discount to their fundamental value.

Ivanhoe: You can see on this updated production forecast chart, where we know color coded the production that we expect from our different growth assets.

Speaker Change: Although $300 million is not a particularly a magic number it feels magic for us because not only does it mean that our debt is below two times today's EBITDA and approximately one times our forward looking EBITDA for 2030.

Ivanhoe: You can see that these assets come online and as they come online our production will double and stay high for a longer period of time.

Ivanhoe: 25, there will be continuous key catalysts as each of these big projects keep getting pushed forward.

Speaker Change: It's also the number that makes our debt less than our investments and other mining companies debt and equity.

Ivanhoe: <unk> is an exciting year for us.

Speaker Change: Over $300 million worth of investments in other companies debt and equity, which is actually yielding us a higher return than our debt is costing us.

Ivanhoe: When you look at what that production profile can generate in terms of annual cash flows. We have this updated slide to show that our portfolio can now generate after tax cash flows of around $150 million per year based on $2600 gold and.

Speaker Change: But I'm trying to paint is a mental picture of a situation whereby the middle of this year, we no longer have any need to continue to prioritize debt repayment.

Ivanhoe: And by the way coal prices are much higher than that now and we're just trying to be conservative with our figures, but that cash flow ramps up so that by 2030, it should be closer to $260 million U S per year and again, that's a $2600 gold $30 silver $4 copper.

Speaker Change: When we have other potential capital allocation alternatives, whether they'd be growth for share buybacks.

Speaker Change: We don't anticipate getting cash calls on MRO stream option into the latter half of next year once permitting is complete.

At today's spot prices, the cash flow would be closer to $300 million U S per year.

Speaker Change: And when we finally do start contributing fast treatment will only consume a portion of our operating cash flow for a few years.

Ivanhoe: So you can see based on that.

Speaker Change: What this means is that we are now finally in a position with a strong balance sheet and lots of cash flow, where we can start increasing the priority of our share buybacks, which leads me to this next slide.

Ivanhoe: Confidence in our balance sheet right now.

Ivanhoe: A couple of years ago at the peak of our debt, we owe to $640 million, we now only O $340 million and we expect that number to go below $300 million sometime between the end of Q2 and Q3 of this year and to continue dropping rapidly.

Speaker Change: And this new slide we're trying to show that of the big six streaming royalty companies. We are the ones that have been returning the most capital to shareholders over the last nine to 12 months on a relative basis.

Ivanhoe: The things that will help accomplish this is that for a attic Cola stream, which has been a nonperforming stream for some time and for which we have not been recognizing revenue we have come to an agreement for a buyout option of $14 million, which in order to be used has to be exercised shortly.

Speaker Change: Over the last nine months for every gold equivalent ounce that we have received and sold we have returned $540 U S to shareholders through either dividends or share buybacks. This is more than any of our peers.

Why I bring this up is that because we believe our balance sheet is now strong and our shares are still undervalued that we plan on increasing this even further in the months to come and we'll be ramping up our share buybacks.

Ivanhoe: <unk> has not been paying us for an extended period, but with the incremental $14 million. We would then have all of our capital back plus a profit on this deal so not a bad situation for us and we'll use those proceeds to repay debt.

Speaker Change: I believe in the long term strength and growth profile of our company and we're looking forward to that future. We're trying to shrink our share float and cancel shares so when we get to the future. We will have way more cash flow and fewer shares outstanding.

Ivanhoe: Once our debt is below $300 million.

Ivanhoe: That is the point, where we are extremely comfortable and happy to stay at indefinitely, if necessary. If our shares continue to trade at a material discount to their fundamental value.

Speaker Change: As a significant shareholder of sandstorm myself I believe this will be the most profitable path for us all.

Ivanhoe: Although $300 million is not a particularly a magic number it feels the magic for us because not only does it mean that our debt is below two times today's EBITDA at approximately one times our forward looking EBITDA for 2030.

Speaker Change: And with that I'll hand, it over to <unk> to talk about the specific financial results.

Speaker Change: Thanks Nolan.

Speaker Change: Good morning, everyone and thank you for joining us today.

Speaker Change: Our 2024 results delivered total revenue of approximately $176 million.

Ivanhoe: Also the number that makes our debts less than our investments in other mining companies debt and equity we have over $300 million worth of investments in other companies debt and equity, which is actually yielding us a higher return than our debt is costing us.

Speaker Change: A drop in attributable gold equivalent ounces.

Speaker Change: From 97000 ounces in 2023% to approximately 73000 ounces.

Speaker Change: In 2024, while the majority of the operations of the portfolio met our budgeted forecast as Nolan mentioned, the outperformance of gold relative to other metals impacted the company's gold equivalent production.

Ivanhoe: But I'm trying to paint is a mental picture.

Ivanhoe: A situation whereby the middle of this year, we no longer have any need to continue to prioritize debt repayment.

That is other commodities like copper silver iron ore translate into less gold ounces when the gold price is comparatively higher.

Ivanhoe: We have other potential capital allocation alternatives, whether they'd be growth for share buybacks we.

Ivanhoe: We don't anticipate getting cash calls at our Morris stream option into the latter half of next year, let's permitting is complete.

Speaker Change: And as Nolan mentioned at year end, an increase of 30% and the average realized gold price compared to our 2024 budgeted result.

Ivanhoe: And when we finally do start contributing to that stream. It will only consume a portion of our operating cash flow for a few years.

Speaker Change: Impacted the difference of over 8000 fewer gold equivalent ounces than we had anticipated.

Ivanhoe: What this means is that we are now finally in a position with a strong balance sheet and lots of cash flow, where we can start increasing their priority over share buybacks, which leads me to this next slide.

Speaker Change: However, higher gold price environment is welcome and continues to drive healthy operating margins and strong cash flows for the company.

Ivanhoe: And this new slide we're trying to show.

Speaker Change: Cash costs in 2024 were $275 per attributable ounce.

Ivanhoe: Big six streaming royalty companies, we are the ones that had been returning the most capital to shareholders over the last nine to 12 months on a relative basis.

Speaker Change: <unk> cash operating margins of approximately $2100 per ounce.

Ivanhoe: Over the last nine months for every gold equivalent ounce that we have received and sold we have returned $540 U S to shareholders through either dividends or share buybacks. This is more than any of our peers why I bring this up is that because we believe our balance sheet is now stronger and our shares are still undervalued that we plan on it.

Speaker Change: And when excluding changes in noncash working capital. These record margins led to strong cash flows from operating activities of $139 million.

Speaker Change: While not a record in terms of cash flow there were certainly robust and allowed us to make good progress on debt repayment decreasing the balance on our credit facility by $80 million as well as returning over $28 million to shareholders in the form of dividends and share buybacks as Nolan discussed.

Ivanhoe: Increasing this even further in the months to come and we'll be ramping up our share buybacks. We believe in the long term strength and growth profile of our company and we're looking forward to that future. We're trying to shrink our share float and cancel our shares so when we get to that future. We will have way more cash flow and fewer shares outstanding.

In the fourth quarter sandstorm renewed its revolving credit facility for another four year term with reduced interest rates above silver.

Speaker Change: As a significant shareholder of sandstorm myself I believe this will be the most profitable path for us all.

Speaker Change: The combination of debt repayment and lower interest rates throughout 2024 reduced the company's finance expense by $4 $5 million.

Speaker Change: And with that I'll hand, it over to her fan to talk about the specific financial results.

Speaker Change: Net income for 2024 with $15 $5 million down from $42 7 million in 2023.

Speaker Change: Thanks Nolan.

Speaker Change: Good morning, everyone and thank you for joining us today.

Speaker Change: Our 2024 results delivered total revenue of approximately $176 million.

Speaker Change: The decrease in net income was largely driven by valuation adjustments from the company's investment portfolio as well as the onetime contractual payment received in 2023 related to the company's mountain Hamilton royalty.

Speaker Change: You might have dropped in attributable gold equivalent ounces.

Speaker Change: So from 97000 ounces in 2023% to approximately 73000 ounces.

Speaker Change: In 2024, while the majority of the operations of the portfolio matter of budget forecast.

Speaker Change: Sandstorms tax expense in 2023 with lowered due to previously unrecognized tax attribute.

Speaker Change: As Nolan mentioned, the outperformance of gold relative to other metals impacted the company's gold equivalent production.

Speaker Change: Turning to the next slide this is a detailed asset breakdown of attributable gold equivalent production in 2024.

Speaker Change: That is other commodities like copper silver iron ore translate into less gold ounces when the gold price is comparatively higher.

Speaker Change: First gold deliveries from the greenstone mind, we're certainly highlight this past year.

Speaker Change: And there's no one mentioned at year end, an increase of 30% and the average realized gold price compared to our 2024 budgeted result.

Speaker Change: Green Zone represents the first material development asset from the investments we made in 2022 to commence production and.

Speaker Change: And Mark the beginning of the new growth chapter that Nolan highlighted.

Speaker Change: Impacted the difference of over 8000 fewer gold equivalent ounces than we had anticipated.

Speaker Change: By the end of the year Sandstorm received and sold approximately 2000 gold ounces from Green zone.

Speaker Change: However, higher gold price environment is welcome.

Speaker Change: <unk> needs to drive healthy operating margins and strong cash flows for the company.

Equinox is continuing to ramp up operations in the mine.

Speaker Change: Cash costs in 2024 were $275 per attributable ounce, resulting in cash operating margins of approximately $2100 per ounce.

Speaker Change: And we look forward to an increase in attributable production throughout 2025.

Speaker Change: With greenstone at full design capacity, we expect gold deliveries to be approximately 8000 to 10000 ounces per year attributable with sandstorm.

Speaker Change: And when excluding changes in noncash working capital. These record margins led to strong cash flows from operating activities of $139 million.

Speaker Change: As one of Canada's largest open pit gold mine with an initial 15 year mine life Greenstone is a welcome addition to our producing mine portfolio and will play an important part as we aim to double our production profile over the next several years.

Speaker Change: Well not a record in terms of cash flow there were certainly robust and allowed us to make good progress on debt repayment decreasing the balance on our credit facility by $80 million as well as returning over $28 million to shareholders in the form of dividends and share buybacks as Nolan discussed.

Speaker Change: The company's bond growth stream with one of the top contributing assets in 2024.

Speaker Change: Production of <unk> has recently benefited from higher grade due to mine sequencing and improved plant throughput from various optimization effort.

Speaker Change: In the fourth quarter sandstorm renewed its revolving credit facility for another four year term with reduced interest rates above sofa.

Speaker Change: In the third quarter of 2020 for Allied Golden announced the closing of our Canadian $53 million third party financing package for advancement initiatives.

Speaker Change: The combination of debt repayment and lower interest rates throughout 2024 reduced the company's finance expense by $4 $5 million.

Speaker Change: <unk> complex, including the monochrome mine.

Speaker Change: Net income for 2024 with $15 $5 million down from $42 7 million in 2023.

Speaker Change: Allied allocated $60 5 million in 2024 for the management of high priority targets, which are located within the area of interest of Sandstorm stream.

Speaker Change: The decrease in net income was largely driven by valuation adjustments in the company the investment portfolio as well as the onetime contractual payment received in 2023 related to the company's Mount Hamilton royalty.

Speaker Change: In conjunction with third party financing sandstorm amended gold stream and the monochrome mine to include minimum annual deliveries, which are between 4000 6000 ounces in 2025 and 2026.

Speaker Change: Tax expense in 2023 was lowered due to previously unrecognized tax attribute.

Speaker Change: Lending goals reported record production at <unk> 2020 for submission.

Speaker Change: Turning to the next slide this is a detailed asset breakdown of attributable gold equivalent production in 2024.

Speaker Change: Commissioning of the plant expansion continues to progress and Lundin Gold has also identified opportunities to further increase average throughput to 5500 tonnes per day starting in 2026.

Speaker Change: First gold deliveries from the greenstone mine, we're certainly highlight this past year.

Speaker Change: In December Lundin gold announced that it hits surpassed 56000 meters of drilling in 2024.

Speaker Change: Green Zone represents the first material development asset from the investments we made in 2022 to commence production.

Speaker Change: Ever exploration drilling program conducted on the land package at an estimated cost of $44 million when combined with the regional drill program.

Speaker Change: And Mark the beginning of the new growth chapter that Nolan highlighted.

Speaker Change: By the end of the year Sandstorm received and sold approximately 2000 gold ounces from greenstone.

Speaker Change: Drilling has been focused on further delineating the recently discovered bonds us through deposit fruit to deal nor Te.

Speaker Change: Equinox is continuing to ramp up operations in the mine and.

Speaker Change: London plans to complete an additional 65000 meters of drilling in 2025, and released an initial mineral resource and PPA on the bonds or deposits this year.

Speaker Change: And we look forward to an increase in attributable production throughout 2025.

Speaker Change: With greenstone at full design capacity, we expect gold deliveries to be approximately 8000 to 10000 ounces per year attributable to sandstorm.

At the end to Mena mind, the approval of the modified EIA has extended operations.

Speaker Change: As one of Canada's largest open pit gold mine with an initial 15 year mine life Greenstone is a welcome addition to our producing mine portfolio and will play an important part as we aim to double our production profile over the next several years.

Speaker Change: Through to 2036.

Speaker Change: As a result of the updated mine plan and re estimation of future closure cost and adjustment to the asset retirement obligation of the mine was recognized in 2024 impacting <unk> revenues in the fourth quarter. However.

Speaker Change: The company's bond across Dream was one of the top contributing assets in 2024.

Speaker Change: However, we expect this impact to be offset long term with the potential for throughput expansion of up to 40% and more certainty around future mine life extension.

Speaker Change: Production of <unk> is recently benefited from higher grade due to mine sequencing and improved plant throughput from various optimization effort.

Speaker Change: At Japan.

Speaker Change: One of our larger corporate stream 2024 production is expected to be sufficient to meet sandstorms annual copper delivery cap.

Speaker Change: In the third quarter of 2020 for Allied Golden announced the closing of the Canadian $53 million or third party financing package for advancement initiatives.

Speaker Change: However, as Nolan indicated the timing of settlements shifted approximately 20% to 30% of annual deliveries for the first quarter of 2025.

Speaker Change: <unk> complex, including the monochrome mine.

Speaker Change: Allied allocated six and a half million in 2024 for the advancement of high priority targets, which are located within the area of interest of Sandstorm stream.

Speaker Change: Lundin mining continues to implement several optimization initiatives and reported 46% decrease in mining costs compared to 2022 following various optimization effort.

In conjunction with a third party financing sandstorm amended its gold stream and the monochrome mind to include minimum annual deliveries, which are between 4000 to 6000 ounces in 2025 and 2026.

Speaker Change: Our redesigned mining plan is expected to streamline operations, while maintaining output further improving free cash flow generated from the mine.

Speaker Change: In 2025, London mining is planning a 20000 meter drill program at <unk> with a goal to grow resources.

Speaker Change: Lundin Gold's reported record production of fruit to del Norte in 2024.

Speaker Change: Commissioning of the plant expansion continues to progress and Lundin Gold has also identified opportunities to further increase average throughput to 5500 tonnes per day starting in 2026.

We're also expecting the results of the scoping study on the Soave deposit an updated technical report to be filed this year.

Speaker Change: In the fourth quarter Sandstorm amended the terms of the relief Canyon streaming agreement relating to the timing of six ounces.

Speaker Change: In December Lundin gold announced that it had surpassed 56000 meters of drilling in 2024.

Speaker Change: Nolan explained sandstorm received an additional 500 ounces of gold in the fourth quarter.

Speaker Change: The largest ever exploration drilling program conducted on the land package at an estimated cost of $44 million when combined with the regional drill program.

Under the amended stream terms the company expects deliveries of approximately 5000 ounces in each of 2025 through 2027.

Speaker Change: Drilling has been focused on further delineating the recently discovered bonds us through deposit fruit still north Te.

Speaker Change: These three amendments fall of $50 million financing completed by Americas gold and silver in conjunction with their consolidations the Galena complex in Idaho.

Speaker Change: London plans to complete an additional 65000 meters of drilling in 2025 and released an initial mineral resource in P. A on the bonds of certain deposits this year.

Speaker Change: And American School is now being led by Mr. Paul Hewitt and is focused on unlocking value at Galena and deleveraging the company's balance sheet.

Speaker Change: At the end to minimize the approval the modified E. The extended operations.

Speaker Change: In 2024 Sandstorms attributable production remained predominantly from South America at 45%.

Speaker Change: Through to 2036.

Speaker Change: As a result of the updated mine plan and re estimation of future closure cost and adjustment to the asset retirement obligation of the mine was recognized in 2024 impacting <unk> revenues in the fourth quarter. However.

Speaker Change: Followed by 35% from North American operation and the remaining 20% from other countries around the world.

Speaker Change: In terms of metal type attributable production was 75% precious metals.

Speaker Change: However, we expect this impact to be offset long term with the potential for throughput expansion of up to 40% and more certainty around future mine life extension.

Speaker Change: Roughly 61% from gold.

Speaker Change: We expect increasingly more gold exposure from the portfolio greenstone ramps up and other Gulfstream to begin contributing over the next few years.

At Japan up.

Speaker Change: One of our larger corporate stream 2024 production is expected to be sufficient to meet sandstorms annual copper delivery cap.

Speaker Change: In 2025, we're already off to a good start with strong gold market. This has allowed us that payback, an additional $15 million of debt since January one.

Speaker Change: However, knowing indicated the timing of settlements shifted approximately 20% to 30% of annual deliveries for the first quarter of 2025.

Speaker Change: And as Don discussed we plan to increase the rate of our share buyback program over the course of the year.

Speaker Change: Lundin mining continues to implement several optimization initiatives and reported 36% decrease in mining costs compared to 2022 following various optimization effort.

Speaker Change: In terms of production, we are forecasting between 65080 thousand gold ounces in 2025.

Speaker Change: And as the year progresses, we plan on tightening that range as we get better clarity on various commodity price scenarios and the ramp up progress at greenstone.

Speaker Change: Our redesigned mining plan as expected three mine operations, while maintaining output further improving free cash flow generated from the mine.

Speaker Change: In 2025, London mining is planning a 20000 meter drill program at Japan with a goal to grow resources.

Speaker Change: Long term, we are raising our production outlook based on various positive advancements at our development asset.

Speaker Change: We anticipate production to reach 150000 attributable gold equivalent ounces in 2030 based on our existing streams and royalties plus the exercise of sandstorm Gulfstream option on the <unk> project.

Speaker Change: We're also expecting the results of the scoping study on the Soave deposit an updated technical report to be filed this year.

Speaker Change: In the fourth quarter Sandstorm amended the terms of its relief Canyon streaming agreement relating to the timing of six ounces Nolan explained sandstorm receive an additional 500 ounces of gold in the fourth quarter.

Speaker Change: With that I'll pass it over date for some more details on our growth assets.

Speaker Change: Thanks, Stefan and good morning, everyone.

Speaker Change: Today's asset update will focus on a couple of less well understood asset exposures in our portfolio in the Oyu Tolgoi joint venture area, and but why Carmichael mine with a small mentioned on valleys northern system iron and copper projects.

Speaker Change: Under the amended stream terms the company expects fixed deliveries of approximately 5000 ounces in each of 2025 through 2027.

Speaker Change: These stream amendments fall of $50 million financing completed by Americas gold and silver in conjunction with their consolidations that Galina complex in Idaho.

Speaker Change: On the topic of Oyu Tolgoi I'd like to begin by addressing the formalization of the joint venture agreement. Initially proposed 2008 between Ot LLC, the operating entity and Entre resources.

Speaker Change: And American School is now being led by Mr. Paul Hewitt and is focused on unlocking value at Galena and deleveraging the company's balance sheet.

Speaker Change: Yeah.

Speaker Change: Following this I'll highlight some of the recently released drill results.

Speaker Change: In 2024 Sandstorms attributable production remained predominantly from South America at 45%, followed by 35% from North American operations and the remaining 20% from other countries around the world.

Speaker Change: Finalize it to start February joint venture agreement puts in place mechanisms like the transfer of licenses into Ot LLC, which is crucial to avoid delays in the development work plan for 2025 within the Hugo North extension.

Speaker Change: In terms of metal type attributable production was 75% precious metals.

Speaker Change: Approximately 61% from gold.

Speaker Change: The arbitration decision also sets the stage for potential conversion of the JV agreement into a more efficient arrangement, which should benefit all the stakeholders and align with Mongolian laws, requiring economic benefits sharing.

Speaker Change: We expect increasingly more gold exposure from the portfolio greenstone ramps up and other Gulfstream to begin contributing over the next few years.

Speaker Change: In 2025, we're already off to a good start with strong gold market. This has allowed us to pay back an additional $15 million of debt since January 1st.

Speaker Change: We expect entre to release more information on this as it progresses.

Speaker Change: Onto the drilling, which although released recently was actually completed as far back.

Speaker Change: And as Don discussed we plan to increase the rate of our share buyback program over the course of the year.

Speaker Change: Completed in 2022 and 2023 many of the drill holes were infill to the existing resource on the Hugo North extension, which is the image that we're showing in the plan map on the right.

Speaker Change: In terms of production, we are forecasting between 65080 thousand gold ounces in 2025.

Speaker Change: And as the year progresses, we plan on tightening that range as we get better clarity on various commodity price scenarios and the ramp up progress at greenstone.

Speaker Change: However, many of the drill holes were drilled outside the existing resource and wire frames, it's a little hard to see on the slide.

Speaker Change: Long term, we are raising our production outlook based on various positive advancements at our development assets.

Speaker Change: But they are intercepts are 400 meters of 141% copper equivalent 448 meters of one 6% copper equivalent.

Speaker Change: We anticipate production to reach 150000 attributable gold equivalent ounces in 2030 based on our existing streams and royalties plus the exercise of sandstorms Gulfstream option on the Morro project.

Speaker Change: 613 meters at seven 7% copper equivalent 638 meters of one point <unk>, 5% copper equivalent 398 meters of 2.07% copper equivalent and 175 meters of 173% copper equivalent.

Speaker Change: And with that I'll pass it over to Dave for some more details on our growth assets.

Dave: Great. Thanks, a fun and good morning, everyone.

Dave: Today's asset update will focus on a couple of less well understood asset exposures in our portfolio in the Oyu Tolgoi joint venture area, and but why Carmichael mine with a small mentioned on valleys northern system iron and copper projects.

Speaker Change: All of these holes are currently outside of any resource, but they exceed the resource cutoff of 0.41% copper equivalent and may be incorporated within the lift one and lift to footprint. There are still results pending from eat more holes from the 2020.

Dave: On the topic of Oyu Tolgoi I'd like to begin by addressing the formalization of the joint venture agreement. Initially proposed in 2008 between Ot LLC, the operating entity and Entre resources.

Speaker Change: Three program.

Speaker Change: Additionally, 23 underground holes and nearly 2500 meters of surface drilling were completed in 2024 to target a potential lift to footprint.

Dave: Following this I'll highlight some of the recently released drill results.

Dave: Finalize it start February joint venture agreement puts in place mechanisms like the transfer of licenses into Ot LLC, which is crucial to avoid delays in the development work plan for 2025 within the Hugo North extension.

Speaker Change: The objective of this drilling is to update the Hugo North extension resource estimate for geotechnical and for geotechnical characterization entree will announce these results as they are received.

Speaker Change: These results are nothing short of extraordinary.

Speaker Change: Effectively setting a new benchmark in the global mining industry. The sheer magnitude of this copper gold project continues to amaze me and Im confident that future findings will be equally impressive I am immensely grateful that sandstorm has the privilege of being a part of this remarkable venture which promises to deliver even more.

Dave: The arbitration decision also sets the stage for potential conversion of the JV agreement into a more efficient arrangement, which should benefit all the stakeholders and align with Mongolian laws, requiring economic benefits sharing we expect entre to release more information on this as it progresses.

Dave: Onto the drilling, which although released recently was actually completed as far back are completed in 2022 and 2023. Many of the drill holes were infill to the existing resource on the Hugo North extension, which is the image that we're showing in the plan map on the right.

Speaker Change: <unk> machine outcomes.

Speaker Change: I really want to speak to Guatemala as well as this was one of our most surprise in projects in our portfolio both for us and for our investors. The first royalty came in the Premier royalties acquisition in this asset and it produced for the better part of a decade as a heap leach operation.

Dave: However, many of the drill holes were drilled outside the existing resource and wire frames, it's a little hard to see on the slide.

Speaker Change: There are a number of different operators.

Speaker Change: In 2023, a subsidiary of the well funded international conglomerate ICEE group acquired the asset. Since then the group has invested into the existing heap leach operation to improve the secondary recovery of the heap Leach, where they uncovered a recoverable leach inventory of three.

Dave: But there are intercepts are 400 meters of 141% copper equivalent 448 meters of one 6% copper equivalent.

613 meters of seven 7% copper equivalent 638 meters of one point <unk>, 5% copper equivalent 398 meters of 2.07% copper equivalent and 175 meters of 173% copper equivalent.

Speaker Change: <unk> hundred 3000 ounces they began revising a plan on the heap that involved a slope re profiling plan to improve infiltration percolation of the heaps. They created a line filtration plant and improved solution flow, which should allow for a significant increase in recoverability of the residual gold in the heap.

Dave: All of these holes are currently outside of any resource, but they exceed the resorts cutoff of 0.41% copper equivalent and may be incorporated within the lift one and lift to footprint. There are still results pending from eat more holes from the 2023.

Speaker Change: This means potential production of greater than 30000 ounces per year, just from residual leaching.

Speaker Change: Historically for the first part and for the first part of 2025 Sandstorm has held a 1% to MSR on the oxide material once production reaches eight 396000 ounces threshold.

Dave: <unk> program.

Dave: Additionally, 23 underground holes and nearly 2500 meters of surface drilling were completed in 2024 to target a potential lift to footprint.

Speaker Change: Expected in the first half of 2025, the royalty increases to 3% for all remaining oxide material. However.

Dave: <unk> of this drilling is to update the Hugo North extension resource estimate for geotechnical and for geotechnical characterization entree will announce these results as they are received.

Speaker Change: This is just the beginning of the upside for Sandstorm has the long awaited sulfide portion of the deep Carbonates project is now in motion. The Asa group has submitted a $1 billion investment plan to Argentina's incentive regime for major investments or Rishi as Nolan mentioned before.

Dave: These results are nothing short of extraordinary.

Dave: Effectively setting a new benchmark in the global mining industry. The sheer magnitude of this copper gold project continues to amaze me and I'm confident that future findings will be equally impressive I'm immensely grateful that sandstorm has the privilege of being a part of this remarkable venture which promises to deliver even more.

Speaker Change: Making it the first mining project to do so in the first project in San Juan.

Speaker Change: Feasibility studies are scheduled for completion, this year, which will pave the way for the development of a new underground mine, along with milling system and a flotation plant. The proposed processing capacity. This facilities is estimated to be between 30 504000 tonnes per day, the deep carbonates project.

Dave: <unk> machine outcomes.

Dave: I really want to speak to Guatemala as well as this was one of our most surprised in projects in our portfolio both for us and for our investors. The first royalty came in the Premier royalties acquisition in this asset and it produced for the better part of a decade as a heap leach operation under.

Speaker Change: <unk> aims to produce 120000 ounces of gold annually for at least 17 years with an investment of $485 million.

Dave: A number of different operators.

Dave: In 2023, a subsidiary of the well funded international conglomerate Isa Group acquired the asset. Since then the group has invested into the existing heap leach operation to improve the secondary recovery of the heap Leach, where they uncovered a recoverable leach inventory of three <unk>.

Speaker Change: There is also a $52 million exploration program expected to start this year, which will look for potential porphyry mineralization. In addition to expanding the sulfide zones of the current epic thermal deposit.

Speaker Change: For sandstorm, a $30 million bullet payment must be made to us upon declaration.

Dave: Hundred 3000 ounces they began revising a plan on the heap that involved a slope re profiling plan to improve infiltration percolation of the heaps. They created a line filtration plant and improved solution flow, which should allow for a significant increase in recoverability of the residual gold in the heaps.

Speaker Change: Declaration of commercial production, which we are now estimated in either 2029 or 2030. In addition, there is a two 5% MSR on the deep carbonates project, which means we could receive up to 3000 ounces per year. In addition to that one time payment.

Dave: This means potential production of greater than 30000 ounces per year, just from residual leaching.

Speaker Change: In 2022 under previous ownership quiet Camille was slated for closure, but in the hands of this ambitious well capitalized group and with the with the involvement of the Richy program the <unk>.

Dave: Historically for the first part.

Dave: And for the first part of 2025 Sandstorm has held a 1% to MSR on the oxide material.

Dave: Once production reaches eight 396000 ounces threshold expected.

Speaker Change: <unk> may be ahead for guac mile.

Speaker Change: Finally, it's worth a quick mention of valleys recent announcement of their almost 12 billion $12 5 billion dollar U S investment into the carriage as region over the next five years. This is management is expected to increase their annual iron ore production from the region to 200 million tons per year.

Dave: Expected in the first half of 2025, the royalty increases to 3% for all remaining oxide material. However.

Dave: This is just the beginning of the upside for Sandstorm has the long awaited sulfide portion of the deep carbonates project is now in motion.

Speaker Change: Asa Group has submitted a 1 billion dollar investment plan to Argentina's incentive regime for major investments or Richy as Nolan mentioned before.

Speaker Change: The copper production is projected to increase by 32% within the region. Our royalty will benefit from both of these increases as more information comes out we'll update our forecasts and with that I'll hand, it over to the operator for the Q&A session. Please feel free to ask questions about any of them.

Speaker Change: Making it the first mining project to do so in the first project in San Juan.

Speaker Change: Feasibility studies are scheduled for completion, this year, which will pave the way for the development of a new underground mine, along with milling system and a flotation plant. The proposed processing capacity of these facilities is estimated to be between 30 504000 tonnes per day, the deep carbonates approach.

Speaker Change: Our royalties and streams.

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

Speaker Change: You prompt that Johanna Speedway East and should you wish to cancel your request please press.

Speaker Change: <unk> aims to produce 120000 ounces of gold annually for at least 17 years with an investment of $485 million.

Speaker Change: Follow up with you if you're using a speaker phone please lift the handset before pressing.

Speaker Change: One moment. Please for your first question.

Speaker Change: There is also a $52 million exploration program expected to start this year, which will look for potential porphyry mineralization. In addition to expanding the sulfide zones of the current epic thermal deposit.

Speaker Change: Your first question comes from the line of Josh Wolfson from RBC capital markets. Please go ahead.

Josh Wolfson: Yes. Thanks very much first question is on the VAT accrual a stream and royalty buyback.

Speaker Change: For sandstorm, a $30 million bullet payment must be made to us upon declaration declaration.

Josh Wolfson: Having check the prior quarters, there is no signs of any distress.

Speaker Change: Distress for the operator, so I am wondering when did they stopped paying the stream and.

Speaker Change: Declaration of commercial production, which we're now estimating into either 2029 or 2030. In addition, there is a 2.5% MSR on the deep carbonates project, which means we could receive up to 3000 ounces per year. In addition to that one time payment.

Speaker Change: What was sort of the motivation to resolve it in the way that it was disclosed in the fact that there.

Speaker Change: It doesn't seem to be much compensation beyond just the base streaming.

Speaker Change: Stream your payment and nothing for the royalty.

Alright, yes, they stop paying us quite a while ago, we haven't recognized revenue from them in quite some time.

Speaker Change: In 2022 under previous ownership quiet Camille was slated for closure, but in the hands of this ambitious well capitalized group and with the with the involvement of the Richy program. The best May be ahead for quark Smile.

Speaker Change: It's one.

Speaker Change: Of those situations where it's.

Speaker Change: Yeah.

Speaker Change: Theyre insolvent at the mining operating level or their parent company had no money.

Speaker Change: A large Chinese companies coming into the shareholder of their parent company on the.

Speaker Change: Finally, it's worth a quick mention of valleys recent announcement of their almost $12 billion 12, and a half billion dollar U S investment into their carriage as region over the next five years. This is Matt <unk> is expected to increase their annual iron ore production from the region to 200 million tons per year.

Speaker Change: Condition that they buy us out.

Speaker Change: So they.

Speaker Change: <unk> already made a $4 million deposit to our lawyers accounts, that's non refundable. So if they don't pay the additional $10 million.

Speaker Change: Then we get to keep the floor and we keep our stream.

Speaker Change: So they have to pass the next 10 by next month is how that works.

Speaker Change: Copper production is projected to increase by 32% within the region. Our royalty will benefit from both of these increases as more information comes out we'll update our forecasts and with that I'll hand, it over to the operator for the Q&A session. Please feel free to ask questions about any of them.

Speaker Change: Okay.

Speaker Change: And then on the guidance that now includes <unk>.

Speaker Change: What could be I guess, a larger contributor.

Speaker Change: I'll say, having covered Humana previously this was a project that was more technically complicated.

Speaker Change: Our royalties and streams.

Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star one on your telephone keypad you lose you prompt that Johanna is being leased and should you wish to cancel your request. Please press star followed by next year.

Speaker Change: The Capex number that's in the release is quite large.

Speaker Change: Not familiar at all with the operator or the parent company so with that in mind, what gives the team the confidence that this should be incorporated into formal guidance.

Speaker Change: Youre using a speakerphone please lift the handset before pressing.

Speaker Change: Yes, so we've been we've been tracking it for a while now.

Speaker Change: One woman please for your first question.

Speaker Change: That base Capex number that you are seeing that they have been in news reports that includes a whole bunch of sustaining capital and whatnot. The actual upfront capital is not that big of a net.

Speaker Change: Okay.

Speaker Change: Your first question comes from the line of Josh Wolfson from RBC capital markets. Please go ahead.

Josh Wolfson: Yes. Thanks very much first question is on the very cool extreme and royalty buyback.

Speaker Change: The entity that has bought it im not particularly familiar with them, but they are a multibillion dollar.

Having check the prior quarters, there is no signs of any distress.

Speaker Change: Argentinian company, and so very very well capitalized.

Josh Wolfson: Distress for the operators. So I'm wondering when did they stopped paying the stream and.

Speaker Change: Okay.

Speaker Change: And then just to get back to the first part in terms of streams that might be.

Speaker Change: What was sort of the motivation to resolve it in the way that it was disclosed in the sense that there doesn't seem to be much compensation beyond just the base streaming payments and nothing for the royalty. Thanks.

Speaker Change: More at risk of renegotiation is there anything in.

Speaker Change: In the portfolio that we should be more aware of where that risk materialize at some point or maybe where theres an opportunity at higher gold prices today that things could get renegotiated.

Josh Wolfson: Okay.

Josh Wolfson: Yes, they stop paying us quite a while ago, we haven't recognized revenue from them in quite some time.

Speaker Change: I would say the only the only two things in our portfolio for a while that I would call. Our problem children have been Americas gold and silver a bear Creek and Americas Gold and silver got solved last quarter with all of that the new management team coming in new cash coming in.

Josh Wolfson: And.

Josh Wolfson: It's one of those situations where it's.

Josh Wolfson: Theyre insolvent at the money operating level or their parent company had no money.

Josh Wolfson: A large Chinese company is coming in as a shareholder of their parent company on the.

Speaker Change: I think our market cap up to have a $1 billion now so that problem children has gone away and the only one that remains as bear Creek and Theres very few ounces and our guidance related to them.

Josh Wolfson: Condition that they buy us out.

So they've.

Josh Wolfson: They've already made a $4 million deposit to our lawyers accounts, that's nonrefundable. So if they don't pay the additional $10 million.

Speaker Change: And I think one of the benefits is if they do go into some sort of needed process to sell their assets.

Josh Wolfson: Then we get to keep the floor and we keep our stream.

Josh Wolfson: And so they have to pass the next 10 by next month is how that works.

Speaker Change: $145 million.

Speaker Change: In loans and other things, so and we have security of their assets. So I think if there is a positive one of our problem. Our only remaining material problem child has the potential to become a material positive for us in terms of monetizing.

Josh Wolfson: Okay.

Josh Wolfson: And then on the guidance that now includes <unk>.

Josh Wolfson: What could be I guess, a larger contributor.

Josh Wolfson: I'll say, having covered Humana previously this was a project that was more technically complicated.

Speaker Change: The road.

Speaker Change: Alright, great. Thank you.

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

Josh Wolfson: The Capex number that's in the release is quite large.

Josh Wolfson: Not familiar at all with the operator or parent company so with that in mind, what gives the team the confidence that this should be incorporated into formal guidance.

Speaker Change: Our next question comes from the line of Derrick MA. Please go ahead.

Speaker Change: Thank you when <unk> hits that $300 million threshold to be clear what are the priority is it share buybacks debt reduction and then acquisition growth or how it answer I'm thinking about that.

Josh Wolfson: Yeah. So we've been we've been tracking it for a while now.

Josh Wolfson: That baked Capex number that you are seeing that they have been in news reports that includes a whole bunch of sustaining capital and whatnot. The actual upfront capital is not that big of a net.

Speaker Change: Share buybacks than share buybacks and share buybacks.

Speaker Change: Once our share prices closer to doubtful, then keep paying down our debt I really do like getting.

Speaker Change: That really low.

Josh Wolfson: The entity that has bought it im not particularly familiar with them, but they are a multibillion dollar.

Speaker Change: But share buybacks with the number one priority and then debt reduction we will keep looking for deals, but the deals have to come with a higher rate of return and debt reduction and that's a really hard threshold livable.

Josh Wolfson: Argentinian company, and so very very well capitalized.

Josh Wolfson: Okay.

Speaker Change: Okay, Okay, and maybe what type of deal opportunities with <unk>, and then what kind of ticket sizes should we be thinking about.

Josh Wolfson: And then just straight back to the first part in terms of streams that might be.

Josh Wolfson: More at risk if renegotiation is there anything in.

Speaker Change: Yeah, we're not looking at anything seriously right now and the only the only things that were looking at.

Josh Wolfson: In the portfolio that we should be more aware of where that risk materialize at some point.

Speaker Change: Are things that are $1 million here or there, where we're tying down what we think will be a really big opportunity in the future, where we are getting greater for Sofia will be the stream provider.

Josh Wolfson: Maybe where theres an opportunity at higher gold prices today that things could get renegotiated.

Josh Wolfson: Yeah.

Josh Wolfson: I would say the only the only two things in our portfolio for a while that I would call. Our problem children have been Americas gold and silver a bear Creek and America Gold Silver got solved last quarter with all of that the new management team coming in new cash coming in.

Speaker Change: Five years from now seven years from now we're not looking at allocating material capital in 2025, I think towards the end of this year. If we bought back a ton of shares in our share price is much higher than our debt as you know over the $200 million will.

Josh Wolfson: I think their market caps up to half a billion dollars now so that problem children has gone away and the only one that remains as bear Creek and Theres very few ounces and our guidance related to them.

Speaker Change: Will we start looking for acquisitions that would be more near term cash flow and we would pay pay overtime as they build the mine yet we'll start looking at them, but we're not looking back.

And I think one of the benefits is if they do go into some sort of needed process to sell their assets.

Speaker Change: Okay makes sense and then in terms of Mara if that's put forth into the rig in the next six months by Glencore, what does that mean in terms of the option window for sandstorm.

Josh Wolfson: They own $45 million in loans and other things, so well and we have security of their assets. So I think if theres a pause at one of our problem. Our only remaining material problem child has the potential to become a material positive for us in terms of monetizing.

Speaker Change: Sensor and be on the hook for deposits.

Speaker Change: Yes, so our option is indefinite until they make the board approved decision and start building the mine and Thats. What triggers are option. Once that is triggered we will absolutely and of course say, yes, and the way our deal is structured with glencore, but slightly different than the original deal restructure with Humana with Glencore came in as the operator.

Josh Wolfson: Road.

Got it great. Thank you.

Thank you once again should you have a question. Please press star followed by one on your telephone Keypad. Your next question comes from the line of Derik Mark. Please go ahead.

Speaker Change: Renegotiated the mechanisms of when we pay so now the way. It works is when we elect yes, we do not have to right at $225 million check upfront.

Derik Mark: Thank you when sandstorm hits that $300 million debt threshold to be clear what are the priorities is it share buybacks debt reduction and then acquisition growth or how it turns out I'm thinking about that.

Speaker Change: We pay slowly over time with them as they build the mine.

Speaker Change: It's a two and a half year or three year construction, we pay about $75 million a year per year over that three years.

Speaker Change: Share buybacks than share buybacks and share buybacks.

Speaker Change: Which is substantially less than what our cash flow will be so at all points in time, we will be cash flow positive and we'll just have to divert a portion of our cash flow to this whether it happens.

Speaker Change: What's our share prices closer to NAV will then keep paying down our debt I really do like getting.

Speaker Change: That really low.

Speaker Change: But share buybacks as the number one priority and then debt reduction will keep looking for deals, but the deals have to come with a higher rate of return that debt reduction and that's a really hard threshold.

Speaker Change: So this could start in 2008, our deposits to be in 2027 essentially.

Speaker Change: Yes.

Speaker Change: Okay. Thank you.

Speaker Change: Okay, Okay, and maybe what type of deal opportunities weighted type answer them, then what kind of ticket sizes should we be thinking about.

Speaker Change: Thank you and your next question comes from the line of Brian <unk> from Raymond James. Please go ahead.

Speaker Change: Yeah, we're not looking at anything seriously right now I mean, the only the only things that were looking at.

Speaker Change: Hi, Good morning, My question relates to the.

Speaker Change: Or are things that are a million dollars here.

Speaker Change: Sort of the 2027 guidance again I take your comments.

Speaker Change: There, where we're tying down what we think will be a really big opportunity in the future, where we're getting greater first field would be midstream provider.

Speaker Change: How about geos changing with prices, which as you know it's always been a challenge here.

Speaker Change: Five years from now seven years from now.

Speaker Change: The other category drops off starts to drop off pretty substantially in 27 28.

Speaker Change: Not looking at allocating material capital in 2025, I think towards the end of this year. If we bought back a ton of shares in our share price is much higher than our debt as you know over the $200 million will we start looking for acquisitions that would be more near term cash flow and we would pay pay overtime as they bought the mine.

Speaker Change: What's actually going on there I'm trying to determine because I would think valets up at that time some of the others is going up what's actually dropping off and $27 28.

Speaker Change: That causes that reset.

Speaker Change: We will start looking in but we're not looking back.

Speaker Change: Yes, just a couple of things going on one is you'll notice that 22006 as an up year relative to 2020.

Speaker Change: Okay makes sense and then in terms of Mara if that's put forth into the rig in the next six months by Glencore, what does that mean in terms of the option window for sandstorm and what my concern would be on the hook for deposits.

Speaker Change: And part of that is Woodlawn.

Speaker Change: Stream turning on but it is a capped stream that we inherited when we acquired nomad and so we basically get a bunch of payments really fast at $30 million and then the stream drops off so that's why you see a dropdown in 2027 at the woodlands starts in 2026, and then it goes away by the end of 2027.

Speaker Change: Yes, so our option is indefinite until they make the board approved decision and start building the mine and that's what triggers are option. Once that is triggered we will absolutely get of course say, yes, and the way our deal is structured with glencore, but slightly different than the original deal restructure with Humana with Glencore came in as the operator, we read.

Speaker Change: And then there's a little bit of a tailing off of our Cerro Moro stream.

Speaker Change: Negotiated the mechanisms of when do we pay so now the way. It works is when we elect to yes, we do not have to rate of $225 million check upfront.

Speaker Change: Perfect. Thanks, very much that's very helpful.

Speaker Change: Woodlawn.

Speaker Change: Multi commodity sing again, right. So there's a fair bit of price movement in there as well right yeah. Okay. Thank you very much.

Speaker Change: We pay slowly over time with them as they build the mine.

Speaker Change: So if it's a two and a half year or three year construction, we pay about $75 million a year per year over that three years, and which is substantially less than what our cash flow will be so at all points in time, we will be cash flow positive and we'll just have to divert a portion of our cash flow to this whether it happens.

Daniel Jacobs: And your next question comes from the line of Daniel Jacobs connect from Scotiabank. Please go ahead.

Daniel Jacobs: Hi, Yes. Good morning, everyone. Thank you for taking my questions. Some of them are clarified my colleague asked questions.

Daniel Jacobs: I guess.

Daniel Jacobs: I'm intrigued about your 2025 guidance again and I know you mentioned you don't see a top down at that 65000.

Speaker Change: So this could start in 2008, our deposits could be in 2027 essentially.

Speaker Change: Yes.

Speaker Change: Okay. Thank you.

Daniel Jacobs: Yes.

Speaker Change: Thank you and your next question comes from the line of Ben Andrew from Leerink, leaving James. Please go ahead.

Daniel Jacobs: With that.

Daniel Jacobs: When you risk adjust that.

Daniel Jacobs: Guidance from place.

Daniel Jacobs: Was that based on not only the commodity pipe getting now are there other adjustments to that guidance that could get you there.

Ben Andrew: Hi, Good morning, My question relates to the.

Speaker Change: Sort of the 2027 guidance again I take your comments.

Daniel Jacobs: Assets that you're concerned about.

Speaker Change: How about geo's changing with prices, which as you know it's always been a challenge here.

Daniel Jacobs: There are other risk adjustments that we've made so if we look back at 2024 for example, and the things that caused us to Miss the number one thing with the gold price going up as I explained before.

Speaker Change: But the other category drops off starts to drop off pretty substantially in 27 28.

Speaker Change: What's actually going on there I'm trying to determine because I would think valets up at that time. So some of the others is going up what's actually dropping off.

Daniel Jacobs: Fewer geos, but there were things like greenstone ramped up much slower than what they had guided.

Daniel Jacobs: And that was a portion of our Miss.

Speaker Change: 27 28.

Daniel Jacobs: And there is an assumed for ramp up at greenstone from their guidance in 2025.

Speaker Change: That causes that reset.

Speaker Change: Yes, just a couple of things going on one is you'll notice that 2026 is an up year relative to 2020.

Daniel Jacobs: We've actually been so conservative that our base case model now is so conservative and assumes no ramp up from what they're currently doing.

Speaker Change: And part of that is Woodlawn.

Daniel Jacobs: We do think it will ramp up we're not seeing anything operationally that would suggest it doesn't we just don't want to be wrong two years in a row from the same reasons.

Speaker Change: That stream turning on but it is a capped stream that we inherited when we acquired nomad and so we basically get a bunch of payments really fast.

Speaker Change: Okay. So the risks with BMO bank today with the ramp up at greenstone, although your numbers have flat production.

Speaker Change: $30 million and then the stream drops off so that's why you see a dropdown in 2027 at the woodlands starts in 2026 and it goes away by the end of 2027.

Daniel Jacobs: <unk> auction I gathered from the 2025 guidance.

Daniel Jacobs: Yes.

Daniel Jacobs: So if greenstone ramps up the way the way remarks thinks it's going to and coal prices are softer we could blow through our guiding to the high side.

Speaker Change: And then there's a little bit of a tailing off of our Cerro Moro stream.

Speaker Change: Perfect. Thanks, very much that's very helpful and just Woodlawn, it's a multi commodity sing again right. So there's a fair bit of price movement in there as well right. Yeah. Okay. Thank you very much.

Daniel Jacobs: And then for the 2025 guidance I think I heard that Q1 is supposed to be a strong quarter.

Daniel Jacobs: So maybe you can just kind of lay out for us how that year locks.

Speaker Change: Yeah.

Daniel Jacobs: Our strong Q1, and then the other three quarters, they're equal or how do you see I guess about 60, 41st half second half guidance on that would be great.

Speaker Change: Thank you and your next question comes from the line of Daniel Jacobs connect from Scotiabank. Please go ahead.

Speaker Change: Hi, Yes. Good morning, everyone. Thank you for taking my questions. Some of them are cleared by my colleagues ask questions and I guess.

Yes, I think we're expecting our quarters through 2025 to be relatively consistent with each other with a slight ramp up towards the end of the year, if greenstone does ramp up.

Speaker Change: I'm intrigued about your 2025 guidance again and I know you mentioned you don't see a drop down at that 65000.

Daniel Jacobs: But what I would say is Q1 should have an extra bump.

Speaker Change: Eric.

Speaker Change: Of what.

Speaker Change: With that.

1000 to 800, 500, geos related to that concentrate timing of sales team that we were missing in Q4, and thats going to extra show up in Q1, so it'll be sort of a onetime bump to Q1, and then things should be relatively flat for the year with trending upwards towards the end of the year.

Speaker Change: When you risk adjust that.

Speaker Change: This guidance from place was that based on just the commodity price getting now are there other risk adjustment to that guidance that could get you there.

Speaker Change: But you are concerned about.

Speaker Change: Okay, so kind of how I see the stronger Q1, and then sort of like maybe a little bit Q2, Q3 equal and then.

Speaker Change: Hi, there are other risk adjustments that we've made so if we look back at 2024 for example, and the things that caused us to Miss the number one thing with the gold price going up as I explained before.

Speaker Change: <unk> in Q4, yes.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Very good. Thank you and then my final question, if I could just on coming back on to that.

Speaker Change: Fewer geos, but there were things like greenstone ramped up much slower than what they had guided.

Speaker Change: I'm not that level.

Speaker Change: At 300 million in that by.

Speaker Change: Q2, Q3 somewhere in there.

Speaker Change: And that was a portion of our base and there is an assumed for ramp up at greenstone from their guidance in 2025.

Speaker Change: Stop paying down your debt.

Speaker Change: Yes.

Speaker Change: You look at your share buyback, obviously patenting on where your shares are you.

Speaker Change: We've actually been so conservative that our base case model now is so conservative and assumes no ramp up from what they're currently doing.

Speaker Change: Buy back your shares and or look at any out there.

Potential.

Speaker Change: We do think it'll ramp up we're not seeing anything operationally that would suggest it doesn't we just don't Wanna be wrong two years in a row from the same reasons.

Speaker Change: Our transactions.

Speaker Change: The.

Speaker Change: The landscape and you don't really have a paint and until 2027.

Speaker Change: Okay.

Speaker Change: For marrow cell and you don't find anything.

Speaker Change: The risks would be I'm going to do with the ramp up at greenstone, Although your numbers have lapped.

Speaker Change: You work through your share buyback program do you look at your dividend as well in terms of moving that up.

Speaker Change: Production I gathered from the 2025 guidance.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: So if greenstone ramps up the way the way everybody thinks it's going to and coal prices are softer we could blow through our guidance on the high side.

Speaker Change: Yes, that's a good question I think that our intention with the dividend is has always been to establish at low.

Speaker Change: Okay.

Speaker Change: And then start increasing that slightly every year for a very long period of time, we established it low and then took on a bunch of that to do these transactions and the interest rates went up so we just parse those increases our balance sheet is strong enough.

Speaker Change: Then for the 2025 guidance I think I heard that Q1 is supposed to be a strong quarter.

Speaker Change: And so maybe you can just kind of lay out for us how that year looks like it is.

Speaker Change: <unk> Q1, and then the other three quarters, they're equal or how do you see it is about 60, 41st half second half guidance on that would be great.

Speaker Change: So we sort of look at the dividend once a year and I would expect barring any real surprises that the next time, we look at it it will be an increase.

Okay. That's very helpful. Thank you on that.

Speaker Change: Yes, I think we're expecting our quarters through 2025 to be relatively consistent with each other with a slight ramp up towards the end of the year, if greenstone does ramp up.

Speaker Change: You very much for taking my questions and a lot of my other ones were already answered. Thank you.

Speaker Change: No.

Speaker Change: Okay.

Speaker Change: Thank you there are no further questions at this time I will now hand, the call back to Mr. Nolan Watson for any closing remarks.

Speaker Change: But what I would say is Q1 should have an extra bump.

Speaker Change: Alright, Thank you very much everyone for calling in and hope everyone has a good day and again if there are any further questions. We're here at around enabled to answer them.

Speaker Change: 1000 to nearly 1500 geos related to that concentrate timing of sales team that we were missing in Q4, that's getting extra show up in Q1, so it'll be sort of a onetime bump to Q1, and then things should be relatively flat for the year with trending upwards towards the end of the year.

Speaker Change: Thank you. This concludes today's call. Thank you for participating you may all disconnect.

Speaker Change: Okay, so kind of how I see it as stronger Q1, and then sort of like maybe a little bit in Q2, Q3 equal and then <unk>.

Speaker Change: <unk> in Q4, yes.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Very good. Thank you and then my final question, if I could just coming back on to that I'm not that level of 300 million in that by Q2 Q3 somewhere in there.

Speaker Change: You stopped paying down your debt.

Speaker Change: If you look at your share buyback, obviously, depending on where your shares are you you know.

Speaker Change: Buy back your shares and or look at any out there.

Speaker Change: Potential.

Speaker Change: Our transactions.

Speaker Change: Landscape.

Speaker Change: I only have a pain and until 2027.

For marrow cell and you don't find anything.

Speaker Change: You work through your share buyback program do you look at your dividend as well in terms of moving that up.

Speaker Change: Yeah. That's a good question I think that our intention with the dividend is and has always been to establish at low <unk>.

Speaker Change: And then start increasing that slightly every year for a very long period of time we.

Speaker Change: We established it low and then took on a bunch of that to do these transactions and the interest rates went up so we just parse those increases our balance sheet is strong enough that so we sort of look at the dividend once a year and I would expect barring any real surprises that the next time, we look at it it will be an increase.

Speaker Change: Okay. That's very helpful. Thank you on that thank you very much for taking my questions and a lot of my other ones were already answered.

Speaker Change: Thank you.

Speaker Change: Okay. Thank you.

Speaker Change: Thank you there are no further questions at this time I will now hand, the call back to Mr. Nolan Watson for any closing remarks.

Nolan Watson: Alright, Thank you very much everyone for calling in and hope everyone has a good day and again if there are any further questions. We're here at around enabled to answer them. Thank you.

Speaker Change: Thank you and this concludes today's call. Thank you for participating you may all disconnect.

Nolan Watson: Yeah.