2017 Second Quarter Results Conference Call AUGUST 4TH, 2017 NYSE.MKT SAND TSX SSL
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements", within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Sandstorm Gold Ltd. (“Sandstorm”). Forward-looking statements include, but are not limited to, statements with respect to planned exploration, guidance on estimated production, cash flow and information and expectations about the acquisition of Mariana, the future price of gold, the estimation of mineral reserves and resources, realization of mineral reserve estimates, the timing and amount of estimated future production. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans”, or similar terminology. Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Sandstorm to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Sandstorm will operate in the future, including the price of gold and anticipated costs. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, the ability to successfully integrate operations and realize the anticipated benefits, gold price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks relating to the parties which produce the gold Sandstorm will purchase, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global economic climate, dilution, share price volatility and competition. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Sandstorm to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: delays or failure to complete the transactions described herein, failure to obtain shareholder or regulatory approvals, the impact of general business and economic conditions, the absence of control over mining operations from which Sandstorm will purchase gold and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined, risks in the marketability of minerals, fluctuations in the price of gold, fluctuation in foreign exchange rates and interest rates, stock market volatility, as well as those factors discussed in the section entitled “Risks to Sandstorm” in Sandstorm’s annual report for the financial year ended December 31, 2016 available at www.sedar.com. Although Sandstorm has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Sandstorm does not undertake to update any forward looking statements that are contained or incorporated by reference, except in accordance with applicable securities laws.
Corporate Update 3
Ounces Based On Counterparty Majors Mid-tiers Juniors Average AISC below $600 71% 95% 5% 25% 30% 12% 100% 83% 46% 2010 2022 2017 4
Financial Discussion 5
Financial Results Highlights Attributable Gold Equivalent Sales & Royalty Revenue average Ounces Sold in US$000’s realized gold price 15,558 $18,824 $16,815 13,245 $16,463 $16,066 12,588 12,750 $1,336 $1,260 $1,243 $1,210 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2017 2016 2017 6
Financial Results Highlights Sales & Royalty Revenues Sales & Royalty Revenues For the three months ended June 30, 2017 For the three months ended June 30, 2017 BY METAL BY REGION 73% 37% Precious Metals Canada 6% 25% Diamonds North America ex Canada 21% 27% Base Metals and Other South America 11% Other 7
Summary of Quarterly Results Quarters Ended In $000s June 30, 2017 Total revenue $ 16,066 Attributable Gold Equivalent ounces sold 12,750 Sales $ 11,835 Royalty revenue 4,231 Average realized gold price per attributable ounce 1,260 Average cash cost per attributable ounce 290 Cash flows from operating activities 11,112 Net (loss) income (1,909) 8
Cash Flow From Operating Activities Quarterly Comparison Half-Year Comparison $14M $28M $23,050,000 $11,112,000 $12M $24M 24% � 24% � $18,620,000 $10M $8,935,000 $20M $8M $16M $6M $12M $4M $8M $2M $4M Q2 Q2 HY HY 2016 2017 2016 2017 9
Asset Update 10
ASSET UPDATES 1/4 PROGRESS HIGHLIHTS � Construction slightly ahead of schedule. Cerro Moro � Senior mine-site management positions in place. � 439 metres of underground STREAM development in the first six 20% of silver produced until 7M months of 2017. ozs delivered. 9% silver stream � A total of $178M is planned to thereafter. be spent for the year. 2017 Exploration Budget › YTD spend is $77M $8.0 Million ONGOING PAYMENT � A total of 70% of the total capital for the project has been 30% of the spot price of silver � 35,000m DDH committed. � Commisioning is on track for STAGE 2017–2020 Goal completion by the end of Q1 Development 2018, with a ramp-up to � Find sufficient mineral commence thereafter. resources to extend mine life beyond 10 years OPERATOR � Total scout drilling = 35,000m Yamana Gold Inc. � Follow up & infill = 89,000m LOCATION Argentina 11
2017 FEASIBILITY HIGHLIGHTS ASSET UPDATES 2/4 136 koz Gold Price (Base case) $1,250/oz FX Rate BRL 3.3 : USD 1 GOLD PER YEAR M&I Resource 1.4 Moz/28.3 Mt @ 1.57 g/t Au $197M Aurizona P&P Reserve 971 koz/19.8 Mt @ 1.52 g/t Au Initial Mine Life 6.5 years NPV5% AFTER-TAX Total Production (LOM) 885,700 oz gold 34% Strip Ratio / Recovery 5.7:1 / 91% ROYALTY Cash Cost (LOM) 1 $691/oz IRR AFTER-TAX 3%–5% NSR AISC (LOM) $754/oz (gold price dependent) 40% Initial Capital $131M ($148/oz) Payback (after tax) 2.8 years MARGIN 1 For IFRS accounting purposes, some stripping costs may be capitalized and included in STAGE sustaining capital instead of in operating costs. Development OPERATOR PRODUCTION PROFILE Annual Gold Production (koz) Average Grade Trek Mining Inc. (g/t) 160 1.7 � Average: 136,000 oz Au/yr 140 � Initial 6.5-year mine life 1.5 LOCATION 120 1.3 Brazil 100 PROCESSING 80 1.1 60 0.9 � Throughput: 8,000 tpd 40 � Average recovery: 91% 0.7 20 � Average grade: 1.52 g/t Au 0 0.5 1 2 3 4 5 6 7 YEAR 12
TATAJUBA AGGRESSIVE > 10 DRILL > 50 km CONVERTING TO EXPLORATION READY TARGETS CUMULATIVE STRIKE MINING PERMIT UNDERWAY Genipapo: Limited drilling Piaba North: Undrilled Piaba West: Potential 900m extension Tatajuba: of Piaba deposit; 4km strike; plan drilling underway to drill in H2-2017 13
Exploration Stage Deals 14
ASSET UPDATES 3/4 Bayan Khundii O P E R A T O R Erdene Resource Development Corp. 15 15
ASSET UPDATES 4/4 Rabbit North ROYALTY 2% NSR STAGE Exploration OPERATOR Tower Resources Ltd. LOCATION Canada 16 16
17 15 17
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