Sandstorm Gold Ltd.

May 08, 2013 18:16 ET

Sandstorm Gold Announces Record Revenue in Q1, 2013



VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 8, 2013) - Sandstorm Gold Ltd. (TSX:SSL)(NYSE MKT:SAND) ("Sandstorm" or the "Company") has released its unaudited results for the first quarter ended March 31, 2013 (all figures in U.S. dollars).

First Quarter Highlights

  • Record revenue of $15.4 million.
  • Gold sales of 8,581 ounces.
  • Average cash cost per ounce1 of $427 resulting in cash operating margins1 of $1,208 per ounce.
  • Operating cash flow of $7.0 million.
  • Acquired 46.7 million common shares and 7.0 million warrants of Premier Royalty Inc. representing approximately 59.9% of the currently issued and outstanding shares.
  • Credit facility upsize to $100 million.
  • Entered into a streaming agreement with Entrée Gold Inc. to purchase 25.7% and 33.8% of Entrée's 20% share of the gold and silver produced from the Heruga and Hugo North Extension deposits, respectively.
  • Net loss of $12.3 million due to a non-cash impairment charge of $14.0 million on goodwill arising from the Premier Royalty business combination.

"The strong revenue and gold sales during the first quarter point to stable mining operations underlying Sandstorm's streaming agreements," said President and CEO, Nolan Watson. "Sandstorm is on track to meet our annual production guidance and we are looking forward to a number of potential catalysts over the next year. These catalysts include expansion studies at Aurizona and Santa Elena, initial production at Serra Pelada and Bracemac-McLeod, continued exploration at a number of mines and potential announcements related to new streaming agreements."