Sandstorm Gold (SSL) Q4 2023 earnings summary

Executive summary

• Record FY 2023 attributable gold equivalent ounces reached 97,245 and revenue was $179.6M; net income was $42.7M.

• Q4 revenue was $44.5M and net income was $24.5M, versus a $2.1M net loss in Q4 2022.

Financial highlights

• FY total sales, royalties and other-interest income reached a record $191.4M, versus $148.7M in FY 2022; revenue was $179.6M, including $106.6M sales and $73.1M royalty revenue.

• FY operating cash flow was $152.8M versus $106.9M; excluding non-cash working-capital changes, cash flow was $151.1M versus $109.8M.

• FY net income fell from $78.5M to $42.7M, including a $22.2M YoY increase in finance expense and $15.6M higher depletion expense.

• Q4 total sales, royalties and other-interest income were $46.3M versus $38.4M; revenue was $44.5M, including $26.4M sales and $18.1M royalty revenue.

Outlook and guidance

• 2024 attributable gold equivalent ounces are forecast at 75,000–90,000; production is forecast to reach 125,000 ounces within five years.

• Portfolio cash flows are projected to increase from $140M in 2024 to over $200M, excluding working-capital changes and corporate G&A; assumptions are $2,000/oz gold, $22/oz silver and $3.70/lb copper.

• Production outlook includes the Hod Maden Gold Stream and MARA Stream Option; MARA depends on a conversion decision and contractual payment.

• Fruta del Norte guidance is 450–500 koz gold and 4,500 tpd throughput in 2024; 475–525 koz and 5,000 tpd in 2025 and 2026.