Sandstorm Gold (SAND) 18 Feb 222021 Q4 Earnings call transcript

Good morning. My name is Anes, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sandstorm Gold Royalties Conference Call. [Operator Instructions] Please be aware that some of the commentary may contain forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. you. Thank Instructions] [Operator Mr. begin may your you conference. Watson,

the operator. calling record into it lay you, Horizon have announcements lot review, annual that Good as being yesterday as here This creation I morning, have for stream. into a you Copper and a of including traditional to things annual to thank we sitting and of record annual the and able this the elegant be turning we admit results revenue of feels well everyone, that cash morning, Thank XXXX relating our XXXX today the made call. simultaneously to discussing Hod out Maden interest while good to flow earnings an that, that records into company. even Erfan Sandstorm continues with about hand forward XXXX streaming interest precious minutes, into path specifics to I'll the we're more in Maden Sandstorm this why, over But Hod back future specific it so higher and discuss results. in our to traditional and a turning specifically, turn pure-play a I'd prior stream. wanted the few like royalty metal to our transaction importantly, way. Hod of But In a both the stream talk which the explain the set to Maden to I why to to

driving getting are, large and about The one of is you can single couple our questions questions I Maden, you dollars stream. answered that ask when the of tell the so that tell almost times. they down of literally those have every of ask, Sandstorm they're to shareholders every think millions can that's permits it's retail be X average truth the in I Hod first it those into time, questions this, with And For you're streaming on time returns should meet who me X years I shares, when asked. then may with listen investors that they its space our hundreds turning single streams? you the a much competition over grow good do of institutional owns last

of partners currently of to companies when the that our way they work on higher the of in couple a we'll that believe about that and buy streaming become group Fortunately, we we company it of to are a the we we a was royalty value cost risk about reason and the asking gold the into the we at they the The mines, where growth-oriented get a they talking acquisition. mine existing and get mining have in in because risk operating to into this it institutional EIA financing pure-play those only buy this shareholders. stream a the that quarter. environment. choice of becoming we way a stream, Sandstorm transaction, of new turning believe addition is Sandstorm, through returns transaction, now are this CapEx are rates At as to mine Maden's competitive higher of for mining are with a We're in are marketplace their overruns of why overruns Sandstorm And granted growing will return Sandstorm's conversations can companies we and directly grow will this again putting so become which keep for Copper. through are we Hod next trade in last question a streaming company. us And If streaming may purchase. the investors higher select doing company, we Horizon once portfolio new does that partner in we future past, with second how response that

in addition too the will to world of mining the structural by And that, talking is electrify XXXX, change. going definitely am far to I to it's on growth-oriented big have Horizon be copper rise help reduce have which copper. away, to I to to the to grow believer one, actually and therefore, year and personally and to that I Copper, climate isn't a XX% And help the focused desperately around believe the going copper we of there price process. world In production a the is to to to copper decided copper, companies, in relative fix deficit demand. create existing believe needed industry

the production us, copper mines. majority byproduct Fortunately, world's of comes from gold the for

rates important royalty as to a be to way. it role climate that and solution make we precious part mining companies interest. the to can is believe have I higher why I grow or background acquisition So will much streaming returns already emphasize look investors those it Sandstorm we forward, opportunity the interests while will mining Sandstorm such partnered I where such Sandstorm allows we have to acquisition. acquisitions to And can reality will precious that world, of copper make for a play needs Sandstorm first company. doing can pure-play gold business. Horizon acquire that the want copper to goes in to stream That the to much, a is that the Copper acquisitions Copper Horizon with where the potential Horizon help Copper see create also world by gold help of a great get The Horizon industry, now just streams purchases, around this Copper. Copper will the upon metals, stream copper and ever. that for We're and help stream, the have together only but will and happens than are buying symbiotic upfront an change this so Horizon a metal directly Sandstorm the looking its pay streaming a believe baby on of this I it the step in staying for Sandstorm more silver

So the stay with deals partnership for tuned this growth. more future for model in

XX% selling Maden Horizon, X of our Now we're into transaction. the to back Hod to dig things. taking the stake We're details and

XX% The a stream first on gold Maden. of Hod the produced is at

a Horizon The debenture the in equity second million IOU to stake contributing or be in Horizon paid hold Resources We're And Copper our to from $XX third Horizon Sandstorm in we the a the Copper. also Entrée equity copper. XX% is stake is future. equity shares to in

by a hold IOU this stream and Sandstorm $XX However, million through of points have the continue already Resources. clarify repayment Sandstorm. I've to a by Turquoise the using high discounting noticed XX Entrée Copper of and to already the that analysts couple that a value of we owed to assuming rate on will years. own I'd bullet couple about in Horizon be like or a are that debenture debenture Hill that will discount

the Maden. way cash the that LOI back debenture sense transaction and stage, final the and of letter first also Horizon cash be from receiving maintains few the sit also excess still this Hod is effectively material right repayment back. first through in as the yet from years on at all get the Hod Sandstorm that structured be flow LOI Horizon specifies that of the this worth It's simply debenture Copper LOI cash it still wait it intent has of entered the paid ownership the of We equity Copper. a refusal the streams cannot life, so Meaning that position, flow of will states to or as the to sold and either Maden Sandstorm must IOU. long on a by mentioning is make mine through the Horizon with pay into, or Although stream that

that many so to the believe have likely the closing several to that approvals, of across, transaction position, for structured this the exchange can in Overall, to Now is this worth the without that first overly will we its ensure elect on cash. transaction it also right contribute this IOU as hurdles on Horizon our uploaded and We it the flexibility of has convert having to It's have complete and would votes, that transaction IOU a team call. issues keep good this will half the its dilute et ownership of Relations Sandstorm's such noting actual get year. to business more to regulatory be Sandstorm video that for have Investor detail time Copper refusal doesn't that shares we happen second into And to much necessary and shareholder a months further Sandstorm Sandstorm take can have. diluted of portions any to cetera. grows I goes that this thought and shares, the more starts Sandstorm

watch and worth about more know and own transaction anyone think our So who this and that I website to Copper truly I'd to mentioning to understand video. encourage go it. it's who Horizon details will Briefly, wants

and ownership noted, As on Sandstorm stake, the Board I XX% as Chairman. be will will taking a sit

dollars transactions As part the million had those year with the in this public I meaning value for meaning that no to is -- very no conservative note entity, anyone, are listening that leakage might those Sandstorm the a asset and a in lift, one be there company the mine Normally, as And of CapEx new be said, get a shareholders or per done the has to including There people financing pay can of have real in transaction, would public shares value, equal of have participate Sandstorm to every royalty of shell vehicle, assets. $XX running. is however, shell Hod to be same will there assets this no approximately the be value take price to contribute in at cash case, because And we value a important control In will important few ensure that will is the company, Sandstorm vehicle will investors million vehicle Horizon. that the so required got shares shell me, the reputation $X a a call cash and plus $XX the to including new shell on cash the transaction, that estimate -- was of combined call, this $XX will value is the people that receiving already no $XX XX% approximately own with And very, because in million as of combined Horizon. that my or Maden of there $X, contributing, some million share. implied financing existing sorry, the which of in implied value a amount there be has, implied to in Sandstorm is structured value the the no This that effectively receiving the million will that use the XX% be company, Horizon is to the million, the with and NAV year. Sandstorm would it's pays myself. be in and Horizon or this up existing it. these, we like some that

So have interest that note, at on if value strong press on And financing out bullish copper, release in of demand of there Horizon people who yesterday, there going out immediately an are dollars of a per the the you same can Copper And already. invest of hour in. share. within amount sort are we millions had this very literally in had coming investor we

I'm as on the bullish copper as seems here gold. only not it that's one So well

Hod the or Now gold look of spot should price of gold. like, stream will $XXX what stream gold mine produced produce the of in be specifics the purchase gold to the of for does be of the able an with of $XXX by a for mine This price XX% this ounce. XX% Maden terms

should Once purchased entirely has Horizon's the the is Copper mine. that Horizon stream the ounces will ounces, gold, drop XXX,XXX life of production that copper. of So of in those Horizon plus the as as even ounces interest all profit XX% ounces the Sandstorm are have well on to on buying, some gold for of the Sandstorm

has longer CapEx. the down note transaction in future. things: what's pay Some Sandstorm X investors that this brings production important guidance our will to to one, But is the no note

as Sandstorm So to mine. had financial the before, still obligations ongoing

value does. longer getting entire is the no of two, And our it just in of of the transaction Now that back a considerable Sandstorm company. is IOU shy XX%

streaming that the So overall we reduced, NAV from company. is again just the once is materially pure-play risk an a and It's same. perspective, approximately royalty are Sandstorm's and NAV

this bought a it's Hod that think million a shares important I XX% cost, originally And to $XXX approximately and note IOU. we monetizing our also million. are we it Maden, in interest for stream large when is and $XXX

base. amount profit considerable our above a and crystallizing we're So over of cost

of record track our growth at over now the Looking years.

operations. COVID We during only dark inception, of have since record temporarily curtailed when had a every the single the being mines some days of new the year production exception with

You this well XXXX, the chart doesn't average the from can of see portfolio. In for is complete mine as only production this X It example, later, only today, production ounces literally ounces, the in our as average years. to years was XX,XXX-ish What transformation over portfolio X down not around that show, production with fast life consistent X growth chart. now year, our per of XX,XXX our we last mine years. life our in of the increased life however, in quality mine doubled portfolio the years. XX-plus forward average to to the but Only about our is years

to personally and dramatically It same time, absolutely cost things feat a no this our additional now So growing average we're year, exciting both managed only of be XXX,XXX is and the life to and This per the position paid for streams. not but have Sandstorm. growth. our in mine ounces XX,XXX ounces it. to to production increasing from also do growing company, Sandstorm over easy our years growth is bought with I not to grow we all is with it find these last year an at underlying production few a growing in we're

to in compare you that the the both in this for growth the very anyone to is clear gold form how us now growth have compared as is of balance industry, Sandstorm growth excited the of the am in excited have company. in within about that of opportunity the and And of state to peers sheet from that portfolio. bullish the else. we our bought and and largely stream. price, now our If the I'm so. paid permitted and moment, about has built coming it's do more much I'm flexibility officially fully we excited grow I I'm growth on front the than

expect can shareholders So further through year. this acquisitions growth

like minute months. turn it employees wouldn't on I would I do to to so Before take these call. past an over working hard for few Sandstorm Normally, investor this Erfan, to thank I the a

iceberg investor has work of In day. of many complete more hard can working has scenes. call. I've know And fact, done this to are for in never these. we're I've only to in and we're but been put this. number literally months a workdays on so employees part our transactions right, a that their of team I they're And before may team, putting And together team months only I the own XX-hour deals behind before small because be But to listen say on the These the that put tip in it do work of our after our not hours never day on the like of now. been

they these the how Sandstorm people So saw And working with hard to I I over we're think this investors proud with I'm too. I'll company. very thank working, are the part to where hand Erfan about as to team. that, the And be going I'm to just be to results. our opportunity talk if proud, XXXX with about want it them. they take excited would of

take to Thanks, Sandstorm an shaping echo as cover at of record be the production for well. the And of revenue and to highlights. look shareholders. continued XXXX I XXXX year few while up the those to comments at exciting want and trend financial back Nolan. certainly Sandstorm. XXXX is a I next

in the that on at approximately track. It's over is at joined investors have this the to operations were million, XX% cash shutdowns due ounces respectively, XXXX of $XXX.X slide was XXXX XX% on equivalent that the this operations trend increase, compared year, Revenue affected production But chart pandemic. on be X back and to in attributable year to the last previous. the this flowing worth side webcast, came temporary years. reminding all appear XX,XXX. certain by gold and shows This those us left-hand For the

In the addition the few in an increase acquired compared assets. attributable attributable new Sandstrom stream detail comprised revenue at cash as sales in operating including $XX.X the with The to compared of $XX.X a relatively ounce year. to the financial year-over-year comparison. was down our through revenue. second in the $X,XXX that silver year million. XXXX. December copper XXXX for resulted and $XX.X on to a strong of mentioned by the royalty per the at I flow was equivalent we'll an XXXX. June ounce. XX% the silver year-over-year stream, realized moment, average figure XXXX, slide year is of operations, in from were This agreement the and with detail in slide copper in cost chart XX, of total a royalties the the XXXX, This along increase This more per driven regarding million next cash well Yamana million prices revenue price, cash gold the per $XXX as these $X,XXX package from in ended we bit the in average record when a remains stream constant attributable price this topline figures ounce. changes on part walk ounce. increase particular, gold Chapada These results per the capital contributed Vale shows of In more of The working average around which in provides of for trend all this also set Continuing attributable for realized margins gold list

for the previous in for the Finally, company. year, net million, an was year net $XX.X the double record another income the company's income almost

quarterly million, the latter year-over-year. gold X production per slightly, operating year. period and up equivalent XXXX, capital, $XX.X period were from $XX.X fourth in operating equivalent same XX,XXX. working all ended increase quarter consideration months into noncash The in while the revenue in the during ounce quarter in $X.X net attributable were noticed XX, X in margins This for XX, months was ended ounces from the XXXX. in X The detail. per net trend December XXXX, attributable the the totaled XXXX. XXXX, excluding attributable attributable more in Looking fourth the ounces cash at resulting Comparing and cost the XX, gold income income million, XXXX in $XXX, to ended $X,XXX for at was we results Cash fourth months ounce to cash changes the of same attributable X% in company's the for revaluation of quarter consistent, a was flows December gains throughout recognized million. investments for Total a was partially total relatively XXXX, comparable the stable revenue quarters a ounce. representing revenue decrease was in activities, with $X,XXX fourth the of the down XXXX quarter quarter average of Taking the and the December on X compared per decrease to

asset the quarter from gold throughput. XXXX. the supported faces, next to in Yamana, see Sandstrom from received is over On coming slide, to grade of from Sandstrom first silver XX,XXX stream, Due the delivered of According the had additional equivalent from XXXX. Cerro producing continued its mine mining portfolio underground to deliveries at amount to at top gold increase Yamana contributed the and ounces. production the company, year, the for over access mine timing of we January, to production in from which XX,XXX stable equivalent gold when mill the see ounces in the Moro strong announced Moro benefit that in ore The In expects the strongest this which quarter feed Cerro contributors production XXXX. higher

to reported copper transaction expansion guidance for and The increase I Lundin another pit XXXX silver September open the of mine Gold, selling that to gold The decades. mentioned average ounces contributed an produce in Sandstorm Similar Aurizona exceeded in year. or purchased are over gold Vale was XXXX. the has in want mining prefeasibility largest for The concurrently over Chapada Chapada year. the This royalties the XX% Cerro realized asset with Moro As million was Cerro study a Sandstorm equivalent beneficiary stream key earlier, the X,XXX contributor I equivalent nearly touch June to a sold. operator, strong Recently, production The price between an stream gold the released underground for from on the the and a assets ounces XXXX. be copper outlines of nearly life. ounces of long-life XXXX is existing its Sandstorm's ended just copper highlight per the The through period sales Aurizona pound deposits, royalties this pit satellite average Sandstrom's the contributed transaction total Other of year. the and with our of mine. acquisition which a which assets the December $X.XX gold These in Aurizona list year XXXX. from Moro, the mine the royalty Chapada of to per to X,XXX several to in rise last production. XX, outlined increased copper, benefited would $X.XX addition over selling in royalties and Vale Equinox of X,XXX an on ounces additional assessment mine. XX-year XXXX, equivalent equivalent was package. PFS development average average XXXX, realized X.X from pound to of price the of open during expected include of low-cost during operated

As Aurizona. encouraging shareholder, further it's a this to outline see upside Sandstorm study

of South and assets above coming $X,XXX Over slide the X% with over ounces price gold increasing Sandstrom a metals. breakdown NSR, by royalty a precious has per $X,XXX Sandstorm Americas, At when XX, company The royalty with remains came ended from equivalent in X% XXXX, final year NSR a December type. production reminder, attributable from is per America. is for gold project. from operating precious and before Aurizona X% from the a nearly ounce. metal-focused highlights next prices X% of the to to current up. the sliding provides region $X,XXX NSR equivalent year half metal ounce, few of royalty wrap attributable As gold scale I between on XX% out a the ounces Sandstorm's XX% the broken gold A

declared you year. of paid aware, are many which of Sandstorm its dividend out XXXX, in first As in was shareholders this January to

With the the Sandstorm dividend addition stable as consistent in growth capital the and X.X to to shareholders. its to the that a shares several XXXX. feels over This years, and demonstrated of great buyback include able to in has be canceled it last million another company way of active returning program purchased is share through

things back with of capacity, credit the earlier, quite number on as approximately future Sandstorm expect in turn for was for XXXX credit pricing efforts this many capital discussed I'll regards The And ways. And Nolan year incentive that Nolan. with a on mentioned continued today's credit increase revolving will became that to facility highlight tied the company that, criteria is a the year we're royalty represents certain was announcement at XXXX the time. acquisition. ESG-related facility efforts of Nolan ensure Another a company further incorporating and a in million leader sustainability to goals, expanding truly company's based busy sustainability. an be Sandstorm opportunities. XX% working $XXX earlier, our sustainability various over with in to in to available And first meeting benefiting transformative. proved Sandstorm's shareholders busy same our while Sandstorm I

We're questions, to want going operator. have over a turn do going a to Erfan. time. about, guessing sensitive to But people's question-and-answer be here that I'm second we're Thanks, be I talking it period in transaction to because to we're of the to lot the and going to

do any from we're for cover answer that e-mail and us and time required us, that's investors. in of what attention to to our questions analysts we'll right the the take questions going all and Sandstorm. So is investors, here all only phone office, this And we'll sitting all meeting, give we're from after all now

with So hand I'll over to the that, it operator.

Capital Josh Wolfson Markets. First Instructions] [Operator comes question RBC from with

So sort created ultimately, additional overall of Horizon. company, for ultimately the when declined I transaction, that's Sandstorm's think risk from risk increased on reduced. the this no but there's RTO basis It's about or

Horizon, in the a capital structure? crunch in the stream and the default IOU that the there's So what for or seniority is event of that

Yes. Great question.

be own brunt things. to equity doing those In it'll interim So financings in main right, of the mine able build CapEx put you're to those And the going is Horizon Hod the to sort -- grows, its be Horizon is types step, the further as bear risks. to going of and acquisitions, and asset. of the it'll Maden

still The its So be and for to leaves ability asset CapEx overruns, forward. for it's news on raising Horizon good shocks transaction for is to investors observe is it's be Hod is Maden. already some And a overrun good it the pricing raises the how that we money based of and asset much going money have capable going moved Horizon Copper. buffer in to much how the that

the it the entity. the will the In in of be terms debenture, hierarchy of only debt

back the or Hod Maden, the be, So that be whatever flows and Maden may from that debt will first. -- to stream be the paid the to And they interest. have either all Hod cash secured IOU by Sandstorm

of actual And Okay. then seniority the the stream?

the So secured against stream the Maden Hod is senior interest. XX%

million original to its Okay. $XXX initial the and something capital I of Horizon required mentioned with for assume or this but indicates like million-ish of that Sandstorm. -- $XX capital rata partially initial there looking the Hod seem for plus external to cash, pro financing. $XX Maden, initial be for And is structure debenture you payable capital, The million

you And structure. it identified, likely will levered pretty a it's look raise as So equity. to

Sandstorm Horizon for motivation rata is about forward path going interest to to Or over maintaining in think dilute that? its the its is equity the pro you or when So and this -- its financings, contributing time? stake to consider

of before, the diluted too that is issues. any of refusal first first right so As we on together, Sandstorm we starting right having down interest acquisitions Horizon And one comments a mentioned the refusal for in reasons our it of I if that that so lost be much. and on make streams would future can

do is way. whole our That defeat this, of with this that. doing certainly, and goal So the the we're lose sort of why to purpose interest not would

In which underway is that portion debt that will capital at they terms the Lidya and contribute upfront, is to again finance the for level, of of means had the partner, Madencilik, meeting actual of that last the the the for with asset, X/X we well a asset that financing, just reconfirmed capital week, have CapEx which was financed. plan not to Horizon our

is currently as only its stands it $XX expected million. to So contribution be

in And so to complete hand. a large in would have then has go order for any overruns Horizon capital have to with $XX million that do CapEx, raise to are and this additional transaction there that they'll Horizon, so that. enough If on financing Sandstorm,

guess to stream that when of the road production I for sort the repaying the cash be years? creates issues couple least given down be from will of the payable going starts, Sandstorm asset debt first the but Okay. that is to at the

Exactly. good Yes. point. That's a

you of mine. It's this actually done on a construction we've actually our pretty before. financing the are when streams number So the normal of

almost year. you're X mines be start X. it first on, washing money even we're makes face its back, mine take making a usually going at its by looking Copper, with of money the turn for start situations forward. and actually until where to if any year a you and paying never year doesn't in buying It the to step But construction mine going So existing we're Horizon

stream. where been company's number we've gold us because still They a the the owe don't times of fixing in situations cash they're have the under a mine. So

would but next we loan year. money pay flow owe the get is back now says, do the as us you also a the soon give gold, you we us temporary cash as what that here's money so And to them

do Horizon So this we'll probably look to situation level -- at of period particular during the back to that in the the where the asset they're is Turkey, And deliver paying having in stream. Sandstorm debt. time but

it. very large, Copper that, doesn't is Now if then back won't it having very provide and up, successful that said and Horizon we need gets it

Your James. Brian from next with question comes MacArthur Raymond

Two more questions.

hedge structuring? what's mean benefit question, on not accelerate or I'm you structured. there goes kind is and the And stuff? there any protect in or debt price leakage the I in within quite $X thinking therefore, flows out, how Horizon transaction? this the will coming to, Copper, sure say, repayments to if Just second general and the copper of that $X, tax cash it's

would a you dividend I assume, owned, Before, out. coming stream have

going that to the debt Now for forward. then helpful. you're payments color of on stream you be and would as Any be I Horizon, go taking it, a as understand out

Yes.

any wouldn't be that the if right the So I we're until $X, late -- mean, on But there's back. up, way dividends $XX. sweep paid copper that and copper you question, this first we've on prices the it's go surprised cash I price additional XXXXs, certainly, deal on the a if I mentioned IOU structured is is

rising copper starts up prices that more copper if dramatically of and go cash payback So flowing accelerates the the than anticipated, IOUs.

upfront. get So flow Sandstorm that cash would

In terms it's question, second already mind of asleep my sorry, the in here.

dividend. tax given in flows leakage tax versus efficiencyor all any to it's -- or XX% it this beyond whatever. conceptually, structure? there mean, from figure stream far And just in out, you're leakage Just now the getting cutbacks I any you is before, own me

spent this without lot There is get us cost one money you've because inherited upfront tax bought certain trying to transaction tax that the anyone bases we we asking almost that Mariana. in some reasons we entire got this entities that exist we here when of make no as tax advice, took for long to already time did certain actually and enact of a It's of so a leakage. lot on why

So behind shield a to depreciation on $XXX careful there's make to invoked no doing we're get in full it streams. Canada doing transactions tax sure shielding series very upfront is on transaction. you pay that a million way on this a the from -- so the And the those tax tax we're Gold having of step-by-step Sandstorm scenes it's stream

Right.

tax. So Is would correct? have the stream that basically X%

tiny Pretty have very bit tax but incrementally, close. not It'll at all. a of much

comes with Derick Securities. next question from Your Ma TD

they company, future to negotiation a bilateral copper why a benefit Growth would a to question. agree That's with them? obligations? no Just broader

coming not through hear you. can't very I It's clear.

better? this Is

better. That's

Okay.

Sorry that. about

would to broader copper streams looking company Why bilateral them? Just the agree a What's negotiation with question. Sandstorm? growth to a on for assets benefit

to that that's the that close the out times mine is a trying acquisition, found process. a acquire complete being couple to of company we've you're of if financial high already, that even lose if you're bidder, you So mines, going have clear capacity sometimes seller not to this the you the to it's

of to hand-in-hand with so and walking the sale what These cash, the is in portion here mine they the them are. the the contribute And have Sandstorm for that process definitively, of always say the is where a knows can the letter cash during so Sandstorm provide mine actually aren't we're data transactions room and able entity the sometimes seller good that transaction. to just

portion flow be cash. royalty will be that an we And mining acquirer us that with opportunities of any acquisition actually taking And it one Sandstorm, think it a giving deal a and you see industry and the being And to combination would company. of of company, team coming more often, of than more the them the Sandstorm our streaming in and do. cash the partner quite We a there. individual than be in candidly, so advantage Sometimes company. we're they shares will

Does to to shares in of provide Sandstorm those kind give be will well situations? capital that willing as mean additional

maybe where because swing Horizon, we we and try ability and world-class the paid in it and of for after X/X to if some we big then capital able be -- back Sandstorm right that. IOU critical for the and stream, awesome the circumstances. want get purchased out hook value in So we And or prices to a raise that's on the the see to to case that in the of transactions, purchase have can dilution. make except a we're mass because you'll for the the see the do of would example, Sandstorm I large mines with have of think But -- convert silver gold company. just And future. go with help Horizon, X so IOUs, shares to for the is copper provide at Horizon is being would rights precious probably transaction We all the situation Horizon the come the first here, stream needs that costs can couple individual with the check candid a other what the time of to not into and I'm have and again own avoid to to to first equity and metal once to the stream, the buy really precious in equity envisioning decision what be is just And contributing. in metal walks for by of but we stream that all we're you'll

Independent next question comes Tumazos Very Tumazos from with Research. John John Your

a copper, prior the reinvestment just as participation any as to in $X of Copper XX% could step-down cover the of. is gold First, the of of then way was to lowest make studies the Is $X.X going the transferring them stream cash stronger this at copper? a to stream you where Horizon mine of much The not retain in the the the copper I'm XX% price? the more? Has direct gold to company? the costs. generating is you terms explain cost cost the early so Or aware Or it's the a gold -- was That's economics cash all negative. risen,

would there costs, top the the ore to assumptions half mining the particularly on body. changes the to say I study that from prefeasibility So were study, the of feasibility the with underground

such the the higher all did costs. cover feasibility the of the operating in copper So ounce no cost study longer were of that per

to then I part just new going this of and study been So we're kind operating going to to done successful, want streams the more it's we taking for in need relationship multiple be again. of costs. getting. that's be why streaming Horizon sort -- a where to it into use a too got since never picked was streamer the of we I've flow you never that's of have of I've in And growth industry was a high. we a is model, get line cash the sure creates not of the in number than we're situation to in And -- this very a That's unhealthy of free of situations seen XXX% flow situation the of where with were taking free feasibility the is cash And the sustainable. It to it make than if estimates deal where situations if XXX% Horizon be into it. part been that existed which able need is it's entity. Sandstorm more that

why that's So it way. did that we

the that value Horizon why $XX interest, is million Maden stream is of the pay correct we're of of than back you're Now the value of that less an which making us Hod XX% the to value. IOU recapture sort

ask Nolan. can question, second I a

country the it risk streamed. people fraction permitting described You uncomfortable increased in you the with in And of for your line is it my of acquisition, being not a transaction. one over impression an investors too your of several of size the well many as the the that Horizon credit, rationale were than years and as to speaking bet was Mariana's structure Turkey, big just company more so

of quarter line there's company a on that the the credit going a want or to diversified. bet be well being half worry to still of asset? we you managers portfolio that's be Some With increased, one should

assets one Yes. the If -- actually most we in got top company in of in people's that size tied second material up streaming royalty very risk in track of we speaks the of a looking that assets. to our terms versus things of look presentation, -- closely. the concentration at Sandstorm we're is investor any the our slide it's sort assets. of companies in top top diversified up it, of we've value value other X their of public in asset diversification in terms fact, X And tied all

well a general all the the good I've just your heard in a with aware I I partner we've that. agree big on unpermitted respect and with, -- just that years, a bet riskier was feeling, to not would at that over job was that and a done which was a that feedback echo think known. It bet. investor I'm So we was it's and not the concerns a jurisdiction well big with mine

concern, I for that so understand and And gave that. cause people

turned situation stream. Fortunately, their today, going that into asset they've a construction. project a directly now where here The in into And got is we're we've EIA.

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Heiko Wainright. H.C. from Ihle comes question next Your with

the streaming note you, also And did that your tough mean essentially. in on rates. sudden, and not said, clearly, And the down. that things Hod Paragraph that worry risk-off I ago. industry. really I environment? going this no talking I call, risk. all are of here, a sudden, believers of a are you reduces I'll starts about be -- that again, Sandstorm mean strategic this about myself current they thing Maden reality. about you raising the overall factors one frankly, also been to for have streamline X with are partner to assets, We tend earlier that we transaction considered When X earlier streams for it's geopolitical call the months seeing past mention worry new of a stress average X I'd invasions. What release a about We the as this mean risk worry years, buy returns year. you the key all started I theme in been firm mean, -- on of all

clearly, Maybe just in something open-ended mind. it be So seems answer. your to

ended not just I'm quite what But in answer sure comments terms Open of of -- on that. kind

I stricter kind mind. stuff? anything your for Clearly, risk. is you're future Has have internally, implemented your mean changed potential been saying reducing standards you're on risk that something this of acquisitions,

No, I Yes. understood.

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one was valuation on a again. having made certainly in and don't got But not the to that, lumps a to transaction. stream But it. we no do get the ever our said process going that only -- we on So it, on we money want stream

de-risking. in we're Sandstorm It's really the not industry, why just focusing changes that's So specifically. any on it's

price, the general right? there of the the for spot it. the gold Got no it. and revised just XX% initial -- maximum agreement, More and Got and figures clarify, XX% to minimum eventual is no

Correct.

question answered, get been so in My queue. I'll already Perfect. have back Okay. third

proceed. Watson, further There this may time. Thank no questions at you you. Mr. are

of Great. to there's the Well, little lots thanks, but through. everybody. longer call traditionally Appreciate time. took This taking do, go you a bit they stuff than

As always, we're here.

back and you. we'll any again, questions e-mail, the And in thanks us get Ask day. and us an good Send have to a office.

Ladies and please We for participating call your your for concludes disconnect and today. you gentlemen, this conference that ask you lines. thank