Sandstorm Gold Ltd.

Good morning. My name is Ludi and I will be your conference operator today. At this time, I would like to welcome everyone to the SunStorm Gold 2025 first quarter results. All lines have been placed on mute to prevent any background noise. 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. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. And if you would like to withdraw your question, you can press the star followed by the number two. Thank you, Mr. Watson. You may begin your conference.

Thank you, Ludi. Good morning, everyone, and thank you for calling into our Q1 earnings call. Good morning. I'm going to provide a brief business update But our capital allocation plans, then I'm going to hand it over to Irfan, our CFO, to discuss the specific financial results, and then to Dave Orem to provide additional updates. We're pleased to announce not only record quarterly revenue of $50 million U.S., but also operating cash flow of over $40 million U.S. Our business just keeps getting stronger and stronger, and it feels good to be Sandstorm these days. Sandstorm is a growth story, and we're maintaining our long-term outlook of our production doubling by 2030. And therefore, we expect significantly more quarterly free cash flow in the years to come. Over the past couple of months, there have been two very significant updates that are happening with our key development assets being MARA and HODMODEN. Specifically, during Q1, SSR announced that they are spending up to $100 million in 2025 on HODMODEN CapEx for long lead items such as tunnels, roads, and early site earthworks. It's been a long time coming, but it feels great to see this project moving forward with boots and equipment on the ground. Also, recently Glencore's CEO publicly stated that they anticipate having the RIDGI applications for the MARA project officially submitted shortly. I believe over time, MARA will become Sandstorm's most valuable asset, and it will be a nice anchor asset within our portfolio. When we look at our new cash flow projections at various gold prices, both this year and in 2030, you can see that we're anticipating our cash flow generated by our portfolio on an after-tax basis to be over $300 million US per year, and that's at $3,200 gold prices. We used to show $3,200 gold prices as an upside scenario, but here we are at $3,400 gold prices. The portfolio is generating a lot of cash flow now and it's going to be generating dramatically more cash flow over the next several years. You can see why we have been so keen to buy back our own shares. Late last year, when we started purchasing our own shares on the market, we were able to buy nearly 2 million shares at an average price of $5.51 US per share. During Q1 of 2025, we purchased over 3 million shares at an average price of $6.21 US per share. And we have canceled all of those shares. Today, we sit here with a share price closer to $9 US per share. So I think those share repurchases were the most intelligent way we could have allocated capital. During Q1, we were also able to repay $15 million of debt. And we ended the quarter with $340 million of debt. And subsequent to quarter end, we repaid another $12 million of debt. And our debt is down to $328 million and dropping rapidly. We've been sticking to our plan of recharging our balance sheet, shrinking our share float, and that plan is going very, very well. So this is a bit of a shorter than normal update for me, but the Sandstorm story is more simple than ever to explain. So with that, I'm going to hand it over to Irfan to talk about the specific financial results.

Thanks, Nolan. Good morning, everyone, and thank you for joining us today. We've had a strong start to the year in terms of financial and operational performance, and I'd like to walk through some of the highlights this morning. We reported record revenue of $50.1 million for the quarter, supported by a strong gold market in the first three months. Additionally, Sandstorm received a payment of $4 million related to our Vatikula Gold Stream, bringing our total sales, royalties, and income from other interests to $54.1 million. Production from our stream and royalty portfolio was just shy of 18,500 attributable gold equivalent ounces, which was below the 20,300 ounces sold in the first quarter of last year. In part, the year-over-year decrease in geos was driven by the timing of sales of ounces received in the fourth quarter of 2023 and sold in the first quarter of 2024, as well as the outperformance of gold relative to the other commodities in our asset mix. As we've discussed on previous quarterly calls, our gold prices can result in lower gold equivalent production as non-gold revenue from our copper and silver streams convert to fewer gold equivalent ounces. However, the combination of record revenue and record cash operating margins resulted in strong cash flows. During the first quarter, Sandstorm recognized average cash margins of over $2,500 per gold equivalent ounce. or approximately 87% cash margins on each ounce sold. As a result, operating cash flows, excluding changes in non-cash working capital, were $40.8 million. As Nolan discussed, we allocated a significant amount of capital towards share buybacks in the first three months of the year. When combined with the quarterly cash dividend, I'm pleased to report that Sandstorm returned over $23 million U.S. to shareholders in the first three months. for approximately 57% of operating cash flows. We also continued our progress on deleveraging the balance sheet, making net repayments of $15 million during the quarter, an additional $12 million subsequent to quarter end. And as Nolan mentioned, our revolving credit facility was $328 million drawn as of yesterday. Costs of sales and depletion were largely in line with the production levels, And we ended the quarter with $11.3 million in net income, or 4 cents a share. Turning to the next slide, we can see a bit more detail in terms of the top assets contributing to production in Q1. The trivial production from Chapada copper mine increased on a year-over-year basis, supported by higher commodity prices and an increase in copper pounds sold. Sandstorm received additional copper deliveries in the first quarter as part of the true-up mechanism under the Chapada Stream Agreement. Mundine Mining has plans to invest in a 20,000-meter drilling program in 2025 with a goal of growing resources at Chapada. Rill is expecting an updated resource estimate and technical report, incorporating the Suave deposit by the end of the year. Production continues to ramp up with the Greenstone Gold Mine, where Sandstorm received and sold nearly 1,300 gold ounces in the first quarter. Equinox Gold remains focused on wrapping up production to full capacity and expects the processing plant to achieve design recovery rates by mid-year, following various optimization improvement efforts. At Bonacro, attributable gold sales were lower year over year as a result of atypical inventories at the end of 2023, which were sold in the first quarter of 2024. Allied Gold is forecasting production in 2025 to be weighted toward the second half, in part, as a result of improvements to feed grades at the mine. Additionally, we're expecting that between 5% and 10% of Allied's guided production of Agbow will reflect toll-treated bonacro material that is covered by the Sandstorm Gold Stream. Allied recently closed an $80 million Canadian financing to fund its optimization and growth initiatives, including exploration and technical studies aimed at extending the mine life at its Cote d'Ivoire assets, including the Bonnecro gold mine. Following a record year of production in 2024, Lundin Gold reported a year-over-year increase in gold production at Frutta del Norte in the first quarter. Strategic mine sequencing and positive grade reconciliation attributed higher mill head grade in the first quarter, which Lundin Gold expects to continue throughout the first half of this year. Looking forward to the rest of the year, we continue to anticipate progress from Ivanhoe Mines at Zerplat Reef Mine, which expect to commence production in the latter half of the year. We also expect Valet's southeastern system to begin contributing to the Valet royalties by mid-year, once the cumulative sales threshold has been met. Gold equivalent production in the first quarter continues to be largely attributable to mines located in South America, accounting for nearly 50% of geo-sold. We expect production from North American mines to increase as greenstone ramps up throughout 2025. Nearly three-quarters of production came from precious metals in Q1, while the remaining 27% was largely attributable to copper assets. We maintain our guidance forecast for 2025, where we expect production to be between 65,000 to 80,000 attributable gold equivalent ounces. As previously disclosed, this guidance considers a range of commodity price scenarios and a phased-up ramp-up at Greenstone. As I mentioned, the company's production guidance is sensitive to changes in relative commodity prices. For 2025, a plus or minus 10% change in both copper and silver prices relative to gold price is expected to impact triple gold equivalent production by approximately 1,500 ounces. Long-term, we expect production to reach 150,000 ounces in 2030, based on the company's existing royalty and stream portfolio, plus the exercise of the Mara Gold Stream option. As I said, 2025 is off to a great start, and we expect a strong gold market, along with key assets ramping up and coming online to contribute, continue generating robust cash flows throughout the remainder of the year. With that, I'll turn it over to Dave for some highlights from our portfolio.