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Sandstorm Gold reports record gold equivalent ounces, revenue and net income in second quarter

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(Kitco News) - Royalty company Sandstorm Gold (NYSE: SAND, TSX: SSL) today announced record attributable gold equivalent ounces of 19,276 ounces in Q2 2022 (Q2 2021: 18,004 ounces).

Importantly, the company said that during the three months ended June 30, 2022, it realized record revenue of $36.0 million compared with $26.4 million for the comparable period in 2021.

The company explained that the increase in revenue is attributable to a 7% increase in attributable gold equivalent ounces sold as well as a 4% increase in the average realized selling price of gold.

Sandstorm also reported record quarterly net income of $39.7 million (Q2 2021—$8.6 million), which was higher year-over-year primarily due to the increase in revenue as well as a $22.9 million gain on the disposal of a portfolio of royalties to Sandbox for consideration of common shares of Sandbox, cash, and a convertible promissory note.

According to a press-release, based on the company’s existing royalties and contingent on the completion of the Nomad Acquisition, attributable gold equivalent ounces for 2022 is forecast to be between 80,000 and 85,000 ounces.

Subject to the conversion of the Hod Maden interest into a gold stream and the closing of the Nomad Acquisition, the company is forecasting attributable gold equivalent production to be 155,000 ounces in 2025.

Sandstorm is a gold royalty company that provides upfront financing to gold mining companies that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of the mine.

After the closing of the Nomad Acquisition announced on May 2, 2022, Sandstorm will hold a portfolio of 250 royalties, of which 39 of the underlying mines are producing.

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