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8/3/2019 SND Presentation
1/21
The Worlds FirstDiversified StreamingCompany
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Sandstorm Metals & Energy was launched 8 months ago and has acquired:
$52M - Met Coal and Thermal Coal from NovaDX and Royal Coal
Sandstorm Metals & Energy (TSXV-SND) is the worlds
first base metal and energy streaming company.
Sandstorm Metals & Energy was launched in
December 2010 and has since acquired 9 commodity
streams.
Sandstorm Metals & Energy has a sister companycalled Sandstorm Gold (TSXV-SSL) which has 7 gold
streams and a market capitalization of +$400 million.
ABOUT SANDSTORM METALS & ENERGY
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MANAGEMENT & BOARD
Management
Nolan Watson (CA, CFA) - President & CEOFormer CFO of Silver Wheaton
David Awram (B.Sc, Geologist) - EVP
Former Director of IR at Silver Wheaton
Justin Cochrane (CFA) - EVPFormer VP at National Bank Financial
Claudia Tornquist (M. Eng., MBA) - EVPFormer GM of Business Evaluation at Rio
Tinto
Dan Gundersen (P. Eng., CFA) - VPFormer VP Engineering at DeeThree
Exploration
John Budreski -Vice-Chairman,Cormark Securities
Former President & CEO of Orion
Securities
David DeWitt - Director of BearCreek, Nautilus Minerals
Former Director of Arequipa and Peru
Copper
Andy Swarthout - CEO of Bear
Creek Mining
Marcel de Groot - Chairman of LunaGold Corp.
Non-Executive Directors
03
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SANDSTORM METALS & ENERGY
LAUNCHED 1 YEAR AGO AND HAS ACQUIRED:
Terrex Energy
ONE NATURAL GAS STREAM $25M
FIVE COAL STREAMS
$44MTWO OIL STREAMS
$15M
ONE COPPER STREAM $20MThunderbird Energy Donner Metals
Met coal and Thermal Coal from
NovaDX and Royal Coal
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NAV BY COMMODITY
Natural Gas
Sandstorm cost per unit:$1 / mcf (plus 20% of priceabove $4 / mcf for royalties)
OilSandstorm cost per unit:$15 / bbl (plus transportand government royalties)
Thermal CoalMetallurgical Coal
Sandstorm cost per unit: $75 / tSandstorm cost per unit: $55 / t
Copper
Sandstorm cost per unit: $0.80 / lb
Cash
16%
27%
9%
12%
17%
19%
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Alberta
Oil Streams
UtahNatural Gas Stream
Quebec
Tennessee, Alabama, KentuckyCoal Streams
Copper Stream
100% of assets in
North America
SANDSTORM METALS & ENERGY: CURRENT STREAMS
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Asset
Underground zinc mine, with copperby-product in Quebec Operated by
Xstrata. Expected to be in the lowest
cash cost quartile. Ore to be milled at
Xstrata owned Matagami mill.
StatusUnder development, expected to be
complete by end of 2012
Production
21M lbs of copper per annum
Copper Stream Terms17.5% of mine production at $0.80
/ lb ($0.55/lb if Cu price is < $2.75)
Cash Flow Guarantee
Guaranteed payback in 5 years
DONNER METALSCopper Stream
Bracemac-McLeod Mine
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Asset
Natural Gas project in Utah, USA
StatusUnder development, rst wells to be
complete by Q1 2012 with full produc-
tion by 2014
Production5 bcf per annum
Gas Stream Terms
35% at $1/mcf plus 20% above$4/mcf
Cash Flow GuaranteeGuaranteed payback in 7 years
THUNDERBIRD ENERGYNatural Gas Stream
Gordon Creek
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AssetUnderground Met Coal
mine in Tennessee, USA
StatusUnder development,
expected to be complete
by Q3 2013
Production500k tons per annum (2P
reserves of 32M tons)
Coal Stream Terms25% for several years,
decreasing to 16%, at $75/t
Cash Flow Guarantee
Guaranteed payback in 5 years
NOVADXMetallurgical Coal Stream
Rex No. 1 Mine
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AssetAuger and strip Met Coal mine in
Alabama, USA
StatusIn commercial production
Production150k tons per annum
Coal Stream Terms25% for several years,
decreasing to 16% at $75/t
Cash Flow GuaranteeGuaranteed payback in 5 years
NOVADXMetallurgical Coal Stream
Rosa Mine
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OTHER STREAMS
OPERATOR
PROJECTS
LOCATION
COMMODITY
STATUS
COMMODITY
STREAM TO SND
ONGOING PAYMENT
ESTIMATED ANNUAL
PRODUCTION
NOTES
Big Branch
Kentucky, USA
Thermal Coal
Producing
18% for several years
and 12% thereafter
$55/ton
400,000 tons per annum
increasing to 700,000 tons
Guaranteed payback
in 5 years
SID Mine
Kentucky, USA
Thermal Coal
Development
18% for several years
and 12% thereafter
$55/ton
500,000 tons
Guaranteed payback
in 5 years
All Assets
Kentucky, USA
Thermal Coal
Producing/Development
2.7% GRR
N/A
N/A
Guaranteed payback
in 7 years
Two Creek & Strathmore
Alberta, Canada
Oil Streams
Producing/Development
25% of Two Creek and
15% of Strathmore
$15/bbl
Peak Production of 345k
bbl/yr
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PRODUCTION SCHEDULES
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014
Strathmore
Two Creek
Rosa Mine
Rex No. 1
Big Branch
SID Mine
Gordon Creek
Bracemac-McLeod
OIL AND GAS
OIL AND GAS
THERMAL COAL
THERMAL COAL
METALLURGICAL COAL
METALLURGICAL COAL
NATURAL GAS
COPPER
Terrex Energy NovaDXRoyal Coal Thunderbird Energy Donner Metals
*POLYMER FLOOD
*POLYMER FLOOD
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ESTIMATED OPERATING CASH FLOW
Price Assumptions: US$160/t Met Coal, US$70/t Thermal Coal, US$80/bbl Oil, US$4.50/mcf Natural Gas, US$2.50/lb Copper
NovaDX
Royal CoalRoyal Coal Royalty
Terrex Energy
Thunderbird Energy
Donner Metals
Es
t.AfterTaxCashFlow
(USD
millions)
$5
$10
$15
$20
$25
$30
$35
2012 2013 2014 2015 2016
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MAXIMIZING UPSIDE POTENTIAL MINIMIZING DOWNSIDE RISK
Total Cash Flow
Guarantees
Base Case
$10
$5
$15
$20
$25
$30
2012 2013 2014 2015 2016
Base Case Price Assumptions:
Est.AfterTaxCashFlo
w
(USD
millions)
US$160/t Met Coal
US$70/t Thermal Coal
US$80/bbl Oil
US$3.50/mcf Natural Gas
US$3.00/lb Copper
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CASH FLOW GUARANTEES LIMIT RISK
$ 10 $ 20 $ 30 $ 40 $ 50 $ 60 $ 70 $ 80 $ 90 $ 100 $ 110 $ 120 $ 130 $ 140
CASH FLOW GUARANTEES+ Cash on Hand
MARKET CAPITALIZATION
$ 150
USD millions
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PEER COMPARISON
1. Based on 2013 estimates. Comparators using Bloomberg estimates on January 10, 2012
2. Post issue Sandstorm based on Company estimates for Enterprise Value and Cash Flow
3. International Royalty Companys multiple based on acquisition price divided by 2 year forward cash ow estimates
0
5
10
15
20EV/Cash Flow
SandstormMetals
3.3
AngloPacic
Group
14.7
InternationalRoyalty
Company
14.9
Royal Gold
16.7
SilverWheaton
14.1
FrancoNevada
12.0
Diversied Commodities Precious Metals
SandstormGold
8.9
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In cash ow guarantees
Sandstorm is creating a diversied, world class, cash owing company.
NINE
$99M
COMMODITY STREAMS
DIVERSIFIED COMMODITIESFIVE15%
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Shares Issued & Outstanding
Options
Warrants (expire December 23, 2012)
Number
318 M
15 M
155 M
Exercise Price
--
$0.48
US$0.70
CurrentOutstanding
318 M
--
--
Treasury StockDilution Calculation
318 M
0 M
0 M
Total 318 M318 M
Institutional Holdings Shares (millions)
% of Shares
Outstanding
Libra Advisors 41.1 12.9%
Arias Resource Capital 35.5 11.2%
Wellington Management 32.7 10.3%
Sentry Select Capital 15.0 4.7%
Mawer Investment Management 10.0 3.2%
Total Insiders & Key Individuals 19.1 6%
The US$0.70 warrants trade under the
symbol SND.WT
Exercise of warrants and options would
bring in approx. US$113M
CURRENT SHARE CAPITAL
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Except for the statements of historical fact contained herein, the information presented constitutes forward-looking information within the
meaning of applicable Canadian securities legislation. Forward-looking information is based on reasonable assumptions that have been made by
the Corporation as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause theactual results, level of activity, performance or achievements of Sandstorm to be materially different from those expressed or implied by the
forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over
mining operations from which Sandstorm will purchase gold and risks related to those mining operations, including risks related to international
operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and
changes in project parameters as plans continue to be rened; problems inherent to the marketability of minerals; industry conditions, including
uctuations in the price of metals, uctuations in foreign exchange rates and uctuations in interest rates; stock market volatility; competition; as
well as those factors discussed in the section entitled Risk Factors in Sandstorms nal short form prospectus as well as in Sandstorms annual
information form incorporated by reference in such prospectus. Although Sandstorm has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking
information. Sandstorm does not undertake to update any forward-looking information that is contained or incorporated by reference herein,
except in accordance with applicable securities laws
CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES
This presentation uses the terms Measured, Indicated and Inferred Resources. U.S. investors are advised that while such terms are
recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. Inferred
Mineral Resources have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed
that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of
Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. U.S. investors are also cautioned not to assume that all or
any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
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