Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the Vatukoula stream and royalty buyback situation? A: Nolan Watson, President and CEO, explained that the operator stopped paying quite some time ago due to insolvency at the mining level. A large Chinese company is now involved, and they have made a $4 million non-refundable deposit. They must pay an additional $10 million by next month to complete the buyout.
Q: What gives Sandstorm confidence to include Gualcamayo in the formal guidance despite its technical complexities? A: Nolan Watson noted that the new owner is a well-capitalized multibillion-dollar Argentinian company. The large CapEx number includes sustaining capital, and the upfront capital is not as significant as it appears.
Q: Are there any streams in the portfolio at risk of renegotiation? A: Nolan Watson mentioned that Americas Gold and Silver has resolved its issues with new management and capital. The remaining concern is Bear Creek, which owes Sandstorm $45 million. However, this could become a positive if the assets are sold.
Q: What are Sandstorm's priorities once the $300 million debt threshold is reached? A: Nolan Watson emphasized that share buybacks are the top priority, followed by debt reduction. Acquisition growth will only be considered if it offers a higher return than debt reduction.
Q: Can you elaborate on the 2025 guidance and potential risks? A: Nolan Watson stated that the guidance includes risk adjustments, such as a conservative assumption for Greenstone's ramp-up. The guidance aims to avoid missing targets due to unforeseen issues or price fluctuations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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