By Matt Grossman
Sandstorm Gold Ltd. raised its production outlook following the execution of a gold stream and royalty agreement and the purchase of a royalty package on a portion of Vale S.A.’s operations.
“With the addition of the royalties, Sandstorm is forecasting attributable gold equivalent production between 62,000-69,000 ounces in 2021.”
On iron ore:
“Using a long-term iron ore price of US$75 per [metric] ton (a decrease of more than 60% compared to current iron ore price of US$200+ per ton), combined with the growth in production from Sandstorm’s existing portfolio, iron ore is currently anticipated to account for 3% of revenue long-term.”
On precious metals and iron ore:
“Sandstorm remains focused on precious metals and continues to estimate approximately 80% of revenue coming from gold and silver. Using consensus iron ore prices, the company is currently expecting iron ore to account for 10% of revenue in 2021, dropping to 3% long-term.”
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