Sandstorm Raises Gold Production Outlook — Commodity Comment

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.

On gold:

“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.”