Sandstorm Gold Ltd (British Columbia) (SAND) 2023 Q2 法說會逐字稿

Good afternoon. My name is Jenny, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sandstorm Gold Royalties 2023 Second Quarter Results Conference Call. (Operator Instructions).

午安.我叫珍妮，今天我將擔任你們的會議操作員。此時，我謹歡迎大家參加 Sandstorm Gold Royalties 2023 年第二季業績電話會議。 （操作員說明）。

Please be aware that some of the commentary may contain forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. (Operator Instructions).

請注意，某些評論可能包含前瞻性陳述。無法保證前瞻性陳述將被證明是準確的，因為實際結果和未來事件可能與此類陳述中的預期有重大差異。 （操作員說明）。

Thank you. Mr. Watson, you may begin your conference.

謝謝。沃森先生，您可以開始會議了。

Thank you, Jenny, and good morning, everyone, and thanks for calling into this Q2 earnings call. Shortly, I'll hand it over to Erfan to discuss the Q2 results. But before I do that, I'd like to provide corporate update and specifically briefly talk about 5 things being: One, Sandstorm's updated production guidance methodology; two, the sale by Glencore in Yamana or Pan American of the Sandstorm shares; three, share buybacks; four, production growth; and five, debt repayment.

謝謝珍妮，大家早安，謝謝您致電參加第二季財報電話會議。很快，我會將其交給 Erfan 討論第二季的結果。但在此之前，我想先介紹一下公司的最新情況，具體簡單談談五件事：一是Sandstorm更新的生產指導方法；二、嘉能可在Yamana或Pan American出售Sandstorm股票；三、股票回購；四、產量成長；五是償還債務。

So starting with our updated production guidance methodology. Over the last couple of months, I've had some conversations with larger investors. And it's clear to me that our updated production guidance methodology is not yet fully understood, especially as it relates to how we have historically made our guidance and how our royalty peer companies have guided the market.

因此，從我們更新的生產指導方法開始。在過去的幾個月裡，我與較大的投資者進行了一些對話。我很清楚，我們更新的生產指導方法尚未完全被理解，特別是因為它與我們歷史上如何制定指導以及我們的特許權同行公司如何指導市場有關。

Sandstorm and our peer companies have a challenge that when we are guiding future production, we have a large portfolio of royalties on development stage mines, and we have to make an educated guess as to which mines will be in production in the future. When you're projecting 4 years out, that can be hard to do if you have dozens of mines that have a chance of going into production, but on the balance of probabilities, many of them won't for various reasons, often relating to financing or permits.

Sandstorm 和我們的同行公司面臨的挑戰是，當我們指導未來的生產時，我們在開發階段的礦山上擁有大量的特許權使用費，我們必須對哪些礦山未來將投入生產做出有根據的猜測。當你預測4 年後，如果你有幾十個有機會投入生產的礦山，那麼這可能很難做到，但從機率的平衡來看，其中許多礦山由於各種原因而不會投入生產，通常與融資或許可。

Historically, Sandstorm and its mid-cap peers as well as smaller royalty companies have shown forward guidance that includes mines in reality have a lower chance of getting into production soon. And although they may well produce sometime in the future. The future guidance in this case is more of a statement of -- if everything goes perfect and these mines and companies get the permits and the money they need, then this is what our production would be when, in reality, everything isn't going to go perfect.

從歷史上看，Sandstorm 及其中型同行以及規模較小的特許權使用費公司都曾給出前瞻性指引，其中包括實際上礦山很快投入生產的可能性較低。儘管他們很可能在未來的某個時候生產。在這種情況下，未來的指導更多的是一種聲明——如果一切順利，這些礦山和公司獲得了他們所需的許可證和資金，那麼這就是我們的生產，而實際上，一切都沒有進展走向完美。

This year, we made a decision to go to more of a meaningful measure of forward guidance and only include mines that are permitted or effectively permitted in the hands of companies that will definitely build or are actually building the mines and who have almost certain access to the capital to build those mines. For example, if it's a permitted mine, but it's sitting in the company with only $100 million market cap and the CapEx for the mine is $300 million, we will not include that production in our guidance.

今年，我們決定採取更有意義的前瞻性指導措施，只包括那些肯定會建造或實際上正在建造礦山並且幾乎有機會獲得這些礦山的公司手中允許或實際上允許的礦山。​​建設這些礦山的資金。例如，如果它是一個獲得許可的礦山，但它所在的公司市值僅為 1 億美元，而該礦山的資本支出為 3 億美元，我們不會將該產量納入我們的指導中。

Fortunately, for Sandstorm, we can show over 30% growth in production to 125,000 ounces per year by 2027 from assets. We already have purchased enough mines that are already in construction or going into construction imminently, with the 4 primary mines being Greenstone, currently being built by Equinox, Platreef, which is currently being built by Ivanhoe, Hod Maden, which is going into construction next year by SSR and the Robertson Mine, which is part of the Cortez trend and is being build by Barrick. These are all impressive mines, an important part of Sandstorm's future.

幸運的是，對於 Sandstorm，我們可以證明到 2027 年，資產產量將增加 30% 以上，達到每年 125,000 盎司。我們已經購買了足夠多的已在建或即將開工的礦山，其中4 個主要礦山是Greenstone（目前由Equinox 建造）、Platreef（目前由艾芬豪（Ivanhoe）建造）、Hod Maden（下一步將開工）今年由 SSR 和 Robertson 礦場開發，該礦是 Cortez 趨勢的一部分，由巴里克 (Barrick) 建造。這些都是令人印象深刻的礦井，是沙塵暴未來的重要組成部分。

The point I'm trying to make, though, is that we may have other things and in some cases, likely will have new mines come online that will happen that will cause the production to be even higher than our guidance. And we have a list of those things in our corporate presentation and our production chart slides.

不過，我想說的一點是，我們可能還有其他事情，在某些情況下，可能會有新的礦山上線，這將導致產量甚至高於我們的指導。我們在公司簡報和生產圖表幻燈片中列出了這些內容。

Those are all upside to our guidance. One such potential upside that I think is worth mentioning is that we have an option to purchase a gold stream of 20% of the gold produced at the MARA project for $225 million. As some of you may have seen this week Glencore has announced that it's purchasing the remaining 56% interest in MARA for $0.5 billion. Many people have assumed that this asset won't go into production anytime soon. It's not in our guidance.

這些都是我們指導的優點。我認為值得一提的一個潛在好處是，我們可以選擇以 2.25 億美元購買 MARA 專案生產的黃金 20% 的黃金流。正如你們中的一些人本周可能已經看到的那樣，嘉能可宣布將以 5 億美元的價格收購 MARA 剩餘 56% 的權益。許多人認為該資產不會很快投入生產。這不在我們的指導範圍內。

However, Glencore is a very intelligent mining company, and their purchase of this interest suggests to me that this project will be moving forward more quickly than people anticipate that would further increase Sandstorm's production guidance beyond our current guidance numbers.

然而，嘉能可是一家非常聰明的礦業公司，他們對這項權益的購買向我表明，該專案的進展速度將比人們預期的更快，這將進一步提高Sandstorm 的產量指引，超出我們目前的指引數字。

Moving on to the second topic. As many of you are aware, in the last quarter, we had to absorb $100 million of share sales. Within a 1-month period, both Pan American, who received Sandstorm shares when they acquired Yamana and Glencore, who received Sandstorm shares in the BaseCore transaction, both respectively sold their Sandstorm shares. We do have some insight in the buyers of those shares who, for the most part, were long-term large institutional investors. And so those shares have found their way into stronger hands.

繼續第二個話題。正如你們許多人所知，在上個季度，我們不得不吸收 1 億美元的股票銷售。在1個月的時間內，在收購Yamana時獲得Sandstorm股票的Pan American和在BaseCore交易中獲得Sandstorm股票的嘉能可都分別出售了其Sandstorm股票。我們確實對這些股票的買家有一些了解，他們大部分是長期的大型機構投資者。因此，這些股票落入了更強大的手中。

A few of the buyers of those shares were more short-term oriented funds and when gold prices started dropping, they decided to sell them, which leads me to my third point of discussion being share buybacks. Fortunately for us, we had our share repurchase program in place, and we were able to buy some shares at low prices, and we canceled those shares and have tightened up our share structure a bit. Over the last quarter, we purchased around 2.6 million shares.

這些股票的一些買家是更多以短期為導向的基金，當金價開始下跌時，他們決定出售這些股票，這導致我討論的第三點是股票回購。對我們來說幸運的是，我們制定了股票回購計劃，我們能夠以低價購買一些股票，我們取消了這些股票，並稍微收緊了我們的股票結構。上個季度，我們買了約 260 萬股股票。

In addition, during the quarter, we had a very odd trading day on June 12, when we were notified by ICE Data Industries, the index manager for the NYSE Arca Gold Index, that we are unexpectedly removing Sandstorm from the index. We spent the entire day reaching out to them and explaining that they clearly made a calculation there literally a mistake. And at the end of the day, they announced they're reversing their decision, and we're appropriately -- we were appropriately put back into the index.

此外，在本季度中，6 月 12 日是一個非常奇怪的交易日，紐約證券交易所 Arca 黃金指數的指數管理公司 ICE Data Industries 通知我們，我們意外地將 Sandstorm 從指數中刪除。我們花了一整天的時間與他們聯繫並解釋說他們顯然做了一個計算錯誤。最終，他們宣布他們將改變他們的決定，我們被適當地重新納入指數。

However, during the trading day, we traded nearly 19 million shares, and at some point, we're down over 10%. Again, fortunately for us, we had our share buyback program in place, and we were able to buy the maximum allowable number of daily shares at a very cheap price on that day. It wasn't a fun day, but it worked out well in the end.

然而，在交易日內，我們交易了近 1,900 萬股，在某些時候，我們的股價下跌了 10% 以上。再次，對我們來說幸運的是，我們制定了股票回購計劃，並且當天我們能夠以非常便宜的價格購買每日允許的最大數量的股票。這不是有趣的一天，但最終結果很好。

On the side note, we do have some insight into the fund to step in big and bought shares on that day and there are great long-term funds. So at the end of the day, we ended up with a stronger, better shareholder base and fewer shares outstanding.

順便說一句，我們確實對當天大舉買入股票的基金有一些了解，並且有大量的長期基金。因此，最終我們獲得了更強大、更好的股東基礎，流通股數量更少。

The fourth topic I want to talk about, because I always get this question from investors, is about growth. The point I want to make will be brief because it's simple and it leads into my last topic of discussion. We have already bought our growth. Last year, we acquired $1 billion worth of new streams and royalties, much of which is for mines that are in construction now. Those purchases are our future growth, and we have the [Moro] stream option and a number of other potential development assets in the portfolio. If we make no new acquisitions, we have a lot of solid, high-confidence growth built in.

我想談的第四個話題是關於成長，因為我總是從投資者那裡聽到這個問題。我想表達的觀點將會很簡短，因為它很簡單，並且引出了我要討論的最後一個主題。我們已經買下了我們的成長。去年，我們獲得了價值 10 億美元的新資源和特許權使用費，其中大部分用於目前正在建造的礦場。這些購買是我們未來的成長點，我們在投資組合中擁有 [Moro] 流選項和許多其他潛在的開發資產。如果我們不進行新的收購，我們就會有很多堅實的、高信心的成長。

In order to get that growth, we had to take on debt last year, which leads me to my last point, debt reduction. At the peak of last year, if you took our debt plus payments we had yet to make on streams that have been purchased by Nomad, but not yet paid for such as Greenstone and Platreef, our debt or amounts owed was close to $625 million. We have been diligently bringing that down, and we stand here today with net debt below $460 million. So it's come down massively.

為了實現這種成長，我們去年不得不承擔債務，這讓我想到了最後一點：減少債務。在去年的高峰期，如果算上我們的債務加上我們尚未支付的已被 Nomad 購買但尚未付款的串流媒體（例如 Greenstone 和 Platreef）的付款，我們的債務或欠款接近 6.25 億美元。我們一直在努力降低這種情況，今天我們的淨債務低於 4.6 億美元。所以它大幅下降。

You can see here on this chart, it shows that if we don't make any further acquisitions and depending on the gold price, the debt will get to 0 sometime in 2027. Now we have a revolving facility of $625 million that we can draw on for future acquisitions. But with interest rates where they are today, the most likely outcome is that we'll keep paying debt down to save on interest. I think it's also worth noting -- and sometimes in the past, we have purchased a gold stream. We may have lent a mining company money or in the case of the sale of the Antamina NPI to Horizon, one of the things we took back was a loan and has a cash sweep on the NPI cash flows. And therefore, Sandstorm has a portfolio of loans to other mining companies from which we received interest income on.

你可以在這張圖表上看到，它顯示，如果我們不進行任何進一步的收購，並且根據黃金價格，債務將在2027 年的某個時候達到0。現在我們有6.25 億美元的循環貸款，我們可以提取未來的收購。但鑑於目前的利率，最有可能的結果是我們將繼續償還債務以節省利息。我認為這也值得注意——過去有時我們購買了黃金流。我們可能會藉給一家礦業公司錢，或者在將 Antamina NPI 出售給 Horizo​​n 的情況下，我們收回的其中一項是貸款，並對 NPI 現金流進行現金掃蕩。因此，Sandstorm 向其他礦業公司提供貸款組合，我們從中獲得利息收入。

In total, the mark-to-market value of those loans that we have made is USD 234 million. So if you take Sandstorm's net bank debt of around $457 million, which has an interest expense to us, and you net that debt against the loans we have made to other companies, which yield income to us, the net interest isn't that bad.

總的來說，我們發放的這些貸款按市值計算的價值為 2.34 億美元。因此，如果你考慮Sandstorm 約4.57 億美元的銀行淨債務（這對我們來說是利息支出），並將該債務與我們向其他公司提供的貸款（這些公司為我們帶來收入）相抵，那麼淨利息並沒有那麼糟。 。

Having said that, our business is doing well. Our cash flows are strong, and we'll be applying those cash flows against our debt as our first capital allocation priority. It's very exciting to be in this position today with a strong portfolio, 4 amazing mines being constructed and with debt falling rapidly. Quarter-by-quarter, Sandstorm is becoming a bigger, stronger and more stable company.

話雖如此，我們的生意做得很好。我們的現金流強勁，我們將把這些現金流用於償還我們的債務，作為我們的首要資本配置優先事項。今天能處於這個位置非常令人興奮，擁有強大的投資組合、正在建造的 4 個令人驚嘆的礦山以及債務迅速下降。每個季度，沙暴正在成為一家更大、更強、更穩定的公司。

With that, I'll hand it over to Erfan for the detailed results.

這樣，我就把詳細的結果交給二帆了。

Thanks, Nolan. It was another strong quarter in terms of financial results for the company. We set another record in quarterly revenues at $49.8 million with attributable gold equivalent production of over 24,500 ounces in the second quarter, nearly 53,000 ounces in the first half of 2023.

謝謝，諾蘭。就公司財務表現而言，這是另一個強勁的季度。我們的季度營收再創新高，達到 4,980 萬美元，第二季的黃金當量產量超過 24,500 盎司，2023 年上半年接近 53,000 盎司。

Sandstorm is on track to comfortably achieve its production guidance of between 90,000 and 100,000 attributable ounces this year. Our gold and silver prices during the second quarter helped boost revenues and the company realized an average gold price of $1,972 per attributable ounce. This resulted in cash operating margins of $1,744 per attributable ounce sold. Comparing the 3 months ended June 30, 2023, to the comparable period in 2022, gold revenues and attributable gold equivalent production increased by 39% and 27%, respectively.

今年，Sandstorm 預計將輕鬆實現 90,000 至 100,000 盎司的產量指引。第二季度我們的黃金和白銀價格幫助增加了收入，公司實現了每盎司 1,972 美元的平均黃金價格。這導致每盎司銷售的現金營業利潤為 1,744 美元。截至2023年6月30日的三個月與2022年同期相比，黃金收入和權益黃金當量產量分別增加了39%和27%。

The increase in production and revenues was primarily driven by the assets added to Sandstorm's portfolio in the second half of 2022 via the Nomad and BaseCore transactions as well as an increase in the average realized price of gold. The average cash cost per attributable ounce in the second quarter was $228, a 16% decrease compared to the same period in 2022.

產量和收入的成長主要是由 2022 年下半年透過 Nomad 和 BaseCore 交易添加到 Sandstorm 投資組合的資產以及黃金平均實現價格的上漲所推動的。第二季每盎司平均現金成本為 228 美元，較 2022 年同期下降 16%。

Contributing to the strong cash operating margins that I mentioned earlier. As a result, the company had record cash flows from operating activities of $42.1 million or $38 million in operating cash flows, excluding changes in noncash working capital.

有助於我之前提到的強勁現金營運利潤。結果，該公司的營運活動現金流達到創紀錄的 4,210 萬美元，即經營現金流 3,800 萬美元，不包括非現金營運資本的變動。

These cash flows and the strong margins that underlay them really highlight the benefit of the royalty model business. Over the last 12 months, we've added considerable scale to Sandstorm's cash flow and royalty portfolio, while also increasing our operating margins. Even in a high inflationary environment, Sandstorm continues to turn out exceptional operating results.

這些現金流及其背後的強勁利潤確實凸顯了特許權使用費模式業務的好處。在過去 12 個月中，我們大幅擴大了 Sandstorm 的現金流量和特許權使用費組合規模，同時也提高了我們的營業利潤率。即使在高通膨環境下，Sandstorm 仍繼續取得出色的經營業績。

Net income for the 3-month period was $2.7 million compared to $39.7 million in the comparable period of 2022. This change was driven by approximately $35 million in gains recognized in the second quarter of 2022 related to the sale of a portfolio of royalties to Sandbox royalties and the sale of the company's equity interest in Entrée resources to Horizon Copper.

這三個月期間的淨利潤為270 萬美元，而2022 年同期淨利潤為3,970 萬美元。這項變更是由2022 年第二季確認的與向Sandbox 出售特許權使用費組合相關的約3,500 萬美元收益推動的特許權使用費以及將公司在 Entrée 資源中的股權出售給 Horizo​​n Copper。

On the next slide is the breakdown of attributable gold equivalent production sold from the company's top assets. At the top of the list, we have the Mercedes mine in Mexico at almost 4,100 attributable ounces sold. Sandstorm acquired Gold Stream of Mercedes in April 2022, which pays fixed deliveries until nearly 30,000 ounces have been delivered. As part of the Nomad acquisition last year, the company also acquired a silver stream on the asset along with fixed additional deliveries.

下一張投影片是該公司頂級資產出售的黃金當量產量的明細。位居榜首的是位於墨西哥的梅賽德斯礦，其銷量接近 4,100 盎司。 Sandstorm 於 2022 年 4 月收購了 Mercedes 的 Gold Stream，該公司支付固定交貨費用，直到交付近 30,000 盎司為止。作為去年 Nomad 收購的一部分，該公司還收購了該資產的白銀流量以及固定的額外交付量。

Cerro Moro continues to be a strong contributor to Sandstorm's production profile with over 3,300 attributable gold equivalent ounces sold during the quarter. July and August mark one year since the completion of the BaseCore, Nomad acquisitions respectively. As I look at the contributing assets on the list and compare it to this time last year, it's great to see so many significant cash flowing streams and royalties from those acquisitions, Antamina, Caserones, (inaudible) Blyvoor or just some of the assets that are contributing meaningful cash flow to Sandstorm this year, with many more in development.

Cerro Moro 繼續對 Sandstorm 的產量做出重要貢獻，本季售出超過 3,300 盎司黃金當量。 7 月和 8 月分別標誌著 BaseCore 和 Nomad 收購完成一周年。當我查看清單上的貢獻資產並將其與去年這個時候進行比較時，很高興看到這些收購產生瞭如此多的重要現金流和特許權使用費，Antamina、Caserones、（聽不清楚）Blyvoor 或只是一些資產今年為 Sandstorm 貢獻了可觀的現金流，還有更多正在開發中。

Speaking of Antamina, in June, Sandstorm completed the final component of its transaction with Horizon Copper, whereby Sandstorm sold a portion of its net profits interest on the Antamina copper mine. In consideration for the NPI, Sandstorm received a 1.66% stream on the silver produced at Antamina as well as the $20 million cash payment plus a combination of debt and equity and retained a portion of the NPI as a residual royalty.

說到安塔米納，6月份，Sandstorm完成了與Horizo​​n Copper交易的最後一部分，其中Sandstorm出售了其在安塔米納銅礦的部分淨利潤權益。作為 NPI 的對價，Sandstorm 收到了 Antamina 生產的白銀的 1.66% 的收益以及 2000 萬美元的現金付款加上債務和股權的組合，並保留了 NPI 的一部分作為剩餘特許權使用費。

The cash received from this transaction contributed strong quarterly cash flows that I mentioned earlier that helped further pay down the company's debt balance while also investing in share buybacks, as Nolan discussed.

正如諾蘭所討論的，從這次交易中收到的現金貢獻了我之前提到的強勁的季度現金流，有助於進一步償還公司的債務餘額，同時也投資於股票回購。

Operations in the Americas contribute significantly in terms of the majority of gold equivalent production to Sandstorm at 86% in the second quarter. Compared to the same period in 2022, attributable production from mines in North and South America is up 37% and 18%, respectively. This is largely due to the regional exposure from mines acquired in 2022.

第二季度，美洲業務對 Sandstorm 黃金當量產量的大部分貢獻顯著，佔 86%。與 2022 年同期相比，北美和南美礦山的權益產量分別成長 37% 和 18%。這主要是由於 2022 年收購的礦山的區域風險。

Sandstorm remains a precious metal-focused company. During the second quarter, approximately 75% of attributable production came from precious metals, of the 25% production that came from base metals, about 20% was in copper. And with that, I'll turn it over to Dave for updates on some of our development assets.

Sandstorm 仍然是一家專注於貴金屬的公司。第二季度，約 75% 的權益產量來自貴金屬，25% 的產量來自賤金屬，其中約 20% 是銅。這樣，我會將其交給 Dave，以獲取我們一些開發資產的更新資訊。

Great. Thanks, Erfan. For the asset update today, I'd like to speak about 2 of the biggest development projects in the portfolio and a few smaller updates. Starting with Platreef and the fantastic progress towards Phase 1 production, which is still expected for Q3 2024. Concentrator is well on schedule with much of the concrete work completed. 70% of all the orders at Phase 1 mill have been placed with greater than 10% of the steelwork erected to date. Underground work has been focused on lateral development to the high-grade Platreef ore mine on 3 different levels 2000 meters of development has been completed to date, with a cumulative event rate expected to increase in September from 200 to 300 meters per day and again, up to 500 meters per day by January 2024

偉大的。謝謝，埃爾凡。對於今天的資產更新，我想談談投資組合中兩個最大的開發項目和一些較小的更新。從 Platreef 開始，第一階段生產取得了巨大進展，預計將於 2024 年第三季完成。選礦廠進展順利，大部分具體工作已完成。迄今為止，一期工廠 70% 的訂單已完成，超過 10% 的鋼結構已建成。地下工作的重點是對高品位 Platreef 礦井進行 3 個不同級別的橫向開發，迄今為止已完成 2000 米的開發，預計 9 月份的累積事件率將從每天 200 米增加到 300 米，並再次增加，到2024 年1 月每天可達500 米

The 10-meter diameter Shaft 2 for Phase 2 mine continues to be advanced and is expected to operate at 8 million tonnes per annum hoisting capacity by 2027. Once completed, the head frame will be approximately 100 meters tall. This will be among the largest hoisting shafts in the world. As part of the optimization work, Ivanhoe is looking to convert a previously installed bench shaft into Shaft 3 to accelerate underground mining activities associated with Phase 2. The existing shaft is currently being reamed to a 5.1 meter in diameter and is planned to have this project completed by Q4 2023 and it will be planned to be equipped with a liner and the appropriate [headgear]. As Phase 1 and Phase 2 move towards completion, management at Ivanhoe is speaking more and more about the potential Phase 3, which would take the mine up to 12 million tonnes per annum. We'll stay tuned for updates on that time line.

二期礦井直徑10公尺的2號礦井持續推進，預計到2027年將達到每年800萬噸的提升能力。建成後，首架高度約為100公尺。這將是世界上最大的提升井之一。作為優化工作的一部分，艾芬豪正尋求將先前安裝的台式豎井改造為3 號豎井，以加速與第二階段相關的地下採礦活動。現有豎井目前正在擴孔至直徑5.1 米，併計劃在此專案中使用於 2023 年第四季完成，計劃配備內襯和適當的[頭飾]。隨著第一階段和第二階段的完成，艾芬豪管理層越來越多地談論潛在的第三階段，該階段將使礦場每年的產量達到 1,200 萬噸。我們將繼續關注該時間軸的更新。

Moving on to Oyu Tolgoi and the joint venture ground to which we hold a couple of streams. Just over 3 weeks ago, Rio Tinto hosted an investor site visit, which focused on the underground progress on the asset since their takeover of Turquoise Hill. The operations continue to improve every year as they work to transition to underground operations for most of the supply of ore through the rest of the life of mine. Shaft 3 and 4 are increasing [shrinking range] and the concentrator conversion is making progress with completion expected in H1 2025.

繼續前往奧尤陶勒蓋 (Oyu Tolgoi) 和我們擁有幾條溪流的合資企業場地。就在三週前，力拓舉辦了一次投資者實地考察，重點關注自收購 Turquoise Hill 以來該資產的地下進展。隨著礦山剩餘壽命期間大部分礦石供應過渡到地下作業，作業每年都在不斷改進。 3 號和 4 號豎井正在增加[縮小範圍]，選礦廠改造正在取得進展，預計將於 2025 年上半年完成。

The 7.8 kilometer long conveyor to surface is well on track and expected to be completed in H2 2024. According to their presentation, the Oyu Tolgoi team has exceeded planned performance in almost all productivity and production metrics including development meters and hoisted tons. Project is finally hitting its stride as it pushes hard to production from the block cave. This all points to positive progress optimizing the plans combine into Panel 1 of Lift 1, which is where Sandstorm's gold and copper stream supply.

通往地面的7.8 公里長的輸送機進展順利，預計將於2024 年下半年完工。根據他們的介紹，奧尤陶勒蓋團隊在幾乎所有生產力和生產指標（包括開發米和提升噸數）方面都超出了計劃績效。隨著從區塊洞穴的努力推進到生產，該計畫終於取得了進展。這一切都表明，優化合併到 Lift 1 面板 1 的計劃取得了積極進展，這是 Sandstorm 的黃金和銅流供應的地方。

With the latest update for [Rio], it looks like access to the ore from that panel may be moved up as much as 1 year or simply 2. Another important note from site visit was a focus on Hugo North Lift 2. As you can see on this slide, the 3D view of the reserves and resources of Oyu Tolgo, there are enormous amounts of resources in the [same] color compared to the relatively small reserves in red. But without conversion to reserves, you can already see in the light gray that Rio has already worked on the development design of Lift 2.

隨著 [Rio] 的最新更新，從該面板獲取礦石的時間可能會提前 1 年甚至 2 年。現場訪問的另一個重要注意事項是重點關注 Hugo North Lift 2。請參閱這張幻燈片，奧尤托爾戈儲量和資源的3D 視圖，與相對較小的紅色儲量相比，[相同]顏色的資源數量巨大。但在不轉換為儲備的情況下，您已經可以在淺灰色中看到力拓已經致力於 2 號電梯的開發設計。

They have said that the new resource model can be expected by mid-2024 and an order of magnitude study to be commenced this year, Rio is keen to continue to fill the mill beyond 2043. This update, along with the Mongolian Prime Minister's optimistic comments on his recent trip to Washington D.C. regarding the near resolution on the ongoing tax issues with Rio Tinto leads us to believe that Oyu Tolgo is in very positive position compared to just a few years ago.

他們表示，新的資源模型預計將在 2024 年中期推出，並且今年將開始一項數量級的研究，力拓熱衷於在 2043 年之後繼續填充工廠。這一更新以及蒙古總理的樂觀評論他最近訪問華盛頓特區，討論與力拓集團之間持續存在的稅務問題即將得到解決，這讓我們相信，與幾年前相比，奧尤托爾戈處於非常積極的地位。

The progress at Oyu Tolgoi is feeling very tangible now. So before I hand over for the Q&A, I thought it might be worth and adding on to really what Nolan said earlier about the consolidation of the MARA project fully into the hands of Glencore. It moved really quickly consolidate the ownership from new mine and now Pan America, and we are hoping they're pushing this project to development.

奧尤陶勒蓋的進展現在感覺非常明顯。因此，在我進行問答之前，我認為這可能是值得的，並補充了諾蘭之前所說的關於將 MARA 項目完全整合到嘉能可手中的內容。它的行動非常迅速，鞏固了新礦和現在泛美的所有權，我們希望他們能夠推動這個項目的發展。

We'll see if Glencore has an update on timing of this project before the end of the year. Also worth mentioning is a congratulations to Lundin Gold on the amazing initial results of the 43,000 meter drill program at Fruta del Norte. Just yesterday, they released assay results from the conversion program that we're well above the current (inaudible) but also results from FDN South and Bonza Sur that are in line with the grades achieved at Fruta itself.

我們將看看嘉能可在今年年底前是否有關於該專案時間表的最新消息。另外值得一提的是，祝賀 Lundin Gold 在 Fruta del Norte 的 43,000 公尺鑽探計劃中取得了驚人的初步成果。就在昨天，他們發布了轉換計畫的化驗結果，我們遠高於目前（聽不清楚），而且 FDN South 和 Bonza Sur 的結果也與 Fruta 本身取得的成績一致。

So with that, I'll pass over the call to Jenny, the operator, for Q&A. Please feel free to ask questions about any of our streams and royalties.

因此，我會將電話轉接給接線員珍妮進行問答。請隨時詢問有關我們的任何串流媒體和版稅的問題。

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(Operator Instructions). Your first question is from Josh Wolfson from RBC Capital Markets.

（操作員說明）。你的第一個問題來自加拿大皇家銀行資本市場的喬許‧沃爾夫森。

First question -- or most of my questions, I should say, have to do with the capital allocation side of things. In addition to the $12 million of stream investments, there is also a $12 million investment titled as Acquisition of Investments and Other Assets. Are there any disclosures that can be provided, what those investments were for the quarter?

第一個問題——或者我應該說，我的大部分問題都與資本配置方面有關。除了 1,200 萬美元的流投資外，還有一項名為「投資和其他資產收購」的 1,200 萬美元投資。是否可以揭露本季的投資情況？

We made a few small investments in various things that are not being disclosed at this point. But I think in terms of capital allocation going forward, it's important to note that I recently did a large round of marketing talking to institutional investors. And prior to that round of marketing was sort of thinking to my mind, would be allocating future capital, probably 70% to debt reduction and 30% to share buybacks and the overwhelming message that came back to me from our large investors is not just -- do not ever share buybacks so much, just pay down debt as fast as you can because interest rates are high. And so capital allocation going forward. I don't think you'll see us doing any of these smaller deals per se and fewer share buybacks and really just [walking] down the debt.

我們對目前尚未揭露的各種事項進行了一些小額投資。但我認為就未來的資本配置而言，值得注意的是，我最近與機構投資者進行了一輪大規模的營銷對話。在那一輪行銷之前，我的想法是分配未來的資本，可能 70% 用於減少債務，30% 用於股票回購，我們的大投資者給我帶來的壓倒性信息不僅僅是—— - 永遠不要過度進行股票回購，只要盡快償還債務即可，因為利率很高。未來的資本配置也是如此。我認為你不會看到我們本身進行任何較小的交易和更少的股票回購，實際上只是[步行]減少債務。

Okay. Yes. I would just sort of -- isn't so much a question more so a confirmation, an $8 million debt repayment this quarter is relatively light versus the debt load and the cash generation and the debt could be repaid by 2027. I mean our forecasts, I agree with that, but it would take significantly longer, maybe a decade or more, if the current pace of debt repayment was extrapolated. So I look forward to next quarter's update.

好的。是的。我只是想——與其說是一個問題，不如說是一個確認，與債務負擔和現金生成相比，本季度800 萬美元的債務償還相對較少，而且債務可以在2027 年償還。我的意思是我們的預測，我同意這一點，但如果按照目前的債務償還速度推斷，則需要更長的時間，可能需要十年或更長時間。所以我期待下個季度的更新。

Yes. And then just to emphasize, next, it's all going to debt repayment at the moment than everything.

是的。然後強調一下，接下來，目前所有的事情都是為了償還債務。

Your next question is from Heiko Ihle from H.C. Wainwright. Wainright.

您的下一個問題來自 H.C. 的 Heiko Ihle。溫賴特。溫賴特。

This is Marcus Giannini calling in for Heiko. You sort of touched on the capital allocation question we had in terms of share repurchases versus dividends. I guess to tweak that question a bit, going forward, debt repayment is a priority and somewhat effect will the share repurchase program slowdown and what effect will the dividend program be changed based on that near-term goal.

我是馬庫斯·賈尼尼 (Marcus Giannini) 呼叫海科 (Heiko)。您談到了我們在股票回購與股利方面的資本分配問題。我想稍微調整一下這個問題，展望未來，債務償還是一個優先事項，並且會對股票回購計劃放緩產生一定影響，以及根據近期目標改變股息計劃會產生什麼影響。

Yes. We don't have any plans to change the dividend policy once we said when we put the dividend in place, it's going to maintain and stay in place as is, and then we'll evaluate once a year, whether or not it makes sense to raise the dividend at the end of the year. I think with debt levels where they are and with interest rates where they are, we'll probably just continue to keep that steady for the meantime until either interest rates are coming down or debt comes down, or both.

是的。我們沒有任何計劃改變股息政策，一旦我們說過當我們派發股息時，它將維持原樣，然後我們將每年評估一次，無論它是否有意義年底提高股息。我認為，鑑於目前的債務水平和利率，我們可能會暫時繼續保持穩定，直到利率下降或債務下降，或兩者兼而有之。

And in terms of debt reduction versus share buybacks, we are prioritizing the vast majority of our capital to debt reduction, just because interest rates are so high. I mean we're not worried about our debt levels at all, but interest rates are at generation of [highs], and we want to save our money.

就債務削減與股票回購而言，我們將絕大多數資本優先用於債務削減，只是因為利率如此之高。我的意思是，我們根本不擔心我們的債務水平，但利率正處於[高位]，我們想存錢。

Okay. Yes. No, that makes sense. And then speaking of using funds, this may be more of a question for Erfan. Your are at $9.1 million in cash at the end of June, slightly up compared to the $7 million at the end of 2022. This figure still isn't all that high. Obviously, your actual liquidity is much higher given your working capital and the revolver. But at what point do you get a little concerned with actual cash on the balance sheet? Or rather, is there a minimum cash figure you simply cannot or will not go under.

好的。是的。不，這是有道理的。然後說到資金的使用，這可能是二帆更多的問題。截至 6 月底，您的現金為 910 萬美元，比 2022 年底的 700 萬美元略有增加。這個數字仍然不是那麼高。顯然，考慮到您的營運資金和左輪手槍，您的實際流動性要高得多。但什麼時候你會有點擔心資產負債表上的實際現金呢？或者更確切地說，是否存在您無法或不會低於的最低現金金額。

Yes. Thanks for the question. There's no hard rule. There's no specific reason why you keep a certain level of balance on just working capital, some of it paying for stream deliveries and timing of deliveries associated with it and has to do with also quarter end where we expect payments of receivables coming, but there's no covenant requirement in terms of minimum cash balances or otherwise. But you'll just see us maintain low levels of cash to just save interest on the debt that we have outstanding.

是的。謝謝你的提問。沒有硬性規定。沒有具體原因說明為什麼您僅在營運資金上保持一定水平的平衡，其中一些用於支付與之相關的流交付和交付時間，並且還與我們預計應收賬款付款的季度末有關，但沒有最低現金餘額或其他方面的契約要求。但你只會看到我們維持較低水準的現金，只是為了節省未償債務的利息。

It's actually one of the benefits of being a streaming and royalty company with the business model, the way the contracts are structured -- is that when G&A is so immaterial to the company, you don't really need to keep much cash on hand. And when we get, our main cash outflow items are paying for the gold that is delivered to us under streams. But the way our contracts are structured is we get the gold and we sell it and we get the revenue before we have to pay for it. So you never have to keep cash on hand to buy the gold and then sell it because you sell the gold and then buy it.

這實際上是成為一家串流媒體和版稅公司的商業模式和合約結構方式的好處之一，那就是當一般管理費用對公司來說如此無關緊要時，你實際上不需要在手頭保留太多現金。當我們得到時，我們的主要現金流出項目是支付透過流量交付給我們的黃金。但我們合約的結構方式是，我們獲得黃金，然後將其出售，然後在支付之前獲得收入。因此，您永遠不必手頭持有現金來購買黃金然後出售它，因為您先出售黃金然後購買它。

(Operator Instructions) Your next question is from Derick Ma from TD Securities.

（操作員指令） 您的下一個問題來自道明證券 (TD Securities) 的 Derick Ma。

I apologize if these questions have been answered. I was dropped at the beginning of the Q&A, but could you speak to the rationale on why the company reestablished the ATM program and how it [intends] you to ATM going forward?

如果這些問題得到解答，我深感抱歉。我在問答環節一開始就被放棄了，但您能談談公司為何重新建立 ATM 計劃以及您打算如何繼續 ATM 計劃嗎？

Yes. No, that's a great question. I'm glad you brought it up. So years ago, the Board of Directors decided that it was prudent to always have the flexibility to have a share buyback program in place simultaneously with an ATM to give maximum flexibility just in case. We have never ever used our ATM in the several years that we've had in place, including to this day, we've never had used our ATM. It is there in sort of a break glass in case of emergency scenario, and we have no plans to use it.

是的。不，這是一個很好的問題。我很高興你提出來。多年前，董事會決定謹慎行事，始終保持靈活性，與 ATM 同步實施股票回購計劃，以提供最大的靈活性，以防萬一。在我們設立的幾年裡，我們從未使用過我們的 ATM，包括直到今天，我們從未使用過我們的 ATM。它就像緊急情況下的碎玻璃一樣，我們沒有計劃使用它。

Okay. Great. And then just a couple of points of clarification on the MARA stream option, if I could. The conversion granted 20% gold stream on the entire project or just a portion of the project.

好的。偉大的。如果可以的話，然後對 MARA 流選項進行幾點澄清。此次轉換為整個專案或專案的一部分提供了 20% 的黃金流。

The whole project.

整個項目。

The entire project. And is there an expiration -- an expiry date on the option and terms like (inaudible) when you can actually exercise that option?

整個項目。是否有到期日－選擇權的到期日以及諸如（聽不清楚）您何時可以實際行使該選擇權之類的條款？

There's no calendar-based expiration date on the option. The option is given to us at a point in time when they make their Board decision to construct the mine and have financing that's when we're -- we get the phone call to say, do you elect yes or no.

該期權沒有基於日曆的到期日。當他們做出董事會決定建造礦場並獲得融資時，我們可以選擇——我們接到電話說，你選擇「是」還是「否」。

If we elect yet, then we're in and then we pay over time as they build the mine.

如果我們還選擇了，那麼我們就加入了，然後我們隨著時間的推移在他們建造礦井時支付費用。

(Operator Instructions)

（操作員說明）

All right. Well, if there are no more questions, I think we can end the call, and I appreciate everybody calling in. And as always, we're around to answer questions that people may have as follow-up questions. So thank you. Have a great day.

好的。好吧，如果沒有更多問題，我想我們可以結束通話，我感謝大家打電話。一如既往，我們會回答人們可能提出的後續問題。所以謝謝。祝你有美好的一天。

Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect.

謝謝。女士們、先生們，會議現已結束。感謝大家的加入。你們都可以斷開連線。