Sandstorm Gold Ltd (British Columbia) (SAND) 2020 Q2 法說會逐字稿

Good morning. My name is Amy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sandstorm Gold Royalties second quarter conference call. (Operator Instructions)

早安.我叫艾米，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Sandstorm Gold Royalties 第二季度電話會議。 （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）

I would now like to turn the call over to Mr. Watson. Please begin.

我現在想把電話轉給沃森先生。請開始。

Well, thank you, Amy. Good morning, everyone, and thanks for calling into the second quarter earnings call for 2020. This morning, Erfan, our CFO, is going to walk us through the Q2 results; and then David Awram is going to provide a brief update about our asset base. And then as usual, we'll turn it over to the operator, Amy, for a question-and-answer period. And if anyone has any questions that do not necessarily need to be part of the live Q&A, you can ask those questions through the web portal, and we'll ensure that each question we get there will get a direct response from us after this call.

嗯，謝謝你，艾米。大家早安，感謝您參加 2020 年第二季財報電話會議。今天早上，我們的財務長 Erfan 將向我們介紹第二季的業績；然後 David Awram 將提供有關我們資產基礎的簡短更新。然後像往常一樣，我們將把它交給接線員艾米，進行問答。如果有人有任何不一定需要參與即時問答的問題，您可以透過入口網站提出這些問題，我們將確保我們收到的每個問題都會在此次電話會議後得到我們的直接答覆。

Before I hand it over to Erfan, I want to provide an update on how our business has been impacted by COVID-19 as well as answer some common questions of investors about our deal pipeline, Hod Maden as well as my expectation for where the market is going. At this time, we'll be going through a prepared PowerPoint presentation on the web portal. So if you're able to, please turn your attention there now.

在將其交給 Erfan 之前，我想介紹一下我們的業務如何受到 COVID-19 影響的最新情況，並回答投資者關於我們的交易管道、Hod Maden 的一些常見問題以及我對市場的預期正在去。此時，我們將在入口網站上瀏覽準備好的 PowerPoint 簡報。因此，如果可以的話，請現在將注意力轉向那裡。

So starting with an update about how our business was affected by COVID. You can see on this slide, each of the producing assets in our portfolio that were affected by COVID-related shutdowns. Nearly half of our producing assets were affected. Some were for short periods, others involved total shutdowns for most of the quarter. Perhaps the most material impacts came from Santa Elena and Fruta del Norte which were shut down for most of the quarter. This is one of the reasons I love being a royalty company because despite this, we still had $13.4 million in operating cash flow before working capital adjustments, which is a testament to the robustness of our business.

首先介紹一下我們的業務如何受到新冠疫情影響的最新情況。您可以在這張投影片上看到我們投資組合中受到與新冠病毒相關的停工影響的每項生產資產。我們近一半的生產資產受到影響。有些是短期的，有些則涉及本季大部分時間的全面關閉。也許最重大的影響來自 Santa Elena 和 Fruta del Norte，它們在本季的大部分時間都處於關閉狀態。這也是我喜歡成為特許權使用費公司的原因之一，因為儘管如此，在營運資本調整之前我們仍然擁有 1,340 萬美元的營運現金流，證明了我們業務的穩健性。

Because of COVID, we pulled our production guidance for 2020. However, I would like to provide a bit of clarification as to how these mine shutdowns may also affect our Q3 numbers. It's worth noting that all of these mines are currently back up and running, which means for Q3, we will be able to accrue revenue for the full quarter for each of our royalties. However, for our streams, we do not recognize the sales until we have actually received the gold from our counterparties and have actually sold it. In most cases, we delivered gold in the month following the actual production. However, in the case of Cerro Moro, we delivered silver once per quarter only, meaning that our Q3 ounces from Cerro Moro will reflect what was actually produced in Q2. And as Cerro Moro operated at a reduced rate in Q2, investors can expect our Q3 sales to be affected by COVID even though all mines are back up and running now. The good news is that we expect to be back to record revenue and potentially record cash flow by Q4.

由於新冠疫情，我們取消了 2020 年的生產指引。不過，我想澄清一下這些礦山的關閉可能會對我們第三季的數據產生怎樣的影響。值得注意的是，所有這些礦場目前都已恢復並運行，這意味著在第三季度，我們將能夠為每個特許權使用費累積整個季度的收入。然而，對於我們的串流，在我們實際從交易對手收到黃金並實際出售之前，我們不會確認銷售。在大多數情況下，我們在實際生產後的一個月內交付黃金。然而，就 Cerro Moro 而言，我們每季僅交付一次白銀，這意味著我們從 Cerro Moro 獲得的第三季盎司數量將反映第二季的實際產量。由於 Cerro Moro 在第二季的營運率有所下降，因此投資者可以預期我們第三季的銷售將受到新冠疫情的影響，儘管所有礦場現已恢復正常運作。好消息是，我們預計到第四季將恢復創紀錄的收入並可能創紀錄的現金流。

Moving on to general corporate update. I'll start with the current status of our deal pipelines. Last quarter, as the world felt like it was falling apart, our deal pipeline became as full as it had ever been. The majority of opportunities were from base metal companies that had gold or silver byproduct streams to sell. We're still working on a few of those potential transactions. However, as the central bankers have stepped in and started printing money at a record-setting pace, base metal prices have rebounded, and a number of base metal companies no longer require selling streams. Therefore, our deal pipeline has been out a bit.

繼續進行一般公司更新。我將從我們交易管道的現狀開始。上個季度，當世界感覺分崩離析時，我們的交易管道卻變得空前飽滿。大多數機會來自有黃金或白銀副產品可供銷售的賤金屬公司。我們仍在處理其中一些潛在的交易。然而，隨著各國央行介入並開始以創紀錄的速度印鈔，基本金屬價格出現反彈，許多基本金屬公司不再需要拋售。因此，我們的交易管道已經有點緊張了。

Having said that, with gold at record levels and with a strong balance sheet, we're continuing to build a war chest of capital to prepare for our next leg of growth. Sandstorm is well capitalized to continue growing, and our team is still working hard to find the next leg of growth.

話雖如此，鑑於金價處於創紀錄水平且資產負債表強勁，我們正在繼續建立資本儲備庫，為下一階段的成長做好準備。 Sandstorm 擁有充足的資本來繼續成長，我們的團隊仍在努力尋找下一個成長階段。

Investors have also been asking questions about the status of Hod Maden. So I'll provide a quick status update. The Hod Maden feasibility study is moving quickly, and the goal of having the results by the end of this year is still looking like an achievable goal. Once the feasibility is complete, we'll provide an updated time line for its expected startup; however, it is worth noting that due to COVID, there have been some delays that will impact when the mine starts up. And in addition, there are some long lead items being identified in the feasibility study that may cause the official start date to be pushed back a bit further. So it's possible that the start date will get pushed into 2023, but we'll provide much more detailed information once the feasibility study work is completed and has been announced.

投資者也一直在詢問霍德·馬登的狀況。因此，我將提供快速狀態更新。霍德馬登可行性研究進展迅速，今年年底得出結果的目標看起來仍然是可以實現的。一旦可行性完成，我們將提供其預期啟動的更新時間表；然而，值得注意的是，由於新冠疫情，出現了一些延誤，這將影響礦場的啟動。此外，可行性研究中也確定了一些長期項目，可能會導致正式啟動日期進一步延後。因此，啟動日期可能會推遲到 2023 年，但一旦可行性研究工作完成並宣布，我們將提供更詳細的資訊。

Having said that, we're very pleased with our partner, Lidya Madencilik, and how expeditiously they're pushing the asset forward, including having already started some of the earthworks for the road from sites to nearby highway. It's very clear that they're fast-tracking this asset towards production. This gets me particularly excited because when this asset comes online, I personally expect gold prices to be even higher than where they are today, which leads me to the final topic of where I see the market going.

話雖如此，我們對我們的合作夥伴 Lidya Madencilik 以及他們如何迅速推動資產進展感到非常滿意，包括已經開始了從工地到附近高速公路的道路的一些土方工程。很明顯，他們正在快速追蹤這項資產的生產。這讓我特別興奮，因為當這種資產上線時，我個人預期金價會比今天更高，這讓我想到了最後一個主題：我對市場走向的看法。

It's clear to me that the amount of debt in the world combined with the amount of damage COVID has done and continues to do to the world economy that the only way out of this debt trap is for central bankers to continue printing money and thus devaluating the money to make it debt easier to repay. I believe this will continue for a long period of time and will result in nearly all real assets in the world being materially revalued once this is all over. I expect the gold will continue to set all-time highs. That silver will increase dramatically along with things like copper. I even see record real estate markets within the not-too-distant future. Real assets are going to go up materially in price, and there may even become a bubble in real assets. Because of that, I'm incredibly bullish on gold and for the amount of money that our investors can expect to earn from those increasing gold and silver prices.

我很清楚，世界上的債務數額加上新冠疫情已經造成並將繼續對世界經濟造成的損害，擺脫債務陷阱的唯一出路就是央行繼續印鈔，從而使貨幣貶值。錢，使債務更容易償還。我相信這將持續很長一段時間，一旦這一切結束，世界上幾乎所有的實體資產將被大幅重估。我預計金價將繼續創下歷史新高。白銀將與銅等物質一起急劇增加。我甚至在不久的將來看到創紀錄的房地產市場。實體資產的價格將會大幅上漲，甚至可能出現實物資產泡沫。正因為如此，我非常看好黃金，也看好我們的投資人可以從不斷上漲的黃金和白銀價格中賺取的金錢。

We're excited at Sandstorm to have a strong balance sheet, a strong portfolio and significant growth ahead. As at this moment, we are entirely debt-free. We have $52 million in the bank. These are good times for Sandstorm, and I genuinely think they'll keep getting better.

我們對 Sandstorm 擁有強勁的資產負債表、強大的投資組合和未來的顯著成長感到興奮。截至目前，我們完全沒有債務。我們銀行裡有 5,200 萬美元。對於 Sandstorm 來說，現在是美好時光，我真誠地認為他們會變得更好。

With that, I'm going to hand it over to Erfan.

說到這裡，我要把它交給二凡了。

Thanks, Nolan, and hello, everyone. I'm grateful that you've taken time out of your day to join us. I'd like to walk through our second quarter financials in a bit of detail to see how they compare to both 2019 and the previous quarter.

謝謝諾蘭，大家好。我很感激您抽出時間來加入我們。我想詳細介紹一下我們第二季的財務狀況，看看它們與 2019 年和上一季的比較如何。

If you turn your attention to Slide 8 and reference the chart on the left, the black bars represent the number of attributable ounces sold over the last 4 quarters. You will see that Sandstorm sold approximately 11,000 attributable gold ounces during the second quarter of 2020 at an average realized gold price of $1,715 per ounce. Sandstorm's realized total revenue of $18.7 million, represented here as the gold bar.

如果您將注意力轉向投影片 8 並參考左側的圖表，黑色長條代表過去 4 個季度銷售的歸屬盎司數。您將看到 Sandstorm 在 2020 年第二季出售了約 11,000 盎司權益黃金，平均實現黃金價格為每盎司 1,715 美元。 Sandstorm 的總收入為 1870 萬美元，此處以金條表示。

In our first quarter conference call, we discussed our expectations of lower production numbers in Q2 due to the effect of COVID-19. Nolan's already discussed, which of Sandstorm streams and royalties were affected, and these delays are reflected here in our second quarter production numbers. However, as Nolan noted, 100% of the producing mines in Sandstorm's portfolio that were either shut down or reduced operations have been back up and running since the beginning of July.

在第一季電話會議中，我們討論了由於 COVID-19 的影響，我們對第二季產量下降的預期。諾蘭已經討論過，《沙塵暴》的哪些串流媒體和版稅受到了影響，這些延遲反映在我們第二季的製作數據中。然而，正如諾蘭所指出的，Sandstorm 投資組合中 100% 關閉或減少營運的生產礦場自 7 月初以來已恢復運作。

The silver lining in what was a difficult quarter for many mining operators can be seen in the chart on the right. This shows the average realized gold price for the last 4 quarters, illustrating a nice upward trend. The good news is now that all of Sandstorm's producing assets are back online, we will be selling those gold ounces at significantly higher prices than we were able to just over a year ago.

對於許多採礦業者來說，這是一個艱難的季度，但一線希望可以從右邊的圖表中看到。這顯示了過去 4 個季度的平均已實現黃金價格，顯示出良好的上升趨勢。好消息是，Sandstorm 的所有生產資產現在都已恢復上線，我們將以比一年多前高得多的價格出售這些黃金盎司。

Looking at the quarterly financials a little closer. The chart on Slide 9 compares the second quarter of 2020 with the same period in 2019. The attributable gold equivalent ounces sold decreased by 33% during the quarter, which was largely due to the operation suspensions that we've discussed. The resulting revenue of $18.7 million represents a 13% decrease from the second quarter in 2019. The decrease in attributable ounces sold was partially offset by a 31% increase in average selling price of gold.

仔細看看季度財務數據。投影片 9 中的圖表將 2020 年第二季與 2019 年同期進行了比較。該季度銷售的權益黃金當量盎司減少了 33%，這主要是由於我們討論過的營運暫停所致。由此產生的收入為 1,870 萬美元，較 2019 年第二季下降 13%。黃金平均售價上漲 31%，部分抵銷了權益銷售盎司的減少。

The average cash cost per attributable ounce during the quarter was $257, which resulted in cash operating margins of $1,458 per attributable ounce. That's an increase of nearly $450 per ounce compared to the second quarter of 2019. I think this highlights one of the many strengths of the royalty business model. Even in (inaudible) of production delays, Sandstorm's cash flows are protected from the downside of rising operational costs and benefit from the upside of a strengthening gold market.

本季每盎司平均現金成本為 257 美元，導致每盎司現金營運利潤為 1,458 美元。與 2019 年第二季相比，每盎司增加了近 450 美元。我認為這凸顯了特許權使用費商業模式的眾多優勢之一。即使在（聽不清楚）生產延遲的情況下，Sandstorm 的現金流量也能免受營運成本上升的負面影響，並受益於黃金市場走強的上行趨勢。

It's also important to note that although our mining partners experienced lower production over the last few months, Sandstorm is still entitled to the gold ounces and royalty revenue from our producing mines. Thus, as we mentioned on the last call, this has been a delay and not a loss.

同樣重要的是要注意，儘管我們的採礦合作夥伴在過去幾個月中產量較低，但 Sandstorm 仍然有權從我們的生產礦山獲得金盎司和特許權使用費收入。因此，正如我們在上次電話會議中提到的，這是延遲而不是損失。

As a result of the increase in operating cash margins as well as an increase in the gains realized and recognized on the revaluation of Sandstorm's investments, primarily driven by an increase in the fair value of the Americas Gold and Silver convertible debenture and Equinox Gold warrants, net income for the quarter was $7.1 million, up from $2.4 million in Q2 2019.

由於營業現金利潤率的增加以及 Sandstorm 投資重估所實現和確認的收益的增加，主要是由於美洲金銀可轉換債券和 Equinox Gold 認股權證的公允價值增加所致，該季度淨利潤為710 萬美元，高於2019 年第二季的240 萬美元。

I'd like to highlight a few specific assets on this next slide that provides a breakdown of Sandstorm's attributable gold equivalent ounces sold for the second quarter. The Yamana silver stream continues to be a strong producing asset for Sandstorm, since the Cerro Moro mine reached commercial production in the second quarter of last year. In addition to a temporary reduction in operations at Cerro Moro due to the pandemic, the price of silver has also played a factor in Sandstorm's sales revenue from the stream. While silver did not experience the same run-up the gold price did in the second quarter, that trend seems to have changed over the last number of weeks. The Yamana silver stream remains a strong producer in our portfolio, and we're looking forward to continued success of the project in this higher silver price environment.

我想在下一張幻燈片上強調一些具體資產，其中提供了 Sandstorm 第二季度銷售的黃金當量盎司的明細。自 Cerro Moro 礦場於去年第二季實現商業生產以來，Yamana 銀礦流仍然是 Sandstorm 的強大生產資產。除了Cerro Moro因疫情而暫時減少營運外，白銀價格也對Sandstorm的銷售收入產生了影響。儘管白銀在第二季度沒有經歷與金價相同的上漲，但這種趨勢在過去幾週似乎發生了變化。亞馬納銀流仍然是我們投資組合中的強大生產商，我們期待該項目在白銀價格上漲的環境中繼續取得成功。

The price of copper also struggled through much of the second quarter, a 21% decline in the average selling price of copper compared to the second quarter of 2019, resulted in decreased sales revenue from the Chapada copper stream. It is worth noting that the price of copper has rebounded since the end of the second quarter. So I would expect to see stronger revenue from the Chapada copper stream by the end of the third quarter.

在第二季的大部分時間裡，銅價也陷入困境，銅的平均售價與 2019 年第二季相比下降了 21%，導致 Chapada 銅流的銷售收入減少。值得注意的是，第二季末以來銅價出現反彈。因此，我預計到第三季末，查帕達銅礦流的收入將會增加。

The Santa Elena mine with another larger operation affected by COVID-19 and experienced a temporary suspension. This resulted in a 77% decrease in the number of gold ounces sold during the second quarter, compared to the same period in 2019. In late May, the operator, First Majestic Silver, announced they were beginning to resume operations in Santa Elena, and so we expect stronger sales revenue from this mine for the remainder of the year.

聖埃琳娜礦場和另一個規模較大的礦場受到新冠肺炎 (COVID-19) 的影響，並經歷了暫時停工。這導致第二季銷售的黃金盎司數量與 2019 年同期相比減少了 77%。5 月下旬，營運商 First Majestic Silver 宣布開始恢復聖埃琳娜的運營，因此，我們預計今年剩餘時間內該礦的銷售收入將會增加。

For those who have been following Sandstorm for a while, you may notice in addition to this chart the Relief Canyon mine, which contributed approximately 1,000 gold equivalent ounces in the second quarter. Sandstorm began receiving fixed payments from Americas Gold and Silver in May of this year. Sandstorm acquired the stream as part of the larger financing package with Relief Canyon back in April 2019. As part of the stream agreement, Sandstorm will receive 32,000 gold ounces over the next 5.5 years, followed by 4% stream on the gold and silver production from the mine.

對於那些關注 Sandstorm 一段時間的人來說，除了這張圖表之外，您可能還會注意到 Relief Canyon 礦，該礦在第二季度貢獻了大約 1,000 盎司黃金當量。今年 5 月，Sandstorm 開始收到 Americas Gold and Silver 的固定付款。 Sandstorm 早在2019 年4 月就收購了該流，作為與Relief Canyon 的更大融資計劃的一部分。作為該流協議的一部分，Sandstorm 將在未來5.5 年內獲得32,000 盎司黃金，隨後將獲得來自Relief Canyon 黃金和白銀生產的4% 的收益。礦井。

Finally, I'd like to look at Sandstorm's capital position. Sandstorm exited the quarter with a strong balance sheet, with 0 debt and over $40 million in cash. Quite a reversal from the previous quarter where we had $50 million in debt.

最後，我想看看Sandstorm的資本狀況。 Sandstorm 在本季結束時擁有強勁的資產負債表、零債務和超過 4,000 萬美元的現金。與上一季我們的債務 5000 萬美元相比，情況完全相反。

How did we do this? Well, during the quarter, Sandstorm completed an early warrant call in April with proceeds of over $50 million. In addition, the company realized over $25 million in cash from the sale and redemption of a portion of Sandstorm's equity and debt investment. This monetization investments as part of our corporate strategy of selling noncore assets and using that capital raise to continue growing our stream and royalty portfolio. In fact, that strategy continues to be successful. As Nolan mentioned, we have over $50 million in cash as of today.

我們是如何做到這一點的？嗯，在本季度，Sandstorm 在 4 月完成了早期認股權證認購，收益超過 5,000 萬美元。此外，該公司還透過出售和贖回Sandstorm的部分股權和債務投資獲得了超過2500萬美元的現金。這種貨幣化投資是我們出售非核心資產並利用籌集的資金繼續擴大我們的流量和特許權使用費投資組合的公司策略的一部分。事實上，這項策略仍然取得了成功。正如諾蘭所提到的，截至目前為止我們擁有超過 5000 萬美元的現金。

In addition to our cash position, Sandstorm still has over $70 million in equity and debt investments and an undrawn revolving credit facility of $225 million with a $75 million accordion feature. As you can see, in a season of uncertainty for many businesses around the world, Sandstorm's financial position remains robust. It's exciting to see the precious metals continue to do well and how that benefits Sandstorm shareholders. We're looking forward to the remainder of the year as our mining partners return to some sense of normality and as we continue to look for new opportunities for growth.

除了我們的現金部位之外，Sandstorm 還擁有超過 7,000 萬美元的股權和債務投資以及 2.25 億美元的未提取循環信貸額度以及 7,500 萬美元的手風琴功能。正如您所看到的，在全球許多企業都面臨不確定性的季節，Sandstorm 的財務狀況仍然強勁。令人興奮的是，貴金屬繼續表現良好，並且這對 Sandstorm 股東有利。我們期待今年剩下的時間，因為我們的礦業合作夥伴將恢復某種正常狀態，我們將繼續尋找新的成長機會。

And with that, I'll turn things over to Dave for an asset update.

有了這個，我會將事情交給戴夫進行資產更新。

Great. Thanks, Erfan. So despite a challenging start to the year, there have been lots of updates in Q2 for our portfolio of royalties. As mentioned earlier in the call, our operating partners have adapted well for COVID-19 and have resumed operations. Many jurisdictions have also deemed exploration as an essential service. So many drill programs have resumed.

偉大的。謝謝，埃爾凡。因此，儘管今年開局充滿挑戰，但我們的特許權使用費組合在第二季度仍有許多更新。正如先前在電話會議中提到的，我們的營運合作夥伴已經很好地適應了 COVID-19 並已恢復營運。許多司法管轄區也將勘探視為一項基本服務。許多演習計劃已經恢復。

With frothy capital markets in the exploration space, we're seeing a remarkable amount of capital raise for exploration on projects held by junior companies. More projects than ever are being drilled, which is great because we are keen on demonstrating the exploration potential in our asset base.

由於勘探領域的資本市場存在泡沫，我們看到初級公司持有的勘探項目籌集了大量資金。正在鑽探的項目比以往任何時候都多，這很好，因為我們熱衷於展示我們資產基礎的勘探潛力。

I'll start with Houndé operated by Endeavour Mining. This asset has been incredible in how it's expanded since our involvement in the beginning of 2019. When we purchased the royalty, there was under 1.9 million ounces measured in indicated resources. Less than 2 years later, there's 4.4 million ounces in M&I, and it's clearly still growing. Now not all of these new resources are on a royalty ground, but much or most of it is, and aggressive drilling continues to expand the project. Endeavor has operated this project exceptionally well, and we expect a reserve update soon, more discussion on the expansion of the mining 1 million and, of course, further exploration success.

我將從 Endeavour Mining 營運的 Houndé 開始。自 2019 年初我們參與以來，這項資產的擴張速度令人難以置信。當我們購買特許權使用費時，測得的指示資源量不足 190 萬盎司。不到兩年後，M&I 的產量達到 440 萬盎司，而且顯然仍在成長。現在，並非所有這些新資源都屬於特許權使用費，但其中大部分或大部分屬於特許權使用費，並且積極的鑽探繼續擴大該計畫。 Endeavor 將該專案運作得非常好，我們預計儲量很快就會更新，更多關於擴大採礦 100 萬的討論，當然還有進一步的勘探成功。

Next is a brief update on Fruta del Norte. Right at the beginning of July, Lundin Gold restarted operations at the Ecuadorian gold mine. They were the last of our producing partners to get back into operations. They've given strong guidance for the rest of the year projecting 150,000 to 170,000 ounces for the second half of 2020. This is quite a bit higher 6 months total than the original guidance at the start of the year. So you can see the team is focused on knocking it out of the park for the rest of the year.

接下來是 Fruta del Norte 的簡短更新。 7月初，倫丁黃金公司重新啟動了厄瓜多爾金礦的營運。他們是我們最後恢復營運的生產夥伴。他們對今年剩餘時間給出了強有力的指導，預計 2020 年下半年產量為 150,000 至 170,000 盎司。這比年初的最初指導要高出 6 個月的總產量。所以你可以看到團隊專注於在今年剩餘的時間裡把它從公園裡拿出來。

Their time off was not wasted, as Lundin went out to raise over $55 million for resource expansion and to study increased throughput. It's great to have partners like that who are focused on growth even before they ramp up production.

他們的休息時間並沒有被浪費，Lundin 籌集了超過 5500 萬美元用於資源擴展並研究提高吞吐量。擁有這樣的合作夥伴真是太好了，他們在提高產量之前就專注於成長。

The one exploration of project I'll speak about is close to my heart in the Meli project by Sun Peak Metals. Sun Peak has been private for the last 3 years, 3.5 years and are just about to go public on the TSX Venture under the ticker symbol PEAK. Off the back of financing in late 2019, they managed to get some drill holes completed on their Ethiopian projects before COVID hit. The Sun Peak team is led by Greg Davis and is comprised of a group that has worked together for over 17 years and are responsible for discovering and defining 2 of the biggest VMS deposits found worldwide in the last 20 years. Greg and his team hone their skills at the Bisha and Asmara projects in the Nubian-Arabian Shield, where I believe they are unparalleled in experience. They're added again in Ethiopia looking for the next world-class VMS deposit in one of the most underexplored jurisdictions in the world.

我要談論的項目探索之一是 Sun Peak Metals 的 Meli 項目，這是我最感興趣的項目。 Sun Peak 在過去 3 年、3.5 年中一直處於私有狀態，即將在 TSX Venture 上市，股票代號為 PEAK。在 2019 年底融資的支持下，他們設法在新冠疫情爆發之前完成了埃塞俄比亞計畫的一些鑽孔。 Sun Peak 團隊由 Greg Davis 領導，團隊合作超過 17 年，負責發現並界定過去 20 年來全球發現的 2 個最大的 VMS 礦床。格雷格和他的團隊在努比亞-阿拉伯地盾的比沙和阿斯馬拉計畫中磨練了他們的技能，我相信他們在這方面的經驗是無與倫比的。他們再次加入衣索比亞，在世界上勘探最不足的司法管轄區之一尋找下一個世界級的 VMS 礦床。

Sun Peak spent the last 3.5 years, searching and acquiring over 1,000 square kilometers of prime property along trend of their previous discoveries. Initial drill results in the Meli project have over 15 meters, 3.2 grams, 25 grams silver, 2.2% copper, 1.4% zinc in the first hole; and over 37 meters to 2.5 grams gold, 29 grams silver, 2.4% copper and 1.3% zinc. Excellent results. But as far as I'm concerned, secondary targets in an overall property portfolio. As they get the chance to begin drilling again later this year, I'm very much looking forward to seeing the results from their multiple primary targets. This is the right team with the right property at the right time, and those are the exploration groups Sandstorm wants to be attached to.

Sun Peak在過去的3.5年裡，沿著先前發現的趨勢，尋找並收購了超過1,000平方公里的優質房地產。梅里計畫初步鑽探結果第一眼鑽探長度超過15米，銀量3.2克，銀25克，銅2.2%，鋅1.4%； 37公尺以上為2.5克金、29克銀、2.4%銅及1.3%鋅。優異的成績。但就我而言，這是整個房地產投資組合中的次要目標。由於他們有機會在今年稍後再次開始鑽探，我非常期待看到他們多個主要目標的結果。這是在正確的時間擁有正確的財產的正確的團隊，而這些正是沙暴想要加入的探索團體。

Bayan Khundii is a project that we've been attached to for the better part of a decade, but I haven't talked about much for some time. The project is operated by Erdene Resources and is based in Mongolia. We were involved shortly after its discovery and are happy to see it proceed all the way through its current feasibility study. It's not a big project, but keeping with our favorite ones, it's very low cost and hold some excellent upside potential. The feasibility study released in mid-July outlines a high-grade open pit operation with all-in sustaining costs below USD 740. Construction and sustaining CapEx is under $65 million. So it's a low-cost project for almost 64,000 ounces of gold production per year. Of course, we also like the exploration potential and are believers that this project could extend well beyond the current 6-year mine life. We'll be watching very closely in the future.

Bayan Khundii 是我們近十年來一直在關注的一個項目，但我已經有一段時間沒有談論太多了。該項目由 Erdene Resources 運營，總部位於蒙古。我們在發現它後不久就參與其中，並很高興看到它一直進行目前的可行性研究。這不是一個大項目，但與我們最喜歡的項目保持一致，它的成本非常低，並且具有良好的上升潛力。 7 月中旬發布的可行性研究概述了高級露天礦作業的整體維持成本低於 740 美元。建設和維持資本支出低於 6,500 萬美元。因此，這是一個每年生產近 64,000 盎司黃金的低成本項目。當然，我們也看好勘探潛力，並相信該專案可以遠遠超出目前的 6 年礦場壽命。未來我們將密切關注。

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

這樣，我會將電話轉接給艾米問答。請隨時詢問有關我們的版稅和串流媒體的任何問題。

(Operator Instructions) Your first question today comes from the line of Robert Carlson with Janney Montgomery Scott.

（操作員說明）您今天的第一個問題來自羅伯特·卡爾森和詹尼·蒙哥馬利·斯科特。

Congratulations on what's been happening. I just looked at the screen here, and I noticed year-to-date, you're up 29.9%. Well done. There's always been talk of initiating a dividend. And I know now since we've got a cash position, any more thoughts on that?

祝賀所發生的事情。我剛剛看了這裡的螢幕，我注意到今年迄今為止，您上漲了 29.9%。做得好。人們一直在談論要派發股息。我現在知道，既然我們已經有了現金頭寸，對此還有什麼更多的想法嗎？

Yes. Thanks for those remarks, and definitely feels good to be Sandstorm these days. And as Erfan noted, our cash position has changed dramatically from $50 million of debt and little cash to over $50 million of cash and no debt, and the cash flow is coming in quite strong. Right now, we are -- my personal opinion is that next year, we should be a dividend-paying company. However, there are other factors at play, including some of these larger transactions that are in our deal pipeline right now. We want to see how those play out before we make any final long-term capital allocation decisions. Because once we start paying a dividend, our goal is to pay one forever and to increase it every year. So we just want to see how some of this stuff flushes out before we make that decision.

是的。感謝您的這些評論，這些天作為沙暴的感覺確實很好。正如埃爾凡指出的那樣，我們的現金狀況發生了巨大變化，從 5000 萬美元的債務和很少的現金變成了超過 5000 萬美元的現金和無債務，而且現金流量相當強勁。現在，我個人的觀點是，明年我們應該成為一家支付股利的公司。然而，還有其他因素在起作用，包括我們目前正在進行的一些較大交易。在我們做出任何最終的長期資本配置決策之前，我們希望看看這些結果如何發揮作用。因為一旦我們開始支付股息，我們的目標就是永遠支付股息並每年增加股息。所以我們只是想在做出決定之前看看其中一些東西是如何排出的。

(Operator Instructions) Your next question comes from the line of John Tumazos.

（操作員說明）您的下一個問題來自 John Tumazos。

I apologize, I've never been to Ethiopia or Mongolia. Could you tell us a little more about each of the projects? When do you think there'll be a maiden resource in Ethiopia? Could you update us on how documented the project is in Mongolia? What do you think the time frame might be for first outputs?

抱歉，我從未去過埃塞俄比亞或蒙古。您能告訴我們更多關於每個項目的資訊嗎？您認為埃塞俄比亞什麼時候會出現首個資源？您能否向我們介紹該專案在蒙古的記錄情況？您認為首次產出的時間範圍可能是多少？

Sure. So on Ethiopia, Sun Peak, so it's very early stage still for them. They really just did -- drilled a couple of these targets. So saying when a resource could get fleshed out on there, it's hard to say. I would expect if they can get in and begin drilling again, which they hope to this fall, initial resource could come out sometime next year. Ethiopia has not been a popular destination, but it's a very good destination even for Africa. There's been a lot of infrastructure money spent there. There's very, very cheap power for all of Africa and abundance of it compared to most jurisdictions in that continent. The government has really revised the way it's doing business and getting exploration companies to work there. And of course, it's a free and competitive market for work there. And so we'll certainly be anxiously watching it. I think it's really more of a discovery story at first, and then it will be about really a resource story soon after that as they start to flesh it out.

當然。在埃塞俄比亞的太陽峰，對他們來說還處於非常早期的階段。他們確實做到了——鑽探了其中幾個目標。因此，很難說何時可以充實資源。我預計，如果他們能夠進入並再次開始鑽探（他們希望在今年秋天進行），最初的資源可能會在明年某個時候出現。埃塞俄比亞並不是一個受歡迎的目的地，但即使對非洲來說，它也是一個非常好的目的地。那裡花費了大量基礎設施資金。與該大陸的大多數司法管轄區相比，整個非洲的電力非常非常便宜，而且電力充足。政府確實改變了其經營方式並讓勘探公司在那裡工作。當然，那裡的工作市場是自由且競爭性的。所以我們肯定會焦急地關注它。我認為一開始這實際上更像是一個發現故事，然後當他們開始充實它時，很快就會成為一個真正的資源故事。

For Mongolia, with Erdene, so that project, Erdene has been working, I think, in Mongolia for over 20 years now. So it's a management team that's very familiar with the jurisdiction. This is the feasibility of the study was public -- or it has not yet been published. Just the results of the study have been outputted. They're going to be working on permits and putting together a financing package for the construction of this asset. They already got a big uplift because they received over $30 million in equity so far soon after they announced the results of the feasibility study. So we'll kind of stay tuned for timing on permits. But certainly, with the feasibility study done, a relatively low CapEx project, not a large mine to begin with. At only 1,800 tons per day as an open pit operation, that indicates that it's quite small for that type of operation. So it should be a relatively straight project to permit and to construct. So the time line will be when they're able to firm up the permits should be relatively straightforward on that.

對於蒙古來說，與 Erdene 一起，我認為 Erdene 已經在蒙古工作了 20 多年。所以這是一個非常熟悉管轄範圍的管理團隊。這是該研究已公開或尚未發表的可行性。剛才的研究結果已經輸出了。他們將致力於申請許可證並為該資產的建設制定融資方案。他們已經獲得了很大的提升，因為在宣布可行性研究結果後不久，他們就獲得了超過 3000 萬美元的股本。因此，我們將密切注意許可證的發放時間。但可以肯定的是，隨著可行性研究的完成，這是一個資本支出相對較低的項目，而不是一個大型礦場。露天礦作業每天的產量僅為 1,800 噸，這表明對於此類作業來說規模相當小。因此，它應該是一個獲得許可和建設相對直接的項目。因此，他們能夠確定許可證的時間應該相對簡單。

Switching to Hod Maden. Does the -- you talked about the road building. Has the permit process been completed? Or are all the legal details in order?

切換到霍德·馬登。您談到了道路建設嗎？許可程序已完成嗎？或是所有的法律細節都符合要求嗎？

Yes. So the road has been -- most of the road upgrades are going to be completed by the government. And that program is expected to -- other than the upgrades that have been done so far by the company, those upgrades are expected to begin this fall. In terms of permits for the mine, the EIA is kind of -- it's been submitted, and it's in process. It kind of works in conjunction with the feasibility study. It's expected to be completed towards the end of this year after the feasibility study has come out. Once that EIA is done, that gives you most of the permit setter in place, but you still need the forestry permit on top of that.

是的。因此，大部分道路升級工作將由政府完成。該計劃預計 - 除了該公司迄今為止已完成的升級之外，這些升級預計將於今年秋天開始。就礦山許可證而言，環境影響評估已經提交，正在進行中。它與可行性研究結合起來進行。可行性研究報告出來後，預計今年底完成。環境影響評估完成後，大部分許可證制定者就位，但除此之外，您仍然需要林業許可證。

And Lidya Madencilik has just completed another forestry permit on one of their other mines, Gediktepe, which actually has much more forestry ground associated with it, and it took them a year to get that permit. So we'll wait -- we'll have to wait until the EIA is completed to understand really where they think the position on the forestry permit is. But we've had discussions with Lidya Madencilik about it, and they've been relatively positive about where they think the process is going to go and the timing for that forestry permit, which is really the ultimate permit to make sure they can get into that full-scale construction. Prior to that, though, they do hope to get some early works done on that, including the road and including some of the mill and mine site areas.

Lidya Madencilik 剛剛在他們的另一個礦場 Gediktepe 上獲得了另一份林業許可證，該礦實際上有更多的林地與之相關，他們花了一年的時間才獲得該許可證。所以我們會等待——我們必須等到環境影響評估完成後才能真正了解他們對林業許可證的看法。但我們已經與 Lidya Madencilik 就此進行了討論，他們對流程的進展以及林業許可證的時間持相對積極的態度，這實際上是確保他們能夠進入的最終許可證即全面建設。不過，在此之前，他們確實希望能完成一些早期工作，包括道路以及一些工廠和礦區。

I guess one last one. A couple of your smaller projects are Black Fox and Gold Bar. They've had a little tough luck in both of those locations. The tonnes and grade have gone south in a big way. What is your philosophy toward operations that have hard times of terms of maybe your revenue royalty is too small to make a difference, and there's no point restructuring it, but do you think it would help if you restructure the royalty for a time?

我猜是最後一張。您的幾個較小的項目是 Black Fox 和 Gold Bar。他們在這兩個地方的運氣都不太好。噸數和品位大幅下降。您對那些陷入困境的營運理念是什麼？也許您的收入特許權使用費太小而無法產生影響，並且重組它沒有意義，但您認為如果您暫時重組特許權使用費會有幫助嗎？

Yes. No, it's a good question. The Black Fox is a good example of one that's an asset that's gone well past its original reserve life. We've made a lot of money off that deal and continue to make money, albeit less when the grades are lower like this. Our deal there as well as on Gold Bar is small enough that it doesn't materially impact the operations of the mine. So whereas Sandstorm, maybe 4 or 5 years ago, had to do a couple of amendments on streams where we were taking too much of the economics. We don't have any of those situations right now, so we are not looking to amend anything.

是的。不，這是一個好問題。黑狐號就是一個很好的例子，它是一種早已超過原始儲備壽命的資產。我們從這筆交易中賺了很多錢，而且還在繼續賺錢，儘管當成績如此低時，賺錢會更少。我們在那裡以及金條上的交易規模足夠小，不會對礦山的運作產生重大影響。因此，也許 4 或 5 年前，《Sandstorm》必須對我們過度考慮經濟因素的流進行一些修改。我們現在沒有任何這些情況，所以我們不打算修改任何內容。

(Operator Instructions) Your next question comes from the line of [Matthew Williams], a private investor.

（操作員說明）您的下一個問題來自私人投資者[Matthew Williams]。

Appreciate you taking a few additional questions here. So Dave, I believe it's been a little while since you've spoken of Oyu Tolgoi. I know it's a ways into the future, although I'm interested to understand what is your base case view on when you will receive first revenue on Oyu Tolgoi? And then Nolan, on a related front, it seems to me that the investment in entrée would be seen as a core rather than a noncore equity holding. And I'm just kind of curious, how do you delineate between core and noncore equity investments as how you think about them internally?

感謝您在此提出一些其他問題。戴夫，我相信你已經有一段時間沒有提到奧尤陶勒蓋了。我知道這是通往未來的一條路，儘管我很想了解您對何時在奧尤陶勒蓋獲得第一筆收入的基本情況有何看法？然後諾蘭，在相關方面，在我看來，對entrée的投資將被視為核心股權，而不是非核心股權。我只是有點好奇，您在內部如何看待核心股權投資和非核心股權投資？

Yes. So it's Nolan. I'll just give the update here on expected time line to production. So the last public guidance that they had given of expected time line production came out just over a year ago, and it was 2027. I expect that date to be pushed back maybe a year based on the time line delays that they've had at Turquoise Hill getting Oyu Tolgoi going up and running. But that situation is progressing well, and it's funny. I think once they do eventually get into cash flow, they'll probably cash flow their entire market cap every single year for a number of years. So it's an asset that we're very keen on.

是的。所以是諾蘭。我將在這裡提供預計生產時間的更新。因此，他們對預期生產時間線給出的最後一次公開指導是在一年多前發布的，當時是 2027 年。根據他們在 2027 年的時間線延誤，我預計該日期可能會推遲一年。綠松石山讓奧尤陶勒蓋開始運作。但這種情況進展順利，而且很有趣。我認為，一旦他們最終進入現金流，他們可能會在幾年內每年都流出整個市值。所以這是我們非常熱衷的資產。

Having said that, to answer your question about equity investments and what is core versus noncore, our business is streaming and royalties. All equity investments are noncore. This is a more material investment for us, and it's probably a longer-term hold than other equity investments in our portfolio. But that is not a core part of our business. We are extremely wealthy company. So we just classify everything as noncore.

話雖如此，為了回答您有關股權投資以及什麼是核心與非核心的問題，我們的業務是串流媒體和版稅。所有股權投資均為非核心。這對我們來說是一項更重要的投資，而且可能比我們投資組合中的其他股權投資更長期持有。但這不是我們業務的核心部分。我們是一家非常富有的公司。所以我們只是將一切歸類為非核心。

Your next question comes from the line of [Alfred Heinrich], a private investor.

您的下一個問題來自私人投資者 [Alfred Heinrich]。

Hello, I'm calling from Switzerland. I'm not sure I understood everything correctly, but let me just ask. For the corona, I mean you had some lockdown. What is the probability that you will have further lockdowns because we are going to have a second wave? Or have you made a technical advancement or changes that you can do business without lockdown? That's my first question. My second one is, I've been a shareholder, an individual shareholder for about 7 years or so. How about dividends? Is that somewhere around the corner? Or are you just investing again and again and again? Those are my questions.

你好，我是從瑞士打來的。我不確定我是否正確理解了所有內容，但讓我問一下。對於電暈，我的意思是你有一些封鎖。由於我們將迎來第二波疫情，因此進一步實施封鎖的可能性有多高？或者您已經取得了技術進步或改變，可以在沒有鎖定的情況下開展業務？這是我的第一個問題。我的第二個是，我身為股東，個人股東已經有大約7年了。股息怎麼樣？那是在轉角處嗎？還是你只是一次又一次的投資？這些都是我的問題。

Yes. Thank you. So I'll start with the dividend one first because, like I said earlier, our, I believe, a dividend should be paid eventually with a company like ours, and that's our goal. We are going to make that decision next year if we're going to pay a dividend next year. And so I can't give a definitive answer, but I personally would vote for it. That's my personal opinion.

是的。謝謝。因此，我首先從股息開始，因為正如我之前所說，我相信，我們的股息最終應該由像我們這樣的公司支付，這就是我們的目標。如果我們明年要支付股息，我們將在明年做出決定。所以我不能給出明確的答案，但我個人會投票支持它。這是我個人的看法。

With respect to COVID-19 shutdowns, we don't get a say in those because we're just a royalty company. And so we -- nothing that we do matters as to whether or not the asset is going to shut down or stay open. Having said that, I can't predict what's going to happen with COVID going forward any more than anybody else can. So I won't prognosticate as to what COVID is going to do. But what I can say is what we're seeing across the entire mining industry is mining companies getting a lot better at dealing with the realities of operating when people do get infected by COVID.

對於 COVID-19 關閉問題，我們沒有發言權，因為我們只是一家版稅公司。因此，我們所做的任何事情對於該資產是否會關閉或保持開放都無關緊要。話雖如此，我無法比其他人更能預測新冠疫情未來會發生什麼事。所以我不會預測新冠疫情會發生什麼事。但我能說的是，我們在整個採礦業看到的是，當人們確實感染了新冠病毒時，採礦公司在應對營運現實方面做得越來越好。

And I would say at most of the mining assets around the world, there are one or more employees that have it. And they get isolated and they keep on mining and they keep moving forward. So I think that if there is another flare-up in COVID, fewer mines will shut down than they did the first time. And either way, because we're a streaming and royalty company, we'll still have positive cash flow and keep building a war chest to keep growing our company. So it doesn't materially affect us that much.

我想說，世界上大多數採礦資產都有一名或多名員工擁有。他們被孤立了，但他們繼續採礦，繼續前進。因此，我認為，如果新冠疫情再次爆發，關閉的礦場將比第一次少。不管怎樣，因為我們是一家串流媒體和版稅公司，我們仍然會擁有正的現金流，並繼續建立資金來維持公司的發展。所以它對我們的影響不大。

Great. Well, thank you very much, everyone, for joining this call, and thank you for the questions. And Amy, thanks for helping us on this call. And we're going to wrap it up right here. And we have seen some questions that came through the web portal. And so we're going to make sure everyone gets an answer to that. Thanks very much, everybody.

偉大的。非常感謝大家參加這次電話會議，也感謝大家提出的問題。艾米，感謝您在這通電話中為我們提供的幫助。我們將在這裡結束它。我們已經看到一些透過門戶網站提出的問題。因此，我們將確保每個人都能得到答案。非常感謝大家。

And this concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。