TORONTO (miningweekly.com) – Precious metals streaming firm Sandstorm Gold expects to maintain a relatively steady production profile of around 45 000 oz/y of gold until 2018.
The TSX- and NYSE-listed gold-streaming project financier this week reported total attributable gold output of 44 821 oz of gold equivalent sold in 2014.
Revenue and cash flow from operations for the full year were $56.5-million and $35.2-million, respectively.
Based on the Vancouver-headquartered company's existing gold streams and royalties, attributable gold equivalent output for 2015 was forecast to be between 36 000 oz and 44 000 oz, increasing to 45 000 oz/y in 2018.
The company did not include any ounces that might come from Luna Gold Corp's Aurizona mine, in Brazil, where the process of suspending mining operations had started.
Luna would continue to run the mill, processing about 860 000 t of stockpiled ore over five months at an expected head grade of 1.1 g/t.
In its effort to conserve capital, Luna had cut back mine site personnel, halted all nonessential capital programmes, and would require additional capital to restart economical mining activities at Aurizona.
Luna's management team was currently working to develop an updated Canadian National Instrument 43-101-compliant technical report to provide a mineral reserve estimate based on a new geological model and updated project parameters. Sandstorm and Luna continued to work towards amending the Aurizona stream agreement.
Meanwhile, Sandstorm reported that Metanor Resources had amended its outstanding convertible debentures and an equity financing, which upon closing, would put the company in an improved financial position as it continued to produce gold at the Bachelor Lake mine, in Quebec, Canada.
According to Sandstorm, the amendment resolution extended the maturity date of the debentures by 24 months, to August 22, 2017, and was conditional upon an equity financing of no less than C$3-million and an immediate repayment of C$1-million in principal, plus accrued interest. The resolution also granted Metanor the right to repurchase the debentures at any time, in whole or in part, before the extended maturity date.
Earlier this month, Sandstorm agreed to buy smaller rival Gold Royalties in an all-scrip deal worth about C$5.7-million.
Sandstorm, which provides upfront financing to gold mining companies that are looking for capital and in return receives the right to a percentage of the gold produced from a mine, for the life of the mine, had acquired a portfolio of 57 streams and royalties, of which 14 of the underlying mines were producing gold. The company planned to grow and diversify its low-cost production profile through acquiring additional streams and royalties.