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Sandstorm Metals & Energy was launched 8 months ago and has acquired:
$52M - Met Coal and Thermal Coal from NovaDX and Royal Coal ABOUT SANDSTORM METALS & ENERGY
Sandstorm Metals & Energy (TSXV-SND) is the worlds rst base metal and energy streaming company. Sandstorm Metals & Energy was launched in December 2010 and has since acquired 9 commodity streams. Sandstorm Metals & Energy has a sister company called Sandstorm Gold (TSXV-SSL) which has 7 gold streams and a market capitalization of +$400 million.
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03
SANDSTORM METALS & ENERGY LAUNCHED 1 YEAR AGO AND HAS ACQUIRED:
$ 44M
$ 15M
$ 25M
$ 20M
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NAV BY COMMODITY
Natural Gas
Sandstorm cost per unit: $1 / mcf (plus 20% of price above $4 / mcf for royalties)
Cash
Oil
Sandstorm cost per unit: $15 / bbl (plus transport and government royalties)
16% 9% 12%
Thermal Coal
Sandstorm cost per unit: $55 / t
19%
27% 17%
Metallurgical Coal
Sandstorm cost per unit: $75 / t
Copper
Sandstorm cost per unit: $0.80 / lb
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Quebec
Copper Stream
Alberta
Oil Streams
DONNER METALS
Copper Stream
Asset
Bracemac-McLeod Mine
Production
21M lbs of copper per annum
Underground zinc mine, with copper by-product in Quebec Operated by Xstrata. Expected to be in the lowest cash cost quartile. Ore to be milled at Xstrata owned Matagami mill.
Status
Under development, expected to be complete by end of 2012
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N116
BRACEMAC ZONES
17 78 6 M-26 M-25 ASR-3 84 81 42 50 M-14
MCLEOD ZONES
St. Pat Zone
67
M-18 3 BR-2
SURFACE
27
5 BR-8A
79
6EXT 33EXT
36
86
28EXT 85 75 83 10EXT
87
80 77
37 5
45
40 West McLeod Zone M-28 Inferred Resource 0.16Mt @ 2.2%Zn, 2.6% Cu, 24g/t Ag, 0.2g/t Au 03 21 44
48 02 49
45 63 55 52
-200m
06
64
73
60 12 62 24
-400m
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53
38.09% Zn / 0.15m
76 76W1 16A
57 61 66
71
68
74
56 54 19
9EXT 90-7 33 32
59
65
Open
17
75
72
-800m
sill
06EXT 04EXT
?
31
bbro
MCL-09-01
f Ga
30 Magnetite
Open
McLeod Gabbro
est s
Area of Current Mine Development - 4 year mine life on current mining reserves
12000 E
ide o
Deep 20W1 Inferred resources 2.47Mt@ 9.2% Zn, 1.22% Cu, 40g/t Ag, 1.1g/t Au 20
13000 E
20W2
18
Open
03-W1 02-W5 02-W2 34-W1 09-02
-1000m
0m 200 m
On w
Open
34
02-W6 02-W7
Open
Composite section
Composite section
FOOTWALL ALTERATION Strong Chlorite Pipe Alteration Gabbro Sill Other Dykes Sulphides in Mine Plan Sulphide Resources Cu Stringer Possible extension of Sulphides
DRILL HOLE PIERCE POINTS Massive Sulphides Semi Massive and Stringer Sulphides
14000 E
e Op n
-1200m
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THUNDERBIRD ENERGY
Natural Gas Stream
Asset
Natural Gas project in Utah, USA
Gordon Creek
Gas Stream Terms
35% at $1/mcf plus 20% above $4/mcf
Status
Under development, rst wells to be complete by Q1 2012 with full production by 2014
Production
5 bcf per annum
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NOVADX
Asset
Status
Under development, expected to be complete by Q3 2013
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NOVADX
Asset
Rosa Mine
Coal Stream Terms
25% for several years, decreasing to 16% at $75/t
Status
In commercial production
Production
150k tons per annum
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OTHER STREAMS
OPERATOR
PROJECTS
Big Branch
SID Mine
All Assets
LOCATION
Kentucky, USA
Kentucky, USA
Kentucky, USA
Alberta, Canada
COMMODITY
Thermal Coal
Thermal Coal
Thermal Coal
Oil Streams
STATUS
ONGOING PAYMENT
N/A N/A
NOTES
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PRODUCTION SCHEDULES
*POLYMER FLOOD
OIL AND GAS OIL AND GAS THERMAL COAL THERMAL COAL METALLURGICAL COAL
Q2 2014
Q3 2014
Terrex Energy
Royal Coal
NovaDX
Thunderbird Energy
Donner Metals
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$35
Donner Metals
$30
Thunderbird Energy
$20
Terrex Energy
$15
Royal Coal Royalty Royal Coal
$10
NovaDX
$5
2012
2013
2014
2015
2016
Price Assumptions: US$160/t Met Coal, US$70/t Thermal Coal, US$80/bbl Oil, US$4.50/mcf Natural Gas, US$2.50/lb Copper
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$30
Base Case
$20
$15 $10
$5
2012
2013
2014
2015
2016
US$3.00/lb Copper
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MARKET CAPITALIZATION
$ 10
$ 20
$ 30
$ 40
$ 50
$ 60
$ 70
$ 80
$ 90
$ 100 $ 110
$ 120
$ 130
$ 140 $ 150
USD millions
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PEER COMPARISON
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EV/Cash Flow
14.1
Diversi ed Commodities
Precious Metals
1. 2. 3.
Based on 2013 estimates. Comparators using Bloomberg estimates on January 10, 2012 Post issue Sandstorm based on Company estimates for Enterprise Value and Cash Flow International Royalty Companys multiple based on acquisition price divided by 2 year forward cash ow estimates
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NINE
5x
2x
1x
1x
FIVE
$ 99M
20%
20%
20%
20%
20%
30%
In cash ow guarantees Sandstorm is creating a diversi ed, world class, cash owing company.
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Shares Issued & Outstanding Options Warrants (expire December 23, 2012)
318 M 15 M 155 M
-$0.48 US$0.70
318 M ---
318 M 0M 0M
Total
318 M
318 M
Institutional Holdings
Shares (millions)
% of Shares Outstanding
Libra Advisors Arias Resource Capital Wellington Management Sentry Select Capital Mawer Investment Management Total Insiders & Key Individuals
The US$0.70 warrants trade under the symbol SND.WT Exercise of warrants and options would bring in approx. US$113M
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