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Sandstorm Gold (SAND) Posts Record Preliminary Q3 Revenues
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Sandstorm Gold Ltd. (SAND - Free Report) announced preliminary record gold equivalent ounces (GEOs) sold and revenues in the third quarter of 2022.
SAND sold nearly 22,600 attributable GEOs in the quarter. This performance marks a 46% jump from the 15,514 ounces of GEOs sold in third-quarter 2021. Sandstorm Gold generated preliminary revenues of $38.9 million in the quarter under discussion, up 41% from the year-ago quarter's reported figure of $27.6 million.
The preliminary cost of sales, excluding the depletion for the September quarter, was $7.3 million, higher than $3.7 million reported in the third quarter of 2021. This led to cash operating margins of approximately $1,383 per attributable GEO in the quarter under review, 10% lower than the prior-year quarter's $1,541 per GEO.
The third-quarter 2022 results drew momentum from the strong second-quarter performance. SAND reported attributable GEOs of 19,200 ounces for the June quarter, reflecting a 7% increase year over year. Revenues improved 36% year over year to $36 million.
Sandstorm Gold closed the previously announced acquisition of Nomad Royalty Company Ltd in August 2022. This buyout substantially increased SAND’s size and scale, fortifying its status as the most liquid mid-tier royalty and streaming company with solid growth prospects. The acquisition adds high-quality and low-cost assets, and is expected to drive revenues to nearly 90% from precious metals in 2025. The takeover also bolsters SAND’s financial strength, providing it with the flexibility to pursue further growth and return capital to its shareholders.
Per the deal, SAND transferred 30% of its interest in the Hod Maden project and 25% equity stake in Entrée Resources Ltd, to Horizon Copper. It also paid $10 million in cash to Horizon Copper. Under the terms of the Hod Maden Gold Stream, Horizon will sell ounces equal to 20% of all gold produced from Hod Maden (on a 100% basis) to Sandstorm Gold at a price equal to 50% of the spot price of gold until 405,000 ounces of gold are delivered. Once the target is reached, Horizon Copper will sell 12% of the gold produced for the life of the mine to Sandstorm Gold for a price equal to 60% of the gold spot price.
Sandstorm Gold currently boasts a portfolio of 250 royalties, of which 39 underlying mines are now active. SAND plans to grow and diversify its low-cost production profile by acquiring additional gold royalties.
Price Performance
Image Source: Zacks Investment Research
Sandstorm Gold's shares have fallen 17.6% in the past year compared with the industry's decline of 10%.
Zacks Rank & Stocks to Consider
Sandstorm Gold currently carries a Zacks Rank #3 (Hold).
Albemarle has a projected earnings growth rate of 427% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 19% upward in the past 60 days.
ALB’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average being 24.2%. The stock has gained around 27% in the past year.
ATI has an expected earnings growth rate of 1,454% for the current year. The consensus estimate for ATI’s current-year earnings has been revised 23% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 130.4%. ATI has gained around 66% over the past year.
Brigham Minerals has a projected earnings growth rate of 151% for the current year. The Zacks Consensus Estimate for MNRL’s current-year earnings has been revised 8% upward in the past 60 days.
Brigham Minerals has a trailing four-quarter earnings surprise of 13.9%. MNRL has rallied roughly 35% in a year’s time.
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Sandstorm Gold (SAND) Posts Record Preliminary Q3 Revenues
Sandstorm Gold Ltd. (SAND - Free Report) announced preliminary record gold equivalent ounces (GEOs) sold and revenues in the third quarter of 2022.
SAND sold nearly 22,600 attributable GEOs in the quarter. This performance marks a 46% jump from the 15,514 ounces of GEOs sold in third-quarter 2021. Sandstorm Gold generated preliminary revenues of $38.9 million in the quarter under discussion, up 41% from the year-ago quarter's reported figure of $27.6 million.
The preliminary cost of sales, excluding the depletion for the September quarter, was $7.3 million, higher than $3.7 million reported in the third quarter of 2021. This led to cash operating margins of approximately $1,383 per attributable GEO in the quarter under review, 10% lower than the prior-year quarter's $1,541 per GEO.
The third-quarter 2022 results drew momentum from the strong second-quarter performance. SAND reported attributable GEOs of 19,200 ounces for the June quarter, reflecting a 7% increase year over year. Revenues improved 36% year over year to $36 million.
Sandstorm Gold closed the previously announced acquisition of Nomad Royalty Company Ltd in August 2022. This buyout substantially increased SAND’s size and scale, fortifying its status as the most liquid mid-tier royalty and streaming company with solid growth prospects. The acquisition adds high-quality and low-cost assets, and is expected to drive revenues to nearly 90% from precious metals in 2025. The takeover also bolsters SAND’s financial strength, providing it with the flexibility to pursue further growth and return capital to its shareholders.
Per the deal, SAND transferred 30% of its interest in the Hod Maden project and 25% equity stake in Entrée Resources Ltd, to Horizon Copper. It also paid $10 million in cash to Horizon Copper. Under the terms of the Hod Maden Gold Stream, Horizon will sell ounces equal to 20% of all gold produced from Hod Maden (on a 100% basis) to Sandstorm Gold at a price equal to 50% of the spot price of gold until 405,000 ounces of gold are delivered. Once the target is reached, Horizon Copper will sell 12% of the gold produced for the life of the mine to Sandstorm Gold for a price equal to 60% of the gold spot price.
Sandstorm Gold currently boasts a portfolio of 250 royalties, of which 39 underlying mines are now active. SAND plans to grow and diversify its low-cost production profile by acquiring additional gold royalties.
Price Performance
Image Source: Zacks Investment Research
Sandstorm Gold's shares have fallen 17.6% in the past year compared with the industry's decline of 10%.
Zacks Rank & Stocks to Consider
Sandstorm Gold currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , ATI Inc. (ATI - Free Report) and Brigham Minerals , each currently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle has a projected earnings growth rate of 427% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 19% upward in the past 60 days.
ALB’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average being 24.2%. The stock has gained around 27% in the past year.
ATI has an expected earnings growth rate of 1,454% for the current year. The consensus estimate for ATI’s current-year earnings has been revised 23% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 130.4%. ATI has gained around 66% over the past year.
Brigham Minerals has a projected earnings growth rate of 151% for the current year. The Zacks Consensus Estimate for MNRL’s current-year earnings has been revised 8% upward in the past 60 days.
Brigham Minerals has a trailing four-quarter earnings surprise of 13.9%. MNRL has rallied roughly 35% in a year’s time.