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Sandstorm Gold (SAND) Posts Record Preliminary Q2 Revenues
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Sandstorm Gold Ltd. (SAND - Free Report) announced record preliminary revenues for the second quarter of 2023.
SAND sold nearly 24,500 attributable GEOs in the quarter. This performance marks a 27% jump from the 19,276 ounces of GEOs sold in second-quarter 2022. Sandstorm Gold generated preliminary revenues of $49.8 million in the quarter under discussion, up 38% from the year-ago quarter's reported figure of $36 million.
The preliminary cost of sales, excluding the depletion for the quarter, was $5.6 million, higher than $5.3 million reported in the second quarter of 2022. Cash operating margins were $1,743 per attributable GEO in the quarter under review, 9% higher than the prior-year quarter's $1,593 per GEO due to higher revenues.
The second-quarter 2023 results drew momentum from the strong first-quarter performance. SAND reported attributable GEOs of 28,368 ounces for the quarter, reflecting a 51% surge year over year. Revenues improved 24% year over year to $44 million aided by the increase in attributable gold equivalent ounces sold.
Also during the quarter, SAND purchased and canceled around 2.6 million of its shares under its normal course issuer bid ("NCIB"). Sandstorm renewed NCIB in April 2023 that provides the company with the option to purchase its shares when management believes that the same are undervalued.
Sandstorm’s capital allocation strategy remains focused on repaying debt while continuing to evaluate accretive opportunities to exercise the NCIB.
Sandstorm Gold recently announced the completion of the previously announced sale of its 1.66% interest in net profits in the Antamina copper mine to Horizon Copper. It received $20 million in cash, a 1.66% life-of-mine silver stream from the Antamina silver production and a secure long-term convertible note of $149.1 million. It also received 2,329,849 Horizon common shares, maintaining its 34% stake in Horizon.
Sandstorm Gold currently boasts a portfolio of 250 royalties, of which 40 underlying mines are now active. SAND plans to grow and diversify its low-cost production profile by acquiring additional gold royalties.
The company expects attributable gold equivalent ounces between 90,000 ounces and 100,000 ounces in 2023. Within the next five years, the company expects to produce approximately 125,000 attributable gold equivalent ounces, with a sustainable average annual production of around 110,000 attributable gold equivalent ounces over the next 15 years.
Price Performance
Sandstorm Gold's shares have fallen 14.4% in the past year, compared with the industry's 14.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Sandstorm Gold currently carries a Zacks Rank #3 (Hold).
L.B. Foster has an average trailing four-quarter earnings surprise of 140.5%. The Zacks Consensus Estimate for FSTR’s fiscal 2023 earnings is pegged at 53 cents per share. The consensus estimate for 2023 earnings has been unchanged in the past 60 days. Its shares have gained 7.7% in the last year.
The Zacks Consensus Estimate for Osisko Gold Royalties’ fiscal 2023 earnings per share is pegged at 47 cents. Earnings estimates have moved 6.8% north in the past 60 days. OR’s shares have gained 42% in the past year.
The consensus estimate for KOP’s current-year earnings has been stable over the past 60 days. The consensus estimate for current-year earnings for KOP is currently pegged at $4.40 per share, reflecting an expected year-over-year growth of 6.3%. Koppers’ shares have rallied roughly 54% in the past year.
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Sandstorm Gold (SAND) Posts Record Preliminary Q2 Revenues
Sandstorm Gold Ltd. (SAND - Free Report) announced record preliminary revenues for the second quarter of 2023.
SAND sold nearly 24,500 attributable GEOs in the quarter. This performance marks a 27% jump from the 19,276 ounces of GEOs sold in second-quarter 2022. Sandstorm Gold generated preliminary revenues of $49.8 million in the quarter under discussion, up 38% from the year-ago quarter's reported figure of $36 million.
The preliminary cost of sales, excluding the depletion for the quarter, was $5.6 million, higher than $5.3 million reported in the second quarter of 2022. Cash operating margins were $1,743 per attributable GEO in the quarter under review, 9% higher than the prior-year quarter's $1,593 per GEO due to higher revenues.
The second-quarter 2023 results drew momentum from the strong first-quarter performance. SAND reported attributable GEOs of 28,368 ounces for the quarter, reflecting a 51% surge year over year. Revenues improved 24% year over year to $44 million aided by the increase in attributable gold equivalent ounces sold.
Also during the quarter, SAND purchased and canceled around 2.6 million of its shares under its normal course issuer bid ("NCIB"). Sandstorm renewed NCIB in April 2023 that provides the company with the option to purchase its shares when management believes that the same are undervalued.
Sandstorm’s capital allocation strategy remains focused on repaying debt while continuing to evaluate accretive opportunities to exercise the NCIB.
Sandstorm Gold recently announced the completion of the previously announced sale of its 1.66% interest in net profits in the Antamina copper mine to Horizon Copper. It received $20 million in cash, a 1.66% life-of-mine silver stream from the Antamina silver production and a secure long-term convertible note of $149.1 million. It also received 2,329,849 Horizon common shares, maintaining its 34% stake in Horizon.
Sandstorm Gold currently boasts a portfolio of 250 royalties, of which 40 underlying mines are now active. SAND plans to grow and diversify its low-cost production profile by acquiring additional gold royalties.
The company expects attributable gold equivalent ounces between 90,000 ounces and 100,000 ounces in 2023. Within the next five years, the company expects to produce approximately 125,000 attributable gold equivalent ounces, with a sustainable average annual production of around 110,000 attributable gold equivalent ounces over the next 15 years.
Price Performance
Sandstorm Gold's shares have fallen 14.4% in the past year, compared with the industry's 14.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Sandstorm Gold currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are L.B. Foster Company (FSTR - Free Report) , Osisko Gold Royalties Ltd (OR - Free Report) and Koppers Holdings Inc. (KOP - Free Report) . FSTR sports a Zacks Rank #1 (Strong Buy) at present while KOP and OR carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
L.B. Foster has an average trailing four-quarter earnings surprise of 140.5%. The Zacks Consensus Estimate for FSTR’s fiscal 2023 earnings is pegged at 53 cents per share. The consensus estimate for 2023 earnings has been unchanged in the past 60 days. Its shares have gained 7.7% in the last year.
The Zacks Consensus Estimate for Osisko Gold Royalties’ fiscal 2023 earnings per share is pegged at 47 cents. Earnings estimates have moved 6.8% north in the past 60 days. OR’s shares have gained 42% in the past year.
The consensus estimate for KOP’s current-year earnings has been stable over the past 60 days. The consensus estimate for current-year earnings for KOP is currently pegged at $4.40 per share, reflecting an expected year-over-year growth of 6.3%. Koppers’ shares have rallied roughly 54% in the past year.