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Sandstorm Gold Ltd. (SAND - Free Report) announced preliminary revenues and cash operating margins for the third quarter of 2023. Revenues in the quarter improved 33% year over year, mainly driven by higher average realized gold prices. The company’s cash operating margins were up 23%.
SAND sold nearly 21,100 attributable gold equivalent ounces (GEOs) in the quarter. This marks a 7% decline from the 22,606 ounces of GEOs sold in third-quarter 2022. Despite the lower ounces sold in the quarter, Sandstorm Gold delivered a 33% year-over-year improvement in preliminary revenues to $41.2 million. The upside was driven by higher average realized gold price in the quarter.
SAND reported preliminary cost of sales (excluding depletion) of $4.6 million, lower than $7.3 million reported in the third quarter of 2022. Cash operating margins came in at $1,700 per attributable GEO in the quarter under review. It was 23% higher than the prior-year quarter's $1,383 per GEO due to higher revenues and lower costs.
In September 2023, Sandstorm Gold announced that it has renewed its $625 million revolving credit facility through September 2027. The company’s capital-allocation strategy continues to focus on debt repayment using both free cash flow from producing streams and royalties. It also intends to monetize non-core, non-cash flowing assets from its portfolio by the end of 2024.
The company maintains its target of 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.
Sandstorm Gold recently stated that the major development projects—Greenstone and Platreef — are on track to be in production in 2024 and will significantly contribute to its growth going forward.
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.
Price Performance
Sandstorm Gold's shares have fallen 9.6% in the past year against the industry's 8.5% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Sandstorm Gold currently carries a Zacks Rank #3 (Hold).
Hawkins has an average trailing four-quarter earnings surprise of 25.5%. The Zacks Consensus Estimate for HWKN’s fiscal 2024 earnings is pegged at $3.40 per share. The consensus estimate for 2024 earnings has moved 38% north in the past 60 days. Its shares have gained 58% in the last year.
Carpenter Technology has an average trailing four-quarter earnings surprise of 10%. The Zacks Consensus Estimate for CRS’s fiscal 2024 earnings is pegged at $3.48 per share. The consensus estimate for 2023 earnings has moved 8% north in the past 60 days. Its shares have gained 109.6% in the last year.
L.B. Foster has an average trailing four-quarter earnings surprise of 134.5%. The Zacks Consensus Estimate for FSTR’s 2023 earnings is pegged at 53 cents per share. Earnings estimates have been unchanged in the past 60 days. FSTR’s shares have gained 98.4% in the last year.
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Sandstorm Gold (SAND) Reports Higher Preliminary Q3 Revenues
Sandstorm Gold Ltd. (SAND - Free Report) announced preliminary revenues and cash operating margins for the third quarter of 2023. Revenues in the quarter improved 33% year over year, mainly driven by higher average realized gold prices. The company’s cash operating margins were up 23%.
SAND sold nearly 21,100 attributable gold equivalent ounces (GEOs) in the quarter. This marks a 7% decline from the 22,606 ounces of GEOs sold in third-quarter 2022. Despite the lower ounces sold in the quarter, Sandstorm Gold delivered a 33% year-over-year improvement in preliminary revenues to $41.2 million. The upside was driven by higher average realized gold price in the quarter.
SAND reported preliminary cost of sales (excluding depletion) of $4.6 million, lower than $7.3 million reported in the third quarter of 2022. Cash operating margins came in at $1,700 per attributable GEO in the quarter under review. It was 23% higher than the prior-year quarter's $1,383 per GEO due to higher revenues and lower costs.
In September 2023, Sandstorm Gold announced that it has renewed its $625 million revolving credit facility through September 2027. The company’s capital-allocation strategy continues to focus on debt repayment using both free cash flow from producing streams and royalties. It also intends to monetize non-core, non-cash flowing assets from its portfolio by the end of 2024.
The company maintains its target of 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.
Sandstorm Gold recently stated that the major development projects—Greenstone and Platreef — are on track to be in production in 2024 and will significantly contribute to its growth going forward.
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.
Price Performance
Sandstorm Gold's shares have fallen 9.6% in the past year against the industry's 8.5% 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 Hawkins, Inc. (HWKN - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and L.B. Foster Company (FSTR - Free Report) . HWKN and CRS sport a Zacks Rank #1 (Strong Buy) at present, and FSTR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins has an average trailing four-quarter earnings surprise of 25.5%. The Zacks Consensus Estimate for HWKN’s fiscal 2024 earnings is pegged at $3.40 per share. The consensus estimate for 2024 earnings has moved 38% north in the past 60 days. Its shares have gained 58% in the last year.
Carpenter Technology has an average trailing four-quarter earnings surprise of 10%. The Zacks Consensus Estimate for CRS’s fiscal 2024 earnings is pegged at $3.48 per share. The consensus estimate for 2023 earnings has moved 8% north in the past 60 days. Its shares have gained 109.6% in the last year.
L.B. Foster has an average trailing four-quarter earnings surprise of 134.5%. The Zacks Consensus Estimate for FSTR’s 2023 earnings is pegged at 53 cents per share. Earnings estimates have been unchanged in the past 60 days. FSTR’s shares have gained 98.4% in the last year.