Sandstorm Gold Q2 revenue beats estimates

Overview

• Sandstorm Q2 revenue rises to $51.4 mln, beating analyst expectations, per LSEG data

• Net income for Q2 increases to $16.9 mln, up from $10.5 mln in 2024

• Royal Gold to acquire Sandstorm in $3.5 bln all-share transaction

Outlook

• Company forecasts 2025 production at 65,000-80,000 attributable gold equivalent ounces

• Sandstorm's 2025 guidance sensitive to copper and silver price changes

• Company expects long-term production of 150,000 attributable gold equivalent ounces by 2030

• Sandstorm Transaction with Royal Gold expected to close in Q4 2025

Result Drivers

• STRONG COMMODITY PRICES - Record revenue and operating margins driven by high gold and silver prices

• DECREASED PRODUCTION - Attributable gold equivalent ounces decreased due to lower-grade stockpiles at key assets

• OPERATIONAL IMPROVEMENTS - Increased mining activity and stronger throughput at key assets boosted revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the gold peer group is "buy"

• Wall Street's median 12-month price target for Sandstorm Gold Ltd is C$14.35, about 4.6% above its August 6 closing price of C$13.69

• The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 43 three months ago

Press Release: ID:nCNW4dfKga