In This Article:
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Q4 Revenue: USD 47 million.
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Q4 Operating Cash Flow: USD 36 million.
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Gold Equivalent Production Q4: 17,721 ounces.
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Annual Revenue 2024: Approximately USD 176 million.
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Annual Gold Equivalent Ounces Sold 2024: Approximately 73,000 ounces.
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Cash Costs 2024: USD 275 per attributable ounce.
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Cash Operating Margins 2024: Approximately USD 2,100 per ounce.
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Cash Flows from Operating Activities 2024: USD 139 million.
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Debt Reduction 2024: Decreased by USD 80 million.
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Net Income 2024: USD 15.5 million.
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2025 Production Guidance: 65,000 to 80,000 gold equivalent ounces.
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Long-term Production Outlook: Expected to reach 150,000 gold equivalent ounces by 2030.
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Debt Outstanding: Reduced to USD 340 million, expected to go below USD 300 million by mid-2025.
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Shareholder Returns 2024: Over USD 28 million through dividends and share buybacks.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sandstorm Gold Ltd (NYSE:SAND) reported strong revenue of USD47 million and operating cash flow of USD36 million in Q4 2024.
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The company has a strong balance sheet with significant cash flow, allowing for strategic capital allocation decisions.
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Sandstorm Gold Ltd (NYSE:SAND) plans to increase share buybacks, believing its shares are undervalued.
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The company expects production to increase to over 150,000 gold equivalent ounces per year over the next five years.
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Sandstorm Gold Ltd (NYSE:SAND) has reduced its debt from USD640 million to USD340 million, with plans to lower it further.
Negative Points
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Sandstorm Gold Ltd (NYSE:SAND) missed its internal GEO production targets for 2024 by 10,700 ounces due to price fluctuations.
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The company provided a conservative production guidance for 2025 of 65,000 to 80,000 ounces, which may seem low to some investors.
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There were abnormal one-time drops in deliveries of copper from Lundin mining assets, affecting Q4 sales.
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Net income for 2024 was USD15.5 million, down from USD42.7 million in 2023, due to valuation adjustments and a one-time payment in 2023.
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The company faces potential risks with certain streams, such as Bear Creek, which could impact future production.
Q & A Highlights
Q: Can you provide more details on the Vatukoula stream and royalty buyback situation? A: Nolan Watson, President and CEO, explained that the operator stopped paying quite some time ago due to insolvency at the mining level. A large Chinese company is now involved, and they have made a $4 million non-refundable deposit. They must pay an additional $10 million by next month to complete the buyout.