In This Article:
Sandstorm Gold Ltd. SAND announced preliminary revenues and cash operating margin for the first quarter of 2025. Revenues in the quarter rose 26.4% year over year. The company’s cash operating margin moved up 21.1%.
Sandstorm Gold’s Q1 Revenues Rise Y/Y, Margins Improve
SAND sold nearly 18,500 attributable gold equivalent ounces (GEOs) in the quarter. This marks a 9% decline from the 28,368 ounces of GEOs sold in first-quarter 2024. However, Sandstorm Gold delivered record preliminary revenues of $50 million, up from the prior-year quarter’s $43 million.
The company reported a preliminary cost of sales (excluding depletion) of $6.9 million, higher than $5.7 million in the first quarter of 2024. The cash operating margin was a record $2,507 per attributable GEO in the quarter under review, lower than the prior-year quarter's $1,782.
SAND’s Efforts to Solidify Balance Sheet
Sandstorm Gold will continue to assess its capital allocation strategy. It remains focused on further share purchases and debt repayment, dependent on market conditions.
As of March. 31, 2025, the outstanding balance on the company’s revolving credit facility was approximately $340 million, with an undrawn and available balance of $285 million. SAND also purchased and canceled 3.1 million shares for $19 million in the year.
Sandstorm Gold Stock’s Price Performance
SAND shares have gained 25.1% in the past year compared with the industry’s growth of 28.6%.
Image Source: Zacks Investment Research
Preliminary Results of Another Gold Stock
Royal Gold, Inc. RGLD issued a stream segment sales update for first-quarter 2025. In the quarter, RGLD Gold AG — the fully-owned subsidiary of Royal Gold — sold 42,800 GEOs, comprising 33,300 ounces of gold, 597,400 ounces of silver and 1,000 tons of copper related to its streaming agreements. This marks a dip from 46,900 GEOs sold in the fourth quarter of 2024 and 49,500 GEOs sold in the first quarter of 2024.
In the quarter, the cost of sales was $573 per GEO compared with the prior quarter’s $521.
SAND’s Zacks Rank & Stocks to Consider
Sandstorm Gold currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Idaho Strategic Resources IDR, and DRDGOLD Limited DRD. Both these companies have a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Idaho Strategic Resources has an average trailing four-quarter earnings surprise of 77.5%. The Zacks Consensus Estimate for Idaho Strategic’s 2025 earnings is pegged at 78 cents per share, indicating year-over-year growth of 16.4%. IDR shares soared 66% in the last year.
The Zacks Consensus Estimate for DRDGOLD’s 2025 earnings is pegged at $1.06 per share, indicating year-over-year growth of 29.8%. DRD shares jumped 57.6% in the last year.