Higher gold price can't fix lower sales as revenue drops for Sandstorm in Q2
(Kitco News) - The second-quarter earnings season continues to highlight the tug of war between lower production and higher prices; Sandstorm Gold Royalties (NYSE: SAND, TSX: SSL) is the latest company to highlight this dichotomy.
Friday morning, the royalty company reported net income of $7.1 million or 4 cents per share, which was relatively in line with analyst estimates.
The company said that revenue during the second quarter came in at $18.7 million, down compared with $21.5 million for the comparable period in 2019.
“The decrease is largely due to a 33% decrease in the attributable gold equivalent ounces sold, partially offset by a 31% increase in the average realized selling price of gold,” the company said.
Because of the higher gold price, the company reported cash operating margins of $1,458 per ounce, up significantly $1,013 per ounce reported in 2019.
Ahead of its earnings, the company released its second-quarter sales numbers. Between April and June, the company sold 10,920 attributable gold equivalent ounces, down compared to 16,356 ounces sold last year.