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Gold royalty company Sandstorm announces record results in third quarter

Kitco Media
By Vladimir Basov
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Updated
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(Kitco News) - On Monday, Sandstorm Gold (NYSE: SAND, TSX: SSL) announced that during the three months ended September 30, 2022, the company realized record revenue of $39.0 million compared to $27.6 million for the comparable period in 2021.

According to a news release, the increase in quarterly revenue is attributable to a 46% increase in attributable gold equivalent ounces sold (record 22,606 ounces in Q3 2022 vs. 15,514 ounces in Q3 2021), partially offset by a 4% decrease in the average realized selling price of gold.

Of the gold equivalent ounces sold by Sandstorm during the third quarter of 2022, approximately 18% were attributable to mines located in Canada, 22% from the rest of North America, 46% from South America, and 14% from other countries.

The company’s net income of $31.7 million generated during the third quarter of 2022 was 380% higher when compared to the same period in 2021 (Q3 2021: $6.6 million).

The company said that the increase in quarterly net income is attributable to the increase in revenue as well as a $24.9 million gain resulting from the sale of the company’s Hod Maden investment to Horizon Copper, a decrease in tax expense, and an increase in the gains recognized on the revaluation of the company’s investments.

Sandstorm added that based on the company’s existing streams and royalties, attributable gold equivalent ounces for 2022 are forecast to be between 80,000 and 85,000 ounces. The company is forecasting attributable gold equivalent production to be over 150,000 ounces in 2025.

Sandstorm is a gold royalty company that provides upfront financing to gold mining companies that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of the mine.

Sandstorm holds a portfolio of 250 royalties, of which 39 of the underlying mines are producing. The company indicated it plans to grow and diversify its low cost production profile through the acquisition of additional gold royalties.

SSR Mining reports net loss in third quarter as gold equivalent production down 43% y-o-y
Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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