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(Kitco News) - On Wednesday, gold royalty company Sandstorm Gold (NYSE: SAND) (TSX: SSL) announced record attributable gold equivalent ounces of 28,368 ounces (Q1 2022: 18,741 ounces).
Of the gold equivalent ounces sold by Sandstorm during the first quarter of 2023, approximately 9% were attributable to mines located in Canada, 32% from the rest of North America, 49% from South America, and 10% from other countries.
The company also reported record revenue of $44.0 million (Q1 2022: $35.4 million); record total sales, royalties, and income from other interests of $54.0 million (Q1 2022: $35.4 million); and record cash flows from operating activities, excluding changes in non-cash working capital of $42.7 million (Q1 2022: $26.7 million).
Sandstorm explained that the increase in revenue is largely attributable to a 23% increase in attributable gold equivalent ounces sold, excluding attributable ounces related to the Mt. Hamilton contractual payment.
The company’s net income and cash flows from operating activities were $15.6 million and $39.9 million, respectively, compared with net income of $9.1 million and cash flows from operating activities of $22.4 million for the comparable period in 2022.
Based on Sandstorm’s existing royalties, attributable gold equivalent ounces for 2023 are forecasted to be between 90,000 and 100,000 ounces. The company’s production forecast is expected to reach approximately 125,000 attributable gold equivalent ounces within the next five years, with a sustainable average annual production of approximately 110,000 attributable gold equivalent ounces over the next 15 years.
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 40 of the underlying mines are producing. Sandstorm indicated it plans to grow and diversify its low cost production profile through the acquisition of additional gold royalties.
