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Sandstorm Gold Gives Updates on its Portfolio Developments
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Sandstorm Gold Ltd. (SAND - Free Report) has announced updates on certain development projects from its diversified portfolio of streaming and royalty assets. These updates reflect Sandstorm Gold's commitment to delivering value across its diversified portfolio, with a focus on quality assets and strategic partnerships.
SAND’s Portfolio Grows With Greenstone Gold Mine Milestone
The company’s gold stream at the Greenstone mine, a fully owned mine by Equinox Gold (EQX - Free Report) , has reached a crucial milestone with its official opening and ramp-up to commercial production.
EQX reported that the mine produced roughly 2,625 ounces of gold in May, 13,625 ounces in June and 19,750 ounces in July, with throughput higher than 60% of design capacity in August.
Sandstorm Gold is permitted to purchase 2.375% of the mine's gold production until 120,333 ounces are delivered. Following that, SAND can buy 1.583% of gold with recurring payments based on the spot price of gold and a $30 per ounce of Environmental, Social, and Governance (“ESG ”) contributions. This investment is expected to add to Sandstorm Gold's growing revenue stream.
Sandstorm Gold's Investments Poised for Promising Returns
Ivanhoe Mines Ltd announced that work at its Platreef PGM mine in South Africa is progressing on schedule. Phase 1 concentrator has been completed, and Phase 2 and 3 expansions are advancing. The project is on course to become one of the world's largest and lowest-cost producers, with processing capacity expected to reach 10 Mtpa. With construction and development progressing according to plan, Sandstorm Gold's investment in Platreef is poised for solid returns.
The company has a gold stream agreement on the Platreef project, which entitles it to initially receive 37.5% of the gold produced until 131,250 ounces are delivered. After that, it will receive 30% of the gold produced until a total of 256,980 ounces are delivered. Once these thresholds are met, Sandstorm Gold's entitlement will decrease to 1.875% of gold produced, provided certain conditions are met.
In another development, Develop Global secured a $65 million prepayment/loan facility for the Woodlawn copper-zinc mine in Australia. Combined with its existing cash reserves the project will be adequately funded through production. This deal increases the project's net present value by 11% and forecasts significant pre-tax free cash flow.
Sandstorm Gold's Woodlawn investment is well-positioned for long-term growth, with production set to begin in mid-2025.
Sandstorm Gold holds a silver stream on the Woodlawn project, which allows the company to earn an amount of silver equal to 80% of payable silver produced, up to a maximum of A$27 million (US$18 million).
Bayan Khundii Gold Project Targets 1st Production in 2025
Erdene Resource Development Corp.'s Bayan Khundii gold project in Mongolia is advancing steadily, with construction approximately 30% complete. The operator announced that the process plant was nearly 40% built. With $60 million invested and 500 personnel on-site, the project remains on schedule for the first gold production in mid-2025.
Sandstorm Gold's 1% net smelter returns (NSR) royalty on the project is poised for promising returns as exploration efforts yield promising results, identifying new gold targets and expanding the resource base.
Sandstorm Gold Amends Bonikro Stream Agreement
Allied Gold secured a $53 million stream financing for its Côte d'Ivoire Complex, which will accelerate advancement initiatives at the Bonikro and Agbaou gold mines.
Sandstorm has amended its gold stream agreement, securing minimum annual gold deliveries of 4,000-6,000 ounces from 2024-2026 and 2,000-3,000 ounces from 2027-2029. The deal maintains Sandstorm Gold's entitlement to purchase 6% of gold produced until 39,000 ounces are delivered, then 3.5% until a cumulative 61,750 ounces is achieved, and 2% thereafter. Ongoing payments of $400 per ounce will be made to Allied Gold. This amendment enhances delivery certainty, supporting Sandstorm Gold's long-term revenue growth.
Sandstorm Gold’s Performance in Q2
In the second quarter of 2024, SAND witnessed an 18% year-over-year decline in revenues to $41 million. The top line met the Zacks Consensus Estimate. The company reported earnings per share of 3 compared with 1 cent in the second quarter of 2023. The Zacks Consensus Estimate for the company's bottom line was pegged at 2 cents.
SAND’s Share Price Performance
Shares of the company have gained 7.9% in the past year compared with the industry’s growth of 39.8%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Sandstorm Gold currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $6.06 per share. The consensus estimate for 2025 earnings has moved 17% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 155.9% in a year.
The Zacks Consensus Estimate for Eldorado Gold’s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 22% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 103% in a year.
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Sandstorm Gold Gives Updates on its Portfolio Developments
Sandstorm Gold Ltd. (SAND - Free Report) has announced updates on certain development projects from its diversified portfolio of streaming and royalty assets. These updates reflect Sandstorm Gold's commitment to delivering value across its diversified portfolio, with a focus on quality assets and strategic partnerships.
SAND’s Portfolio Grows With Greenstone Gold Mine Milestone
The company’s gold stream at the Greenstone mine, a fully owned mine by Equinox Gold (EQX - Free Report) , has reached a crucial milestone with its official opening and ramp-up to commercial production.
EQX reported that the mine produced roughly 2,625 ounces of gold in May, 13,625 ounces in June and 19,750 ounces in July, with throughput higher than 60% of design capacity in August.
Sandstorm Gold is permitted to purchase 2.375% of the mine's gold production until 120,333 ounces are delivered. Following that, SAND can buy 1.583% of gold with recurring payments based on the spot price of gold and a $30 per ounce of Environmental, Social, and Governance (“ESG ”) contributions. This investment is expected to add to Sandstorm Gold's growing revenue stream.
Sandstorm Gold's Investments Poised for Promising Returns
Ivanhoe Mines Ltd announced that work at its Platreef PGM mine in South Africa is progressing on schedule. Phase 1 concentrator has been completed, and Phase 2 and 3 expansions are advancing. The project is on course to become one of the world's largest and lowest-cost producers, with processing capacity expected to reach 10 Mtpa. With construction and development progressing according to plan, Sandstorm Gold's investment in Platreef is poised for solid returns.
The company has a gold stream agreement on the Platreef project, which entitles it to initially receive 37.5% of the gold produced until 131,250 ounces are delivered. After that, it will receive 30% of the gold produced until a total of 256,980 ounces are delivered. Once these thresholds are met, Sandstorm Gold's entitlement will decrease to 1.875% of gold produced, provided certain conditions are met.
In another development, Develop Global secured a $65 million prepayment/loan facility for the Woodlawn copper-zinc mine in Australia. Combined with its existing cash reserves the project will be adequately funded through production. This deal increases the project's net present value by 11% and forecasts significant pre-tax free cash flow.
Sandstorm Gold's Woodlawn investment is well-positioned for long-term growth, with production set to begin in mid-2025.
Sandstorm Gold holds a silver stream on the Woodlawn project, which allows the company to earn an amount of silver equal to 80% of payable silver produced, up to a maximum of A$27 million (US$18 million).
Bayan Khundii Gold Project Targets 1st Production in 2025
Erdene Resource Development Corp.'s Bayan Khundii gold project in Mongolia is advancing steadily, with construction approximately 30% complete. The operator announced that the process plant was nearly 40% built. With $60 million invested and 500 personnel on-site, the project remains on schedule for the first gold production in mid-2025.
Sandstorm Gold's 1% net smelter returns (NSR) royalty on the project is poised for promising returns as exploration efforts yield promising results, identifying new gold targets and expanding the resource base.
Sandstorm Gold Amends Bonikro Stream Agreement
Allied Gold secured a $53 million stream financing for its Côte d'Ivoire Complex, which will accelerate advancement initiatives at the Bonikro and Agbaou gold mines.
Sandstorm has amended its gold stream agreement, securing minimum annual gold deliveries of 4,000-6,000 ounces from 2024-2026 and 2,000-3,000 ounces from 2027-2029. The deal maintains Sandstorm Gold's entitlement to purchase 6% of gold produced until 39,000 ounces are delivered, then 3.5% until a cumulative 61,750 ounces is achieved, and 2% thereafter. Ongoing payments of $400 per ounce will be made to Allied Gold. This amendment enhances delivery certainty, supporting Sandstorm Gold's long-term revenue growth.
Sandstorm Gold’s Performance in Q2
In the second quarter of 2024, SAND witnessed an 18% year-over-year decline in revenues to $41 million. The top line met the Zacks Consensus Estimate. The company reported earnings per share of 3 compared with 1 cent in the second quarter of 2023. The Zacks Consensus Estimate for the company's bottom line was pegged at 2 cents.
SAND’s Share Price Performance
Shares of the company have gained 7.9% in the past year compared with the industry’s growth of 39.8%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Sandstorm Gold currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) and Eldorado Gold Corporation (EGO - Free Report) . CRS and EGO sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $6.06 per share. The consensus estimate for 2025 earnings has moved 17% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 155.9% in a year.
The Zacks Consensus Estimate for Eldorado Gold’s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 22% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 103% in a year.