Sandstorm Gold (SAND) delivered impressive gains this week, with its shares climbing approximately 16.5% on news from the company that it anticipates reporting record revenue for the first quarter. The company, which specializes in acquiring royalty rights from mining operations rather than operating mines directly, has benefited from multiple positive developments in recent days. Updates on key mining projects have further strengthened investor confidence in Sandstorm’s growth potential. This royalty-based business model allows Sandstorm to make upfront payments to mining operators in exchange for a percentage of future revenues or gold output, creating stable financial streams without the operational risks of direct mining.
Record Financial Results
Sandstorm reported it anticipates exceptional preliminary results for the first quarter of 2025, including record revenue of $50.1 million, with total sales, royalties, and income reaching $54.1 million, a significant increase from $42.8 million in the same period last year.
Perhaps most impressive is the company’s potential cash operating margins, which look likely to hit an all-time high of approximately $2,507 per attributable gold equivalent ounce, up substantially from $1,782 in Q1 2024. This performance comes despite sales of only 18,500 attributable gold equivalent ounces for the quarter.
The company has launched an aggressive share repurchase program, which has been crucial in driving the stock’s upward momentum. Sandstorm bought back $19 million worth of shares in Q1 2025 and recently announced the early renewal of its share repurchase program, authorizing the buyback of up to 20 million common shares—approximately 7% of outstanding stock.
A key feature of Sandstorm’s Automatic Share Purchase Plan is its ability to continue repurchasing shares even during blackout periods, ensuring consistent buying support throughout the year. Since May 2024, the company has repurchased 4.83 million shares.
Analyst Outlook
Wall Street has responded positively to Sandstorm’s performance. Raymond James analyst Brian MacArthur recently raised the price target on the stock to $9.50 from $8.25 while maintaining an “Outperform” rating. He cited strong year-to-date performance in precious metals, higher-than-historical demand levels, and ongoing political uncertainty supporting higher gold and silver price estimates.
Sandstorm Gold is rated a Strong Buy overall, based on the recent recommendations of nine analysts. The average price target for SAND stock is $8.48, which represents a potential upside of 6.94% from current levels.
