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Sandstorm Gold (TSE:SSL)
TSX:SSL
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Sandstorm Gold (SSL) AI Stock Analysis

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Sandstorm Gold

(TSX:SSL)

Rating:77Outperform
Price Target:
C$15.00
▲(13.12%Upside)
Sandstorm Gold's strong financial performance and positive technical indicators drive its overall score, despite valuation concerns. The earnings call and corporate events further bolster confidence with strategic moves and record results.
Positive Factors
Financial Performance
Sandstorm Gold recognized record total revenue of $50.1M, driven by a significant increase in the average realized gold price per ounce.
Growth Potential
Sandstorm increased its long-term production forecast to ~150koz GEOs in 2030, indicating strong future growth potential.
Shareholder Value
The transaction offers immediate and significant value to Sandstorm shareholders while maintaining their exposure to SAND's asset base through their ownership in Royal Gold.
Negative Factors
Earnings
Sandstorm reported Q4/24 adjusted EPS that was a bit below consensus and estimate.
Leverage
For some investors, Sandstorm's near-term elevated leverage and recent announcements potentially impacting its growth profile.
Revenue Decline
The slight revenue decline is primarily due to lower attributable Gold Equivalent Ounces (GEOs) sold, though this effect was partially offset by a 23% YoY increase in the average gold price.

Sandstorm Gold (SSL) vs. iShares MSCI Canada ETF (EWC)

Sandstorm Gold Business Overview & Revenue Model

Company DescriptionSandstorm Gold Ltd. operates as a gold royalty company. The company focuses on acquiring royalties and gold and other metals purchase agreements (streams) from companies that have advanced stage development projects or operating mines. It offers upfront payments for companies to acquire a stream or royalty and receives the right to purchase a percentage of a mine's production for the life of the mine at a fixed price per unit or at a fixed percentage of the spot price. The company has a portfolio of 230 streams and royalties. It primarily has operations in Canada, Mexico, the United States, Mongolia, Burkina Faso, Ecuador, South Africa, Ghana, Botswana, Cote D'Ivoire, Argentina, Brazil, Chile, Peru, Egypt, Ethiopia, Guyana, Paraguay, French Guiana, Turkey, Sweden, Fiji, and Australia. The company was formerly known as Sandstorm Resources Ltd. and changed its name to Sandstorm Gold Ltd. in February 2011. Sandstorm Gold Ltd. was incorporated in 2007 and is headquartered in Vancouver, Canada.
How the Company Makes MoneySandstorm Gold makes money through its portfolio of royalty and streaming agreements, which provide long-term revenue streams. Under these agreements, the company pays upfront capital to mining companies and, in return, receives a percentage of the mine's future production or revenue, typically at a fixed or discounted price. This model allows Sandstorm to leverage its capital for potentially high returns without the operational risks associated with owning and operating mines. The company's revenue is largely driven by the performance of the mines in which it holds interests, and its financial success is tied to the global price of gold and other precious metals. Key partnerships with mining companies and diversification across multiple assets are significant factors contributing to its earnings.

Sandstorm Gold Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 8.77%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a record-breaking quarter in terms of revenue and strong operational performance, including strategic capital allocation and successful exploration initiatives. However, there were challenges related to decreased gold equivalent ounces and certain production setbacks.
Q1-2025 Updates
Positive Updates
Record Quarterly Revenue
Sandstorm Gold reported a record quarterly revenue of US$50 million, with operating cash flow over US$40 million.
Significant Capital Allocation to Key Projects
SSR announced up to $100 million in 2025 for Hod Maden CapEx, and Glencore CEO anticipated RIGI applications for the MARA project to be submitted shortly.
Share Repurchase and Debt Reduction
Purchased over 3 million shares at an average price of US$6.21 per share and canceled them. Debt reduced to $328 million with ongoing repayments.
Strong Cash Operating Margins
Achieved average cash margins of over $2,500 per gold equivalent ounce for approximately 87% cash margins.
Exploration and Expansion Success
Sandstorm's partners have replaced mined gold equivalent ounces every year, with a 30% surplus on average over the last seven years.
Negative Updates
Decrease in Gold Equivalent Ounces Sold
Production was just shy of 18,500 attributable gold equivalent ounces, below the 20,300 ounces sold in the first quarter of last year.
Challenges with Attributable Gold Sales
Attributable Gold sales at Bonikro were lower year-over-year due to atypical inventories at the end of 2023.
Company Guidance
During Sandstorm Gold's 2025 Q1 earnings call, the company reported record quarterly revenue of US$50.1 million and operating cash flow of over US$40 million, driven by a strong gold market. The company also highlighted a payment of $4 million from the Vatukoula Gold Stream, resulting in total sales royalties and income from other interests of $54.1 million. Production was just shy of 18,500 attributable gold equivalent ounces, a decrease from the previous year's 20,300 ounces. Sandstorm's portfolio generated average cash margins of over $2,500 per gold equivalent ounce, leading to approximately 87% cash margins. The company repurchased over 3 million shares at an average price of US$6.21 each, returning over US$23 million to shareholders, equating to 57% of operating cash flows. Additionally, Sandstorm reduced its debt by $27 million, ending the quarter with $328 million drawn from its revolving credit facility. The guidance for 2025 remains at 65,000 to 80,000 attributable gold equivalent ounces, with long-term expectations to reach 150,000 ounces by 2030.

Sandstorm Gold Financial Statement Overview

Summary
Sandstorm Gold demonstrates strong profitability with high margins and consistent revenue growth. The balance sheet is stable with a moderate debt-to-equity ratio, though there is room for improvement in ROE and asset utilization. Cash flows are robust, supporting the company's financial health.
Income Statement
75
Positive
Sandstorm Gold demonstrates strong profitability with a solid gross profit margin of 57.04% and a net profit margin of 15.80% in the TTM. The company has shown a consistent revenue growth trajectory, with a revenue increase of 4.11% in the TTM compared to the previous year. The EBIT margin of 51.65% and EBITDA margin of 72.00% further underscore the company's operational efficiency. However, the slight deceleration in revenue growth compared to prior years indicates potential market challenges.
Balance Sheet
70
Positive
The company's balance sheet is stable with a healthy equity ratio of 77.21%, reflecting a strong equity position. The debt-to-equity ratio is moderate at 0.24, indicating manageable leverage. ROE stands at 2.06% in the TTM, which could be improved to enhance shareholder returns. Overall, the balance sheet reflects financial stability but highlights room for optimization in asset utilization.
Cash Flow
80
Positive
Sandstorm Gold showcases a robust cash flow position with a significant operating cash flow to net income ratio of 4.96, indicating efficient cash generation relative to net earnings. The free cash flow to net income ratio is also strong at 4.62, suggesting effective free cash flow management. The company has achieved a healthy free cash flow growth rate of 9.56% in the TTM, reflecting strong cash flow generation capabilities. The overall cash flow performance is commendable with sustainable growth.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue176.28M179.64M148.73M114.86M93.03M
Gross Profit95.98M82.62M65.59M62.31M45.85M
EBITDA126.87M162.35M102.19M83.17M59.99M
Net Income14.29M41.72M78.36M27.62M13.82M
Balance Sheet
Total Assets1.85B1.93B1.97B620.86M649.92M
Cash, Cash Equivalents and Short-Term Investments11.29M33.40M10.80M21.17M115.63M
Total Debt355.00M435.00M499.55M2.58M2.87M
Total Liabilities400.84M477.44M533.37M28.22M11.78M
Stockholders Equity1.43B1.43B1.41B592.64M638.14M
Cash Flow
Free Cash Flow122.38M131.81M-513.87M-71.56M62.14M
Operating Cash Flow135.38M152.75M106.92M81.14M65.62M
Investing Cash Flow10.94M-22.18M-612.67M-143.91M33.68M
Financing Cash Flow-146.74M-131.93M497.56M-34.22M7.69M

Sandstorm Gold Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.26
Price Trends
50DMA
12.59
Positive
100DMA
11.56
Positive
200DMA
9.91
Positive
Market Momentum
MACD
0.20
Positive
RSI
56.77
Neutral
STOCH
30.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SSL, the sentiment is Positive. The current price of 13.26 is above the 20-day moving average (MA) of 13.11, above the 50-day MA of 12.59, and above the 200-day MA of 9.91, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 56.77 is Neutral, neither overbought nor oversold. The STOCH value of 30.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SSL.

Sandstorm Gold Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSSSL
77
Outperform
$3.89B97.212.05%0.05%6.23%36.40%
TSOGN
76
Outperform
C$106.85M23.325.89%33.96%38.35%
TSELE
73
Outperform
C$523.47M86.942.36%109.11%
TSORE
71
Outperform
C$638.41M6.4025.43%22.51%56.77%
44
Neutral
C$999.92M-6.64-13.68%1.83%17.55%-32.71%
OROR
$5.15B166.872.50%0.03%
41
Neutral
C$635.75M-11.37%-2270.97%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SSL
Sandstorm Gold
13.26
5.40
68.81%
TSE:ELE
Elemental Royalties
2.13
1.04
95.41%
TSE:OGN
Orogen Royalties
1.80
1.08
150.00%
TSE:ORE
Orezone Gold
1.20
0.42
53.85%
OR
Osisko Gold Royalties
28.66
10.87
61.10%
TSE:AMRQ
AEX Gold
1.40
0.32
29.63%

Sandstorm Gold Corporate Events

Business Operations and StrategyFinancial Disclosures
Sandstorm Gold Royalties Achieves Record Revenue in Q2 2025
Positive
Jul 10, 2025

Sandstorm Gold Royalties reported record preliminary revenue of $51.4 million for the second quarter of 2025, selling approximately 15,100 attributable gold equivalent ounces. This marks a significant increase from the previous year, highlighting the company’s strong operational performance and improved cash operating margins. The company’s financial results will be released on August 7, 2025, with a conference call scheduled for the following day to discuss the details. This announcement underscores Sandstorm’s robust position in the precious metals market and its ability to generate substantial cash flow, which is crucial for stakeholders and investors.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Dividends
Sandstorm Gold Royalties Announces 2025 Quarterly Dividend
Positive
Jun 26, 2025

Sandstorm Gold Royalties has announced a quarterly cash dividend of C$0.02 per common share for 2025, to be paid on July 25, 2025, to shareholders of record as of July 15, 2025. The dividend is classified as an ‘eligible dividend’ under Canadian tax law. While the company plans to review its dividend program regularly, future dividends will depend on various factors, including financial position and market conditions. This announcement reflects Sandstorm’s ongoing commitment to returning value to its shareholders while maintaining flexibility in its financial strategy.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$10.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Business Operations and Strategy
Sandstorm Gold Royalties Reports Major Exploration Advances
Positive
Jun 11, 2025

Sandstorm Gold Royalties announced significant exploration developments within its portfolio, highlighting a new gold-silver discovery by First Majestic Silver Corp. at the Santa Elena property in Mexico. This discovery, known as the Santo Niño vein, adds substantial potential to the Santa Elena district, where Sandstorm holds a gold stream. Additionally, Lundin Gold Ltd. has expanded its drilling program at the Fruta del Norte mine in Ecuador, aiming to enhance the mine’s long-term plan with promising high-grade results. These developments underscore Sandstorm’s strategic positioning in the mining sector, enhancing its growth prospects and potential returns for stakeholders.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$10.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Shareholder Meetings
Sandstorm Gold Receives Favorable Proxy Advisor Recommendations for Shareholder Meeting
Positive
May 16, 2025

Sandstorm Gold Royalties announced that Institutional Shareholder Services Inc. (ISS) and Glass, Lewis & Co. LLC have recommended that shareholders vote in favor of all management proposals at the upcoming Annual General and Special Meeting. This includes proposals related to amendments to the company’s share-based compensation program. The favorable recommendations from these leading proxy advisors are expected to positively impact the company’s governance and shareholder relations.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$10.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Shareholder MeetingsRegulatory Filings and Compliance
Sandstorm Gold Clarifies Shareholder Meeting Amendments Amid ISS Misinterpretation
Neutral
May 13, 2025

Sandstorm Gold Royalties has issued clarifying amendments to its 2025 shareholder meeting materials following a misinterpretation by Institutional Shareholder Services Inc. (ISS) regarding the company’s share-based compensation program. The amendments aim to ensure accurate interpretation of the proposed changes and align executive compensation with shareholder interests. The Toronto Stock Exchange and the company’s Board of Directors have approved these amendments, which set a fixed maximum limit of 6.0% for share issuances under the Share Plans, countering ISS’s recommendation against the proposals.

The most recent analyst rating on (TSE:SSL) stock is a Buy with a C$10.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 11, 2025