Sandstorm Gold (SSL) AI Stock Analysis

• Market Cap: $4.50B
• Dividend Yield: 0.52%
• Average Volume (3M): 625.82K
• Price to Earnings (P/E): 93.9
• Beta (1Y): 1.15
• Revenue Growth: 17.31%
• EPS Growth: 19.28%
• Country: CA
• Employees: 23
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Gold
• EPS (TTM): 0.07
• Shares Outstanding: 293,157,960
• 10 Day Avg. Volume: 813,357
• 30 Day Avg. Volume: 625,818
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 22.17
• Enterprise Value/Gross Profit: 37.13
• Enterprise Value/Ebitda: 29.53
• 1Y Price Target: $15.08
• Price Target Upside: -1.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: C$16.00 ▲(4.30% Upside)

Sandstorm Gold's strong financial performance and positive earnings call are the most significant factors contributing to its overall score. The company's robust revenue growth, profitability, and strategic initiatives support a positive outlook. Technical analysis also indicates bullish momentum. However, the high P/E ratio suggests caution in terms of valuation.

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.

Market Demand

Current spot prices for gold, silver, and copper significantly exceed even the revised commodity price deck, indicating robust demand and 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

Debt Management

Sandstorm Gold has continued to deleverage its bank debt, paying off $15.0M in net debt repayments.

Valuation Concerns

The implied $3.5B valuation of the transaction appears to provide fair value for Sandstorm’s portfolio.

Sandstorm Gold Business Overview & Revenue Model

Company Description

Sandstorm Gold Ltd. is a gold-focused resource company that provides financing to mining companies through the purchase of gold and other precious metals produced by those companies. The company primarily operates in the mining sector, focusing on acquiring and managing a portfolio of gold royalties, which entitles it to receive a percentage of the production or revenue generated from various mines worldwide. Sandstorm's core product offerings include streaming agreements and royalty agreements, which serve as alternative financing solutions for mining operators while allowing Sandstorm to gain exposure to precious metal prices.

How the Company Makes Money

Sandstorm Gold generates revenue primarily through its streaming and royalty agreements with mining companies. Under these agreements, Sandstorm pays an upfront cash payment to mining operators in exchange for the right to purchase a portion of the gold produced at a predetermined price, or to receive a percentage of the revenue from the sale of gold and other metals. This model allows Sandstorm to benefit from rising metal prices while limiting its exposure to the operational risks associated with mining. Key revenue streams include the sale of gold and metals acquired through its agreements, as well as income from long-term contracts with various mining partners. The company's strategic partnerships and investments in various operating mines globally further enhance its revenue potential, allowing it to capitalize on diverse mining operations.

Sandstorm Gold Financial Statement Overview

Summary

Sandstorm Gold demonstrates a solid financial position with strong revenue growth and profitability metrics. The company maintains a healthy balance sheet with manageable leverage and a robust cash flow profile. While net profit margins could improve, the overall financial health is positive, positioning the company well for future growth in the gold industry.

Income Statement

Sandstorm Gold has shown a consistent revenue growth trajectory, with a 5.48% increase in the TTM period. The company maintains strong profitability metrics, with a gross profit margin of 57.03% and an EBIT margin of 43.28%. However, the net profit margin is relatively lower at 15.80%, indicating some pressure on net earnings. Overall, the income statement reflects a solid performance with room for improvement in net profitability.

Balance Sheet

The balance sheet of Sandstorm Gold is stable, with a manageable debt-to-equity ratio of 0.24, indicating prudent leverage management. The return on equity is modest at 2.03%, suggesting potential for improved efficiency in generating returns on shareholder equity. The equity ratio stands at a healthy level, reflecting a strong capital structure.

Cash Flow

The cash flow statement reveals robust cash generation capabilities, with a free cash flow growth rate of 6.68% in the TTM period. The operating cash flow to net income ratio is strong at 7.72, highlighting efficient cash conversion. The free cash flow to net income ratio of 0.93 indicates effective cash management, supporting future growth and stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	193.59M	176.28M	179.64M	148.73M	114.86M	93.03M
Gross Profit	115.58M	95.98M	82.62M	65.59M	62.31M	45.85M
EBITDA	145.32M	126.87M	162.35M	102.19M	83.17M	59.99M
Net Income	34.42M	14.29M	41.72M	78.36M	27.62M	13.82M
Balance Sheet
Total Assets	1.83B	1.85B	1.93B	1.97B	620.86M	649.92M
Cash, Cash Equivalents and Short-Term Investments	14.77M	11.29M	33.40M	10.80M	21.17M	115.63M
Total Debt	315.00M	355.00M	435.00M	499.55M	2.58M	2.87M
Total Liabilities	376.30M	400.84M	477.44M	533.37M	28.22M	11.78M
Stockholders Equity	1.43B	1.43B	1.43B	1.41B	592.64M	638.14M
Cash Flow
Free Cash Flow	143.00M	122.38M	131.81M	-513.87M	-71.56M	62.14M
Operating Cash Flow	147.85M	135.38M	152.75M	106.92M	81.14M	65.62M
Investing Cash Flow	8.00M	10.94M	-22.18M	-612.67M	-143.91M	33.68M
Financing Cash Flow	-153.88M	-146.74M	-131.93M	497.56M	-34.22M	7.69M

Sandstorm Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 15.34 is above the 20-day moving average (MA) of 14.57, above the 50-day MA of 13.65, and above the 200-day MA of 10.71, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 68.39 is Neutral, neither overbought nor oversold. The STOCH value of 78.17 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGN	82 Outperform	C$102.10M	22.28	5.89%	―	33.96%	38.35%
ORE	76 Outperform	C$681.49M	5.82	27.51%	―	41.20%	77.86%
SSL	75 Outperform	$4.50B	93.94	2.41%	0.52%	17.31%	19.28%
ELE	72 Outperform	C$498.90M	77.48	2.53%	―	131.19%	―
Sector *	61 Neutral	$10.24B	6.18	0.71%	2.90%	3.45%	-36.02%
OR	―	$6.04B	76.66	6.27%	0.60%	―	―
AMRQ	41 Neutral	C$522.22M	―	-14.43%	―	―	12.46%

Sandstorm Gold Corporate Events

Sandstorm Gold Royalties Backs Royal Gold’s Kansanshi Acquisition

Sandstorm Gold Royalties supports Royal Gold Inc.’s acquisition of a gold stream on the Kansanshi copper-gold mine in Zambia for $1 billion. This acquisition is expected to enhance Sandstorm’s portfolio by adding 35,000 to 40,000 ounces of gold per year over the next decade, benefiting shareholders through exposure to larger acquisitions and cash-flowing streams from long-life mines.

The most recent analyst rating on (TSE:SSL) stock is a Hold with a C$13.25 price target. To see the full list of analyst forecasts on Sandstorm Gold stock, see the TSE:SSL Stock Forecast page.

Sandstorm Gold Royalties Achieves Record Revenue in Q2 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.

Sandstorm Gold Royalties Announces 2025 Quarterly Dividend

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.

Sandstorm Gold Royalties Reports Major Exploration Advances

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.

Sandstorm Gold Receives Favorable Proxy Advisor Recommendations for Shareholder Meeting

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.

Sandstorm Gold Clarifies Shareholder Meeting Amendments Amid ISS Misinterpretation

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.