Sandstorm Gold Stock Price, News & Analysis

Sandstorm Gold Ltd. (NYSE: SAND) announced significant updates on its royalty portfolio. The Hod Maden project in Turkey has received all major permits and commenced early construction work. The Greenstone project in Ontario is 46% complete, aiming for its first gold pour in early 2024, with a production target exceeding 400,000 ounces annually. Lundin Gold raised its production guidance at Fruta del Norte to between 430,000 and 460,000 ounces. Various projects in Sandstorm's portfolio, including Bayan Khundii and Minyari Dome, are advancing positively.

Sandstorm Gold Royalties reported record sales in Q3 2022, selling approximately 22,600 attributable gold equivalent ounces and generating $38.9 million in revenue, compared to 15,514 ounces and $27.6 million in Q3 2021. The cost of sales, excluding depletion, was $7.3 million, yielding cash operating margins of about $1,383 per ounce. This performance reflects significant growth in both sales volume and revenue, highlighting the company's successful strategy in the precious metals sector.

Sandstorm Gold Ltd. (NYSE: SAND) has completed its bought deal financing, raising approximately US$92 million through the sale of 18,055,000 common shares at US$5.10 per share. The proceeds will be allocated for future acquisitions of streams and royalties, repayment of the revolving credit facility, and general working capital needs. This financing was facilitated by a syndicate of underwriters, co-led by BMO Capital Markets and Scotiabank, and was conducted under a prospectus dated September 28, 2022.

Sandstorm Gold Ltd. (NYSE: SAND) has declared a fourth quarterly cash dividend of C$0.02 per common share for 2022, payable to shareholders of record by October 18, 2022. The payment is scheduled for October 28, 2022. The Board will review future dividends based on various financial factors, with no guarantee of future payments. Dividends for non-resident investors may incur Canadian withholding taxes. Sandstorm holds 250 royalties, with 39 mines currently in production, aiming to expand its low-cost production profile.

Sandstorm Gold Royalties has entered a bought deal agreement with underwriters led by BMO Capital Markets to sell 15,700,000 common shares at $5.10 each, generating approximately $80 million. An over-allotment option allows underwriters to purchase an additional 15% of the offering within 30 days. The offering is expected to close on October 4, 2022, pending regulatory approvals. Proceeds will contribute to future streams and royalties acquisitions, pay down credit facilities, and cover general working capital.

Sandstorm Gold Ltd. (NYSE: SAND) announced the successful completion of RTO Part A, involving the sale of its 30% interest in the Hod Maden project to Horizon Copper. This transaction includes a $200 million gold stream on Hod Maden's production. Sandstorm received an approximate 34% equity interest in Horizon, a $95 million secured convertible promissory note, and $10 million in cash. The Hod Maden Gold Stream will deliver 20% of gold produced at 50% of the spot price until 405,000 ounces, after which it will reduce to 12% at 60% of the spot price.

On August 15, 2022, Sandstorm Gold Royalties (NYSE: SAND) announced the successful completion of its acquisition of Nomad Royalty Company Ltd. (NYSE: NSR). This acquisition involved the issuance of approximately 74.4 million common shares at an exchange ratio of 1.21 Sandstorm Shares for each Nomad Share. The transaction is expected to enhance Sandstorm's position as a leading mid-tier royalty company, increasing its revenue from precious metals to nearly 90% by 2025 and anticipating over 85% production growth in the same period.

Sandstorm Gold Ltd. (NYSE: SAND) reported record results for the second quarter of 2022, ending June 30. Key highlights include 19,276 attributable gold equivalent ounces, up from 18,004 in Q2 2021, and a record revenue of $36.0 million compared to $26.4 million year-over-year. Operating cash flows increased to $21.9 million, and net income soared to $39.7 million from $8.6 million in the previous year. Transformative transactions included agreements for future growth, such as the acquisition of Nomad Royalty Company. The company forecasts 80,000 to 85,000 ounces for 2022 and 155,000 ounces in 2025.

On August 9, 2022, Sandstorm Gold Ltd. shareholders approved the resolution to acquire all outstanding shares of Nomad Royalty Company Ltd. at an exchange ratio of 1.21 Sandstorm Shares for each Nomad share. This acquisition was overwhelmingly supported, with 99% of votes cast in favor. The transaction awaits final court approval expected on August 12, 2022, with completion anticipated around August 15, 2022. Management believes the merger will enhance their portfolio, leading to a stronger, diversified royalty company.