Sandstorm Gold Royalties Reports Record Operating Results in First Quarter 2025
- Record quarterly revenue of $50.1 million, up from $42.8 million in Q1 2024
- Record cash operating margins of $2,509 per gold equivalent ounce
- Net income of $11.3 million, compared to a loss of $3.9 million in Q1 2024
- Debt reduction of $15 million in Q1, plus additional $12 million post-quarter
- Strong share buyback program with 3.1 million shares repurchased for $19.1 million
- 28-year mine life supported by current reserves and resources
- Production decreased to 18,492 gold equivalent ounces from 20,316 in Q1 2024
- $328 million debt remains outstanding on revolving credit facility
Insights
Sandstorm reports record Q1 revenue and margins despite lower production, prioritizing shareholder returns through buybacks and debt reduction.
Sandstorm Gold Royalties delivered record quarterly revenue of $50.1 million in Q1 2025, a 17% increase year-over-year despite a 9% decrease in gold equivalent ounces sold. This impressive financial performance was driven by robust commodity prices, with the company realizing an average gold price of $2,880 per ounce during the quarter.
The company achieved record cash operating margins of $2,509 per attributable gold equivalent ounce, marking the fifth consecutive quarter of record margins and a substantial 41% improvement from Q1 2024. This exceptional margin expansion clearly demonstrates the leverage to gold prices inherent in the royalty business model.
Sandstorm's diversified asset base provides balanced exposure, with 73% of production from precious metals, 20% from copper, and 7% from other commodities. Geographically, 29% came from North America, 48% from South America, and 23% from other regions.
The company's capital allocation strategy shows a dual focus on shareholder returns and balance sheet strength. Sandstorm repurchased 3.1 million shares for
Cash flows from operating activities (excluding working capital changes) reached
Sandstorm maintained its 2025 production guidance of 65,000-80,000 gold equivalent ounces, reflecting the ongoing ramp-up at Greenstone and sensitivity to relative commodity price movements. The long-term target of 150,000 ounces by 2030 represents substantial growth potential from current levels.
Diversified royalty portfolio shows growth potential with key assets advancing, though 2025 remains a transition year before accelerated production growth.
Sandstorm's Q1 results reflect an evolving asset portfolio with several key projects at different development stages. While overall production decreased to 18,492 gold equivalent ounces (from 20,316 in Q1 2024), this was primarily due to inventory timing effects and the relative outperformance of gold prices compared to other commodities.
The Greenstone mine in Ontario is still in ramp-up phase, contributing 1,269 gold ounces in Q1. Equinox Gold expects lower head grades through mid-2025 before the processing plant achieves design recovery rates. This explains Sandstorm's relatively conservative 2025 guidance as they await the mine's optimization.
The Chapada copper mine showed increased deliveries due to the true-up mechanism in Sandstorm's stream agreement. Lundin Mining's planned 20,000-meter drill program at Chapada aims to expand resources, with particular focus on the higher-grade Saúva deposit that could enhance future production.
Development progress at key growth assets is encouraging. The Hod Maden joint venture is advancing with
Sandstorm received its first
The company's exploration upside remains substantial, with approximately 600,000 meters drilled on Sandstorm's royalty claims in 2024, resulting in more ounces discovered than produced. This robust exploration activity supports their estimate of a 28-year mine life based on existing reserves and resources.
Sandstorm's forecast of 150,000 gold equivalent ounces by 2030 (more than double current levels) is supported by the development pipeline, particularly the Platreef PGM mine where production is expected to commence in Q4 2025, with first deliveries to Sandstorm anticipated in H1 2026.
Strong commodity prices continued to drive robust financial results during the first quarter, including:
- Record revenue of
$50.1 million $42.8 million - Production of 18,492 attributable gold equivalent ounces1 (compared to 20,316 ounces for the comparable period in 2024);
- Record total sales, royalties, and income from other interests1 of
$54.1 million $42.8 million - Cash flows from operating activities, excluding changes in non-cash working capital1 of
$40.8 million $32.6 million - Record cash operating margins1 of
$2,509 $1,782 - Net income of
$11.3 million $3.9 million
As part of the Company's commitment to shareholder returns, Sandstorm purchased and cancelled approximately 3.1 million of the Company's common shares (the "Common Shares") for total consideration of approximately
In March, Sandstorm renewed its normal course issuer bid ("NCIB"), which allows the Company to purchase up to 20.0 million Common Shares. In conjunction with the NCIB renewal, the Company also renewed its automatic share purchase plan that facilitates purchases under the NCIB at times when the Company would ordinarily not be permitted to make purchases. The Company believes that, at times, the market price of the Common Shares is not fully reflective of their intrinsic value, and repurchasing Common Shares under the NCIB represents a strategic use of available capital compared to other investment opportunities.
The Company's deleveraging efforts for the quarter resulted in
In March, SSR Mining Inc. ("SSR Mining") announced that the Hod Maden joint venture has approved early-works capital investments in 2025 of approximately
In the first half of 2025, Glencore plc ("Glencore") is expected to submit an application for the MARA copper-gold project under
Sandstorm is pleased to provide investors with the Company's updated reserves and resources, which is included in the Company's 2025 Asset Handbook, now available on the Company's website. Based on the Company's estimate of Proven and Probable gold equivalent ounces and 2024 production of approximately 73,000 gold equivalent ounces, Sandstorm's stream and royalty reserves and resources support a robust 28-year mine life. In 2024, approximately 600,000 metres of drilling was completed on Sandstorm's royalty claims, of which approximately 320,000 metres were drilled on properties already in production. As a result of these exploration activities by mining partners, once again, more ounces were discovered on Sandstorm's royalty properties in 2024 than were produced, showcasing the exploration upside within the Company's existing royalty portfolio.
Sandstorm has also published its 2024 Sustainability Report, which highlights the Company's commitment to environmental, social, and governance best practices while also showcasing initiatives from various mining operators contributing to Sandstorm's royalty portfolio. Both the 2024 Sustainability Report and 2025 Asset Handbook are available at www.sandstormgold.com or by contacting Investor Relations at info@sandstormgold.com.
Based on the Company's existing streams and royalties, attributable gold equivalent ounces are forecasted to be between 65,000 and 80,000 ounces in 2025, which considers a range of commodity price scenarios and a phased ramp-up at Equinox Gold Corp.'s Greenstone mine. The Company's 2025 guidance is sensitive to changes in relative commodity prices, with a ±
For the three months ended March 31, 2025, the Company realized record revenue of
Revenue | Gold Equivalent | |
Precious Metals | 13,471 | |
Copper | 3,647 | |
Other | 1,374 | |
Total | 18,492 |
The continued ramp-up at the Greenstone gold mine, which commenced deliveries to Sandstorm in the third quarter of 2024, contributed to the Company's record quarterly revenue, as did an increase in copper deliveries from the Chapada copper mine, which included additional deliveries as part of the true-up mechanism under the Chapada stream agreement. Revenue was also supported by stronger gold, silver, and copper prices, whereby the Company realized an average selling price of gold of
The Company realized cash operating margins of
Of the 18,492 gold equivalent ounces sold during the first quarter from the Company's diversified streaming and royalty portfolio, approximately
Production continues to ramp-up at the Greenstone gold mine in
Sandstorm received its first advance royalty payment from the Robertson project, part of Barrick Gold Corp.'s Cortez Complex in
Year-over-year revenue and attributable production from the Chapada copper mine in
Lundin Mining anticipates allocating the largest portion of its
Royalty revenue from the Fruta del Norte mine ("FDN") in
Royalty revenue attributable to the Vale S.A. ("Vale") iron ore royalties was in-line with expectations in the first quarter. In February, Vale reported that the Capanema project, which will add 15 million tonnes per annum ("Mtpa") of iron ore to the Mariana complex started commissioning in November 2024. The Mariana complex is covered by Sandstorm's partial royalty on the Vale Southeastern System, which will start contributing to the royalty once a cumulative sales threshold of 1.7 billion tonnes of iron ore has been reached, which Sandstorm expects to occur in the first half of 2025.
Gold sales from the Company's Bonikro stream were lower year-over-year as sales in the comparable period of 2024 benefited from atypical inventories at the end of 2023, which were sold in the first quarter of 2024. Allied Gold Corporation ("Allied Gold") is forecasting production in 2025 to be weighted toward the second half, in part, as a result of improvements to feed grades at Bonikro. In addition to Allied Gold's guidance for Bonikro, the Company expects that
Resource and exploration activities continue at Allied Gold's mining and exploration licenses covered under Sandstorm's area of interest. Key activities include the Hiré mining license where drilling has identified an additional zone of mineralization near the Assondji-So pit and further drilling is expected to commence at the Assondji-So South prospect in 2025. Furthermore, 2024 drilling at the Dougbafla North prospect at the Oumé project defined a geological model, with further testing planned for the southern extension. Exploration efforts successfully converted significant Inferred Mineral Resources into Indicated Mineral Resources, supporting the project's advancement. Geotechnical and hydrogeological drilling programs are planned for 2025 to support a Pre-Feasibility Study at Oumé, with results expected by year's end.
In March, Ivanhoe Mines Ltd. filed two technical reports covering the Platreef Integrated Development Plan 2025 for its Platreef PGM mine in
Develop Global Limited recently reported that the recommissioning of the
In January, the Company entered into an option agreement with Vatukoula Gold Mines PTE Limited ("VGML") related to the Vatukoula mine. Under the terms of the agreement, the Company agreed to a forbearance period in respect of VGML's past-due gold deliveries and granted VGML an option to repurchase the associated gold stream and net smelter returns royalty. In consideration for these concessions, the Company received a payment of
A conference call will be held on Wednesday, May 7, 2025, starting at 8:30am PDT to further discuss the first quarter results. To participate in the conference call, use the following dial-in numbers and conference ID, or join the webcast using the link below:
International: (+1) 437-900-0527
North American Toll-Free: (+1) 888-510-2154
Conference ID: 57797
Webcast URL: https://app.webinar.net/N3LYEBVEJqy
Note 1 | |
Sandstorm has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards" or "IFRS") including, (i) total sales, royalties, and income from other interests, (ii) attributable gold equivalent ounce, (iii) average cash cost per attributable gold equivalent ounce, (iv) cash operating margin, and (v) cash flows from operating activities excluding changes in non-cash working capital. | |
(i) | Total sales, royalties and income from other interests is a non-IFRS financial measure and is calculated by taking total revenue which includes sales and royalty revenue, and adding contractual income relating to royalties, streams and other interests excluding gains and losses on dispositions. The Company presents total sales, royalties and income from other interests as it believes that certain investors use this information to evaluate the Company's performance and ability to generate cash flow in comparison to other streaming and royalty companies in the precious metals mining industry. |
(ii) | Attributable gold equivalent ounce is a non-IFRS financial ratio that uses total sales, royalties, and income from other interests as a component. Attributable gold equivalent ounce is calculated by dividing the Company's total sales, royalties, and income from other interests, less revenue attributable to non-controlling shareholders for the period, by the average realized gold price per ounce from the Company's gold streams for the same respective period. The Company presents attributable gold equivalent ounces as it believes that certain investors use this information to evaluate the Company's performance in comparison to other streaming and royalty companies in the precious metals mining industry that present results on a similar basis. |
(iii) | Average cash cost per attributable gold equivalent ounce is calculated by dividing the Company's cost of sales, excluding depletion by the number of attributable gold equivalent ounces. The Company presents average cash cost per attributable gold equivalent ounce as it believes that certain investors use this information to evaluate the Company's performance and ability to generate cash flow in comparison to other streaming and royalty companies in the precious metals mining industry who present results on a similar basis. |
(iv) | Cash operating margin is calculated by subtracting the average cash cost per attributable gold equivalent ounce from the average realized gold price per ounce from the Company's gold streams. The Company presents cash operating margin as it believes that certain investors use this information to evaluate the Company's performance and ability to generate cash flow in comparison to other streaming and royalty companies in the precious metals mining industry that present results on a similar basis. |
(v) | Cash flows from operating activities excluding changes in non-cash working capital is a non-IFRS financial measure that is calculated by adding back the decrease or subtracting the increase in changes in non-cash working capital to or from cash provided by (used in) operating activities. The Company presents cash flows from operating activities excluding changes in non-cash working capital as it believes that certain investors use this information to evaluate the Company's performance in comparison to other streaming and royalty companies in the precious metals mining industry that present results on a similar basis. |
Refer to pages 29–32 of the Company's MD&A for the quarter ended March 31, 2025, which is available on SEDAR+ at www.sedarplus.com, for a numerical reconciliation of the non-IFRS financial measures described above. The presentation of these non-IFRS financial measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS financial measures differently. | |
For more information about Sandstorm Gold Royalties, please visit our website at www.sandstormgold.com or email us at info@sandstormgold.com.
ABOUT SANDSTORM GOLD ROYALTIES
Sandstorm is a precious metals-focused royalty company that provides upfront financing to mining companies and receives the right to a percentage of production from a mine, for the life of the mine. Sandstorm holds a portfolio of approximately 230 royalties, of which 40 of the underlying mines are producing. Sandstorm plans to grow and diversify its low-cost production profile through the acquisition of additional gold royalties. For more information visit: www.sandstormgold.com.
CAUTIONARY STATEMENTS TO
The financial information included or incorporated by reference in this press release or the documents referenced herein has been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, which differs from US generally accepted accounting principles ("US GAAP") in certain material respects, and thus are not directly comparable to financial statements prepared in accordance with US GAAP.
This press release and the documents incorporated by reference herein, as applicable, have been prepared in accordance with Canadian standards for the reporting of mineral resource and mineral reserve estimates, which differ from the previous and current standards of
For
As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of "measured mineral resources", "indicated mineral resources" and "inferred mineral resources." In addition, the SEC has amended its definitions of "proven mineral reserves" and "probable mineral reserves" to be "substantially similar" to the corresponding CIM Definition Standards that are required under NI 43-101. While the SEC will now recognize "measured mineral resources", "indicated mineral resources" and "inferred mineral resources", U.S. investors should not assume that all or any part of the mineralization in these categories will be converted into a higher category of mineral resources or into mineral reserves without further work and analysis. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, U.S. investors are cautioned not to assume that all or any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable without further work and analysis. Further, "inferred mineral resources" have a greater amount of uncertainty and as to whether they can be mined legally or economically. Therefore, U.S. investors are also cautioned not to assume that all or any part of inferred mineral resources will be upgraded to a higher category without further work and analysis. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases. While the above terms are "substantially similar" to CIM Definitions, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules or under the prior standards of SEC Industry Guide 7.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This press release contains "forward-looking statements", within the meaning of the
Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Sandstorm Gold Royalties to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Sandstorm Gold Royalties will operate in the future, including the receipt of all required approvals, the price of gold and copper and anticipated costs. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, failure to receive necessary approvals, changes in business plans and strategies, market conditions, share price, best use of available cash, gold and other commodity price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks relating to the parties which produce the gold or other commodity the Company will purchase, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global economic climate, dilution, share price volatility and competition.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact of general business and economic conditions, the absence of control over mining operations from which the Company will purchase gold, other commodities or receive royalties from, and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined, risks in the marketability of minerals, fluctuations in the price of gold and other commodities, fluctuation in foreign exchange rates and interest rates, stock market volatility, as well as those factors discussed in the section entitled "Risks to Sandstorm" in the Company's annual report for the financial year ended December 31, 2024 and the section entitled "Risk Factors" contained in the Company's annual information form dated March 31, 2025 available at www.sedarplus.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained or incorporated by reference, except in accordance with applicable securities laws.
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SOURCE Sandstorm Gold Ltd.
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