Sandstorm Gold Royalties Reports Strong First Quarter Sales and Record Revenue, $19 Million in Share Buybacks; Financial Results May 6

Rhea-AI Summary

Sandstorm Gold Royalties (NYSE: SAND) has reported strong preliminary results for Q1 2025, achieving record revenue of $50.1 million from approximately 18,500 attributable gold equivalent ounces sold. This represents an increase from $42.8 million in revenue and 20,316 ounces in Q1 2024.

The company achieved record preliminary total sales, royalties, and income of $54.1 million, with record cash operating margins of $2,507 per attributable gold equivalent ounce. Cost of sales, excluding depletion, was $6.9 million for the quarter.

In a significant capital allocation move, Sandstorm repurchased and cancelled approximately 3.1 million common shares for $19.0 million during Q1 2025. The company maintains a revolving credit facility with an outstanding balance of $340 million and an available balance of $285 million. Full Q1 2025 results will be released on May 6, 2025.

Positive

• Record quarterly revenue of $50.1 million, up from $42.8 million YoY
• Record total sales and royalties of $54.1 million
• Record cash operating margins of $2,507 per gold equivalent ounce
• Strategic share buyback of $19 million completed

Negative

• Gold equivalent ounces sold decreased to 18,500 from 20,316 YoY
• Cost of sales increased to $6.9 million from $5.7 million YoY
• Substantial debt with $340 million outstanding on credit facility

Insights

Financial Analyst

Sandstorm's Q1 2025 results demonstrate exceptional financial performance with record revenue of $50.1 million, representing a significant 17% year-over-year increase from the $42.8 million reported in Q1 2024. This revenue growth is particularly impressive considering the company sold fewer gold equivalent ounces (18,500 vs. 20,316 in Q1 2024), indicating the substantial benefit received from higher gold price environments.

The standout metric is Sandstorm's record cash operating margin of $2,507 per attributable gold equivalent ounce, marking a remarkable 41% improvement from $1,782 in the comparable period. This margin expansion showcases the inherent leverage in the royalty business model, where increased commodity prices flow directly to the bottom line without corresponding cost inflation.

The $19 million share repurchase program, resulting in approximately 3.1 million shares being bought back and cancelled during Q1, signals strong management confidence in the company's intrinsic value and represents a meaningful return of capital to shareholders. This repurchase activity effectively reduced the outstanding share count by roughly 1% in a single quarter, creating immediate value accretion.

The balance sheet maintains flexibility with $285 million available on the credit facility despite carrying $340 million in debt. This positions Sandstorm to continue its dual focus on debt reduction and opportunistic share repurchases while maintaining capacity for potential accretive acquisitions.

The strategic pivot toward capital returns rather than aggressive portfolio expansion represents a disciplined approach to capital allocation that should reward long-term shareholders, especially if the company can continue generating record operating margins at current gold prices.

VANCOUVER, BC, April 8, 2025 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm Gold Royalties", "Sandstorm", or the "Company") (NYSE: SAND) (TSX: SSL) is pleased to report sales, revenue, and other preliminary figures for the first quarter ended March 31, 2025 (all figures in U.S. dollars).

First Quarter Preliminary Results

During the three months ended March 31, 2025, the Company sold approximately 18,500 attributable gold equivalent ounces¹ and realized record preliminary revenue² of $50.1 million (20,316 attributable gold equivalent ounces and $42.8 million in revenue for the comparable period in 2024). The Company had record preliminary total sales, royalties, and income from other interests¹ of $54.1 million for the three months ended March 31, 2025 ($42.8 million in total sales, royalties, and income from other interests for the comparable period in 2024).

Preliminary cost of sales, excluding depletion² for the three months ended March 31, 2025, was $6.9 million resulting in record cash operating margins¹ of approximately $2,507 per attributable gold equivalent ounce¹ ($5.7 million and $1,782 per attributable gold equivalent ounce for the comparable period in 2024, respectively).

Share Buybacks and Capital Allocation

During the first three months of 2025, Sandstorm purchased and cancelled approximately 3.1 million of the Company's common shares (the "Common Shares") for total consideration of approximately $19.0 million. 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 its normal course issuer bid represents a strategic use of available capital compared to other investment opportunities. The Company will continue to assess its capital allocation strategy with a focus on further share purchases and debt repayment, dependent on market conditions. As at March 31, 2025, the outstanding balance on the Company's revolving credit facility was approximately $340 million with an undrawn and available balance of $285 million².

Release Date and Conference Call Details

The Company will release its 2025 first quarter results on Tuesday, May 6, 2025, after markets close. A conference call will be held on Wednesday, May 7, 2025, starting at 8:30am PDT to further discuss the 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 Gold Royalties has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards Accounting Standards ("IFRS Accounting Standards" or "IFRS") including (i) attributable gold equivalent ounces and (ii) cash operating margin. The presentation of these non-IFRS 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 measures differently. Note these figures have not been audited and are subject to change.
	i.	As the Company's operations are primarily focused on precious metals, 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 mining companies in the precious metals mining industry who present results on a similar basis. Attributable gold equivalent ounces is a non-IFRS financial ratio that uses total sales, royalties, and income from other interests as a component. 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, which, during the first quarter of 2025, was comprised of a one-time $4 million payment received as per an option agreement with Vatukoula Gold Mines PTE Limited. Attributable gold equivalent ounces 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 ([$54.1 million – $0.8 million]/$2,880 for the three months ended March 31, 2025, and [$42.8 million – $0.9 million]/$2,062 for the comparable period in 2024) and may be subject to change.
	ii.	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 companies in the precious metals mining industry who present results on a similar basis. 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 (see item i above) for the same respective period. 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 ($6.9 million/18,500 attributable gold equivalent ounces for the three months ended March 31, 2025, and $5.7 million/20,316 attributable gold equivalent ounces for the comparable period in 2024).
Note 2 These figures have not been audited and are subject to change. As the Company has not yet finished its quarter-end close procedures, the anticipated financial information presented in this press release is preliminary, subject to final quarter-end closing adjustments, and may change materially.

Contact Information

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 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 U.S. SECURITYHOLDERS

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 Accounting 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 the United States securities laws. In particular, and without limiting the generality of the foregoing, the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "inferred mineral resources,", "indicated mineral resources," "measured mineral resources" and "mineral resources" used or referenced herein and the documents incorporated by reference herein, as applicable, are Canadian mineral disclosure terms as defined in accordance with Canadian National Instrument 43-101 — Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") — CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Definition Standards").

For United States reporting purposes, the United States Securities and Exchange Commission (the "SEC") has adopted amendments to its disclosure rules (the "SEC Modernization Rules") to modernize the mining property disclosure requirements for issuers whose securities are registered with the SEC under the Exchange Act, which became effective February 25, 2019. The SEC Modernization Rules more closely align the SEC's disclosure requirements and policies for mining properties with current industry and global regulatory practices and standards, including NI 43-101, and replace the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7. Issuers were required to comply with the SEC Modernization Rules in their first fiscal year beginning on or after January 1, 2021. As a foreign private issuer that is eligible to file reports with the SEC pursuant to the multi-jurisdictional disclosure system, the Corporation is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101 and the CIM Definition Standards. Accordingly, mineral reserve and mineral resource information contained or incorporated by reference herein may not be comparable to similar information disclosed by United States companies subject to the United States federal securities laws and the rules and regulations thereunder.

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 U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Sandstorm Gold Royalties. Forward-looking statements include, but are not limited to: statements related to future capital allocation including share purchases and debt repayment; the future price of gold, silver, copper, iron ore and other metals, the estimation of mineral reserves and resources, realization of mineral reserve estimates, and the timing and amount of estimated future production. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans", or similar terminology.

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.

FAQ

What was Sandstorm Gold's (SAND) revenue in Q1 2025?

Sandstorm Gold reported record preliminary revenue of $50.1 million in Q1 2025, up from $42.8 million in Q1 2024.

How many shares did SAND buyback in Q1 2025?

Sandstorm Gold purchased and cancelled approximately 3.1 million common shares for total consideration of $19.0 million in Q1 2025.

What was SAND's cash operating margin per gold equivalent ounce in Q1 2025?

Sandstorm achieved record cash operating margins of $2,507 per attributable gold equivalent ounce in Q1 2025, up from $1,782 in Q1 2024.

How many gold equivalent ounces did Sandstorm (SAND) sell in Q1 2025?

Sandstorm Gold sold approximately 18,500 attributable gold equivalent ounces in Q1 2025, compared to 20,316 ounces in Q1 2024.

What is the current balance of SAND's revolving credit facility?

As of March 31, 2025, Sandstorm's revolving credit facility had an outstanding balance of $340 million with $285 million undrawn and available.