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Sandstorm Posts Record Q3 Revenue and Gold Equivalent Ounces Sold

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Shares of gold royalty firm Sandstorm Gold traded more than 9% higher today after reporting record revenue for Q3/19.

Vancouver, Canada-based gold royalty company Sandstorm Gold Ltd. (SSL:TSX; SAND:AMEX), yesterday announced what it called record 2019 results for the third quarter ended September 30, 2019.

The company advised that in Q3/19 it achieved record revenue of $25.8 million, a 49% increase over the $17.3 million reported in Q3/18. The firm also stated that it posted record attributable gold equivalent ounces sold of 17,289 oz., up 21% versus 14,314 oz. sold in Q3/18. Sandstorm advised that in Q3/19, the average cash cost per attributable gold equivalent ounce was $288 resulting in cash operating margins of $1,203 per oz., compared to $248 per oz. and $960 per oz. respectively in the corresponding 2018 quarter.

The firm reported Net income of $6.2 million in Q3/19, compared to $2.1 million in Q3/18. The company advised that "Net income was higher when compared to the same period in 2018 driven by an increase in revenue and a $2.0 million increase in gains recognized on the revaluation of the company's investments; whereby a gain of $2.1 million was recognized during the third quarter of 2019 largely driven by the change in fair value of the Americas Gold and Silver Corp. convertible debenture and Equinox Gold Corp. convertible debenture."

Sandstorm also updated its Full-Year 2019 outlook indicating that "based on the company's existing royalties, attributable gold equivalent ounces sold for 2019 is forecasted to be between 63,000 and 70,000 ounces. The company is forecasting attributable gold equivalent production of 140,000 ounces in 2023."

The firm noted that in Q3/19 approximately 31% of the gold equivalent ounces sold by Sandstorm were attributable to mines located in Canada, 20% from the rest of North America, 35% from South America and 14% from other countries.

Streams and royalties on Canadian mines contributed 5,397 of the attributable gold equivalent ounces sold during the third quarter of 2019, a 2% decrease compared to the third quarter of 2018. In North America, excluding Canada, the attributable gold equivalent ounces sold from operations increased by 38% in Q3/19 over Q3/18 primarily due to an increase in gold equivalent ounces sold from the Santa Elena mine in Mexico. South America operations produced 88% more gold equivalent ounces in Q3/19 when compared to Q3/18 driven by the addition of royalty revenue from the Aurizona mine in Brazil and an increase in gold equivalent ounces sold from the Cerro Moro mine in Brazil. The firm additionally noted that streams and royalties on mines in other countries contributed 20% less gold equivalent ounces sold when compared to the third quarter of 2018 mostly due to a decrease in gold equivalent ounces sold from operations in Burkina Faso.

Sandstorm Gold is a gold royalty company headquartered in Vancouver, Canada which refers to itself as "The Gold Standard in Royalty Investments". The company asserts that it has been a leader in reshaping the mine investment landscape with its innovative royalty model. Sandstorm provides upfront financing to gold mining companies searching for capital and receives in return the right to a percentage of the gold produced from a mine, for the entire life of the mine. The firm has a portfolio of over 185 royalties and operates in numerous countries and jurisdictions.

Sandstorm Gold has a market cap of about $1.1 billion with approximately 177.1 million shares outstanding. SAND shares opened today at $6.59 (+$0.24, +3.78%) over yesterday's $6.35 closing price. The stock has traded today between $6.49-6.95/share approaching its 52-week high price of $7.02/share and is currently trading at $6.92 (+$0.57, +8.98%).


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