Sandstorm Gold Ltd. (THE SAND – Free Report) announced a preliminary record for gold equivalent ounces (GEO) sold and revenue in the second quarter of 2022.
The company sold nearly 19,200 attributable GEOs during the quarter. This represents a 7% increase from the 18,004 ounces of GEO sold in the second quarter of 2021. The company generated preliminary revenues of $36 million in the quarter under discussion, compared to $26.4 million in the quarter of the previous year.
Preliminary cost of sales, excluding depletion for the end of June quarter, was $5.3 million, higher than the $4.1 million reported in the second quarter of 2021. This led to margins of cash operating of approximately $1,590 per attributable GEO during the quarter. under review, higher than the $1,569 per GEO of the prior year quarter.
The second quarter 2022 results build on the momentum of the strong first quarter performance. The company had reported record attributable GEOs of 18,741 ounces in the first quarter, posting a 7% year-over-year increase. Revenue was $35.4 million. In 2021, Sandstorm Gold had sold approximately a record 67,548 attributable GEOs, up 29% from prior year levels. The figure came within the company’s forecast of 64,000 to 69,000 ounces. The company generated record revenue of $114.9 million for the year.
According to the company’s guidance provided on May 11, attributable GEOs are expected to be between 80,000 and 85,000 for 2022. This is subject to the closing of the Nomad acquisition (expected in the second half of this year) and the BaseCore transaction, which should be finalized. in the third trimester. The company had mentioned that it expects attributable gold equivalent production to exceed 155,000 ounces in 2025, subject to the conversion of the HodMaden interest into a gold stream.
Sandstorm Gold is a gold royalty company that provides seed funding to gold miners seeking capital. In return, the company receives the right to a percentage of the gold produced by a mine for the life of the mine. It currently has a portfolio of 25 royalties, of which 39 of the underlying mines are currently producing. SAND plans to expand and diversify its low-cost production profile through the acquisition of additional gold royalties.
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Sandstorm Gold shares have fallen 21.6% over the past year, compared to 11% for the sector.
Zacks Ranking and Stocks to Consider
Sandstorm Gold currently carries a Zacks Rank #3 (Hold).
Some higher-ranked stocks in the base materials space include Albemarle Society (ALB – free report), Cabot Corporation (CCT – free report) and Allegheny Technologies Inc. (ATI – free report).
Albemarle forecasts a profit growth rate of 231.7% for the current year. The Zacks consensus estimate for ALB’s current-year earnings has been revised up 112.4% in the past 60 days. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Albemarle’s earnings have exceeded the Zacks consensus estimate in each of the past four quarters, with the average surprise being 20%. ALB increased by approximately 22% in one year. The company boasts a No. 1 Zacks rank.
Cabot, who currently carries a No. 1 Zacks rank, has an expected profit growth rate of 22.5% for the current fiscal year. The Zacks consensus estimate for CBT earnings for the current fiscal year has been revised up 6% in the past 60 days.
Cabot’s earnings have exceeded the Zacks consensus estimate in each of the past four quarters, with the average surprise being 16.2%. CBT has gained around 13% year on year.
Allegheny forecasts a profit growth rate of 1,076.9% for the current year. The Zacks consensus estimate for ATI’s earnings for the current year has been revised up 40.4% in the past 60 days.
Allegheny’s earnings have exceeded the Zacks consensus estimate for the past four quarters, with the average surprise being 128.9%. ATI gained about 10% in one year. He currently sports a No. 1 Zacks rank.