#Canada #Vancouver #Sandstorm Gold #precious metals #Royal Gold

Sandstorm Gold Royalties Reports Record Operating Results in Second Quarter 2025

Sandstorm Gold Ltd. (NYSE: SAND, TSX: SSL) has announced remarkable financial achievements for the second quarter ending June 30, 2025. The company posted record revenue of $51.4 million, an increase from $41.4 million during the same period last year. This growth is attributed to robust commodity prices, showcasing Sandstorm’s resilience and strategic positioning in the precious metals market.

In terms of production, Sandstorm reported 15,098 attributable gold equivalent ounces, a slight decrease from 17,414 ounces in the second quarter of 2024. Moreover, cash flows from operating activities, excluding changes in non-cash working capital, climbed to $37.7 million, surpassing the $32.6 million seen in Q2 2024. The company celebrated record cash operating margins of $2,981 per gold equivalent ounce, which is a significant rise compared to $2,043 the previous year.

Net income also saw a jump to $16.9 million, compared to $10.5 million for the same quarter in 2024, indicating that Sandstorm is navigating the market with effective cost management and operational efficiencies.

Significant Acquisition News

In a strategic expansion move, Sandstorm has entered into a definitive arrangement agreement with Royal Gold, Inc., in which Royal Gold will acquire all outstanding shares of Sandstorm in an all-share transaction valued at about $3.5 billion. According to the agreement, shareholders of Sandstorm will receive 0.0625 of a share of Royal Gold for each Sandstorm share held. Upon completion of this transaction, existing shareholders will hold approximately 77% and 23% of the combined company, respectively.

This acquisition promises to significantly enhance shareholder value, aligning with Sandstorm’s focus on high-quality, gold-focused royalty and streaming portfolio. The deal aims to spotlight Sandstorm's intrinsic value, potentially closing the valuation gap between it and its mid-tier peers in the industry.

In conjunction with this merger, Royal Gold is also acquiring Horizon Copper Corp, enhancing its asset portfolio to a total of 393 streams and royalties. This diversified asset base will further establish the combined entity as the leading player in the precious metals streaming and royalty sector.

Portfolio Expansion and Production Outlook

Sandstorm is continuing its deleveraging efforts, having made $25 million in net debt repayments during the second quarter, reducing the outstanding balance on its revolving credit facility to $315 million. This prudent financial management strategy is aimed at enhancing stability and growth.

The company is also making strides in advancing its developmental assets, such as the Hod Maden gold project in Türkiye, where SSR Mining is expected to make a construction decision soon. Early works at Hod Maden have already received significant investments, indicating Sandstorm’s commitment to cultivating its pipeline of high-potential projects.

As for the production forecast, Sandstorm expects to produce between 65,000 and 80,000 attributable gold equivalent ounces in 2025, influenced by fluctuating commodity prices. The company’s long-term outlook remains strong, anticipating around 150,000 attributable gold equivalent ounces by 2030, leveraging existing streams, royalties, and its exclusive gold stream option on the MARA project.

Conclusion

With the successful second-quarter results and a strategic acquisition that capitalizes on its existing strengths, Sandstorm Gold is positioned well for future growth. The proactive management, combined with expanding its asset portfolio through key deals, underlines Sandstorm’s potential to deliver substantial value to its shareholders in the evolving market of precious metals. Stakeholders and potential investors will be keen to follow developments as the Sandstorm Transaction is expected to close in the fourth quarter of 2025, subject to customary approvals.

For more details about Sandstorm Gold and its 2025 second-quarter results, the company invites investors and interested parties to join its conference call on August 8, 2025.