Sandstorm Gold Ltd. SAND announced various updates on its diversified stream and royalty portfolio. These updates reflect the company's commitment to delivering value across its diversified portfolio, focusing on quality assets and partnerships.

SAND’s Portfolio Advances With Mines Reaching Milestone

The Robertson mine , operated by Nevada Gold Mines, which is a joint venture of Barrick Gold Corp. GOLD and Newmont Corporation, received its final major federal permit on Nov.15, 2024. The U.S. Bureau of Land Management has filed a positive Record of Decision  for the Robertson mine, which is the last major federal permit under the National Environmental Protection Act.

The mine operated by GOLD and Newmont is expected to begin production in 2027. Sandstorm Gold holds a net smelter returns royalty on the Robertson project, with the rate varying on a sliding scale. 

The operator of Brazil’s Chapada mine, Lundin Mining, announced that it optimized operations. This resulted in reducing mining costs by 46% compared to 2022. SAND has a copper stream agreement with Lundin Mining for the Chapada mine.

Sandstorm Gold's Investments Poise for Promising Returns

The operator of the Hod Maden project, SSR Mining Inc., announced that engineering studies and site preparation activities continue on site. The company is advancing the project, having spent $10.9 million in the third quarter of 2024. SAND has a 2.0% NSR royalty and a 20% gold stream on this project. 

Entrée Resources Ltd. has commenced underground development work at Oyu Tolgoi Lift 1 Panel 1, a joint venture property in Mongolia. This initial phase involves 212 meters of lateral development to support mine infrastructure as outlined in the 2024 Oyu Tolgoi Mine Plan. 

Entrée released additional results from the 2023 drilling program at the Hugo North Extension, which confirmed long, high-grade intervals within the existing Hugo North Lift 2 block cave footprint. Drilling also confirmed mineralization continuity outside the potential Hugo North Lift 2 footprint.

Sandstorm holds a metals stream agreement with Entrée, giving the company the right to a percentage of the copper, gold and silver produced from the site.

The operator of the Aurizona Piaba pit, Equinox Gold Corp EQX, said it expected to resume mining at the pit in the fourth quarter of 2024. Equinox Gold halted mining at the site earlier this year due to heavy rains. The company aims to explore expansion through an underground mine to extend the life of the pit in Brazil. SAND holds a sliding scale NSR royalty on the Aurizona Piaba pit.

Serabi Gold plc, the operator of the Coringa gold project in Brazil, has released an updated Preliminary Economic Assessment. The update indicates improved production and mine life. Sandstorm Gold has a 2.5% net smelter returns royalty on the Coringa project.

SAND’s Performance in Q3

In the third quarter of 2024, SAND witnessed a 10% year-over-year revenue improvement to $45 million. The top line met the Zacks Consensus Estimate. The company reported earnings per share of 2 cents  compared with break-even earnings in the third quarter of 2023. The Zacks Consensus Estimate for the company's bottom line was pegged at 3 cents.

Sandstorm Gold’s Share Price Performance

Shares of the company have gained 17.2% in the past year compared with the industry’s growth of 25.7%.

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SAND’s Zacks Rank & Stock to Consider

Sandstorm Gold currently carries a Zacks Rank #3 (Hold).

A better-ranked stock from the basic materials space is CF Industries Inc. CF. CF sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has an average trailing four-quarter earnings surprise of 10.3%. The Zacks Consensus Estimate for CF’s 2024 earnings is pegged at $6.32 per share. CF shares gained 20.6% in the last year.

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