Sandstorm Gold Hits 52-Week High: What's Driving Its Performance?
Sandstorm Gold Ltd. SAND scaled a new 52-week high of $8.16 on Monday before ending the session at a lower at $8.10. The increase was fueled by rising gold prices and SAND’s recently reported record preliminary first-quarter 2025 results.
The company currently has a market capitalization of $2.3 billion and a Zacks Rank #3 (Hold).
What’s Aiding Sandstorm Gold’s Stock?
Record Q1 Preliminary Revenues: On April 8, 2025, Sandstorm Gold announced record preliminary revenues of $50 million for the first quarter of 2025, up from the prior-year quarter’s $43 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The company reported a preliminary cost of sales (excluding depletion) of $6.9 million, higher than $5.7 million in the first quarter of 2024. The cash operating margin was a record $2,507 per attributable GEO in the quarter under review, lower than the prior-year quarter's $1,782.
Efforts to Solidify Balance Sheet: As of 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 million. SAND also purchased and canceled 3.1 million shares for $19 million in the year.
Sandstorm Gold will continue to assess its capital allocation strategy. It remains focused on further share purchases and debt repayment, dependent on market conditions.
Increase in Metal Prices: Gold prices were on an uptrend in 2024, which continued in 2025. Several factors have contributed to this upward trajectory, including increased geopolitical tensions, a depreciating U.S. dollar, the potential for monetary policy easing and continuous purchasing by central banks.
Currently, gold prices are rising due to uncertainty surrounding President Trump's tariff plans, which is driving demand for safe-haven assets. The Federal Reserve Governor has also suggested that interest rates might need to be lowered soon if large tariffs are implemented, further supporting gold prices.
Backed by these, the yellow metal broke through the $3,200-per-ounce threshold for the first time in April 2025 and is currently around $3,228.
Silver prices are around $32 per ounce, backed by expectations of steady demand for the metal in the electrification industry, as well as safe-haven demand amid the escalating trade war sector. This pickup in the prices of gold and silver is likely to improve Sandstorm Gold’s results in the upcoming quarters.
SAND Stock’s Price Performance
Sandstorm shares have gained 56% in the past year compared with the industry’s growth of 57.6%.
Stocks to Consider
Some better-ranked stocks from the basic materials space are Idaho Strategic Resources IDR, Carpenter Technology Corporation CRS and DRDGOLD Limited DRD. These three companies have a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Idaho Strategic Resources has an average trailing four-quarter earnings surprise of 77.5%. The Zacks Consensus Estimate for IDR’s 2025 earnings is pegged at 78 cents per share, indicating year-over-year growth of 16.4%. Idaho Strategic shares soared 90.4% in the last year.
Carpenter Technology has an average trailing four-quarter earnings surprise of 15.7%. The Zacks Consensus Estimate for CRS 2025 earnings is pegged at $6.95 per share. Carpenter Technology shares surged 124.5% in the last year.
The Zacks Consensus Estimate for DRDGOLD’s 2025 earnings is pegged at $1.06 per share, indicating year-over-year growth of 29.8%. DRDGOLD shares jumped 96.5% in the last year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
DRDGOLD Limited (DRD) : Free Stock Analysis Report
Sandstorm Gold Ltd (SAND) : Free Stock Analysis Report
Idaho Strategic Resources, Inc. (IDR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10