Sandstorm Gold (TSX: SSL) has reported its financial results for Q1 2025, with revenue surging 17% YoY to a record $50.1 million, up from $42.8 million in Q1 2024.
Net income rebounded sharply to $11.3 million from a $3.9 million loss a year earlier. Operating cash flows jumped to $40.8 million, a 25% increase from $32.6 million in Q1 2024.
In terms of shareholder returns, Sandstorm repurchased and cancelled 3.1 million shares for $19.1 million in Q1 and an additional 270,000 shares post-quarter for $2.0 million.
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Despite strong pricing, attributable GEOs declined, falling 9% to 18,492 from 20,316 a year ago. The output recorded for the quarter consisted of 73% precious metals, 20% copper, and 7% from other metals. North America contributed 29% of production (16% from Canada), South America gave 48%, and other regions accounted for 23%.
The production shortfall was primarily due to lower production volumes and timing-related inventory effects, even as the company benefited from stronger realized gold prices averaging $2,880 per ounce. Despite this, cash operating margins reached a record $2,509 per GEO, up 41% from $1,782 in the prior year.
Notably, production from Equinox Gold’s Greenstone mine remains in ramp-up, with lower head grades expected through mid-2025. Sandstorm’s Q1 gold deliveries from Greenstone were just 1,269 ounces.
In South America, Chapada benefited from a true-up delivery mechanism, while Fruta del Norte posted gains on the back of higher head grades and mill throughput. In contrast, Bonikro output dropped sharply due to atypical inventory wind-down from last year.
The company also terminated its underperforming Vatukoula stream in Q1, receiving a total $14 million in consideration and exiting with a 12% IRR on the investment since 2021.
Sandstorm reaffirmed its 2025 GEO guidance of 65,000–80,000 ounces. However, this range is contingent on commodity prices and the Greenstone ramp-up. Looking longer-term, production is forecast to reach 150,000 GEOs by 2030, contingent on exercising the MARA stream option.
Sandstorm Gold last traded at $12.21 on the TSX.
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