Sandstorm Gold Ltd. SAND reported break-even results in the third quarter of 2023, missing the Zacks Consensus Estimate of earnings of 1 cent. Notably, the company posted earnings per share of 13 cents in the year-ago quarter.

Sandstorm Gold’s total revenues amounted to $41 million, in line with the Zacks Consensus Estimate. The top line increased 6.1% year over year. The upside is driven by a 3% increase in the average realized selling price of gold. This was partially offset by a 7% decrease in attributable gold equivalent ounces sold. The company reported record attributable gold equivalent ounces of 21,123 ounces compared with 22,606 ounces in the prior-year quarter.

Total cost of sales came in at $20.9 million compared with the year-ago quarter’s $25.3 million. Gross profit climbed 49.6% year over year to $20.3 million. The gross margin was 49.4% in the third quarter compared with the prior-year quarter’s 35%.

The average cash cost per attributable gold equivalent ounce was $220 in the third quarter, down from $323 per ounce in the prior-year quarter. Cash operating margins were $1,699 per attributable gold equivalent ounce in third-quarter 2023, up from $1,383 per ounce in the prior-year quarter.

Sandstorm Gold Ltd Price, Consensus and EPS Surprise

Sandstorm Gold Ltd price-consensus-eps-surprise-chart | Sandstorm Gold Ltd Quote

Financial Position

Sandstorm Gold had cash and cash equivalents of $3.5 million at the end of third-quarter 2023 compared with $7 million held at the end of 2022.  Net cash provided by operating activities for the third quarter was $31.9 million, up from the prior-year quarter’s $25 million.

Guidance

Sandstorm Gold continues to expects attributable gold equivalent ounces of 90,000-100,000 in 2023. Within the next five years, the company expects to produce approximately 125,000 attributable gold-equivalent ounces, with a sustainable average annual production of around 110,000 attributable gold-equivalent ounces over the next 15 years.



Price Performance

Shares of the company have lost 11.9% in the past year against the industry’s growth of 14.1%. Zacks Investment Research

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Zacks Rank & Stocks to Consider

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

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, The Andersons Inc. ANDE and Universal Stainless & Alloy Products, Inc. USAP. CRS sports a Zacks Rank #1 (Strong Buy) at present, and ANDE and USAP carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology has an average trailing four-quarter earnings surprise of 14.3%. The Zacks Consensus Estimate for CRS’ fiscal 2024 earnings is pegged at $3.57 per share. The consensus estimate for 2024 earnings has moved 3% north in the past 60 days. Its shares gained 73% in the last year.

Andersons has an average trailing four-quarter earnings surprise of 64.4%. The Zacks Consensus Estimate for ANDE’s 2023 earnings is pegged at 52 cents per share. The consensus estimate for 2023 earnings has been unchanged in the past 60 days. Its shares gained 43.2% in the last year.

Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 27 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP’s shares gained 103.6% in the last year.

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