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MARKETS LIVE BLOG:

STOCKS SLIDE AFTER META'S REALITY CHECK, DOWNBEAT GDP

Caterpillar sinks 7% after earnings, management sees weakness in Europe, Asia-Pacific

Sandstorm Gold (SAND) Q1 Earnings Miss Estimates, Up Y/Y

Zacks Equity Research
·4 min read

Sandstorm Gold Ltd SAND reported earnings per share (EPS) of 5 cents, which missed the Zacks Consensus Estimate of 6 cents. The bottom line increased 67% year over year on higher revenues.

Sandstorm Gold’s total revenues amounted to a record $35.4 million, up 14% year over year. The upside is driven by a 7% increase in attributable gold equivalent ounces sold and a 6% increase in gold’s average realized selling price. The company reported record attributable gold equivalent ounces of 18,741 ounces compared with 17,444 ounces in the prior-year quarter.

Total cost of sales came in at $16.4 million compared with the year-ago quarter’s $15.3 million. Gross profit climbed 20% year over year to $19 million. The gross margin was 53.3% in the first quarter compared with the prior-year quarter’s 51%.

The average cash cost per attributable gold equivalent ounce was $283 in the first quarter, down from $307 per ounce in the prior-year quarter. Cash operating margins were $1,604 per attributable gold equivalent ounce in first-quarter 2022, up from $1,470 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 $31.6 million at the end of the first quarter compared with $16.2 million held at the 2021-end. Net cash provided by operating activities for the first quarter was $26.7 million, up from the prior-year quarter’s $23 million.

During the first quarter, Sandstorm Gold announced two stream and royalty transactions (Nomad and BaseCore) worth $1.1 billion. These acquisitions provide immediate cash flow, exposure to quality assets, increased diversification and exploration upside.

Guidance

Sandstorm Gold expects attributable gold equivalent ounces between 80,000 ounces and 85,000 ounces in 2022. The company provided its 2025 guidance for attributable gold equivalent production to be 155,000 ounces, subject to the conversion of the Hod Maden interest into a gold stream.

Price Performance

Shares of the company have dropped 22.1% in the past year compared with the industry’s decline of 14.4%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank & Other Stocks to Consider

Sandstorm Gold currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. STLD, Commercial Metals Company CMC and Nutrien NTR.

Steel Dynamics, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has gained around 25% in the past year.

Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward in the past 60 days.

Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing the same in one. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 21% in a year.

Nutrien, carrying a Zacks Rank #1 at present, has an expected earnings growth rate of 42.8% for the current year. NTR’s consensus estimate for earnings for the current year has been revised 37% upward in the past 60 days.

Nutrien beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 5.8%. NTR has rallied around 53% in a year.


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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report

Commercial Metals Company (CMC) : Free Stock Analysis Report

Sandstorm Gold Ltd (SAND) : Free Stock Analysis Report

Nutrien Ltd. (NTR) : Free Stock Analysis Report

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Zacks Investment Research