Sandstorm Gold (SSL) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered record operating margins and higher revenues, with production close to plan despite a slower ramp at Greenstone and the impact of higher gold prices on gold-equivalent ounces.

• Greenstone achieved commercial production post-quarter, with throughput at 76% of design capacity, and is expected to be a key contributor going forward.

• The company operates a diversified royalty and streaming portfolio with over 230 royalties, 41 cash-flowing assets, and 30+ development assets globally, emphasizing built-in growth and long-life mines.

• Updated 2024 production guidance is 70,000–75,000 gold-equivalent ounces, with expectations to reach 80,000 ounces in 2025 and 125,000–155,000 ounces annually within five years as key assets ramp up.

• Major development assets (Platreef, MARA, Hod Maden) are expected to drive significant future growth, with MARA alone potentially contributing over $1 billion in cash flow over its life.

Financial highlights

• Q3 2024 revenue was $44.7 million, up 8% year-over-year, supported by higher gold, silver, and copper prices.

• Net income reached $5.8 million, up from near zero in Q3 2023, driven by higher revenues and lower depletion and finance expenses.

• Cash flow from operating activities (excluding non-cash working capital) was $37 million, with $32.5 million reported for Q3 2024.

• Cash operating margins hit a record $2,215 per ounce, with average realized gold price at $2,520/oz.

• Attributable production was approximately 17,400 gold-equivalent ounces, slightly below budget due to commodity price effects.

Outlook and guidance

• 2024 production guidance updated to 70,000–75,000 gold-equivalent ounces due to higher gold prices impacting conversion from other metals.

• 2025 production expected to rise to 80,000 ounces as Greenstone and Aurizona ramp up.

• Five-year outlook targets 125,000–155,000 ounces annually, more than doubling current production as key development assets come online.

• Long-term growth to 180,000 ounces by 2029 is supported by ramp-up of Greenstone, Platreef, Hod Maden, and MARA.

• Cash flow projections reach $250–$300 million per year at gold prices of $2,300–$2,800/oz once new assets are fully ramped.