Sandstorm Gold Ltd. (SSL:CA) (SAND)
Canaccord Genuity has raised its 12 month target price for Sandstorm Gold Ltd. to C$12.75 from C$12.25, following the release of the company’s preliminary first-quarter results, which came in ahead of expectations. The valuation upgrade reflects confidence in the company’s operational momentum, supported by record quarterly revenue and strong cash margins.
According to the update, Sandstorm delivered its highest-ever revenue for a single quarter, signaling a robust start to the fiscal year. This performance was driven by a combination of increased gold equivalent ounces (GEOs) sold and favorable precious metals pricing, particularly in gold, which has remained resilient amid global economic uncertainty.
In addition to topline growth, the company also reported strong cash margins, a key profitability metric for royalty and streaming companies like Sandstorm. Higher margins suggest improved cost efficiency and the benefits of its low-operating-cost, asset-light business model, where Sandstorm earns royalties or streams on gold production from partner mines without directly operating them.
Canaccord’s analysts pointed to these preliminary results as a positive signal for full-year performance, suggesting the company is well-positioned to capitalize on continued strength in the gold market. The analysts also cited confidence in Sandstorm’s diversified portfolio of streaming and royalty agreements, which provides stable cash flow and upside exposure to rising metals prices.
The increase in the target price reflects a reassessment of Sandstorm’s near-term earnings potential and an improved risk-reward profile. Investors are expected to continue favoring royalty and streaming companies like Sandstorm for their resilience to cost inflation and leverage to commodity prices without the operational risks typical of traditional miners.
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