VANCOUVER - Sandstorm Gold Ltd . (NYSE: SAND) (TSX: TSX:SSL), a gold royalty company, has announced several updates on its portfolio of stream and royalty projects. The Robertson mine, operated by Nevada Gold Mines, a Barrick Gold Corp. (NYSE:GOLD) and Newmont Corporation joint venture, received its final major federal permit on November 15th. The U.S. Bureau of Land Management granted approval after the Final Environmental Impact Statement review. The mine is expected to begin production in 2027. Sandstorm holds a sliding scale net smelter returns royalty on the project.
At the Hod Maden project in Turkey, SSR Mining (NASDAQ:SSRM) Inc. continues with site preparation and engineering studies, having spent approximately $10.9 million in the third quarter of 2024. Sandstorm has a 2.0% NSR royalty and a 20% gold stream on Hod Maden.
Entrée Resources Ltd. has commenced underground development at the Hugo North Extension in Mongolia, with additional high-grade copper intercepts reported from drilling programs. Sandstorm benefits from a stream on the copper and precious metals produced at this site.
Equinox Gold Corp (NYSE:EQX). plans to resume mining at the Aurizona Piaba pit in Brazil in the fourth quarter of 2024, following a pause due to heavy rains. The company is also exploring expansion through an underground mine to extend the life of Aurizona. Sandstorm has a sliding scale NSR royalty on Aurizona.
Lundin Mining (OTC:LUNMF) Corporation has optimized operations at the Chapada mine in Brazil, leading to a 46% decrease in mining costs compared to 2022. Sandstorm has a copper stream agreement with Lundin Mining for the Chapada mine.
Serabi Gold plc released an updated Preliminary Economic Assessment for the Coringa gold project in Brazil, indicating an improved production outlook and mine life. Sandstorm holds a 2.5% NSR royalty on Coringa.
These developments reflect Sandstorm's growth strategy and diversified low-cost production profile, as stated in the press release. The company holds over 230 royalties, with 41 underlying mines currently producing. Information is based on a press release statement from Sandstorm Gold (NYSE:SAND) Ltd.
InvestingPro Insights
Sandstorm Gold Ltd. (NYSE: SAND) (TSX: SSL) is navigating a complex market environment, as reflected in its recent portfolio updates and current financial metrics. According to InvestingPro data, the company's market capitalization stands at $2.8 billion USD, indicating its significant presence in the gold royalty sector.
Despite the positive developments across its portfolio, Sandstorm's stock has faced challenges. InvestingPro Tips reveal that the stock is trading near its 52-week low and has experienced a significant price decline over the past year. This downturn is evident in the company's 1-year price total return of -54.44%, as reported by InvestingPro.
However, there are bright spots in Sandstorm's financial profile. The company boasts impressive gross profit margins, with InvestingPro data showing a gross profit margin of 44.24% for the last twelve months as of Q4 2024. This robust margin reflects the efficiency of Sandstorm's royalty and streaming business model, which typically involves lower operational costs compared to traditional mining operations.
Furthermore, an InvestingPro Tip highlights that Sandstorm is trading at a low Price / Book multiple, currently at 0.41. This could suggest that the stock may be undervalued relative to its assets, which include its diverse portfolio of royalties and streams mentioned in the article.
For investors seeking additional insights, InvestingPro offers 17 more tips for Sandstorm Gold, providing a comprehensive analysis of the company's financial health and market position.
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