Sandstorm Gold Hits 52-Week High: What's Driving Its Performance?

Core Viewpoint - Sandstorm Gold Ltd. has reached a new 52-week high driven by rising gold prices and record preliminary first-quarter results for 2025, indicating strong performance and market interest [1][2]. Financial Performance - Sandstorm Gold reported record preliminary revenues of $50 million for Q1 2025, an increase from $43 million in the same quarter of the previous year [2]. - The preliminary cost of sales (excluding depletion) was $6.9 million, up from $5.7 million in Q1 2024, while the cash operating margin was a record $2,507 per attributable GEO, lower than the previous year's $1,782 [2]. Balance Sheet Management - As of March 31, 2025, the company had an outstanding balance of approximately $340 million on its revolving credit facility, with an undrawn balance of $285 million [3]. - Sandstorm Gold has repurchased and canceled 3.1 million shares for $19 million and is focused on capital allocation strategies, including further share purchases and debt repayment [3]. Market Conditions - Gold prices have been on an upward trend due to geopolitical tensions, a depreciating U.S. dollar, potential monetary policy easing, and central bank purchases [4]. - In April 2025, gold prices surpassed $3,200 per ounce for the first time, currently around $3,228, driven by uncertainty surrounding tariff plans and potential interest rate cuts [5]. - Silver prices are around $32 per ounce, supported by steady demand in the electrification industry and safe-haven demand amid trade tensions [6]. Stock Performance - Sandstorm shares have gained 56% over the past year, slightly underperforming the industry growth of 57.6% [7].