Sandstorm Gold Ltd. (NYSEMKT:SAND) 4Q Announcement Sends Stock Soaring
Sandstorm Gold Ltd. (NYSEMKT:SAND) stock has posted a huge 29 percent increase in its market value over past two days of trading, ever since it reported results for its fourth quarter and full year 2013 operations. The huge build up of investor interest in the stock was driven by company announcing record increase in its quarter sales.
The gold sales for the quarter came in at 10,523 ounces which resulted in revenue of $15.8 million. Its cost of production per ounce was $407 hence the mining firm was able to achieve average operating margin of $863 per ounce. On the back of increased revenue, the cash flow also increased to $8.1 million. The firm also decided to set aside $39.9 million towards impairment charges for the quarter, towards the anticipated costs at its Serra Pelada Gold Mining project.
Full Year Highlights
For the full year, the company recorded a big increase in its gold sales. Total sales came in at 36,146 ounces, resulting in record revenue from full year operations at $59.8 million. Its operating cash flow for the full year increased to $32.2 million, while the operating margins per ounce for the year was $981. Net loss for the year was $74.6 million. The mining firm also paid out $10 million towards a loan commitment it had made to Luna Gold Corp as per earlier disclosed arrangement with the gold mining firm.
Nolan Watson Chairman, Sandstorm Gold Ltd. (NYSEMKT:SAND) President and CEO on his conference call post the release highlighted the top two developments which positively impacted the firm by stating that, “SilverCrest’s building and underground mine and a mill, which we have now auctioned into and its nearing the beginning of commissioning. Number two, Metanor has entered into commercial production, has become a material contributor to Sandstorm’s production, and the Bachelor Lake Mine has had tremendous exploration success”.