Sandstorm Gold Ltd. (NYSEMKT:SAND) 4Q Announcement Sends Stock Soaring

Posted by Chris Bell March 14, 2014 0 Comment 778 views


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.

Quarter Highlights

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.

CEO Speak

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”.



About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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