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Sandstorm eyes growth after record quarter

Stockhouse Editorial
0 Comments| October 25, 2012

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Precious metals streaming company Sandstorm Gold Ltd. (TSX: V.SSL, Stock Forum) said revenue was a record $15.1 million in the third quarter ended September 30, 2012.

The announcement came after the close of trading Thursday, when Sandstorm shares rose 1.5% to $13.65, leaving the company with a market cap of $1.17 billion, based on 85.7 million shares outstanding. The 52-week range is $14.99 and $5.70.

Sandstorm posted gold sales of 9,066 ounces in the quarter and operating cash flow of $10.6 million.

Other third quarter highlights included a precious metals purchase agreement with Colossus Minerals Inc. (TSX: T.CSI, Stock Forum), enabling Sandstorm to buy an amount equal to 1.5% of the gold and 35% of the platinum produced from the Serra Pelada Mine in Para, Brazil.

The company has also agreed to contribute $10 million towards an expansion of Luna Gold Corp.’s (TSX: T.LGC, Stock Forum) Aurizona Mine in northeastern Brazil.

Sandstorm President and Chief Executive Officer Nolan Watson said Q3 was another strong quarter for the company in terms of revenue and cash flow. He said the company is positioned to acquire additional gold streams with over $150 million in available capital.



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