Sandstorm Gold (TSX:SSL) Is Up 7.9% After Strong Q2 Earnings and Role in Major Gold Deal

• Sandstorm Gold Ltd. reported strong second quarter and six-month earnings, with revenue rising to US$51.42 million and net income reaching US$15.46 million for the quarter ended June 30, 2025.
• The company’s revenue and net income gains, alongside its support of Royal Gold’s US$1 billion gold stream acquisition on the Kansanshi mine, highlight both operational momentum and an influential industry role.
• Let's examine how Sandstorm Gold's notable improvement in earnings performance could alter the company's current investment narrative.

These 18 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

Sandstorm Gold Investment Narrative Recap

To be a shareholder in Sandstorm Gold, you need to believe in the long-term potential of royalty companies to benefit from production growth at partner mines while mitigating direct operational risk. The latest earnings surge underscores Sandstorm’s earnings power, but weaker production volumes and its reliance on third-party mine deliveries remain the most important near-term catalyst and risk, and the recent results do not meaningfully change that equation.

Among the recent news, Sandstorm’s support for Royal Gold’s US$1 billion Kansanshi gold stream acquisition stands out, as it highlights the influence and reach of royalty agreements in shaping future portfolio cash flows. However, near-term expectations still primarily hinge on resolving production consistency at core partner mines, a catalyst discussed in management’s recent production guidance updates.

However, while strong results get the spotlight, the risks tied to lower-than-expected gold equivalent output from key assets are something investors should be aware of...

Read the full narrative on Sandstorm Gold (it's free!)

Sandstorm Gold's narrative projects $255.5 million in revenue and $105.8 million in earnings by 2028. This requires 11.7% yearly revenue growth and a $76.8 million earnings increase from $29.0 million today.

Uncover how Sandstorm Gold's forecasts yield a CA$15.90 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided four fair value estimates for Sandstorm Gold, ranging widely from CA$11 to CA$21.87 per share. This diversity of perspectives comes as production volumes at partner mines remain a key driver of future results, inviting you to explore a range of market views on Sandstorm’s outlook.

Explore 4 other fair value estimates on Sandstorm Gold - why the stock might be worth 21% less than the current price!

Build Your Own Sandstorm Gold Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Sandstorm Gold research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Sandstorm Gold research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sandstorm Gold's overall financial health at a glance.

Want Some Alternatives?

Every day counts. These free picks are already gaining attention. See them before the crowd does:

• AI is about to change healthcare. These 26 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com