10 Best Small-Cap Gold Mining Stocks to Buy Now

4. Sandstorm Gold Ltd. (NYSE:SAND)

Number of Hedge Fund Investors: 25

Sandstorm Gold Ltd. (NYSE:SAND) stands out as a leading gold royalty company that buys royalties and metal purchase deals from mines that are either producing or in late development stages. The company offers upfront capital to miners and gets rights to buy a part of future production in return, building a diverse collection of 243 streams and royalties.

For Q4 2024, Sandstorm Gold Ltd. (NYSE:SAND) reported a strong financial performance, with $47 million in revenue and $36 million in operating cash flow. The company sold 17,721 gold equivalent ounces in the quarter, helping push yearly revenue to about $176 million. For the full year, Sandstorm sold 73,000 gold equivalent ounces, with cash costs of $275 per ounce, making operating margins of around $2,100 per ounce.

Still, net income fell to $15.5 million in 2024, down from $42.7 million in 2023. This drop came mainly from valuation adjustments and a one-off payment last year. Nevertheless, Sandstorm Gold Ltd. (NYSE:SAND) kept generating strong cash flow, allowing it to cut debt and stay financially healthy. Accordingly, it achieved reduced debt from $640 million to $340 million in 2024. Looking ahead, the plan is to lower it to under $300 million by mid-2025. During this time, the company also gave back over $28 million to shareholders through dividends and stock buybacks, sustaining its investor-friendly stance.

Despite these gains, Sandstorm Gold Ltd. (NYSE:SAND) missed its internal production target by 10,700 ounces, mostly due to price shifts and lower copper deliveries from Lundin mining assets. For 2025, it has set a more cautious production goal of 65,000 to 80,000 gold equivalent ounces, factoring in possible operational risks.

With its eyes on long-term growth, Sandstorm remains set on boosting its financial standing. Also, production is expected to top 150,000 gold equivalent ounces by 2030, which will cement Sandstorm’s place in the royalty sector. This makes it a top pick among the best gold stocks to buy.