Sunday, July 27, 2025

Sandstorm Gold To Be Acquired For $3.5 Billion As Part Of Larger Transaction With Royal Gold

Royal Gold (NASDAQ: RGLD) has made a major move in terms of M&A this morning, announcing that it has entered into agreements to acquire not one but two competitors within the industry. The royalty and streaming name has come to terms to acquire both Sandstorm Gold (TSX: SSL) and Horizon Copper (TSXV: HCU).

All told, Royal will be adding a total of 40 new producing assets to their current portfolio, increasing 2025’s estimated production by between 65,000 and 80,000 ounces. Post-closing, Royal is expected to have one of the most diversified asset bases within the segment, with a total of 80 producing assets, with none of those assets accounting for more than 13% of net asset value.

A further 47 assets are classified as development stage on a post-closing basis, while 266 are classified as being in evaluation and exploration stages.

Royal’s 2025 gold equivalent ounce production profile is expected to increase by about 26% as a result, based on current guidance midpoints. Pro forma, 87% of production will come from preciously metals, with gold amounting to 75% of total estimated revenue this year.

“This transaction rewards Sandstorm shareholders in the near term while also offering a compelling opportunity to own a large-scale, world-class streaming and royalty company with continued upside potential. Joining forces with Royal Gold will amplify the strengths of Sandstorm’s portfolio and unlock new opportunities for our shareholders as we create a truly extraordinary royalty company,” commented Nolan Watson, CEO of Sandstorm, on the acquisition.

Under the terms of the arrangement, Sandstorm Gold will see shareholders receive 0.0625 shares of Royal Gold for each share of Sandstorm currently held. The figure represents a premium of 17% to Thursday’s closing price of Sandstorm, valuing the company at $3.5 billion.

Horizon Copper shareholders meanwhile will be compensated in the form of cash, with shareholders to receive C$2.00 per share of Horizon currently held. That figure represents a 72% premium to Friday’s close, valuing Horizon at roughly $196 million.

Post-transaction, Royal Gold shareholders will hold 77% of the resulting company, while Sandstorm shareholders will own 23%. The acquisition is said to be immediately accretive to NAV per share for Royal shareholders.

The transactions remain subject to the approval of Sandstorm and Horizon shareholders, alongside customary regulatory approvals. The arrangements are expected to close in the fourth quarter of 2025.

Royal Gold last traded at $179.82 on the Nasdaq.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Why Gold’s Bull Run May Just Be Getting Started! | Peter Grandich

Tariffs Spark New Race for Critical Metals | Rob McEwen

Antimony Resources: The Bald Hill Project

Recommended

Steadright Begins Preliminary Economic Assessment On TitanBeach Project

Three Miners Trapped Underground At Newmont’s Red Chris Mine

Related News

Sandstorm Gold Sees Revenues Rise In Q3 Despite Declining Production

Sandstorm Gold (TSX: SSL) last night reported its preliminary fourth quarter results, highlighted by preliminary...

Friday, October 11, 2024, 09:46:22 AM

Equinox Gold To Monetize Assets Via Royalty Venture With Sandstorm Gold

Equinox Gold (TSX: EQX) is evidently looking to further monetize its assets, alongside that of...

Thursday, May 26, 2022, 09:48:17 AM

Sandstorm Gold Reports 2024 Production Of 72,800 Gold Equivalent Ounces

Early data has been released on the performance of Sandstorm Gold (TSX: SSL) for the...

Wednesday, January 8, 2025, 08:06:12 AM

Great Bear Royalties To Be Acquired For $200 Million In All-Cash Deal

It appears the Great Bear namesake is about to leave Canadian capital markets for good....

Monday, July 11, 2022, 08:32:18 AM

Sandstorm Gold Q1 2025 Earnings: Record Revenue Despite Challenges

We’ve got the first set of earnings now from a royalty name, and as we’ve...

Sunday, May 18, 2025, 05:24:00 PM