Royal Gold Inc Stock Price Falls 7.47% on July 7 Amidst Volatile Trading.

Shares of Royal Gold Inc (RGLD) fell 7.47% on Jul 7 to $166.39, down from its previous close of $179.82. The stock is 13.24% below its 52-week high and 32.39% above its 52-week low. Analysts forecast an average target price of $207.36, indicating a 24.63% upside from the current price. GuruFocus estimates a GF Value of $194.27, suggesting a 16.76% upside.

Title: Royal Gold Stock Drops on Acquisition Announcements

Shares of Royal Gold Inc (RGLD) fell 7.47% on July 7, 2025, to $166.39, down from its previous close of $179.82. The stock is currently 13.24% below its 52-week high and 32.39% above its 52-week low. Analysts forecast an average target price of $207.36, indicating a 24.63% upside from the current price. GuruFocus estimates a GF Value of $194.27, suggesting a 16.76% upside.

The decline in Royal Gold's stock price is attributed to the company's announcements of two significant acquisitions. Royal Gold agreed to acquire Sandstorm Gold Ltd. and Horizon Copper Corp. in transactions valued at approximately $3.5 billion and $196 million, respectively [1].

The Sandstorm acquisition involves a share exchange ratio of 0.0625 Royal Gold shares per Sandstorm share, representing a 21% premium. Horizon shareholders will receive C$2.00 per share in cash, an 85% premium. These acquisitions will add 40 producing assets to Royal Gold's portfolio, expected to contribute 65,000-80,000 gold equivalent ounces in 2025, increasing production by approximately 26% [1].

Post-transaction, Royal Gold shareholders will own approximately 77% and Sandstorm shareholders 23% of the combined company. The pro forma revenue mix will be approximately 87% from precious metals, with gold contributing 75% of total revenue. The company's diversified portfolio will have 80 revenue-producing assets, with no single asset accounting for more than 13% of NAV, making it the most diversified portfolio in the streaming and royalty sector [1].

The acquisitions aim to strengthen Royal Gold's position as a leading North American gold-focused streaming and royalty company. However, the market's reaction suggests that investors are cautious about the potential dilution of earnings and the impact of these acquisitions on the company's financial performance.

Despite the recent decline, analysts remain optimistic about Royal Gold's long-term prospects. The company's innovative streaming and royalty model offers exposure to the metals and mining industry, providing growth, value, and income opportunities. The acquisitions are expected to enhance Royal Gold's scale and diversification, positioning it for future growth.

References
[1] https://finance.yahoo.com/quote/RGLD/news/