SAND Surges 0.96% on Royal Gold Takeover Hopes, Hits 2025 Intraday High

Sandstorm Gold (SAND) climbed 0.96% on Monday, marking its second consecutive day of gains with a cumulative rise of 3.30% over two sessions. The stock reached an intraday high of $11.83, its highest level since September 2025, driven by renewed investor optimism around its strategic trajectory.

The recent price momentum is closely tied to Royal Gold’s proposed all-stock acquisition of Sandstorm Gold and Horizon Copper Corp. The deal, offering 0.0625 shares of RGLD per SAND share, implies a $3.5 billion equity value—a 21% premium to Sandstorm’s 20-day volume-weighted average price. While regulatory and shareholder approvals remain pending, the transaction’s potential to consolidate Sandstorm’s high-cash-flow royalty assets under Royal Gold’s umbrella has positioned the stock as a proxy for the merger’s anticipated benefits.

Institutional investor activity has further shaped market dynamics. While major holders like the Federation des caisses Desjardins du Quebec reduced stakes by 25.3% in April, other entities including Venture Visionary Partners LLC and Bank of New York Mellon Corp have added to their positions in Q1 2025. This divergence reflects a polarized view between short-term skepticism and long-term confidence in the company’s role as a consolidator in the royalty sector.

Financial updates have also influenced sentiment. Sandstorm Gold’s July dividend hike to $0.02 per share, doubling its payout, signaled management’s confidence in cash flow stability. However, Q2 2025 revenue of $51.42 million fell below estimates, highlighting challenges in sustaining top-line growth amid volatile commodity prices. Analysts remain split, with four “Buy” ratings versus two “Hold” and one “Sell,” and a $10.15 average price target implying a 15-20% upside from current levels.

Technical indicators suggest a bullish short-term outlook, with the stock trading above both its 50-day and 200-day moving averages. Yet, execution risks around the Royal Gold acquisition—particularly the pending Investment Canada Act review—remain critical uncertainties. Investors are closely monitoring the October 9, 2025 shareholder vote, which will determine the deal’s fate and, consequently, the trajectory of SAND’s valuation in the months ahead.