Royal Gold to Acquire Sandstorm Gold in Strategic Merger: Creates Leading Precious Metals Streaming and Royalty Company

Royal Gold to acquire Sandstorm Gold in an all-share transaction, creating a leading precious metals streaming and royalty company. Royal Gold shareholders will own 77% and Sandstorm shareholders will own 23%. The deal is expected to close in Q4 2025, contingent on customary approvals. Sandstorm reported record revenue and operating margins for Q2 2025, with significant increases compared to Q2 2024.

Royal Gold Inc. (NASDAQ: RGLD) has announced its intention to acquire Sandstorm Gold Ltd. (NYSE: SAND) in an all-share transaction, creating one of the most diversified precious metals streaming and royalty companies. The deal, expected to close in the fourth quarter of 2025, will see Royal Gold shareholders own 77% of the combined entity, with Sandstorm shareholders owning the remaining 23%.

Sandstorm Gold reported record revenue and operating margins for the second quarter of 2025. The company's revenue reached $51.4 million, a significant increase from $41.4 million in the same period last year. Operating margins also saw a notable improvement, with cash operating margins per gold equivalent ounce rising to $2,981, compared to $2,043 in the previous year [2].

The acquisition of Sandstorm Gold will enhance Royal Gold's portfolio, adding 230 royalties to its existing 393 streams and royalties. This expansion will provide Royal Gold with a more diversified and robust cash flow stream. The combined entity will host a mature, Americas-focused portfolio, with no single asset expected to account for more than 12% of net asset value (NAV). The gold-dominated portfolio is anticipated to generate approximately 87% of its 2025 revenue from precious metals, with 75% coming from gold alone [2].

Sandstorm Gold's support for Royal Gold's acquisition of a gold stream on the Kansanshi copper-gold mine in Zambia for $1 billion further underscores the strategic benefits of this deal. The gold stream is structured to deliver 75 ounces of gold per million pounds of recovered copper, with an initial delivery of approximately 12,500 ounces in 2025. This stream is expected to provide immediate cash flow and contribute to the combined entity's growth over the next decade [1].

The acquisition is expected to create significant value for Sandstorm shareholders by maintaining their exposure to Sandstorm's gold-focused, high-quality, long-life royalty and streaming portfolio. Additionally, it will daylight the intrinsic value of Sandstorm's portfolio, potentially closing the valuation gap between Sandstorm and its mid-tier peers. The combined company will also benefit from enhanced access to institutional investors and a larger, more diversified asset base, which could drive a premium valuation [2].

References:
[1] https://finance.yahoo.com/news/sandstorm-gold-sand-backs-royal-035245216.html
[2] https://www.sandstormgold.com/sandstorm-gold-royalties-reports-record-operating-results-in-second-quarter-2025/