Royal Gold Acquires Sandstorm Gold and Horizon Copper for $3.5 Billion and $196 Million

Royal Gold to acquire Sandstorm Gold and Horizon Copper for $3.5 billion and $196 million, respectively. The deal will solidify Royal Gold's position in the precious metals streaming and royalty market, increasing its scale and diversification, and growing its gold-dominant revenue mix to approximately 87%. The combined company will have a diversified portfolio with 80 revenue-producing assets and a strong balance sheet.

Royal Gold, Inc. (NASDAQ: RGLD) has announced significant acquisitions that will enhance its position as a leading North American precious metals streaming and royalty company. The company has entered into agreements to acquire Sandstorm Gold Ltd. (TSX: SSL; NYSE: SAND) and Horizon Copper Corp. (TSXV: HCU; OTCQB: HNCUF) for approximately $3.5 billion and $196 million, respectively [1].

The acquisition of Sandstorm Gold, a major player in the precious metals streaming and royalty sector, will see Royal Gold acquire 100% of Sandstorm's issued share capital in exchange for Royal Gold shares. The exchange ratio implies a premium of 21% based on the 20-day volume-weighted average price (VWAP) and 17% based on the closing price of Sandstorm shares on the New York Stock Exchange (NYSE) on July 3, 2025 [1].

Horizon Copper, a junior company with a strong copper portfolio, will be acquired by Royal Gold for $2.00 per share in cash. The price per Horizon share reflects an 85% premium to the 20-day VWAP and a 72% premium to the closing price of Horizon shares on the TSX-V on July 4, 2025 [1].

These acquisitions are expected to add 40 producing assets to Royal Gold's portfolio, contributing between 65,000 and 80,000 gold equivalent ounces (GEOs) in 2025. This would increase 2025 GEO production by approximately 26% [1].

The combined company will have a pro forma portfolio with 393 streams and royalties, 80 cash-flowing assets, and 47 in development. The revenue mix is expected to be approximately 87% precious metals, with gold contributing approximately 75% of total revenue [1].

The acquisitions will also provide Royal Gold with a more diversified portfolio, with no single asset expected to account for more than 13% of net asset value (NAV). The pro forma company will have 47 development assets and 266 assets in the evaluation and exploration stages, offering significant organic growth potential [1].

The strong balance sheet and robust cash flow of the pro forma company will position Royal Gold to continue growing and competing for the largest transactions in the sector. The increased scale is anticipated to enhance the attractiveness of Royal Gold to institutional investors [1].

Upon completion of the Transactions, Royal Gold shareholders will own approximately 77% and Sandstorm shareholders will own approximately 23% of the combined company. The Transactions provide immediate NAV per share accretion to Royal Gold shareholders; a material premium, near-term cash flow per share accretion and ownership in a larger and more liquid company to Sandstorm shareholders; and a material cash premium and liquidity for Horizon shareholders [1].

References:
[1] https://www.morningstar.com/news/business-wire/20250706475086/royal-gold-to-acquire-sandstorm-gold-and-horizon-copper-and-reinforce-its-position-as-a-leading-north-american-gold-focused-streaming-and-royalty-company