Royal Gold Set to Acquire Sandstorm Gold, Enhancing Portfolio in Precious Metals Sector

Royal Gold is set to finalize its acquisition of Sandstorm Gold, enhancing its portfolio in the precious metals sector. The transaction involves a share exchange, with Sandstorm shareholders receiving 0.0625 shares of Royal Gold for each Sandstorm share. Post-acquisition, Sandstorm will delist from major exchanges and consolidate under Royal Gold's operations. Royal Gold is a prominent player in the Metals & Mining industry, specializing in managing precious metal royalties and streams. The acquisition is expected to further solidify Royal Gold's position in the market.

Royal Gold Inc. (NYSE: RGLD) has finalized its acquisition of Sandstorm Gold Ltd. (NYSE: SAND, TSX: SSL), a significant move to bolster its presence in the precious metals sector. The transaction, announced on October 15, 2025, involves a share exchange where Sandstorm shareholders will receive 0.0625 shares of Royal Gold for each Sandstorm share they hold. The closing of the transaction is anticipated to occur on October 20, 2025, subject to the satisfaction or waiver of remaining customary closing conditions, according to a Yahoo Finance report.

Post-acquisition, Sandstorm Gold will delist its shares from the Toronto Stock Exchange and the New York Stock Exchange. The company also plans to apply to Canadian securities regulators to cease being a reporting issuer in applicable jurisdictions and to deregister the Sandstorm shares under the U.S. Securities Exchange Act of 1934, as amended, the Yahoo Finance report said.

Sandstorm Gold, a precious metals-focused royalty company, provides upfront financing to mining companies in exchange for a percentage of production from a mine for the life of the mine. With approximately 230 royalties, of which 40 are producing, Sandstorm's portfolio will now be integrated into Royal Gold's operations, the Yahoo Finance report added.

Royal Gold, a prominent player in the Metals & Mining industry, specializes in managing precious metal royalties and streams. The acquisition is expected to further solidify Royal Gold's position in the market by enhancing its portfolio and increasing its market share in the precious metals sector.

In the third quarter of 2025, Royal Gold reported significant growth in its stream segment sales. The company sold 48,000 gold equivalent ounces (GEOs) in the quarter, comprising 38,600 ounces of gold, 594,500 ounces of silver, and 1,200 tons of copper related to its streaming agreements. This marks an increase from 40,600 GEOs sold in the second quarter of 2025 but a dip from 53,800 GEOs sold in the third quarter of 2024, according to a Nasdaq article (Royal Gold's Q3 Stream Segment Sales Volume Up 18% Sequentially).

The average realized prices of gold, silver, and copper also showed sequential increases. The average realized price of gold was $3,415 per ounce, up from $3,248 in the second quarter of 2025. Silver prices averaged $37.90 per ounce, up from $32.91 in the second quarter, while copper prices averaged $9,660 per ton, up 4.9% sequentially, Nasdaq reported.

Royal Gold's financial performance in the second quarter of 2025 reflected the impact of higher metal prices. The company generated record revenues of $210 million, up 20.4% year over year. Stream revenues were $133 million, while royalty revenues were $77 million in the June-end quarter, Nasdaq noted.

The acquisition of Sandstorm Gold is a strategic move for Royal Gold, leveraging the strengths of both companies to enhance its market position in the precious metals sector. As the transaction is finalized, investors and financial professionals will closely monitor the integration process and the potential impact on Royal Gold's future performance.