Finalizing a Deal to Form One of Financially Strongest Players in the Metals and Mining Space

Royal Gold has officially confirmed an agreement to acquire Sandstorm Gold Ltd, an agreement which will see the former buying out all issued and outstanding common shares of Sandstorm in an all-share transaction with an implied value of approximately $3.5 billion. 

More on that would reveal how Sandstorm shareholders will receive 0.0625 of a share of common stock of Royal Gold for each Sandstorm Share held. This translates to a 21% premium on the 20-day volume-weighted average price of Sandstorm Shares for the period ended July 3, 2025, and a 17% premium on the closing price of Sandstorm Shares on NYSE as of July 3, 2025. 

All in all, once the stated deal is completed, existing Royal Gold and Sandstorm shareholders will own approximately 77% and 23%, of the issued and outstanding Royal Gold Shares on a fully diluted basis.

“Today is a significant milestone for Sandstorm and its shareholders, marking the beginning of an exciting new chapter. Over the past 15 years, we’ve built a company that has not only delivered consistent growth and value but has helped shape the royalty sector through innovation. This transaction rewards Sandstorm shareholders in the near term while also offering a compelling opportunity to own a large-scale, world-class streaming and royalty company with continued upside potential,” said Nolan Watson, President and CEO, Sandstorm.

Talk about the benefits of this acquisition on a slightly deeper level, we referred to the attractive and immediate premium on current price of Sandstorm Shares, but what we haven’t mentioned yet is how the deal also unlocks exposure to Sandstorm’s gold-focused, high-quality, long-life portfolio with significant built-in growth from its principal assets.

Next up, the deal improves upon pro-forma portfolio maturity and cuts down on relative concentration of development assets, while simultaneously enhancing access to institutional investors via an attractive, larger, diversified, gold-focused streaming and royalty company with strong trading liquidity.

Royalty’s acquisition of Sandstorm further conceives equity participation in a large-scale precious metals streaming and royalty company poised for meaningful long-term re-rating potential. This it does on the back of industry-leading diversification and a strong track record of shareholder capital returns.

As for what the given deal will facilitate from an operational standpoint, the answer includes creating the world’s most diversified, large-scale precious metals streaming and royalty company with a mature, Americas-focused portfolio of 393 royalties and streams, including 80 cash-flowing assets.

Moving on, the deal will further achieve an industry-leading gold-dominated stream and royalty portfolio, boasting pro-forma 2025 revenue mix which is expected to be approximately 87% precious metals and material gold-focused growth assets via Sandstorm’s development portfolio. 

Another detail worth a mention relates to how the deal also enjoys attractive growth profile from key development assets including MARA (Glencore), Hod Maden (SSR Mining), Great Bear (Kinross), Platreef (Ivanhoe Mines), and Warintza (Solaris), thus delivering significant organic production growth over the long term.

Beyond that, there is the potential of strong balance sheet and robust cash flow. This is largely a result of Royal Gold’s plan to have a low outstanding debt balance and modest debt to EBITDA at closing,

Joining that would be the availability of high-quality, long-life stream and royalty assets, with built-in optionality. Such a setup bolsters proven attributable gold equivalent ounces to 18 times the projected 2025 GEO sales, yet remaining accretive to consensus NAV on a per share basis.

Rounding up highlights would be Royal Gold’s plan to convert a greater proportion of stream and royalty earnings into equity free cash flow. This eliminates the need for more complex counterparty structures.

“Personally, I would like to thank the Sandstorm team for their tireless commitment to excellence and hard work over the last decade and a half. I am incredibly proud of what this team has accomplished—from our early foundational deals to the transformative acquisitions that positioned Sandstorm as a leader in this space. Joining forces with Royal Gold will amplify the strengths of Sandstorm’s portfolio and unlock new opportunities for our shareholders. I also want to thank the Royal Gold team, for building a leading streaming and royalty company with remarkable assets,” said Watson.