Royal Gold to Acquire Sandstorm and Horizon in $3.7B Deal

Royal Gold’s Strategic Acquisition of Sandstorm and Horizon

Royal Gold (NASDAQ: RGLD) announced a $3.7 billion deal to acquire Sandstorm Gold (TSX: SSL, NYSE: SAND) and Horizon Copper (TSXV: HCU). The Colorado-based company will pay $3.5 billion in an all-stock transaction for Sandstorm and $196 million in cash for Horizon. Royal Gold will issue 0.0625 shares for each Sandstorm share, representing a 21% premium. Horizon shareholders will receive C$2.00 per share, an 85% premium. These deals significantly expand Royal Gold’s streaming and royalty portfolio.

The acquisition adds 40 producing assets expected to deliver 65,000 to 80,000 gold equivalent ounces in 2025. This growth would increase Royal Gold’s 2025 production by roughly 26%. Post-merger, Royal Gold shareholders will own about 77% of the combined entity, with Sandstorm shareholders holding 23%. The merged company will manage 80 revenue-generating assets, with no single asset exceeding 13% of net asset value. Precious metals will account for 87% of total revenue, including 75% from gold.

Expanded Global Asset Portfolio Boosts Royal Gold’s Market Position

Key projects joining Royal Gold’s portfolio include the MARA copper-gold project in Argentina, Hod Maden in Turkey, and the Platreef platinum group metals project in South Africa. President and CEO Bill Heissenbuttel said the deal positions Royal Gold as a leading North American streaming and royalty company. He emphasized the unmatched diversification, development, and organic growth potential of the combined portfolio. The boards of all three companies approved the transaction, which is expected to close in Q4 2025, pending shareholder and regulatory approvals.

SuperMetalPrice Commentary:

Royal Gold’s acquisition of Sandstorm and Horizon marks a significant milestone in the precious metals streaming sector. The deal enhances asset diversification and production scale amid a competitive market. Investors should watch how this consolidation influences gold equivalent ounce output and revenue stability. As commodity markets face uncertainty, Royal Gold’s expanded portfolio offers resilience and growth opportunities in precious metals investing.