Royal Gold (NASDAQ:RGLD) has announced plans to acquire Sandstorm Gold (TSX:SSL,NYSE:SAND) and Horizon Copper (TSXV:HCU,OTCQB:HNCUF) in a pair of deals valued at a combined US$3.7 billion.
The companies involved confirmed the transactions in back-to-back press releases on Monday (July 7).
Royal Gold will acquire Sandstorm Gold in an all-share transaction worth approximately US$3.5 billion, and will separately acquire Horizon Copper for US$196 million in cash.
The deal will consolidate three complementary portfolios into a single entity operating under the Royal Gold name, with 393 royalty and streaming interests, including 80 cash-flowing assets. Upon closing, Sandstorm shareholders will own 23 percent of the newly combined Royal Gold, with existing Royal Gold shareholders retaining 77 percent.
Sandstorm President and CEO Nolan Watson called the announcement “a significant milestone.’
“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,” he said. “Joining forces with Royal Gold will amplify the strengths of Sandstorm’s portfolio and unlock new opportunities for our shareholders.”
The resulting pro-forma Royal Gold will be heavily weighted toward precious metals, with gold contributing 75 percent of 2025 revenues. Its portfolio will span North and South America, Africa and select operations in Asia and Europe.
The expanded company will also inherit exposure to a pipeline of high-profile development assets, including the MARA copper-gold project in Argentina by Glencore (LSE:GLEN,OTC Pink:GLCNF), Hod Maden in Turkey by SSR Mining (TSX:SSRM,NASDAQ:SSRM,ASX:SSR), Platreef in South Africa by Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF) and the Warintza copper project in Ecuador under Solaris Resources (TSX:SLS,NYSEAMERICAN:SLSR).
Another notable addition is the Mount Milligan mine in BC, where Royal Gold holds rights to significant gold and copper streams. The site, operated by Centerra Gold (TSX:CG,NYSE:CGAU), is expected to produce up to 185,000 ounces of gold and 60 million pounds of copper in 2025.
Royal Gold will also strengthen its interests in assets like the Cortez Complex and Pueblo Viejo mine. Jointly owned by Barrick Mining (TSX:ABX,NYSE:GOLD) and Newmont (TSX:NGT,NYSE:NEM), Pueblo Viejo’s plant was recently expanded; output is targeted at an average of 800,000 ounces of gold annually on a 100 percent basis through the mid-2040s.
Also included is a 1.66 percent net profit interest in Antamina, a major copper producer in Peru operated by a Glencore-led joint venture. A US$2 billion expansion was recently approved to extend mine life through 2036.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
