Sandstorm Gold Royalties Supports Royal Gold's Acquisition of Kansanshi Gold Stream

Core Viewpoint - Sandstorm Gold Ltd. supports Royal Gold Inc.'s acquisition of a gold stream on the Kansanshi copper-gold mine for US$1 billion, which is expected to enhance Sandstorm's portfolio and provide benefits to its shareholders [1][2]. Group 1: Acquisition Details - Royal Gold has entered into a precious metals purchase agreement for gold deliveries linked to copper production from the Kansanshi mine, which is operated and 80% owned by First Quantum Minerals Ltd [1]. - The gold stream acquisition is funded through Royal Gold's available cash and revolving credit facility, without the need to issue new shares [1]. - The Kansanshi transaction is projected to add approximately 35,000 to 40,000 ounces of gold per year over the next 10 years, supporting a 20-year mine life from a first-tier operator [2]. Group 2: Company Strategy and Portfolio - Sandstorm Gold is a precious metals-focused royalty company that provides upfront financing to mining companies and holds a portfolio of approximately 230 royalties, with 40 of the underlying mines currently producing [3]. - The company aims to grow and diversify its low-cost production profile through the acquisition of additional gold royalties [3]. - The acquisition agreement with Royal Gold anticipated the potential for a large stream acquisition, indicating a strategic alignment between the two companies [2].