Royal Gold(US:RGLD) ZACKS·2025-10-20 15:01Core Insights - Royal Gold, Inc. (RGLD) has received approval for its acquisition of Sandstorm Gold Ltd. (SAND) and Horizon Copper Corp., marking a significant step in expanding its portfolio [1][9] - The acquisition of Sandstorm is an all-stock deal valued at $3.5 billion, while the Horizon Copper acquisition is a cash deal worth approximately $196 million [2][3] Acquisition Details - RGLD will offer 0.0625 Royal Gold shares for each Sandstorm share, representing a 21% premium based on the 20-day VWAP and a 17% premium based on the July 3, 2025, closing price [2] - The Horizon Copper acquisition is priced at C$2.00 per share, reflecting an 85% premium to its 20-day VWAP and a 72% premium to its July 4, 2025, closing price [3] Portfolio Expansion - The acquisitions will add 40 producing assets to Royal Gold's portfolio, expected to generate 65,000-80,000 gold equivalent ounces (GEO) in 2025, increasing GEO production by 26% [4][9] - Post-acquisition, SAND and Horizon shares will be delisted from their respective exchanges [3] Revenue Composition - After the transaction, the revenue mix for Royal Gold is projected to be 87% from precious metals, with gold contributing 75% of total revenues [5] Q3 Performance Insights - In Q3, RGLD Gold AG sold 48,000 GEOs, an increase from 40,600 GEOs in Q2 2025 but a decrease from 53,800 GEOs in Q3 2024 [6] - The anticipated revenue for Q3 is expected to benefit from higher year-over-year prices for gold, silver, and copper, despite lower sales compared to the previous year [7]