Core Viewpoint - Sandstorm Gold Ltd. reported record financial results for Q2 2025, driven by strong commodity prices, and announced a definitive agreement for Royal Gold, Inc. to acquire Sandstorm in an all-share transaction valued at approximately $3.5 billion [1][2][3]. Financial Highlights - Record revenue of $51.4 million for Q2 2025, up from $41.4 million in Q2 2024 [4][12]. - Attributable production of 15,098 gold equivalent ounces, down from 17,414 ounces in the comparable period in 2024 [4][12]. - Cash flows from operating activities of $37.7 million, compared to $32.6 million in Q2 2024 [4][14]. - Record cash operating margins of $2,981 per attributable gold equivalent ounce, compared to $2,043 in Q2 2024 [4][14]. - Net income of $16.9 million, up from $10.5 million in Q2 2024 [4][14]. Transaction Details - Royal Gold will acquire all Sandstorm common shares at an implied value of approximately $3.5 billion, with Sandstorm shareholders receiving 0.0625 of a Royal Gold share for each Sandstorm share held [2][3]. - Post-transaction, existing Royal Gold and Sandstorm shareholders will own approximately 77% and 23% of the combined company, respectively [2][3]. Portfolio and Growth Potential - The combined portfolios are expected to create a highly diversified precious metals streaming and royalty company, with no single asset accounting for more than 12% of NAV [3][5]. - The gold-dominated portfolio is projected to have a revenue mix of approximately 87% precious metals in 2025, with 75% of total revenues from gold [3][5]. - Significant production growth is anticipated from gold-focused assets such as MARA, Hod Maden, Great Bear, Platreef, and Warintza [3][5]. Operational Insights - Approximately 82% of the gold equivalent production in Q2 2025 was from precious metals, with 11% from copper and 7% from other commodities [12][15]. - The Greenstone gold mine in Ontario is ramping up capacity, with full-year production estimates of 220,000–260,000 ounces in 2025 [16]. - The Chapada copper mine's production was impacted by lower-grade stockpiles, with forecasts of 40,000–45,000 tonnes of copper production in 2025 [18]. Future Outlook - Attributable gold equivalent ounces are forecasted to be between 65,000 and 80,000 ounces in 2025, with long-term production expected to reach approximately 150,000 ounces by 2030 [11][12]. - The company continues to focus on deleveraging, having made $25 million in net debt repayments during Q2 2025 [7].

Core Viewpoint - Sandstorm Gold Ltd. has entered into a definitive arrangement agreement with Royal Gold Inc. for an all-share transaction valued at approximately $3.5 billion, providing Sandstorm shareholders with a premium on their shares [1][24][25]. Transaction Details - Sandstorm shareholders will receive 0.0625 of a Royal Gold Share for each Sandstorm Share held, representing a 21% premium to the 20-day volume-weighted average price (VWAP) and a 17% premium to the closing price on July 3, 2025 [1][24]. - Royal Gold will issue approximately 19 million shares to Sandstorm shareholders, resulting in former Sandstorm shareholders owning about 23% of the issued Royal Gold Shares on a fully diluted basis [25]. Strategic Rationale - The transaction is expected to create significant value for Sandstorm shareholders by providing immediate premium and maintaining exposure to a high-quality, long-life portfolio [4][5]. - The merger aims to close the valuation gap between Sandstorm and mid-tier royalty peers, improve portfolio maturity, and enhance access to institutional investors [5][7]. Pro-Forma Royal Gold - Post-transaction, Royal Gold will have a diversified portfolio of 393 streams and royalties, with 80 cash-flowing assets and 47 in development, primarily focused on precious metals [8][9]. - The revenue mix for 2025 is projected to be approximately 87% from precious metals, with gold contributing about 75% of total revenue [9][10]. Key Producing Assets - Notable assets include Mount Milligan, Pueblo Viejo, and Cortez, which are expected to contribute significantly to Royal Gold's revenue through their respective production guidance [12][13][14]. - Mount Milligan is projected to produce 165,000–185,000 ounces of gold and 50–60 million pounds of copper in 2025 [12]. Key Development Assets - Development projects such as MARA, Hod Maden, and Platreef are expected to provide substantial organic production growth over the long term [19][20][22]. - MARA is anticipated to produce approximately 200,000 tonnes of copper equivalent per year with a mine life exceeding 20 years [19]. Board Recommendations - The Boards of Directors of Royal Gold and Sandstorm, along with a special committee of independent directors, have determined that the transactions are in the best interests of their respective companies [23]. Approval and Timing - The completion of the transactions is subject to shareholder approvals and regulatory conditions, with an expected closing in the fourth quarter of 2025 [34][27][30].