Royal Gold Stock Falls on Acquisitions of Sandstorm and Horizon Copper

Precious metals company Royal Gold announced separate deals worth a combined $3.7 billion. (Chris McGrath/Getty Images)

Royal Gold stock was falling Monday after the precious metals company announced agreements to acquire both Sandstorm Gold and Horizon Copper in separate transactions worth a combined $3.7 billion.

The Sandstorm deal is a share swap that values Sandstorm at about $3.5 billion, the companies said. Meanwhile, Royal Gold will buy Horizon for C$2 a share in a C$267.5 million (S196 million) all-cash acquisition.

Royal Gold stock was slumping 8.5% to $164.62 following the announcement.

A streaming and royalty company, Royal Gold owns interest in mines and metal producers across the Americas, Europe, Australia, and Africa. Sandstorm and Horizon have similar business models focused on gold and copper, respectively.

“I am pleased to announce these acquisitions, which fit our strategic goal of acquiring high-quality and long-life precious metals assets in mining-friendly jurisdictions,” Royal Gold CEO Bill Heissenbuttel said in a statement.

The company was prepared to pay up for the new assets. Royal Gold will acquire Sandstorm at an exchange ratio of 0.0625 common shares of Royal Gold for each common share of Sandstorm—a premium of 17% based on last Thursday’s closing price. And Horizon’s C$2 share price implies a premium of 72% to its July 4 closing price on Canada’s TSX Venture Exchange.

New York-listed shares of Sandstorm were up 4.6% on Monday, while Horizon stock was up 67%.

Gold and gold miners have had a renaissance this year as investors flocked to the precious metal as a safe-haven asset amid global trade disruptions. Gold futures have risen 26% so far in 2025 to $3,326.50 per Troy ounce. Even accounting for Monday’s drop, shares of Royal Gold have also climbed 26% this year.

Write to Nate Wolf at nate.wolf@barrons.com