Sandstorm Gold Royalties Achieves Remarkable Operating Results in Q2 2025
Headline: Sandstorm Gold Acquisition by Royal Gold Nears Completion, Boosting Precious Metals Portfolio
The precious metals streaming and royalty sector is set for a significant consolidation, with the acquisition of Sandstorm Gold Ltd. by Royal Gold Inc. in its final stages. The definitive arrangement agreement, signed on July 6, 2025, values the transaction at approximately $3.5 billion.
Sandstorm shareholders will receive 0.0625 shares of Royal Gold stock per Sandstorm share, resulting in a combined company ownership split of about 77% Royal Gold and 23% Sandstorm on a fully diluted basis. The transaction, pending customary closing conditions and regulatory approvals, is positioned to deliver significant value by maintaining exposure to Sandstorm’s high-quality, gold-focused portfolio while improving diversification and scale.
Royal Gold’s acquisition plan includes a major new gold stream on the Kansanshi copper-gold mine in Zambia, adding approximately 35,000 to 40,000 ounces of annual gold delivery over the next 10 years. This $1 billion precious metals purchase agreement further strengthens the combined portfolio.
Meanwhile, Sandstorm Gold reported a strong second quarter performance, with record revenue of $51.4 million. This revenue increase was attributed to the Aurizona mine in Brazil, where a modified mine plan led to an uptick in royalty revenue. Additionally, the first half of 2025 saw oxide production at the Gualcamayo mine in Argentina surpass 396,000 ounces of gold, triggering an increase in Sandstorm's net smelter returns royalty from 1.0% to 3.0%.
Elsewhere, Lundin Mining Corporation anticipates a two-phase open-pit plan at Saúva, with additional underground potential. Phase 1 is expected to target an increase in copper production by 50% over four years. In Brazil, the Chapada mine experienced lower recoveries in the second quarter due to increased processing of lower-grade stockpiles, but Lundin Mining Corporation expects production to be weighted towards the second half of the year.
Equinox Gold is advancing permitting, exploration, and engineering studies related to an expansion at Aurizona that is expected to extend the mine life and increase annual gold production. A pre-feasibility for Phase 1 is underway and is expected to be complete by the end of 2025.
Lundin Gold Inc. reported an increase in year-over-year production at the Fruta del Norte mine in Ecuador, with over 256,000 ounces of gold produced in the first half of 2025, supported by elevated grades. Record cash operating margins of $2,981 per attributable gold equivalent ounce were realized in the second quarter.
Continued drilling success from the near-mine exploration program at FDN has uncovered two new copper-gold porphyry systems. Site commissioning is proceeding to plan and ramp-up is in line with the project schedule at Woodlawn.
The Saúva deposit, located 15 kilometres north of the Chapada mine, is considered the most attractive near-term low capital intensity growth opportunity for Lundin Mining. Mining crews at the Platreef mine in South Africa have driven underground development into the high-grade Flatreef orebody.
In Burkina Faso, increased mining activity on Sandstorm's area of interest at the Houndé gold mine positively impacted attributable royalty revenue in the second quarter. Lundin Mining is forecasting 2025 copper production of 40,000-45,000 tonnes at Chapada.
Subsequent to quarter end, Sandstorm received its first silver deliveries from the Woodlawn mine in Australia. Endeavour Mining plc anticipates ore to be sourced primarily from the Kari West pit, with supplemental ore sourced from the Vindaloo Main and Vindaloo North pits, all of which are located within Sandstorm’s royalty, in the second half of 2025.
Glencore continues to work on the application for the MARA copper-gold project under Argentina’s Promotional Regime for Large Investment. Successful infill drilling at the Vindaloo Deeps deposit, where an exploration program continues to focus on delineating the deposit and a possible extension towards the south, with a target to define a large, high-grade maiden underground resource in the first half of 2026.
In summary, the consolidation of Sandstorm Gold and Royal Gold is poised to create an industry-leading precious metals streaming and royalty company with a diversified portfolio of 393 streams and royalties, including 80 cash-flowing assets. The transaction is expected to deliver significant value by maintaining exposure to Sandstorm’s high-quality, gold-focused portfolio while improving diversification and scale.
Investors looking into real-estate in the precious metals sector may find the recent acquisition of Sandstorm Gold Ltd. by Royal Gold Inc. as an interesting opportunity for investing. With the consolidation, the combined company will have a diverse portfolio, containing 393 streams and royalties, including 80 cash-flowing assets, boosting its potential in the precious metals streaming and royalty industry.
