Royal Gold Stock Drops as Firm Makes Pair of Acquisitions for About $3.7B

Royal Gold (RGLD) shares sank over 6% Monday afternoon as the Denver-based company announced a pair of acquisitions totaling roughly $3.7 billion.

Royal Gold said it had reached agreements to buy Vancouver, B.C.-based firm Sandstorm Gold (SAND) for $3.5 billion in stock and Horizon Copper, which trades over the counter in the U.S., for $196 million in cash. Both Sandstorm and Horizon also hold Canadian listings.

Royal Gold expects the acquisitions, which are slated to close in the fourth quarter this year, will provide “immediate and meaningful revenue growth,” with CEO Bill Heissenbuttel adding the Canadian firms “fit our strategic goal of acquiring high-quality and long-life precious metals assets in mining-friendly jurisdictions.”

Despite Monday’s losses, shares of Royal Gold have added more than one-quarter of their value this year. Sandstorm shares advanced more than 7% Monday and are up 85% in 2025. Horizon Copper stock soared 67% on the TSX Venture exchange in recent trading.