Sandstorm Gold Royalties Reports Record Operating Results in Second Quarter 2025
VANCOUVER, BC, Aug. 7, 2025 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm Gold Royalties", "Sandstorm" or the "Company") (NYSE:SAND) (TSX:SSL) has released its financial results for the three months ended June 30, 2025 (figures in U.S. dollars unless otherwise indicated). The Company realized another consecutive quarter of record revenue and operating margins, driven by strong commodity prices. Subsequent to quarter-end, Sandstorm entered into a definitive arrangement agreement with Royal Gold, Inc. ("Royal Gold") pursuant to which Royal Gold will acquire all of the issued and outstanding common shares of Sandstorm in an all-share transaction with an implied value of approximately $3.5 billion (the "Sandstorm Transaction").
Second Quarter Financial Highlights
Operating highlights include:
Record revenue of $51.4 million (compared to $41.4 million for the comparable period in 2024);
Production of 15,098 attributable gold equivalent ounces1 (compared to 17,414 ounces for the comparable period in 2024);
Cash flows from operating activities, excluding changes in non-cash working capital1 of $37.7 million (compared to $32.6 million for the comparable period in 2024);
Record cash operating margins1 of $2,981 per attributable gold equivalent ounce (compared to $2,043 for the comparable period in 2024); and
Net income of $16.9 million (compared to net income of $10.5 million for the comparable period in 2024).
Royal Gold Offers to Acquire Sandstorm, Forming Industry-Leading Precious Metals Streaming and Royalty Company
On July 6, 2025, Sandstorm entered into a definitive arrangement agreement with Royal Gold pursuant to which Royal Gold will acquire all of the issued and outstanding common shares of Sandstorm in an all-share transaction with an implied value of approximately $3.5 billion. Sandstorm shareholders will receive 0.0625 of a share of common stock of Royal Gold for each Sandstorm share held, and on a fully diluted basis, existing Royal Gold and Sandstorm shareholders will own approximately 77% and 23% of the combined company, respectively. Concurrently, Royal Gold entered into a definitive arrangement agreement with Horizon Copper Corp. ("Horizon Copper") pursuant to which Royal Gold will acquire all of the issued and outstanding common shares of Horizon Copper. Upon completion of both transactions, Royal Gold will hold a robust portfolio of 393 streams and royalties (including 80 cash-flowing assets), delivering industry-leading diversification and a compelling growth profile.
The Sandstorm Transaction is poised to create significant value for Sandstorm shareholders by delivering multiple benefits:
Maintains exposure to Sandstorm's gold-focused, high-quality, long-life royalty and streaming portfolio with significant built-in growth from its principal assets;
Daylights intrinsic value of Sandstorm's portfolio, closing the valuation gap between Sandstorm and its mid-tier peers;
Attractive premium to the 20-day volume-weighted average price of Sandstorm shares for the period ended July 3, 2025, which continue to trade near 10-year highs;
Improves pro-forma portfolio maturity by reducing the relative concentration of development-stage assets through the integration of a larger, more diversified asset base;
Enhanced access to institutional investors via an attractive, larger, diversified, gold-focused streaming and royalty company with strong trading liquidity; and
Equity participation in a large-scale precious metals streaming and royalty company with significant re-rating potential and proven track record of capital returns.
The combined portfolios under Royal Gold are expected to create the world's most diversified, large-scale precious metals streaming and royalty company, hosting a mature, Americas-focused portfolio, with no single asset expected to account for more than 12% of NAV2. The gold-dominated portfolio is expected to have a 2025 revenue mix of approximately 87% precious metals (with 75% of total revenues from gold3). Gold-focused growth assets, including MARA, Hod Maden, Great Bear, Platreef, and Warintza, are expected to add significant production growth over the long term. The pro-forma company will host robust cash flows and a strong balance sheet, providing financial strength to reinvest and compete for attractive deals, as demonstrated by Royal Gold's recently announced gold stream on the long-life Kansanshi mine acquired for $1 billion. The larger-scale and increased liquidity of the company is expected to attract a broader investor base, enhancing appeal to institutional investors as a leading North American precious metals streaming and royalty company, potentially driving a premium valuation.
Upon satisfaction of customary shareholder, court, and regulatory approvals, the Sandstorm Transaction is expected to close in the fourth quarter of 2025. For more information, refer to the Company's press release dated July 7, 2025.
Corporate and Development Asset Highlights
Deleveraging Continues
Sandstorm made $25 million in net debt repayments during the second quarter as part of the Company's deleveraging efforts. As of August 7, 2025, a balance of $315 million remains outstanding on the Company's revolving credit facility with an undrawn and available balance of $310 million.
Platreef Mining Crews Enter Flatreef Orebody
Ivanhoe Mines Ltd. ("Ivanhoe") announced in May that, after 30 years of efforts, mining crews at the Platreef mine in South Africa have driven underground development into the high-grade platinum, palladium, rhodium, nickel, gold, and copper Flatreef orebody. The milestone comes as Platreef advances toward commercial production, which Ivanhoe expects later in 2025. Since completing the sinking of Shaft #1 to a depth of 996 metres in 2021, Ivanhoe has completed 5.5 kilometres of tunnels on three levels. The Flatreef orebody was accessed on the 850-metre level and underground development on the 750-metre and 950-metre levels is expected to follow. Ore from the ongoing underground development will be stored at the surface ahead of the first feed of ore into the Phase 1 concentrator in the fourth quarter of 2025. Additionally, Ivanhoe reported that the construction of Shaft #2—Africa's largest hoisting shaft—is advancing well. The completion of Shaft #2 and Shaft #3 (which also continues to advance towards completion in early 2026), will increase total hoisting capacity from the Platreef mine to over 12 million tonnes per annum.
Hod Maden Technical Work Continues Ahead of Construction Decision
SSR Mining Inc. ("SSR Mining") continues to advance technical work at the Hod Maden gold project in Türkiye ahead of a formal construction decision. Over $40 million in year-to-date funding has been spent at Hod Maden, as the joint venture progresses engineering and initial site establishment efforts. As previously announced by SSR Mining, growth capital expenditures at Hod Maden are expected to total between $60–$100 million in 2025 (on a 100% basis), focused on the continued advancement of initial earthworks and site access activities, including the commencement of road and tunnel development. An initial exploration program is also planned in 2025, focused on potential extensions to the existing deposit and defining new targets. Based on the continued progress of these critical path early-works initiatives, Sandstorm maintains its forecast for first production at Hod Maden in 2028.
RIGI Application Progress for MARA
Glencore plc ("Glencore") continues to work closely with the Argentine government to progress the application for the MARA copper-gold project under Argentina's Promotional Regime for Large Investment ("RIGI"), which is expected to be submitted in the near term. RIGI aims to provide certainty and legal stability for long-term investments in Argentina by offering tax, customs, legal, and foreign exchange benefits. During the company's recent earnings call, Glencore indicated that the company could make a Formal Investment Decision at MARA as early as 2027, depending on various regulatory approvals, market conditions, and other factors.
Production Outlook
Based on the Company's existing streams and royalties, attributable gold equivalent ounces are forecasted to be between 65,000 and 80,000 ounces in 2025, which considers a range of commodity price scenarios. The Company's 2025 guidance is sensitive to changes in relative commodity prices, with a ±10% change in both the copper and silver prices relative to the gold price expected to impact attributable gold equivalent ounces by approximately ±1,500 ounces. Long-term, the Company forecasts production to be approximately 150,000 attributable gold equivalent ounces in 2030 when factoring the Company's existing streams and royalties plus the exercise of the Company's exclusive gold stream option on the MARA project in Argentina.
Second Quarter Financial Results
For the three months ended June 30, 2025, the Company realized record revenue of $51.4 million and sold 15,098 attributable gold equivalent ounces (compared to $41.4 million and 17,414 ounces, respectively, for the comparable period in 2024). Approximately 82% of the Company's gold equivalent production was attributable to precious metals, 11% from copper, and 7% from other commodities.
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