Both Sandstorm Gold (SSL) and Horizon Copper (HCU) are getting absorbed by Royal Gold (RGLD), creating a gold royalty & streaming powerhouse in two deals worth ~$5B in aggregate.

The deal rationale is clear for RGLD, as its premium multiple allows it to absorb the two platforms accretively - diversifying its producing asset base with tier one miners (Glencore, Barrick, etc.) and adding ~20% to adjusted EBITDA…

… at a time when leverage to gold prices is printing money.

With the offer coming in at a healthy premium to both SSL (~20%) and HCU (~70%) plus high break fees ($130/10M USD, respectively), it looks like this one will get over the finish line, taking two more Canadian-listed companies off the exchange.

About Bullpen: Bullpen Finance Inc. publishes content on Canadian markets and provides paid research coverage of select Canadian issuers. Bullpen is paid in cash by covered issuers, does not accept stock or options, does not hold positions in covered securities, and does not conduct investment banking business. Bullpen and LodeRock Advisors Inc. are affiliated; LodeRock provides investor relations services to issuers, some of whom are covered by Bullpen Research. When a post discusses a covered issuer, a specific disclosure appears at the top of the post. This post is published for general information purposes. It is not personalized investment advice and is not tailored to any individual reader’s circumstances. Bullpen is not a registered investment adviser or dealer. For full disclosures, including analyst certification, jurisdictional statements, and conflict of interest policies, please see our Legal & Disclosures section on our website.

You might be interested in…