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.