H.C. Wainwright Reaffirms "Buy" on Sandstorm Gold (SAND) on Royal Gold Deal

Sandstorm Gold Ltd. (NYSE:SAND) is one of the best stocks to buy amid gold rally. On July 8, H.C. Wainwright reaffirmed its “Buy” rating on Sandstorm Gold stock and kept the $11.75 price target. Analyst Heiko F. Ihle stated that the decision is influenced by Sandstorm Gold’s acquisition agreement with Royal Gold (NASDAQ:RGLD).

The acquisition agreement, valued at approximately $3.5 billion, involves Royal Gold acquiring all outstanding common shares of Sandstorm Gold. Under the deal terms, Sandstorm shareholders will receive 0.0625 shares of Royal Gold common stock for each Sandstorm share held.

Upon deal completion, Royal Gold shareholders are expected to own about 77% and Sandstorm shareholders about 23% of the fully diluted Royal Gold shares. The analyst stated that the addition of Sandstorm’s assets is expected to be “meaningfully accretive to NAV and medium-term/long-term cash flow.”

Sandstorm Gold Ltd. (NYSE:SAND) is a gold-focused royalty and streaming company. It acquires royalties and metal purchase agreements from mining operations. The company holds a diversified portfolio of over 190 assets, including a gold stream on the Greenstone mine in Ontario and an option on the MARA copper-gold project in Argentina.

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Disclosure: None. This article is originally published at Insider Monkey.