Sandstorm's (SAND) Deal with Royal Gold Inches Closer, RBC Capital Remains Bullish

Sandstorm Gold Ltd. (NYSE:SAND) is one of the best precious metals stocks to buy now. With a 115% rally, the company’s stock has already reached its highest level in a decade. It is in advanced stages of its merger with Royal Gold Inc. (NASDAQ:RGLD), which is expected to close in Q4 2025 (the deal was announced in early July). After the completion, shareholders at Sandstorm and Royal Gold will own approximately 23% and 77%, respectively, of the merged entity on a fully diluted basis.

On September 15, Sandstorm announced a special shareholder meeting scheduled for October 9, at which they will approve the proposed plan of arrangement with Royal Gold.

According to the latest investor presentation, the investment appeal of the deal lies in its scalability, robust cash flow generation, and reduced concentration risk. With it, the New Royal Gold company will have a high-quality royalty base with nearly 400 streams and royalties, including more than 80 cash-flowing assets. The combined portfolio will be Americas-focused, with 90% of its net asset value coming from precious metal assets.

Encouraged by the strong growth profile for Sandstorm Gold Ltd. (NYSE:SAND), on September 10, analyst Josh Wolfson from RBC Capital reiterated a Buy rating on Sandstorm Gold and raised his price target to $14 from $10.50 earlier.

Sandstorm Gold Ltd. (NYSE:SAND) is a precious metals royalty and streaming company headquartered in Vancouver, Canada.

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