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Yahoo
10-07-2025
- Business
- Yahoo
Royal Gold (RGLD) Dips After Acquisition News But Options Traders Don't Seem Worried
Precious metals specialist Royal Gold (RGLD), which focuses on the acquisition and management of streaming and royalty interests, generated headlines on Monday — though perhaps for the wrong reason. According to the company's press release, Royal agreed to acquire Sandstorm Gold (SAND) and Horizon Copper (HNCUF) for a transaction equity value of about $3.5 billion and $196 million, respectively. While the acquired entities surged in value, RGLD stock dropped 6.44%. Overall, long-term investors aren't feeling too shabby. Since the beginning of this year, RGLD stock gained almost 28%, even with yesterday's big drop. In the past 52 weeks, the security moved up more than 28%. Just as importantly, while the underlying gold market has been choppy since April, it appears to have reached a stabilization point around the $3,300 level. Constellation Brands Stock is Down But Produced Good Earnings - Is STZ a Buy Here? How Unusual Options Standout Boston Scientific (BSX) is Signaling a Statistical Edge Trading DAL Earnings? This Naked Put Play Benefits from Volatility Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! With economic and geopolitical uncertainties looming, it's not unreasonable to believe that the yellow metal may once again receive safe-haven demand. If so, RGLD stock could potentially resume its upward trajectory. What's even more intriguing, the smart money seems to have confidence in Royal Gold despite Monday's hiccup. When the closing bell rang out, RGLD stock represented one of the highlights of Barchart's screener for unusual options volume. Specifically, total volume hit 3,939 contracts, representing a 291.94% lift over the trailing one-month average. Still, what may have caught some investors off guard was the put/call ratio of nearly 0.99, where call volume landed at 1,983 contracts while put volume reached 1,956 contracts. On the surface, the even ground implies relatively equal sentiment between the bulls and bears. However, options flow — which focuses exclusively on big block transactions likely placed by institutional investors — shows net trade sentiment at $70,700 above parity, thus favoring the bulls. While fundamental catalysts and options market interpretations provide important color and context, the information can be rather opaque. With the former category, the market has likely priced in all publicly available information of note. Regarding the latter, the transactions are not necessarily clear-cut. For instance, a call option could be a straight debit wager or it could be the credit portion of a multi-leg strategy. To better understand how the market will respond, one approach is to convert the chaos of everyday price discovery into a unified language that stays stationary across time. In this manner, demand profiles can be segregated into distinct, discrete behavioral states. From there, traders can extract — through studying past analogs — the likelihood of transition from one behavioral state to another. To achieve this framework, price action can be converted into market breadth or sequences of accumulative and distributive sessions. As a representation of demand, market breadth is effectively binary — investors at the end of the day (or session) are either net buyers or net sellers. Through this binary code, traders can get an empirical gauge of how the target asset responds to various conditions. In the trailing two months, the price action of RGLD stock can be arranged as a '4-6-U' sequence: four up weeks, six down weeks, with a positive trajectory across the 10-week period. Admittedly, this conversion process pancakes RGLD's magnitude dynamism into a simple binary code. But the benefit is that this code — once identified — can be analyzed to see how it responded in prior circumstances. As it turns out, the 4-6-U is relatively rare, having only materialized 15 times since January 2019. Notably, though, in 73.33% of cases, the following week's price action results in upside, with a median return of 3.07%. Should the bulls maintain control for a second week, they may anticipate an additional 1.11% of performance. Accounting for yesterday's volatility, a possible upside target would be around $175.30 over the next two weeks. For those willing to roll the dice, market gamblers may be tempted by the 170/175 bull call spread expiring July 18. This transaction involves buying the $170 call and simultaneously selling the $175 call, for a net debit paid of $240 (the most that can be lost in the trade). Should RGLD stock rise through the short strike price ($175) at expiration, the maximum reward is $260, a payout of over 108%. Primarily, what's appealing about the above call spread is the implied shift in sentiment regime of the 4-6-U sequence. As a baseline, the chance that a long position in RGLD stock will be profitable is only 51.18%. With the aforementioned sequence flashing, the bulls potentially have a compelling opportunity to extract a quick reward. To be clear, we're still talking about probabilities, not certainties. Further, it should be mentioned that the stock market is an open system, meaning that outside influences can enter the paradigm and disrupt it. No model can perfectly account for such risks. Still, the above framework provides a decision-tree logic that may help traders think more empirically. On the date of publication, Josh Enomoto did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
08-07-2025
- Business
- Yahoo
Royal Gold to acquire Sandstorm and Horizon in deals worth $3.5bn
Royal Gold has entered agreements to acquire Sandstorm Gold and Horizon Copper, reinforcing its position as a leading North American gold-focused streaming and royalty company. The transactions are expected to significantly enhance Royal Gold's diversified portfolio of precious metal streams and royalty interests, with anticipated immediate and meaningful revenue growth. Under the agreement with Sandstorm, Royal Gold will exchange shares at a ratio of 0.0625 of its common shares for each Sandstorm share, representing a 21% premium based on the 20-day volume-weighted average price (VWAP) and a 17% premium on the closing price as of 3 July 2025. This exchange reflects a transaction equity value of approximately $3.5bn. Royal Gold expects to issue approximately 19 million common shares to Sandstorm shareholders, who will then own 23% of the issued and outstanding common shares of Royal Gold on a fully diluted basis. The transaction will be completed through a court-approved plan of arrangement, with Sandstorm shareholders receiving Royal Gold shares, implying a 21% premium based on the 20-day VWAP. Upon completion, Royal Gold shareholders and Sandstorm shareholders will own approximately 77% and 23%, respectively, of the combined company. The Horizon Copper transaction involves Royal Gold acquiring all issued share capital for cash at C$2 ($1.46) per share, indicating an 85% premium over the 20-day VWAP and a 72% premium on the closing price as of 4 July 2025, with a transaction equity value of approximately $196m. Royal Gold president and CEO Bill Heissenbuttel said: 'Royal Gold has a 40+ year history of consistently executing a strategy of disciplined growth in gold, and the addition of the Sandstorm and Horizon assets will create a global portfolio of precious metals interests that is unmatched in terms of asset diversification, development and organic growth potential, and exploration optionality.' The acquisitions are expected to add 40 new producing assets to Royal Gold's portfolio, which will contribute between 65,000 and 80,000 gold equivalent ounces (GEOs) in 2025, increasing GEO production by roughly 26%. The pro forma revenue mix is projected to be 87% from precious metals, with gold accounting for approximately 75% of total revenue. The combined company will boast a diversified portfolio with 80 revenue-producing assets, and no single asset is expected to account for more than 13% of net asset value (NAV). The pro forma portfolio will also include 47 development assets, such as Platreef, MARA, and Hod Maden, and a further 266 assets in the evaluation and exploration stages. The transactions are expected to close in the fourth quarter of 2025. Both transactions will require approval from shareholders and the Supreme Court of British Columbia, with additional regulatory clearances or approvals. Scotiabank and Raymond James are serving as financial advisers to Royal Gold while McCarthy Tétrault, Skadden, Arps, Slate, Meagher & Flom acted as legal adviser, along with Richards, Layton & Finger. BMO Capital Markets, Cassels Brock & Blackwell, Crowell & Moring, National Bank of Canada, and CIBC World Markets are advising Sandstorm. Fort Capital Partners and Gowlings WLG are advising Horizon, with Cormark Securities also acting as a financial adviser. In February 2024, Royal Gold signed an agreement with Centerra Gold to extend the life of the Mount Milligan Mine to 2035, involving a cost support agreement with immediate financial benefits and potential for a longer mine lifespan, including $24.5m (C$33.17m) in cash and 50,000oz of gold. "Royal Gold to acquire Sandstorm and Horizon in deals worth $3.5bn" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
Royal Gold Strikes Deals to Buy Sandstorm Gold, Horizon Copper
Royal Gold (RGLD) on Monday agreed to acquire Canadian mining companies Sandstorm Gold (SAND) and Ho
Yahoo
07-07-2025
- Business
- Yahoo
Royal Gold Stock Drops as Firm Makes Pair of Acquisitions for About $3.7B
Royal Gold (RGLD) shares sank over 6% Monday afternoon as the Denver-based company announced a pair of acquisitions totaling roughly $3.7 billion. Royal Gold said it had reached agreements to buy Vancouver, B.C.-based firm Sandstorm Gold (SAND) for $3.5 billion in stock and Horizon Copper, which trades over the counter in the U.S., for $196 million in cash. Both Sandstorm and Horizon also hold Canadian listings. Royal Gold expects the acquisitions, which are slated to close in the fourth quarter this year, will provide "immediate and meaningful revenue growth," with CEO Bill Heissenbuttel adding the Canadian firms "fit our strategic goal of acquiring high-quality and long-life precious metals assets in mining-friendly jurisdictions." Despite Monday's losses, shares of Royal Gold have added more than one-quarter of their value this year. Sandstorm shares advanced more than 7% Monday and are up 85% in 2025. Horizon Copper stock soared 67% on the TSX Venture exchange in recent trading. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
07-07-2025
- Business
- Yahoo
South Korea & Japan tariffs, Uber's new high, Royal Gold deals
Market Domination host Josh Lipton tracks the top market stories in this Market Minute. The Trump administration is threatening 25% tariffs on imports from Japan and South Korea starting in August. Uber (UBER) stock is outperforming the S&P 500 (^GSPC) this year, hitting a new all-time high amid strong analyst support. Royal Gold (RGLD) stock is under pressure as the company plans to acquire Sandstorm Gold (SAND) and Horizon Copper (HNCUF). Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. It's time for Yahoo! Finance's Market Minute. Stocks sliding to start the trading week, pulling back from all-time closing highs with President Trump's new tariff deadline in focus. Trump threatening tariffs on US trading partners, including moving forward with 25% levies on imports from Japan and South Korea starting in August. Shares of Uber touching a new all-time high here. The ride-sharing giant among the names outperforming the S&P 500 so far this year. That stock has 44 buys, 14 holds, and no sell ratings among analysts tracked by Bloomberg. Uber also reportedly in talks to acquire US operations of It's according to the New York Times. Royal Gold under pressure as the mining royalty company looks to acquire each of Sandstorm Gold and Horizon Copper, company acquiring Sandstorm Gold for about $3.5 billion, aiming to increase scale, diversification, and potential for organic growth. And that's your Yahoo! Finance Market Minute. For more of what's trending on Yahoo! Finance, scan the QR code below. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
