What is the expected timeline for shareholder approval and deal closing, and what regulatory, financing, or integration risks could affect the transaction?

Expected timeline

Royal Gold’s filing of the proxy statement triggers the next pivotal step in the Sandstorm Gold acquisition – a shareholder‑vote. In practice, once a proxy is lodged the SEC typically clears it within ≈ 10‑15 business days, after which the company will schedule a special meeting to solicit the requisite vote. For a transaction of this size the meeting is usually set for the late‑May to early‑June window, giving shareholders roughly 30 days to cast their ballots. Assuming the vote clears, the definitive agreement can be executed and the transaction is expected to close by the end of Q3 2024 (about 90‑120 days after the filing), provided that all conditional approvals are secured.

Regulatory, financing & integration risks

- Regulatory: The deal will still need clearance from the U.S. Securities and Exchange Commission and may be subject to a “Hart‑Scott‑Rodino” antitrust filing if the combined entity exceeds relevant thresholds. Any change‑of‑control scrutiny—particularly around the gold streaming and royalty structures—could delay closing.

- Financing: Royal Gold will fund the purchase largely via a mix of cash on‑hand, new debt facilities, and potentially equity issuance. Market‑driven cost‑of‑capital fluctuations, covenant‑breach concerns, or a tightening credit environment could force the company to re‑price the financing package or defer portions of the payment.

- Integration: Merging Sandstorm’s streaming contracts and royalty streams with Royal Gold’s existing portfolio presents operational complexity. Disruptions in cash‑flow timing, differing royalty waterfall mechanics, or unforeseen legal liabilities (e.g., off‑take agreements) could erode the anticipated synergies and pressure post‑close earnings.

Trading implications

- If the proxy vote looks favorable (≥ 75 %‑support), the market typically bids the acquirer’s stock at a modest premium; a long‑position in RGLD can be justified on the “approval‑and‑close” catalyst, with a target upside of 6‑9 % before the closing window.

- Conversely, any red‑flag on regulatory filings, financing terms, or integration‑related disclosures should be treated as a “deal‑risk” catalyst. In that scenario, a short‑position or option‑based hedge may be warranted to capture potential downside (‑5‑8 % on approval‑delay news).

- Keep a close eye on the SEC filing date and the announced shareholder‑meeting schedule; the interval between those events is the highest‑volatility window and the most opportune time to position either side of the approval odds.