Sandstorm Gold Ltd.

Name: SSL Verdict Framework Scorecard — AVOID
Item: Sandstorm Gold Ltd.
Rating: 6
Author: Mining Stock Report

AVOID

TSX · Gold · Scored Apr 29, 2026

Composite Score 6/25

Management Skin-in-the-Game

2/5

Sandstorm Gold Ltd. (TSX: SSL, NYSE: SAND) was acquired by Royal Gold Inc. on October 20, 2025, at a share exchange ratio of 0.0625 Royal Gold common shares per Sandstorm share held. The transaction equity value was approximately USD $3.5 billion (a premium of approximately 21% to the 20-day VWAP and 17% to the July 3, 2025 closing price). SSL shares were delisted from the Toronto Stock Exchange and New York Stock Exchange within days of closing. The company has ceased to be a reporting issuer in Canada.

Prior to acquisition, Sandstorm was founded and led by Nolan Watson, who held meaningful personal equity in the company — a governance positive that distinguished it from many royalty peers. The acquisition received overwhelming shareholder approval (98.68% of votes cast), reflecting confidence in deal terms. However, assigning a management score to an acquired, delisted company is not meaningful.

This scorecard entry serves as a research queue closure record, not an active investment recommendation. Score 2/5 is assigned as a placeholder reflecting the non-investable status; it does not reflect an assessment of historical management quality, which was above average.

Project Geology Quality

1/5

Sandstorm Gold was a royalty and streaming company, not a mine operator. Its asset base consisted of over 250 royalties on third-party mining projects across the Americas, Africa, and Australia — including streams and royalties on producing mines, development projects, and exploration-stage assets. The Verdict Framework's geology scoring criteria (resource classification, grade, deposit type, NI 43-101 compliance) are designed for operating or developing mine assets and do not apply to a royalty portfolio.

As Sandstorm has been absorbed into Royal Gold (NASDAQ: RGLD), its royalty portfolio is now part of Royal Gold's consolidated asset base. There is no independent Sandstorm resource estimate to evaluate, no SEDAR+ technical report applicable to SSL as an entity, and no ongoing drilling or exploration program attributable to SSL.

Score 1/5 is assigned solely to reflect the non-applicability of this framework factor. This is not an assessment of Sandstorm's underlying royalty quality, which included exposure to high-quality assets such as the Hod Maden stream (Turkey), Antamina silver stream (Peru), and the Greenfield royalty portfolio.

Capital Structure Health

1/5

At the time of the Royal Gold acquisition (October 20, 2025), Sandstorm had approximately 266 million shares outstanding. The transaction was structured as an all-share deal at 0.0625 Royal Gold shares per SSL share. No cash consideration was paid to Sandstorm shareholders. The transaction valued SSL's equity at approximately USD $3.5 billion.

All capital structure considerations for SSL are now moot. The company's bank facilities, working capital, and royalty portfolio have been consolidated into Royal Gold's balance sheet. No independent Sandstorm balance sheet, cash position, or debt facility exists post-October 2025.

Score 1/5 reflects the non-investable status. Pre-acquisition, Sandstorm maintained a relatively clean capital structure with moderate leverage appropriate to its royalty business model and a diversified royalty portfolio generating predictable cash flows.

Catalyst Proximity

1/5

There are no future catalysts for SSL. The company has been delisted from the TSX and NYSE, has ceased to be a Canadian reporting issuer, and has been fully absorbed into Royal Gold Inc. The acquisition closed on October 20, 2025, with 98.68% shareholder approval.

The acquisition by Royal Gold was itself the terminal catalyst. Sandstorm shareholders who received 0.0625 Royal Gold shares per SSL share held now participate in Royal Gold's performance. Royal Gold (NASDAQ: RGLD) is a separate, independently traded company.

Score 1/5 — no catalysts possible for a delisted, acquired entity. Investors seeking exposure to the royalty/streaming sector should evaluate Royal Gold (RGLD) or Wheaton Precious Metals (WPM) directly.

Comparable Acquisition Value

1/5

Sandstorm Gold has already been acquired. The deal closed October 20, 2025 at an implied premium of approximately 17-21% to prevailing SSL market prices (21% to 20-day VWAP; 17% to July 3, 2025 closing price). Transaction equity value: approximately USD $3.5 billion.

No P/NAV analysis is applicable — the company no longer trades as an independent entity and has no current price or market-discoverable NAV. The acquisition validated Sandstorm's intrinsic value from a strategic buyer's perspective, confirming the royalty portfolio was attractive at the deal terms. The ~21% premium was below the 30-40% premiums seen in some gold royalty consolidation transactions, reflecting Royal Gold's disciplined deal approach.

Score 1/5 — company has been acquired. This score is assigned to reflect non-investable status only. No investment recommendation is implied.

Analyst Summary

Sandstorm Gold Ltd. (TSX: SSL) was acquired by Royal Gold Inc. on October 20, 2025, at an exchange ratio of 0.0625 Royal Gold shares per Sandstorm share (transaction equity value approximately USD $3.5 billion, representing a ~21% premium to VWAP). SSL shares were delisted from the TSX and NYSE following closing. This scorecard entry exists solely to close the company out of the research queue and document its acquisition status.

The Verdict Framework cannot be meaningfully applied to SSL. Sandstorm was a royalty and streaming company with 250+ royalties on third-party mines — the framework's five factors (management ownership, deposit geology, capital structure, catalysts, acquisition NAV) are designed for junior and mid-tier mining operators, not royalty vehicles. Furthermore, the company no longer exists as an independent public entity. All five factor scores of 1-2 are administrative placeholders reflecting non-applicability and non-investable status only.

Investors seeking exposure to Sandstorm's former royalty portfolio should evaluate Royal Gold Inc. (NASDAQ: RGLD), which absorbed SSL's assets in the acquisition. There are no SSL-specific catalysts, no current price, and no NAV to calculate. Verdict: AVOID — not because of investment quality concerns, but because the security does not exist.

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Company

Exchange / Ticker: TSX:SSL
Jurisdiction: Global
Primary Commodity: Gold
Website: https://www.sandstormgold.com

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