Royal Gold announced the sale of its entire 25‑percent stake in Versamet Royalties Corp., disposing of 11,827,273 shares to Tether Investments S.A. de C.V. and 11,827,272 shares to Nemesia S.à.r.l. The shares were sold at C$8.75 each, generating a total consideration of C$206.98 million (C$206,977,268.75).
The proceeds will be applied to repay debt that Royal Gold incurred to complete the October 20 acquisition of Sandstorm Gold Ltd. and the August 5 purchase of a $1 billion gold stream from the Kansanshi copper‑gold mine in Zambia. The Sandstorm deal, valued at roughly $3.5 billion, was financed in part by a $450 million draw on the company’s revolving credit facility, while the Kansanshi stream was also funded through cash and credit. By using the sale proceeds to retire these borrowings, Royal Gold is reducing its leverage and improving its debt‑to‑equity ratio, thereby strengthening its balance sheet for future growth opportunities.
Versamet Royalties Corp. was created when International Royalty Corporation merged with a successor to Sandstorm Gold Ltd. The 25‑percent stake Royal Gold held was acquired as part of the Sandstorm integration and is now considered a non‑core asset. The divestiture aligns with the company’s strategy of concentrating on its core royalty and streaming interests and eliminating peripheral holdings that do not contribute materially to its valuation.
Bill Heissenbuttel, Royal Gold’s President and CEO, said the disposition “is in line with our objective of simplifying the Sandstorm portfolio. We will apply the proceeds to debt repayment, which is consistent with our focus on repaying the borrowings we incurred to complete the recent Sandstorm and Kansanshi acquisitions.” He added that the Versamet shares were non‑material to the Sandstorm transaction and that the sale supports the company’s disciplined capital allocation approach.
The transaction underscores Royal Gold’s commitment to maintaining a strong balance sheet and financial flexibility. By reducing debt and streamlining its portfolio, the company positions itself to pursue new royalty and streaming opportunities without the burden of excess leverage. While no specific market reaction data is available, the move is consistent with the company’s broader strategy of disciplined capital management following its recent large‑scale acquisitions.
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