ROYAL GOLD INC

Royal Gold, Inc. acquires and manages precious metal streams, royalties, and similar interests, seeking to acquire existing stream and royalty interests or to finance projects that are in production, development or in the exploration stage in exchange for stream or royalty interests. The company does not conduct mining operations on the properties in which it holds stream and royalty interests and is generally not required to contribute to capital costs, environmental costs, or other operating costs on those properties, except for the joint venture interest in Hod Maden. The mining industry in general, and stream and royalty sectors in particular, are very competitive, and Royal Gold competes with other stream and royalty companies, mine operators, and financial buyers in efforts to acquire existing stream and royalty interests, as well as with lenders, equity investors, and stream and royalty companies providing financing to operators of mineral properties. Key competitive factors in the stream and royalty acquisition and financing business include the ability to identify and evaluate potential opportunities, transaction structure and consideration, and access to capital.

Royal Gold's competitors may be larger than it is and may have greater resources and access to capital than it has. The company's financial results are primarily tied to the price of gold and, to a lesser extent, the prices of silver and copper, together with the amounts of production from its production stage stream and royalty interests. During the year ended December 31, 2025, Royal Gold derived approximately 90% ¹ of its revenue from precious metals, including 78% ² from gold and 12% ³ from silver, 7% ⁴ from copper, and 3% ⁵ from other minerals. Approximately 53% ⁶ of the company's revenue for the year ended December 31, 2025 came from five properties: Mount Milligan (22% ⁷), Pueblo Viejo (13% ⁸), Cortez (7% ⁹), Andacollo (8% ¹⁰) and Kansanshi (3% ¹¹).

Royal Gold generates revenue through two reportable segments: the Acquisition and Management of Stream Interests and the Acquisition and Management of Royalty Interests. A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced from a mine, at a price determined for the life of the transaction by the purchase agreement. Royalties are non-operating interests in mining projects that provide the right to revenue or metals produced from the project after deducting specified costs, if any. Stream interests accounted for 67% ¹² of total revenue for each of the years ended December 31, 2025 and 2024, and royalty interests accounted for 33% ¹³ of total revenue for each of those years. The company's financial results are primarily tied to the price of gold and, to a lesser extent, the prices of silver and copper, together with the amounts of production from its production stage stream and royalty interests.

As of December 31, 2025, Royal Gold owned stream interests relating to 18 ¹⁴ production stage properties and 5 ¹⁵ development stage properties. As of December 31, 2025, the company owned royalty interests relating to 63 ¹⁶ production stage properties, 24 ¹⁷ development stage properties and 254 ¹⁸ exploration stage properties, of which it considers 76 ¹⁹ to be evaluation stage projects. For the year ended December 31, 2025, total stream revenue was $686,472,000 ²⁰ and total royalty revenue was $343,999,000 ²¹. Stream interests in North America generated revenue of $440,738,000 ²² with a segment gross profit of $300,850,000 ²³; stream interests in EMEA generated revenue of $137,281,000 ²⁴ with a segment gross profit of $70,915,000 ²⁵; stream interests in South and Central America generated revenue of $107,444,000 ²⁶ with a segment gross profit of $70,923,000 ²⁷; and stream interests in Australia Pacific generated revenue of $1,009,000 ²⁸ with a segment gross profit of $0 ²⁹. Royalty interests in North America generated revenue of $263,332,000 ³⁰ with a segment gross profit of $208,916,000 ³¹; royalty interests in Australia Pacific generated revenue of $40,349,000 ³² with a segment gross profit of $38,988,000 ³³; royalty interests in South and Central America generated revenue of $38,119,000 ³⁴ with a segment gross profit of $22,730,000 ³⁵; and royalty interests in EMEA generated revenue of $2,199,000 ³⁶ with a segment gross profit of $1,008,000 ³⁷.

The company's principal production stage stream and royalty interests on properties outside of the United States are located in Canada, the Dominican Republic, Chile and Zambia. As of December 31, 2025, Royal Gold determined that five of its stream and royalty interests are material to its business or financial condition: Andacollo, Cortez, Kansanshi, Mount Milligan, and Pueblo Viejo. At Andacollo, RGLD Gold owns the right to purchase 100% ³⁸ of the gold produced until 900,000 ³⁹ ounces of payable gold have been delivered, and 50% ⁴⁰ thereafter, with a cash purchase price equal to 15% ⁴¹ of the monthly average gold price. At Kansanshi, gold deliveries are indexed to copper production with stream rates of 75 ⁴² ounces of gold per million pounds of recovered copper until 425,000 ⁴³ ounces, 55 ⁴⁴ ounces between 425,001 ⁴⁵ and 650,000 ⁴⁶ ounces, and 45 ⁴⁷ ounces thereafter, with Royal Gold paying 20% ⁴⁸ of the spot gold price. At Mount Milligan, RGLD Gold owns the right to purchase 35% ⁴⁹ of the payable gold and 18.75% ⁵⁰ of the payable copper, with a cash purchase price for gold equal to the lesser of $435 ⁵¹ per ounce or the prevailing market price. At Pueblo Viejo, RGLD Gold owns the right to purchase 7.5% ⁵² of Barrick's interest in gold until 990,000 ⁵³ ounces have been delivered, and 3.75% ⁵⁴ thereafter, with a cash purchase price for gold of 30% ⁵⁵ of the spot price until 550,000 ⁵⁶ ounces have been delivered, and 60% ⁵⁷ thereafter. At Cortez, Royal Gold owns multiple royalty interests, with the Legacy Zone representing an equivalent 9.0% ⁵⁸ GSR royalty rate over the Pipeline and Crossroads deposits and the CC Zone including an equivalent 1.6% ⁵⁹ GSR royalty over the Cortez Hills, Cortez Pits, Fourmile, and Goldrush deposits.

On October 20, 2025, Royal Gold acquired all of the issued and outstanding common shares of Sandstorm Gold Ltd. and Horizon Copper Corp. for $4.148 billion ⁶⁰. Royal Gold issued 18.6 million ⁶¹ shares of common stock to Sandstorm shareholders and assumed stock options exercisable for 0.7 million ⁶² shares of common stock, and paid $380.9 million ⁶³ in cash to fully repay the outstanding balance drawn on the Sandstorm credit facility. Royal Gold paid C$127.1 million ⁶⁴ ($90.4 million ⁶⁵) in cash consideration to the shareholders of Horizon and funded Horizon's purchase of its outstanding warrants for C$40.6 million ⁶⁶ ($28.9 million ⁶⁷). On August 5, 2025, RGLD Gold made an advance payment of $1.0 billion ⁶⁸ for a gold stream on the Kansanshi copper-gold mine. On May 21, 2025, RGLD Gold acquired a gold stream and net smelter return royalty for total cash consideration of $200.0 million ⁶⁹ on the Warintza project. On May 16, 2025, Royal Gold acquired a 2.0% ⁷⁰ NSR royalty on the Ranch portion of the Lawyers-Ranch Project for cash consideration of $12.5 million ⁷¹. On March 28, 2025, RGLD Gold entered into an additional precious metals purchase agreement for gold produced from the Xavantina mine for an advance payment of $50.0 million ⁷². Royal Gold extended the maturity of its revolving credit facility to June 30, 2030 ⁷³, increased the accordion feature from $250 million ⁷⁴ to $400 million ⁷⁵ and ultimately exercised the accordion feature, increasing the total credit facility amount to $1.4 billion ⁷⁶. Royal Gold increased its calendar year dividend to $1.90 ⁷⁷ per basic share, which is paid in quarterly installments throughout calendar year 2026, representing a 6% ⁷⁸ increase compared with the dividend paid during calendar year 2025.

For the year ended December 31, 2025, Royal Gold had record revenue of $1.0 billion ⁷⁹, compared to $719.4 million ⁸⁰ for the comparable prior year period, representing a 43% ⁸¹ increase. The company generated a record $704.8 million ⁸² of net operating cash flow for the year ended December 31, 2025, compared to $529.5 million ⁸³ for the comparable prior year period, representing a 33% ⁸⁴ increase. Net income attributable to Royal Gold stockholders was $466.3 million ⁸⁵, or $6.70 ⁸⁶ per basic and $6.69 ⁸⁷ per diluted share, as compared to net income attributable to Royal Gold stockholders of $332.0 million ⁸⁸, or $5.04 ⁸⁹ per basic and diluted share, for the year ended December 31, 2024. Total revenue of $1.0 billion ⁹⁰ was comprised of stream revenue of $686.5 million ⁹¹ and royalty revenue of $344.0 million ⁹², at an average gold price of $3,432 ⁹³ per ounce, an average silver price of $40.03 ⁹⁴ per ounce and an average copper price of $4.51 ⁹⁵ per pound, compared to total revenue of $719.4 million ⁹⁶, comprised of stream revenue of $483.3 million ⁹⁷ and royalty revenue of $236.1 million ⁹⁸, at an average gold price of $2,386 ⁹⁹ per ounce, an average silver price of $28.27 ¹⁰⁰ per ounce and an average copper price of $4.15 ¹⁰¹ per pound, for the year ended December 31, 2024.

Management's discussion and analysis includes forward-looking statements regarding expected financial performance and outlook, including sales volume, revenue, expenses, tax rates, earnings, and cash flows; operators' expected operating and financial performance and other anticipated developments relating to their properties and operations, including production, deliveries, estimates of mineral resources and mineral reserves, environmental and feasibility studies, technical reports, mine plans, capital requirements, liquidity, and capital expenditures; opportunities for investments, acquisitions and other transactions; anticipated benefits from investments, acquisitions and other transactions; receipt and timing of future metal deliveries, including deferred amounts at Pueblo Viejo; expected benefits from the Transaction; anticipated liquidity, capital resources, financing, and stockholder returns; borrowings and repayments under the revolving credit facility; the materiality of properties within the portfolio; macroeconomic and market conditions; the anticipated effects of climate change; returns on investments; sufficiency of contractual protections; adoption of new accounting standards; valuation allowances; potential impairments; tax changes; assumptions related to fair value of equity awards; and prices for gold, silver, copper, and other metals.

At Kansanshi, First Quantum expects copper production in 2026 to be between 175,000 and 205,000 tonnes ¹⁰², between 210,000 and 240,000 tonnes ¹⁰³ in 2027 and between 230,000 and 260,000 tonnes ¹⁰⁴ in 2028. At the current stream rate of 75 ounces of gold per million pounds of recovered copper produced, this is expected to result in gold sales attributable to Royal Gold's interest of approximately 26,000 to 31,000 ounces ¹⁰⁵ in 2026, rising to 38,000 to 43,000 ounces ¹⁰⁶ in 2028. First Quantum expects gold production to range between 110,000 and 120,000 ounces ¹⁰⁷ in 2026, 125,000 and 135,000 ounces ¹⁰⁸ in 2027 and 140,000 and 150,000 ounces ¹⁰⁹ in 2028. At Mount Milligan, Centerra announced the results of a pre-feasibility study that confirms a life-of-mine extension of approximately 10 years ¹¹⁰, to 2045 ¹¹¹, with the potential to increase the process plant throughput by approximately 10% ¹¹² in 2029. Average annual production from 2026 to 2042 is expected to be approximately 150,000 ounces ¹¹³ of gold and 69 million pounds ¹¹⁴ of copper. At Pueblo Viejo, Barrick reported that 2026 gold production on a 60% basis is expected to range between 350,000 and 400,000 ounces ¹¹⁵. At Cortez, Barrick provided 2026 gold production guidance of approximately 700,000 to 780,000 ounces ¹¹⁶ on a 100% basis. At the Fourmile Project, a preliminary economic assessment indicates the potential to achieve average annual gold production levels of approximately 600,000 to 750,000 ounces ¹¹⁷ over a mine life exceeding 25 years ¹¹⁸. At Andacollo, Teck expects copper production to range from 45,000 to 55,000 tonnes ¹¹⁹ per year in each of 2026 and 2027, before declining to a range of 35,000 to 45,000 tonnes ¹²⁰ in 2028.

The Warintza project consists of a cluster of five separate porphyry copper-molybdenum-gold intrusions that coalesce within two overlapping open pits, and Solaris believes that exploration potential is high for near and in-mine targets, as well as within the larger project area. Solaris is targeting a final investment decision by the end of 2026 ¹²¹. The Gold Stream Agreement may be terminated with the full return of the advance payment at the option of RGLD Gold or Solaris if a change of control of Solaris or Warintza occurs, or by RGLD Gold if deliveries have not begun by May 21, 2033 ¹²². The area of interest for the Gold Stream Agreement covers approximately 31 square kilometers ¹²³, and will expand to 186 square kilometers ¹²⁴ if the termination provisions have not been exercised and the first delivery has not been received by May 21, 2033 ¹²⁵. The NSR royalty rate will increase by 0.0375% ¹²⁶ per year until the earlier to occur of the first delivery under the Gold Stream Agreement or May 21, 2033 ¹²⁷, to a maximum of 0.60% ¹²⁸ NSR.

Cost of sales, which excludes depreciation, depletion, and amortization, increased to $130.9 million ¹²⁹ for the year ended December 31, 2025, from $97.5 million ¹³⁰ for the year ended December 31, 2024. General and administrative costs increased to $49.2 million ¹³¹ for the year ended December 31, 2025, from $40.9 million ¹³² for the year ended December 31, 2024, primarily due to higher corporate costs as a result of the Sandstorm and Horizon acquisition. Depreciation, depletion and amortization increased to $177.1 million ¹³³ for the year ended December 31, 2025, from $144.4 million ¹³⁴ for the year ended December 31, 2024. Interest and other expense increased to $29.0 million ¹³⁵ for the year ended December 31, 2025, from $9.7 million ¹³⁶ for the year ended December 31, 2024, primarily due to higher interest expense as a result of higher average amounts outstanding under the revolving credit facility. Income tax expense was $102.3 million ¹³⁷ for the year ended December 31, 2025, as compared to $93.6 million ¹³⁸ for the year ended December 31, 2024, which resulted in an effective tax rate of 17.8% ¹³⁹ in the current period and 22.0% ¹⁴⁰ in the prior year.

Royal Gold currently has 39 ¹⁴¹ employees that work out of its offices in Denver, Colorado, Lucerne, Switzerland, Vancouver, Canada, and Toronto, Canada. The company's employees are not subject to a labor contract or collective bargaining agreement. Royal Gold has benefited from a very low voluntary turnover rate, with many of the current staff still with the Company after 10 years ¹⁴² of employment. The company supports the continued professional development of its employees by underwriting or subsidizing education and professional development programs. Royal Gold actively seeks opportunities to advance sustainability initiatives with the goal of supporting communities that host the operations in which it holds stream and royalty interests during its operators' mining operations.

On November 18, 2025, Royal Gold announced an increase in its annual dividend for calendar year 2026 from $1.80 ¹⁴³ to $1.90 ¹⁴⁴ per share, payable on a quarterly basis of $0.475 ¹⁴⁵ per share. The newly declared dividend is 6% ¹⁴⁶ higher than the dividend paid during calendar year 2025. The company has steadily increased its annual dividend for 25 years ¹⁴⁷, or since calendar year 2001 ¹⁴⁸. Royal Gold expects to pay its annual dividend using cash on hand. During the year ended December 31, 2025, the company borrowed $1.275 billion ¹⁴⁹ and repaid $375 million ¹⁵⁰ under its revolving credit facility. At December 31, 2025, Royal Gold had $900 million ¹⁵¹ outstanding and $500 million ¹⁵² available under its revolving credit facility. In January and February 2026, the company repaid $75 million ¹⁵³ and $100 million ¹⁵⁴, respectively, under its revolving credit facility, resulting in $725 million ¹⁵⁵ outstanding and $675 million ¹⁵⁶ available under the revolving credit facility as of the date of the report.

Approximately 85% ¹⁵⁷ of Royal Gold's revenue for the year ended December 31, 2025 came from properties outside of the United States, and many of the operators of such properties are organized outside of the United States. The company's principal production stage stream and royalty interests on properties outside of the United States are located in Canada, the Dominican Republic, Chile and Zambia. Risks associated with conducting business in foreign countries or other sovereign jurisdictions include expropriation or nationalization of mining property, exchange and currency controls and fluctuations, limitations on foreign exchange or repatriation of earnings, changes in government taxation, royalties, tariffs or duties, war, crime, terrorism, sabotage, blockades, hostage taking or other forms of civil unrest, and uncertain political or economic environments, including economic downturns.

The company's revenue is subject to volatility in metal prices, which could adversely affect its results of operations and cash flow. Market prices for gold, silver, copper and other metals fluctuate widely over time and are affected by numerous factors beyond the company's control, including metal supply and demand, industrial and jewelry fabrication, investment demand, central banking actions, inflation and interest rates, currency values, forward sales by metal producers, and legal, political, social, trade, economic and banking conditions. A significant portion of the company's revenue comes from a small number of operating properties, and adverse developments at these properties could have a more significant or lasting effect on its results of operations than if its revenue were less concentrated. Approximately 53% ¹⁵⁸ of the company's revenue for the year ended December 31, 2025 came from five properties: Mount Milligan (22% ¹⁵⁹), Pueblo Viejo (13% ¹⁶⁰), Cortez (7% ¹⁶¹), Andacollo (8% ¹⁶²) and Kansanshi (3% ¹⁶³).

Royal Gold's revenue is subject to volatility in metal prices, particularly gold, as the company derived approximately 78% ¹⁶⁴ of its revenue from gold in 2025, and a significant decline in metal prices could materially adversely affect results of operations and financial condition. The company owns non-operating interests in mining properties and has no decision-making authority regarding development or operation, meaning operators make all decisions and may act adversely to Royal Gold's interests. Approximately 85% ¹⁶⁵ of revenue in 2025 came from properties outside the United States, exposing the company to risks associated with foreign operations including expropriation, currency controls, and political instability. A significant portion of revenue, approximately 53% ¹⁶⁶ in 2025, came from just five properties, creating concentration risk where adverse developments at any one property could have a disproportionate effect. As of December 31, 2025, the company had $0.9 billion ¹⁶⁷ outstanding under its revolving credit facility, and difficulties in accessing the commercial debt market or higher borrowing costs could adversely affect financial condition and the ability to operate the business.

Management's message emphasizes the company's record financial performance for the year ended December 31, 2025, including record revenue of $1.0 billion ¹⁶⁸, record net operating cash flow of $704.8 million ¹⁶⁹, and a 43% ¹⁷⁰ increase in revenue compared to the prior year. Key strategic priorities emphasized include the successful completion and integration of the acquisitions of Sandstorm Gold Ltd. and Horizon Copper Corp. for $4.148 billion ¹⁷¹, the acquisition of the Kansanshi gold stream for an advance payment of $1.0 billion ¹⁷², and the extension and expansion of the revolving credit facility to $1.4 billion ¹⁷³ with a maturity extended to June 30, 2030 ¹⁷⁴. Management also highlights the increase in the calendar year dividend to $1.90 ¹⁷⁵ per basic share, representing a 6% ¹⁷⁶ increase, and the company's continued focus on acquiring and managing precious metal streams, royalties, and similar interests. Forward-looking statements include expectations regarding operators' production, deliveries, and mine plans, anticipated benefits from acquisitions, and expectations regarding liquidity, capital resources, and stockholder returns.