Royal Gold — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue reached $464.8 million for the quarter, an 84% increase from $252.1 million in the prior year period; year-to-date revenue was $1,384.4 million, up 111% from $655.1 million.
• Revenue composition was 73% gold, 14% silver, and 10% copper.
• Net income was $227.4 million ($2.68 per share), compared to $126.8 million ($1.92 per share) in the prior year; adjusted net income was $238.3 million ($2.80 per share), up from $136.2 million ($2.06 per share).
• Operating cash flow hit a record $344.4 million, more than double the $174.0 million recorded in the prior year period.
• Adjusted EBITDA margin was 84%, up from 82% in the prior year.
• Depreciation, depletion, and amortization (DD&A) increased to $82.0 million from $32.9 million.
• Cost of sales (excluding DD&A) rose to $62.3 million from $31.4 million.
• General and administrative expenses increased to $13.2 million from $10.2 million.
• Income tax expense was $57.6 million, resulting in an effective tax rate of 20.2% compared to 17.9% in the prior year.
• Total liquidity was approximately $1.48 billion, consisting of $226.2 million in working capital and $1.25 billion available under the revolving credit facility.
• Debt outstanding was $150 million at quarter-end; the full $1.4 billion credit facility was undrawn and available as of the press release date following full repayment.

Guidance and Future Outlook:

• Full-year 2026 gold sales guidance remains within the original range of 290,000–320,000 ounces.
• Full-year 2026 silver and copper sales guidance is expected to be at or exceed the top end of the original ranges (3.0–3.5 million ounces for silver; 21.0–25.0 million pounds for copper).
• Full-year 2026 guidance for other metals sales was raised to $53–$56 million from the original $34–$38 million.
• DD&A expense and effective tax rate guidance remain within original ranges of $339–$379 million and 17–22%, respectively.
• Management expects to meet full-year guidance for gold sales and exceed guidance for silver and copper based on strong year-to-date performance.

Business Segments and Product Lines:

• North America: Revenue was $257.4 million, driven by Mount Milligan, Pueblo Viejo, and Cortez Legacy Zone.
• South and Central America: Revenue was $111.5 million, with significant growth from Andacollo, Xavantina, Antamina, Fruta del Norte, and Chapada.
• EMEA: Revenue was $78.5 million, primarily driven by the new Kansanshi stream ($30.8 million) and Khoemacau.
• Australia Pacific: Revenue was $17.4 million, up from $10.6 million in the prior year.
• Sales Volume: Record sales of 109,000 Gold Equivalent Ounces (GEOs), a 50% increase from 72,900 in the prior year.
• New Revenue Sources: $30.8 million in new revenue from the Kansanshi stream and $68.1 million from Sandstorm and Horizon assets contributed to the quarter's growth.
• Product Mix: Stream revenue was $318.3 million and royalty revenue was $146.5 million.

Market and Competitive Landscape:

• Average metal prices for the quarter were $4,262/oz for gold (up 23% YoY), $62.59/oz for silver (up 59% YoY), and $6.40/lb for copper (up 44% YoY).
• Year-to-date average prices were $4,545/oz for gold (up 42%), $73.24/oz for silver (up 109%), and $6.09/lb for copper (up 41%).
• Major operators reported production updates: Centerra Gold (Mount Milligan) saw 15% gold production growth; Newmont (Pueblo Viejo) reported a 10% gold production decrease; Teck (Andacollo) faced weather-related suspensions but restored full production by month-end.
• Development activity includes Kinross (Great Bear) advancing underground declines and engineering; Lundin Gold (Fruta del Norte) reporting record quarterly production; and Glencore (MARA) receiving approval under Argentina's RIGI regime.

Risks and Challenges:

• Operational disruptions at Andacollo due to extreme weather conditions (heavy rainfall and flooding).
• Lower ore grades and recovery at Pueblo Viejo and Peñasquito impacting production volumes.
• Rainy conditions at Manh Choh delayed ore processing campaigns.
• Potential risks associated with the integration of Sandstorm and Horizon operations.
• Risks related to foreign jurisdictions, environmental hazards, labor disputes, and changes in laws or regulations.
• Volatility in metal prices affecting revenue and cost of sales.

Management Commentary and Tone:

• CEO Bill Heissenbuttel described the results as "strong" and noted the extension of positive momentum from the first half of the year.
• Management highlighted the ability to rapidly pay down debt and rebuild liquidity following the Sandstorm and Horizon transaction closing in October 2025.
• The tone was confident, citing the portfolio's performance and the successful execution of capital allocation strategies including debt repayment, dividends, and share repurchases.
• Management confirmed the company is on track to meet full-year guidance for gold sales and expects to exceed guidance for silver and copper.

Other Key Points:

• Debt Repayment: The company fully repaid the remaining $150 million on the revolving credit facility on October 19, 2026, completing the repayment of the $1.225 billion debt balance incurred after the Sandstorm and Horizon transaction in under one year.
• Share Repurchases: Repurchased 190,045 shares at an average price of $259.83 for a total of $49 million in the quarter; 337,250 shares repurchased under the program to date for $79 million.
• Dividends: Paid a quarterly dividend of $0.475 per share, a 6% increase over the prior year period.
• Warintza Project: Finalized documents for the $50 million advance payment to Solaris Resources, expected to be made in the fourth quarter.
• Mount Milligan: Received 11,111 ounces of gold from the Deferred Gold Consideration on October 2, 2026, sold for $46 million.
• Great Bear Project: Kinross notified Royal Gold of its intention to exercise a buyback option for 25% of the royalty for approximately $43 million, reducing the interest to 1.50% NSR.
• Kansanshi: New revenue stream began contributing significantly in Q3 2026.
• Balance Sheet: Total assets were $9.36 billion; Total Royal Gold stockholders' equity was $7.73 billion.