Royal Gold — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenue reached $464.8 million for the quarter, an 84% year-over-year increase from $252.1 million; nine-month revenue totaled $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 period.
• Adjusted net income was $238.3 million ($2.80 per share), compared to $136.2 million ($2.06 per share) in the prior year period.
• Record operating cash flow was $344.4 million, up from $174.0 million in the prior year period.
• Adjusted EBITDA margin was 84%, up from 82% in the prior year period.
• Record sales volume of 109,000 gold equivalent ounces (GEOs), a 50% increase from 72,900 GEOs in the prior year period.
• Cost of sales (excluding DD&A) increased to $62.3 million from $31.4 million; General and administrative costs increased to $13.2 million from $10.2 million.
• Depreciation, depletion, and amortization (DD&A) increased to $82.0 million from $32.9 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 period.
• Fair value losses on equity securities were $15.7 million, primarily due to the decrease in value of Entrée Resources Ltd. shares.
• Interest and other expense decreased to $5.1 million from $8.6 million.
• Net cash used in investing activities was $2.0 million, compared to $985.9 million in the prior year period.
• Net cash used in financing activities was $340.3 million, compared to net cash provided of $736.6 million in the prior year period.
• Total liquidity was approximately $1.48 billion at quarter end, consisting of $226.2 million in working capital and $1.25 billion undrawn under the revolving credit facility.
• Debt outstanding at September 30, 2026, was $150 million on the revolving credit facility.

Guidance and Future Outlook

• Raised full-year 2026 guidance for other metals sales to $53–$56 million from the original $34–$38 million range.
• Expects to be at or exceed the top end of the original guidance ranges for silver (3.0–3.5 million oz) and copper (21.0–25.0 million lbs).
• Continues to expect gold sales (290,000–320,000 oz), DD&A expense ($339–$379 million), and effective tax rate (17–22%) to remain within original ranges.
• Actual gold sales through September 30, 2026, were 224,265 oz; silver was 2.6 million oz; copper was 21.3 million lbs; other metals were $44 million.
• Management expects the portfolio to continue performing well and remains on track to meet full-year guidance for gold sales.

Business Segments and Product Lines

• North America: Revenue was $257.4 million (55% of total), up from $182.0 million. Principal properties included Mount Milligan ($82.8 million), Pueblo Viejo ($45.2 million), and Cortez Legacy Zone ($29.1 million).
• South and Central America: Revenue was $111.5 million (24% of total), up from $32.2 million. Principal properties included Andacollo ($50.1 million), Xavantina ($20.3 million), and Antamina ($13.0 million).
• EMEA: Revenue was $78.5 million (17% of total), up from $27.3 million. Principal properties included Kansanshi ($30.8 million), Khoemacau ($19.9 million), and Wassa ($16.9 million).
• Australia Pacific: Revenue was $17.4 million (4% of total), up from $10.6 million. Principal properties included South Laverton ($5.1 million) and Woodlawn ($3.2 million).
• Revenue split between stream and royalty interests was 68% and 32%, respectively.
• New revenue sources included $30.8 million from the Kansanshi stream and $68.1 million from Sandstorm and Horizon assets.

Market and Competitive Landscape

• Average gold price was $4,262 per ounce (up 23% from $3,457); average silver price was $62.59 per ounce (up 59% from $39.40); average copper price was $6.40 per pound (up 44% from $4.44).
• Nine-month average gold price was $4,545 (up 42%); silver was $73.24 (up 109%); copper was $6.09 (up 41%).
• Production updates from operators indicate varying performance: Mount Milligan gold production increased 15% quarter-over-quarter; Antamina copper production was higher due to head grades; Kansanshi copper production increased 1,846 tonnes; Khoemacau silver production was 32% higher year-over-year.
• Some operators reported lower production due to ore grade, recovery, or weather: Pueblo Viejo gold production decreased 10%; Peñasquito gold production was lower; Andacollo production was impacted by extreme weather; Caserones lowered 2026 copper guidance due to winter storms.

Risks and Challenges

• Forward-looking statements note risks including changes in metal prices, operator performance variations, and operational disruptions.
• Specific risks mentioned include environmental hazards, labor disputes, supply chain disruptions, permitting issues, and adverse government actions.
• Risks associated with the integration of Sandstorm and Horizon operations, including failure to realize anticipated benefits.
• Risks related to equity interests in the Hod Maden project and doing business in foreign countries.
• Potential cyber-attacks, health epidemics, and changes in laws or regulations.

Management Commentary and Tone

• Bill Heissenbuttel, President and CEO, stated that strong third-quarter results extended positive momentum from the first half of the year.
• Management highlighted that the diversified portfolio generated significant cash flow, enabling rapid debt repayment and liquidity rebuilding.
• CEO noted the company fully repaid $1.225 billion of debt (originally expected to take two years) in just under one year while funding dividends, share repurchases, and investment commitments.
• Management expressed confidence that the portfolio continues to perform well and remains on track to meet full-year guidance.

Other Key Points

• Fully repaid the remaining $150 million on the revolving credit facility on October 19, 2026, leaving the entire $1.4 billion facility undrawn and available.
• Paid a quarterly dividend of $0.475 per share, a 6% increase over the prior year period.
• Repurchased 190,045 shares at an average price of $259.83 per share for a total of $49 million during the quarter; total repurchases under the $500 million program reached $79 million.
• Received the second delivery of 11,111 ounces of gold from the Mount Milligan Cost Support Agreement on October 2, 2026, sold for $46 million.
• Finalized documents for the $50 million advance payment to Solaris Resources Inc. for the Warintza Project, expected to be made after security registration.
• Kinross Gold intends to exercise a buyback of 25% of the Great Bear royalty for approximately $43 million, reducing Royal Gold's interest to 1.50% NSR.
• Glencore received approval for the MARA project under Argentina's RIGI regime; restart of Alumbrera is underway as a natural enabler.
• Highlander Silver is working to raise a $330 million senior secured project finance facility for the Corani Project.
• Troilus Mining received an $850 million debt financing commitment letter for the Troilus Project.
• Newmont expects a full-funds investment decision for the Red Chris block cave project in early 2027.
• IAMGOLD expects to announce an updated Côté Gold mine plan and mineral reserve estimate in the fourth quarter of 2026.