ROYAL GOLD INC Q1 FY2025 earnings call

Quarter Performance - Record earnings of $113 million ($1.72 per share) for the quarter, adjusted for discrete tax items, earnings were $100 million ($1.51 per share). - Gold was 75% of revenue, geographic weighting consistent with US, Canada, and Australia. - Adjusted EBITDA margin was 82%. - Paid a dividend of $0.45 per share, a 12.5% increase over 2024. - Repaid the Rainy River advanced stream deposit. - Entered an additional agreement with Ero Copper for Xavantina, paying $50 million from cash balance, ending the quarter with $1.25 billion of total available liquidity. - Published the Investment Stewardship Report and Asset Handbook. ### Portfolio Commentary - Stream sales met expectations, with any softness offset by strong metal prices and royalty segment growth. - Mount Milligan: Centerra's production guidance and mine life extension project updates. - Andacollo: Teck's gold production guidance. - Barrick's gold production guidance, Pueblo Viejo's updates including production guidance and mine life extension progress. - Updates on Peñasquito, Khoemacau, and Nevada assets. - Xavantina cash price increase from 20% to 40% of stock at the 49,000-ounce delivery threshold.

Overall revenue for the first quarter was $193 million with a volume of 67,600 GEOs. Gold was the largest contributor to revenue at about 75% of total, followed by silver at 12% and copper at 9%. Stream segment revenue was $122 million, up by about 19% from the prior year, while royalty segment revenue was $71 million, up by about 53% from the prior year quarter. The royalty segment contributed about 37% of total revenue in the quarter.

- Maintained 2025 guidance ranges for metal sales, DD&A, and tax rate. - Effective tax rate guidance is 17% to 22%, with the discrete tax items in Q1 wedging into the mid part of this range. - No changes to guidance were announced.

• Discrete tax items that could affect results. - Market volatility and economic uncertainties that could cause actual results to differ from forward-looking statements.

Q: About the asset handbook and how to use it for building growth profiles despite no long-term guidance.

A: The handbook condenses operators' multiyear production outlooks. Royal Gold takes operators' forecasts and may adjust them, helping to refine short-term to medium-term views by condensing existing information.

Q: About production seasonality, silver circuit at Pueblo Viejo, and M&A opportunities.

A: Stronger second half is still expected. On the silver circuit at Pueblo Viejo, recovery improvement is expected with work on thickeners, cooling towers, and carbon regeneration kiln. M&A opportunities are mostly in the $100-300 million range on a normal course basis, but larger opportunities are seen occasionally.

Q: About Khoemacau expansion correlation.

A: The correlation between copper and silver grades at Khoemacau is similar to that in the Zone 5 mine.