Royal Gold, Inc. Q4 FY2025 earnings call

2025 was transformational for Royal Gold with record revenue, operating cash flow and earnings. Completed material acquisitions to diversify portfolio. Portfolio performed well with full repayment of advanced stream deposits. In fourth quarter, portfolio performance was solid. G&A expense higher due to integration activities. DD&A expense increased due to acquisitions. Costs related to Sandstorm Horizon Copper acquisition were $14 million for the quarter. Expect 2026 total G&A expense to range between $50 million and $60 million. Debt repayment faster than expected based on current metal prices.

For 2025, revenue was $1 billion, operating cash flow was $705 million, and earnings were $466 million, increases of 43%, 33% and 40% respectively over 2024. Gold contributed 78% of total revenue. In the fourth quarter, volume was 90,800 GEOs with record revenue of $375 million, including new revenue of $32 million from Kansanshi and $49 million from Sandstorm, Horizon. Royalty revenue was up 42% from prior-year quarter to $111 million. Revenue from stream segment was $265 million, up over 110% from same period last year.

Expect first quarter 2026 GEO sales to be in line with fourth quarter and be the lowest of the year. Will provide 2026 guidance at Investor Day. Expect 2026 total G&A expense between $50M - $60M. Based on current metal prices, expect to fully repay debt in early 2027, earlier than previous forecast of mid-2027.

Discussed risks and uncertainties related to forward-looking statements that could cause actual results to differ materially from projections. Also risks associated with acquisition-related costs and integration activities impacting financial results.

Q: Provide color on deal pipeline.

A: Dan Breeze mentioned deal pipeline looks strong with third-party royalties and development opportunities.

Q: On Hod Maden, were happy with technical report, timeline and strategy.

A: Happy with technical report, delay in construction decision not an issue, involved in discussions and strategy to convert to more familiar structure.

Q: Mechanics behind converting option to 20% gold stream at MARA.

A: Forgo small royalty and spend $225M to earn gold stream with formulaic economics.

Q: Exceeded other metals revenue guidance in 2025.

A: Largely due to metal price.

Q: Pueblo Viejo silver stream, incentive and royalty revenue.

A: No lack of incentive, royalty revenue due to information rights delay.

Q: First quarter production guidance, why not increase.

A: Due to delivery timing.

Q: Inventory levels and transaction environment.

A: Inventory levels stable, focus on $100M - $500M transactions and opportunities in own closets.