RGLD

Overall Financial and Portfolio Position

• This is the second full quarter of consolidated results following Royal Gold's 2025 transformative acquisitions, delivering strong half-year 2026 performance that demonstrates increased portfolio scale and accretive value from the 2025 transactions.
• The portfolio is highly diversified, with no single asset contributing more than 13% of revenue and only two assets contributing over 10% of revenue, meeting the company's 2025 strategic goal of reducing asset concentration risk.
• Capital allocation priorities include maintaining the regular dividend, investing in the business development pipeline, strengthening the balance sheet, and opportunistic share repurchases. In Q2 2026, the company paid $40 million in dividends (6% higher annual rate than 2025), repaid $200 million of revolver debt, repurchased 147,000 shares for $30 million, and ended the quarter with $1.2 billion in total available liquidity.

Post-Acquisition Portfolio Simplification

• The company has made significant progress simplifying the acquired Sandstorm portfolio, restructuring the Hod-Modden joint venture (reducing equity interest from 30% to 15% in exchange for additional royalty interest), settling fixed delivery obligations at Relief Canyon, streamlining the Horizon structure, divesting non-core equity positions, and restructuring Bear Creek investments. This aligns the portfolio more closely with the core royalty and streaming business model.
• The 15% residual equity interest in Hod-Modden reduces Royal Gold's exposure to operating and capital cost risk; the company will look for opportunities to divest this remaining non-core stake opportunistically in the future.

Notable Asset Operational Progress

• Greenstone operations continue ramping up, with 69% of Q2 2026 days exceeding mill nameplate capacity; production is expected to increase quarter-over-quarter for the remainder of 2026.
• At Platte Reef, commercial production for Phase 1 is expected in Q4 2026, with Phase 2 concentrator construction on track for completion in Q4 2027; Royal Gold received its first gold stream delivery in Q2 2026.
• Hod-Modden operator transition from SSR Mining to Lydia is complete; overall project progress is approximately 25% as of June 30, 2026, with cumulative spending of $175 million, and Lydia still targets initial concentrate production in 2028.
• Severe winter weather in Chile caused temporary operational issues at Andacoya and Casarones, but the weather event has passed and no changes to full-year 2026 guidance are expected from operators.

• Gold and silver 2026 production and sales are tracking within the original guidance ranges. Copper and other metals are trending near or above the top end of their original guidance ranges, driven by lower than expected deductions on the Antamina NPI royalty, strong zinc production at Antamina, and strong nickel production at Voices Bay. • Full-year 2026 G&A expense is expected to finish near the high end of the previously guided $50 million to $60 million range. • Full-year 2026 DD&A expense is expected to remain within the previously guided $339 million to $379 million range. • Full-year 2026 effective tax rate is expected to remain within the previously guided 17% to 22% range. • Management expects to fully repay the outstanding revolving credit balance in Q4 2026 based on current metal prices and absent material new acquisitions. The second tranche of deferred consideration gold from the Mount Milligan cost support agreement (11,111 ounces) is expected to be delivered in late Q3 or early Q4 2026. • Management has not updated full-year guidance for copper and other metals due to limited visibility into NPI volatility and new royalty contributions, and will revisit guidance after Q3 2026 results. The 48-52 H1-H2 2026 revenue split remains on track, with Q3 and Q4 2026 contributions expected to be balanced.

Royal Gold operates two core product segments: royalty and stream. In Q2 2026, royalty revenue reached $140 million, an 83% increase year-over-year, contributing 31% of total company revenue. Stream revenue hit $311 million, a 133% increase year-over-year, contributing 69% of total company revenue. By metal type, gold contributed 76% of total Q2 2026 revenue, silver contributed 12%, and copper contributed 8%. Total company revenue for the quarter was $451 million, a 115% increase year-over-year, with total operating cash flow of $335 million (119% YoY increase) and net income of $236 million (79% YoY increase).

• Forward-looking statements about future production, project timelines, and financial performance are subject to risks and uncertainties that could cause actual results to differ materially from projections, as detailed in the company's SEC filings. • The Antamina NPI royalty is new to Royal Gold's portfolio, with limited historical visibility into revenue volatility that creates uncertainty around full-year 2026 copper and other metals results. • Residual 15% equity ownership in the Hod-Modden joint venture remains non-core to Royal Gold's royalty and streaming focused business, and exposes the company to residual capital and operating cost risk. • Project execution and timing risks remain for Hod-Modden, with Lydia currently reviewing the project schedule and execution plan, and initial production dependent on timely completion of remaining construction and procurement.

Q: The company has already cleaned up most non-core Sandstorm portfolio assets, what is the plan for the remaining Entree Resources equity position? / A: Royal Gold will hold the Entrez position patiently for the time being. Rio Tinto and the Government of Mongolia are still in ongoing discussions regarding Entree's mining concessions, and management expects resolving these discussions could positively impact the share value, so the company will wait for developments before making a decision to sell.

Q: What are the criteria for future share buybacks, and how should analysts model expected buyback volumes going forward? / A: Buyback decisions depend on multiple factors, including NAV valuation relative to peers, balance sheet strength, the business development pipeline, and long-term capital priorities. Management does not set fixed valuation thresholds or target quarterly buyback volumes, as new long-term mine investments can take priority over near-term buybacks. No preset modeling guidance is provided, and the company will disclose actual buyback activity with quarterly results.

Q: How is the deal pipeline for new royalty and streaming investments looking, and are you seeing more opportunities related to copper projects amid ongoing industry expectations of a copper project FID inflection? / A: Deal flow remains strong and steady, with no slowdown from market volatility or political risk. The opportunity set is well balanced, with core opportunities focused on gold development projects in the $100 million to $500 million size range. Additional opportunities include base metal assets (where Royal Gold can acquire precious metal byproduct streams) and third-party royalty packages, matching the company's existing investment profile.

Q: After the Hod-Modden ownership restructuring, when would Royal Gold look to sell its remaining 15% equity stake, and is there pressure to sell before the company needs to contribute its share of capex or before production starts? / A: There is no set timeline or deadline for selling the remaining 15% stake. The 15% position is still non-core, and Royal Gold is open to discussions if a buyer expresses interest, but the company is not actively marketing the stake like it did for the original 30% position. Any sale will be opportunistic, and is not tied to the mid-2027 capex contribution timeline or the 2028 production start date.