Core Viewpoint - Royal Gold (RGLD) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Recent Performance of Royal Gold - For the fiscal year ending December 2025, Royal Gold is expected to earn $6.78 per share, reflecting a 28.9% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Royal Gold has risen by 7%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating [9][10]. - Royal Gold's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

First Quarter 2025 Results May 8, 2025 Cautionary Statements Today's Speakers Bill Heissenbuttel President and CEO Paul Libner SVP and CFO Martin Raffield SVP, Operations Forward-Looking Statements: This presentation and the accompanying webcast include "forward-looking statements" within the meaning of U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements are not guarantees of future performance, and actual results m ...

Financial Data and Key Metrics Changes - The company reported record earnings of $113 million or $1.72 per share for Q1 2025, with adjusted earnings of $100 million or $1.51 per share after accounting for discrete tax items [6][27] - Revenue for the quarter increased by 30% to $193 million, driven by a 38% increase in gold prices, 37% in silver, and 11% in copper compared to the prior year [23][24] - The adjusted EBITDA margin was 82%, maintaining high margins due to low and stable general and administrative expenses [7][27] Business Line Data and Key Metrics Changes - Royalty revenue rose by approximately 53% year-over-year to $71 million, contributing about 37% of total revenue, with strong performances from Penasquito, Mancho, and Robinson [13] - Stream segment revenue was $122 million, up by about 19% from the previous year, with increased gold sales from Pueblo Viejo and Mount Milligan [12][13] Market Data and Key Metrics Changes - Over 53% of revenue was generated from the U.S., Canada, and Australia, indicating a consistent geographic weighting [7] - The company maintained its 2025 guidance ranges for metal sales, DD&A, and tax rate despite market volatility [30] Company Strategy and Development Direction - The company is focused on maintaining a diversified portfolio and leveraging strong gold prices to deliver solid results [30] - Recent investments include an additional agreement with Arrow Copper to acquire an incremental stream interest in Sabentina, reflecting a strategy to enhance exposure to high-grade resources [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain economic conditions and elevated market volatility but expressed confidence in the company's strong balance sheet and commitment to dividends [30] - The company expects a stronger second half of 2025, with potential benefits from increased production at key assets like Mount Milligan and Andacollo [30][61] Other Important Information - The company paid its first dividend of 2025 at a new quarterly rate of $0.45 per share, marking a 12.5% increase over 2024 [8] - The company remains debt-free with total liquidity of approximately $1.25 billion, including a fully undrawn $1 billion revolving credit facility [28] Q&A Session Summary Question: Can you walk us through how to use the new information in the asset handbook for growth profiles? - Management explained that the handbook condenses operator forecasts to help investors refine their short-term and medium-term outlooks [35][38] Question: Are the key opportunities coming from existing assets or new assets? - Management indicated that existing asset opportunities are more familiar and easier to build upon, but there are also new opportunities emerging in the market [41][44] Question: Can you confirm the discrete tax item is a one-time benefit? - Management confirmed the discrete tax items are infrequent and unusual, with an effective tax rate of 19.4% excluding these benefits [49][54] Question: Is a stronger second half still expected for production and GEO sales? - Management confirmed the expectation of a stronger second half, although timing of deliveries can be unpredictable [60][64] Question: What is the current status of the silver circuit and deferrals? - Management reported a current deferral of 1.97 million ounces of silver, with expectations for recovery improvements in Q4 and into 2026 [71][73] Question: Are larger opportunities emerging in the transaction market? - Management acknowledged seeing larger opportunities in the market, particularly in the base metal sector, but emphasized that the majority of opportunities remain in the $100 to $300 million range [80][84]

Financial Data and Key Metrics Changes - The company reported record earnings of $113 million or $1.72 per share for Q1 2025, with adjusted earnings of $100 million or $1.51 per share after accounting for discrete tax items [5][6][25] - Revenue increased by 30% year-over-year to $193 million, driven by a 38% increase in gold prices, 37% in silver, and 11% in copper [21][22] - The adjusted EBITDA margin was 82% for the quarter, maintaining high margins due to low and stable general and administrative expenses [6][21] Business Line Data and Key Metrics Changes - Royalty revenue rose by approximately 53% year-over-year to $71 million, contributing about 37% of total revenue, while Stream segment revenue increased by 19% to $122 million [10][11] - The volume of gold equivalent ounces (GEOs) sold was 67,600, with strong contributions from assets like Penasquito, Mancho, and Robinson [10][11] Market Data and Key Metrics Changes - Over 53% of revenue was generated from the U.S., Canada, and Australia, indicating a consistent geographic weighting [6] - The company maintained its 2025 guidance ranges for metal sales, depreciation, depletion, and amortization (DD&A), and tax rate despite market volatility [28] Company Strategy and Development Direction - The company is focused on maintaining a diversified portfolio and leveraging strong gold prices to deliver solid results, with a commitment to increasing dividends [7][28] - Recent investments include an additional agreement with Arrow Copper to acquire an incremental stream interest in Sabentina, reflecting a strategy to enhance exposure to high-grade resources [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain economic conditions and elevated market volatility but expressed confidence in the company's stability due to its strong balance sheet and diversified portfolio [28] - The company expects a stronger second half of 2025, with potential for increased production and revenue from key assets [60][62] Other Important Information - The company paid its first dividend of 2025 at a new quarterly rate of $0.45 per share, marking a 12.5% increase over 2024 [7] - The company remains debt-free with total liquidity of approximately $1.25 billion, including a fully undrawn revolving credit facility [26] Q&A Session Summary Question: Insights on the asset handbook and long-term guidance - Management clarified that the asset handbook provides operators' multiyear production outlooks, which can help investors build their growth profiles, although long-term guidance is not provided [33][34] Question: Opportunities in corporate development - Management indicated that existing asset opportunities are prioritized due to established relationships, but new opportunities are also being explored in a busy market [40][46] Question: Clarification on tax items - Management confirmed that the discrete tax items were one-time benefits and reiterated the effective tax rate guidance for the year [48][54] Question: Expectations for production in the second half of the year - Management confirmed expectations for a stronger second half, with potential for increased production from key assets [60][62] Question: Updates on silver recovery and deferrals - Management provided updates on silver recovery efforts at Pueblo Viejo and indicated that deferred silver production may take time to materialize [70][75] Question: M&A opportunities and market shifts - Management acknowledged a shift in the market with larger opportunities emerging, while still focusing on the typical range of $100 to $300 million for asset transactions [80][82]

PART I: FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2025 financial statements reveal significant revenue and net income growth, driven by higher metal prices and strategic acquisitions Consolidated Statements of Operations Highlights (Q1 2025 vs Q1 2024) | Financial Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | **$193,436** | **$148,902** | **+29.9%** | | Operating Income | $123,111 | $75,525 | +63.0% | | **Net Income** | **$113,578** | **$47,309** | **+140.1%** | | Diluted EPS | $1.72 | $0.72 | +138.9% | | Dividends Declared per Share | $0.45 | $0.40 | +12.5% | Consolidated Balance Sheet Highlights (as of Mar 31, 2025 vs Dec 31, 2024) | Balance Sheet Item | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and equivalents | $240,760 | $195,498 | | Total current assets | $316,499 | $275,287 | | Stream and royalty interests, net | $3,059,885 | $3,042,804 | | **Total assets** | **$3,458,318** | **$3,392,130** | | Total current liabilities | $66,772 | $85,151 | | **Total liabilities** | **$243,172** | **$260,924** | | **Total equity** | **$3,215,146** | **$3,131,206** | Consolidated Statements of Cash Flows Highlights (Q1 2025 vs Q1 2024) | Cash Flow Activity (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $136,369 | $138,284 | | Net cash (used in) provided by investing activities | $(58,295) | $23,591 | | Net cash used in financing activities | $(32,812) | $(128,092) | | **Net increase in cash and equivalents** | **$45,262** | **$33,783** | - On March 28, 2025, the company acquired an additional precious metals stream from the Xavantina mine for an advance payment of **$50 million**, funded with available cash, accounted for as an asset acquisition[20](index=20&type=chunk)[22](index=22&type=chunk) Revenue by Metal Type (Q1 2025 vs Q1 2024) | Metal | Q1 2025 Revenue (in thousands) | Q1 2024 Revenue (in thousands) | | :--- | :--- | :--- | | Gold | $145,726 | $111,773 | | Silver | $23,600 | $19,075 | | Copper | $16,812 | $13,125 | | Other | $7,298 | $4,929 | | **Total** | **$193,436** | **$148,902** | - The effective tax rate for Q1 2025 was **8.4%**, a significant decrease from **36.4%** in Q1 2024, due to a **$12.0 million** discrete tax benefit and a **$1.7 million** withholding tax refund[47](index=47&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights strong Q1 2025 performance with increased revenue and net income, driven by higher metal prices and strategic operational updates Average Metal Prices (Q1 2025 vs Q1 2024) | Metal | Q1 2025 Average Price | Q1 2024 Average Price | | :--- | :--- | :--- | | Gold ($/ounce) | $2,860 | $2,070 | | Silver ($/ounce) | $31.88 | $23.34 | | Copper ($/pound) | $4.24 | $3.83 | - Revenue growth was primarily driven by higher average gold, silver, and copper prices, along with increased gold sales from Pueblo Viejo and higher production from Peñasquito[86](index=86&type=chunk) - Depreciation, depletion, and amortization decreased to **$33.0 million** from **$38.8 million** year-over-year, mainly due to lower stream depletion rates and reduced production at Cortez[91](index=91&type=chunk) - The company maintained a strong liquidity position with **$249.7 million** in working capital and approximately **$1.2 billion** in total liquidity, with no outstanding debt[94](index=94&type=chunk)[95](index=95&type=chunk) - Net cash used in investing activities was **$58.3 million**, primarily due to the **$50 million** payment for the additional Xavantina stream acquisition[99](index=99&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Earnings and cash flows are highly sensitive to metal price fluctuations, with gold accounting for 75% of Q1 2025 revenue Revenue Sensitivity to a 10% Metal Price Change (Q1 2025) | Metal | Percentage of Total Reported Revenue | Impact on Revenue (in millions) | | :--- | :--- | :--- | | Gold | 75% | $14.7 | | Silver | 12% | $2.4 | | Copper | 9% | $1.8 | [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2025[109](index=109&type=chunk) - No material changes in internal controls over financial reporting occurred during the quarter[110](index=110&type=chunk) PART II: OTHER INFORMATION [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the quarter - None[113](index=113&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported for the quarter - There have been no material changes to the risk factors included in Part I, Item 1A of our 2024 10-K[114](index=114&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or related use of proceeds - None[115](index=115&type=chunk) [Defaults Upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the quarter - None[116](index=116&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[117](index=117&type=chunk) [Other Information](index=26&type=section&id=Item%205.%20Other%20Information) This section discloses the adoption of a Rule 10b5-1 trading plan by the CFO for potential stock sales - On March 11, 2025, Paul Libner, the company's CFO, adopted a Rule 10b5-1(c) trading plan for the potential sale of up to **2,000 shares** of common stock through July 1, 2026[119](index=119&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed, including employment agreements and required CEO/CFO certifications - Exhibits filed include an employment agreement for William Heissenbuttel, CEO, and forms for other U.S. executives[121](index=121&type=chunk) - Required certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act are included as exhibits[121](index=121&type=chunk)

Company Overview - Royal Gold, Inc. reported stream sales for the quarter ended March 31, 2025, with specific details provided in a press release dated April 8, 2025[4] - The company is listed on the Nasdaq Global Select Market under the trading symbol RGLD[2] Financial Reporting - The press release is furnished as Exhibit 99.1 to the Current Report on Form 8-K[4] - The financial information provided will not be deemed "filed" under the Securities Exchange Act of 1934[5] - The report was signed by David R. Crandall, Vice President, Corporate Secretary, and Chief Compliance Officer[10]

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Core Viewpoint - Royal Gold (RGLD) is positioned as a strong investment opportunity due to its improving earnings outlook and analysts' increasing earnings estimates [1][2]. Earnings Estimates - Analysts are optimistic about Royal Gold's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2]. - The consensus earnings estimate for the current quarter is $1.37 per share, reflecting a year-over-year increase of +50.55% [5]. - For the full year, the earnings estimate stands at $6.68 per share, indicating a +27% change from the previous year [6]. Estimate Revisions - Over the past 30 days, the Zacks Consensus Estimate for Royal Gold has increased by 8.11% for the current quarter, with two estimates raised and no negative revisions [5]. - For the current year, the consensus estimate has risen by 8.23%, supported by three upward revisions and no negative changes [7]. Zacks Rank - Royal Gold currently holds a Zacks Rank 2 (Buy), indicating favorable conditions for investment based on the positive estimate revisions [8]. - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8]. Stock Performance - The stock has gained 18.3% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9].

Company Overview - Royal Gold (RGLD) currently holds a Momentum Style Score of B, indicating a favorable position in momentum investing [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] Performance Metrics - RGLD shares have increased by 34.33% over the past quarter and 56.47% over the last year, significantly outperforming the S&P 500, which has moved -14.46% and 5.35% respectively during the same periods [7] - Over the past week, RGLD shares rose by 2.96%, while the Zacks Mining - Gold industry saw a 2.54% increase [6] Trading Volume - The average 20-day trading volume for RGLD is 710,147 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, 3 earnings estimates for RGLD have been revised upwards, while 1 estimate was revised downwards, leading to an increase in the consensus estimate from $6.20 to $6.68 [10] - For the next fiscal year, there have been 2 upward revisions and 1 downward revision in earnings estimates [10]

Gold Market Overview - Gold price has surged by almost 30% this year, nearing the resistance point at $3,500, with analysts predicting it could reach $3,700 or even $4,000 [1][2] Company Analysis - **Wheaton Precious Metals Corp (WPM)**: - Best gold stock to buy, with a stock price increase of 51% this year and 145% over the last five years, outperforming gold [3] - Generated over $1.28 billion in annual revenue and a net profit of over $552 million last year, using profits to pay shareholders and acquire more rights to gold mines [4] - Trades at a forward P/E ratio of 41, higher than major growth companies like NVIDIA and Microsoft [4] - **Franco-Nevada (FNV)**: - Another quality gold stock, financing gold mining companies in exchange for royalties, ensuring low operating expenses [5] - Generated over $1.1 billion in annual revenue and a net income of $552 million last year, with a forward P/E ratio over 40 [6] - **Royal Gold (RGLD)**: - Offers exposure to gold without operating mines, generating $712 million in revenue and a net profit of nearly $350 million last year, resulting in a margin of nearly 50% [7] - Stock price has surged by over 56% in the last 12 months, with a P/E multiple of 28, making it cheaper than Wheaton and Franco-Nevada [8] Investment Vehicles - **Gold ETFs**: - SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) are popular options, with IAU recommended due to its lower expense ratio of 0.25% compared to GLD's 0.40% [9] - Analysts also recommend gold mining ETFs like VanEck Vectors Gold Miners ETF (GDX), Sprott Gold Miners ETF (SGDM), and iShares MSCI Global Gold Miners ETF (RING) [10]