Statement Regarding Third-Party Information: Certain information provided in this presentation, including information about mineral resources and reserves, historical production, production estimates, property descriptions, and property developments, has been provided to us by the operators of the relevant properties or is publicly available information filed by these operators with applicable securities regulatory bodies, in certain cases including the Securities and Exchange Commission. Royal Gold has not ...

Revenue and Profitability - As of September 30, 2025, Royal Gold owned 10 stream interests, accounting for approximately 66% of total revenue for the three months and 64% for the nine months ended September 30, 2025[95]. - Royalty interests accounted for 34% of total revenue for the three months and 36% for the nine months ended September 30, 2025, compared to 31% for the same periods in 2024[95]. - For the three months ended September 30, 2025, total revenue was $252.1 million, comprised of stream revenue of $166.1 million and royalty revenue of $86.0 million, compared to $193.8 million in the prior year, indicating a year-over-year increase of approximately 30%[137]. - For the nine months ended September 30, 2025, total revenue reached $655.1 million, an increase from $516.8 million in the same period of 2024, driven by higher average metal prices and increased production[149]. - Net income for the nine months ended September 30, 2025, was $372.7 million, or $5.66 per basic share, compared to $224.6 million, or $3.41 per basic share, for the same period in 2024[148]. - For the three months ended September 30, 2025, the company recorded net income of $126.8 million, or $1.92 per share, compared to $96.2 million, or $1.46 per share, for the same period in 2024, reflecting a significant increase in profitability[136]. Metal Prices and Deliveries - Average gold price for the three months ended September 30, 2025, was $3,457 per ounce, contributing 78% to total revenue, while silver averaged $39.40 per ounce, contributing 12%[98]. - The average gold price for the three months ended September 30, 2025, was $3,457 per ounce, compared to $2,474 per ounce in the prior year, reflecting a significant increase in commodity prices[137]. - Gold stream deliveries from Andacollo increased to approximately 8,000 ounces for the three months ended September 30, 2025, up from approximately 5,200 ounces in the same period last year, reflecting improved grades and recoveries[122]. - The company expects 2025 stream deliveries from Kansanshi to be approximately 7,500 ounces, lower than the initial expectation of 12,500 ounces due to the initiation of delivery mechanics[126]. - Gold stream deliveries from Mount Milligan were approximately 14,800 ounces for the three months ended September 30, 2025, down from approximately 22,100 ounces in the same period last year, primarily due to lower grades and recoveries[128]. - Gold stream deliveries from Pueblo Viejo increased to approximately 8,400 ounces for the three months ended September 30, 2025, compared to approximately 6,000 ounces in the prior year, driven by higher throughput and grades[131]. - The company received its first delivery of approximately 2,300 ounces of gold from Kansanshi on October 3, 2025, marking the commencement of a new precious metals purchase agreement[125]. - For the three months ended September 30, 2025, total gold purchases were 44,900 ounces, while sales were 38,600 ounces, compared to 45,700 ounces purchased and 40,700 ounces sold in the same period of 2024[141]. - Silver purchases for the three months ended September 30, 2025, totaled 632,800 ounces, with sales of 594,500 ounces, compared to 456,700 ounces purchased and 688,200 ounces sold in the same period of 2024[141]. Acquisitions and Investments - On October 20, 2025, Royal Gold completed the acquisition of Sandstorm Gold Ltd. and Horizon Copper Corp., issuing 18.6 million shares and paying $380.9 million in cash[99][100]. - The Warintza Project acquisition included a $200 million advance payment, with $100 million paid at closing and additional payments contingent on project milestones[112]. - Royal Gold made an advance payment of $1.0 billion for a gold stream agreement related to the Kansanshi copper-gold mine, with deliveries structured based on copper production[107]. - The company utilized $1.2 billion in investing activities for the nine months ended September 30, 2025, primarily due to payments for stream and royalty interests[169]. - The company borrowed $825.0 million under its revolving credit facility for the acquisition of Sandstorm and Horizon, with $450.0 million borrowed in October 2025[167]. Operational Performance - The Cortez Complex produced approximately 202,200 ounces of gold for the three months ended September 30, 2025, an increase from approximately 161,800 ounces in the same period last year[134]. - The Mount Milligan Pre-Feasibility Study announced an extension of the mine life to 2045, with average annual production projected at 150,000 ounces of gold and 69 million pounds of copper from 2026 to 2042[102]. - The company is targeting a Final Investment Decision for the Warintza project by the end of 2026, indicating ongoing strategic development efforts[115]. Financial Metrics and Costs - Cost of sales for the nine months ended September 30, 2025, increased to $80.1 million from $73.1 million in the same period of 2024, primarily due to higher payments for stream deliveries resulting from increased metal prices[154]. - General and administrative costs for the nine months ended September 30, 2025, decreased to $31.5 million from $32.0 million in the same period of 2024, mainly due to lower non-cash stock compensation expenses[155]. - Interest and other income increased significantly to $6.8 million for the three months ended September 30, 2025, from $0.6 million in the same period of 2024, primarily due to a $4.9 million gain on the sale of restricted inventory[145]. - Interest and other expense rose to $8.6 million for the three months ended September 30, 2025, from $1.2 million in the same period of 2024, mainly due to higher interest expenses related to increased amounts outstanding under the revolving credit facility[146]. - The effective tax rate for the three months ended September 30, 2025, was 17.9%, compared to 18.3% for the same period in 2024, with income tax expense recorded at $28.7 million[147]. - The company recorded income tax expense of $49.6 million for the nine months ended September 30, 2025, resulting in an effective tax rate of 11.6%, down from 23.1% in the prior year[159]. Liquidity and Debt - Liquidity at September 30, 2025, included $287.4 million in current assets against $99.5 million in current liabilities, resulting in working capital of $187.9 million[160]. - The company had $775.0 million in outstanding debt and $625.0 million available under its revolving credit facility as of September 30, 2025[161]. - A 10% increase in the average gold price would have increased total reported revenue by $51.3 million, while a 10% decrease would have reduced it by the same amount[178]. - Net cash provided by operating activities totaled $463.1 million for the nine months ended September 30, 2025, compared to $388.5 million for the same period in 2024, reflecting an increase of approximately 19.2%[168].

Core Insights - Royal Gold (NASDAQ: RGLD) is positioned as a strong investment opportunity due to its robust margins, low-debt capital structure, and positive momentum [2][3] Company Overview - Royal Gold manages precious metal streams and royalties, with interests in 187 global properties across five continents, including the U.S., Canada, Chile, Australia, Africa, and Mexico [4] - The company's revenues are closely tied to gold prices, as they derive from royalty and streaming contracts based on gold production and price levels [4] Financial Performance - Royal Gold reported a revenue increase of 30.1% over the last twelve months (LTM) and an average growth of 8.2% over the past three years [8] - The company has maintained an operating cash flow margin of approximately 70.7% and an operating margin of 55.4% on average over the last three years [8] Market Position and Trends - Royal Gold is currently in the top 10 percentile of stocks based on a proprietary metric for "trend strength," indicating strong momentum [8] - Despite its positive momentum, RGLD stock is trading 13% lower than its 52-week peak, suggesting potential for further growth [8] Industry Context - A rebound in gold prices, driven by factors such as renewed safe-haven demand, potential interest rate cuts, or geopolitical uncertainty, could significantly benefit Royal Gold [4][5] - The company benefits from higher realized gold prices without incurring the operating costs associated with mining, which could lead to substantial cash flow and margin gains even with a moderate recovery in gold prices [5]

Core Viewpoint - The ongoing bull run in gold is supported by historical patterns and macroeconomic factors, despite contrasting opinions from market commentators like Jim Cramer who suggest selling gold [1][4]. Group 1: Gold Market Analysis - Crescat Capital's Otavio Costa argues that the current gold price surge, nearing $4,000 per ounce, indicates that the bull run is not yet at its peak, primarily due to a historically high gold-to-silver ratio of 85, which suggests significant upside potential [1][2]. - Historical data shows that previous peaks in gold cycles occurred when the gold-to-silver ratio was much lower, specifically below 20 in 1980 and around 30 in 2011, reinforcing Costa's view that the current cycle has room to grow [3][4]. Group 2: Macro Factors Influencing Gold - Costa identifies a "trifecta of macro imbalances" as key drivers for the gold rally, including central banks accumulating gold, record levels of government debt, and unsustainable fiscal deficits [3][4]. - Geopolitical shifts, an ongoing inflationary environment, and challenges faced by major mining companies are also contributing to the strength of gold [4]. Group 3: Gold and Mining ETFs Performance - Gold Spot prices have risen by 0.61% to approximately $4,123.43 per ounce, with the previous record high at $4,381.6 per ounce, indicating a strong market for gold and related investments [5]. - Notable performances among gold mining companies include Harmony Gold Mining Company Ltd. with a year-to-date performance of 115.45% and Perpetua Resources Corp. at 133.39%, reflecting the positive sentiment in the gold sector [6][7].

Core Insights - Royal Gold, Inc. is a prominent player in the gold streaming and royalty sector, focusing on acquiring and managing precious metal streams and royalties, which allows for steady income without direct mining risks [1] - The company has received an upgrade from Raymond James, with a new price target set at $257, reflecting a positive outlook on its stock performance [2] Acquisitions - The Supreme Court of British Columbia approved a $3.5 billion all-stock acquisition of Sandstorm Gold and a $196 million cash purchase of Horizon Copper, which are significant for expanding Royal Gold's precious metal portfolio [3] - The acquisition of Sandstorm Gold involves exchanging 0.0625 Royal Gold shares for each Sandstorm share, amounting to $3.5 billion in equity value [3] Growth Potential - The recent acquisitions will introduce 40 producing assets into Royal Gold's portfolio, with an anticipated 26% increase in gold equivalent output by 2025, enhancing its gold exposure [4] - These strategic moves position Royal Gold as a leading growth entity in the gold streaming and royalty sector, aiming to strengthen its market presence [4]

Core Insights - Royal Gold, Inc. (RGLD) has received approval for its acquisition of Sandstorm Gold Ltd. (SAND) and Horizon Copper Corp., marking a significant step in expanding its portfolio [1][9] - The acquisition of Sandstorm is an all-stock deal valued at $3.5 billion, while the Horizon Copper acquisition is a cash deal worth approximately $196 million [2][3] Acquisition Details - RGLD will offer 0.0625 Royal Gold shares for each Sandstorm share, representing a 21% premium based on the 20-day VWAP and a 17% premium based on the July 3, 2025, closing price [2] - The Horizon Copper acquisition is priced at C$2.00 per share, reflecting an 85% premium to its 20-day VWAP and a 72% premium to its July 4, 2025, closing price [3] Portfolio Expansion - The acquisitions will add 40 producing assets to Royal Gold's portfolio, expected to generate 65,000-80,000 gold equivalent ounces (GEO) in 2025, increasing GEO production by 26% [4][9] - Post-acquisition, SAND and Horizon shares will be delisted from their respective exchanges [3] Revenue Composition - After the transaction, the revenue mix for Royal Gold is projected to be 87% from precious metals, with gold contributing 75% of total revenues [5] Q3 Performance Insights - In Q3, RGLD Gold AG sold 48,000 GEOs, an increase from 40,600 GEOs in Q2 2025 but a decrease from 53,800 GEOs in Q3 2024 [6] - The anticipated revenue for Q3 is expected to benefit from higher year-over-year prices for gold, silver, and copper, despite lower sales compared to the previous year [7]

Core Points - Horizon Copper Corp. has completed a plan of arrangement with Royal Gold, Inc. and its subsidiary, AcquireCo, resulting in Royal Gold acquiring all issued and outstanding Horizon shares and warrants [1][2] - Shareholders will receive C$2.00 for each Horizon Share held, while Warrantholders will receive C$2.00 minus the applicable exercise price for each underlying share [2] - Horizon Shares are expected to be delisted from the TSX Venture Exchange effective October 21, 2025, and the company will apply to cease being a reporting issuer [3] Arrangement Details - The Arrangement involves Royal Gold acquiring Horizon's shares and warrants, with specific consideration outlined for both Shareholders and Warrantholders [1][2] - Shareholders and Warrantholders are advised to review the Circular for procedures on receiving their Consideration [4][5] - Registered Shareholders and Warrantholders must submit necessary documentation to Computershare Investor Services Inc. for processing [5][6] Additional Information - The company is addressing potential delays due to the ongoing Canada Post strike, advising Shareholders and Warrantholders to use courier services for documentation submission [6] - For inquiries regarding the procedures for receiving Consideration, Shareholders and Warrantholders can contact Computershare Investor Services Inc. [7]

Summary of North American Metals & Mining Conference Call Industry Overview - **Industry**: North American Precious Metals - **Key Commodities**: Gold and Silver Core Insights and Arguments 1. **Price Forecasts**: - Gold is projected to reach **$5,000/oz** and silver to **$65/oz** in the next 12-18 months, with 2026 average forecasts for gold raised by **18%** to **$4,329/oz** and silver by **29%** to **$54.88/oz** [1][10][11] - Investment demand for gold is expected to increase by **14%** in 2026, similar to the current year [2] 2. **Market Dynamics**: - Key conditions supporting gold price strength include: - US structural deficit - Inflationary pressures from deglobalization - Threats to the independence of the US central bank - Ongoing global geopolitical tensions [1] 3. **Investment Trends**: - ETF purchases of gold surged by **880% YoY** in September, reaching an all-time high of **$14 billion** [2] - Total physical and paper gold investment has nearly doubled, exceeding **5%** of global equity and fixed income markets [2] 4. **Risks to Monitor**: - Supreme Court ruling on President Trump's tariffs - Potential hawkish pivot from the Federal Reserve if economic data improves - Outcomes of the US mid-term elections affecting economic policy implementation [2] Company-Specific Updates 1. **Net Asset Value (NAV) and Price Objectives (PO)**: - NAV estimates for North American Precious Metals coverage increased by **10%**, with average POs raised by **16%** [3][19] - IAMGOLD (IAG) saw the largest PO increase of **49%** to **$16.75** per share, reflecting improved jurisdictional risk [3][15] - SSR Mining (SSRM) PO raised by **41%** to **$18.00** per share, despite an Underperform rating due to uncertainties regarding Çöpler mine [3][15] 2. **Top Picks**: - Agnico Eagle Mines (AEM) is highlighted as the top pick due to its strong track record and growth projects [4] - Pan American Silver (PAAS) is favored for balanced exposure to silver and gold [4] 3. **EBITDA Revisions**: - Average EBITDA estimates for 2026 and 2027 increased by **25%** and **18%**, respectively, driven by revised commodity price forecasts [20] 4. **Valuation Multiples**: - Target multiples for IAMGOLD and SSR Mining adjusted to **1.60x** and **1.00x**, respectively, reflecting improved performance and market conditions [15][16] Additional Important Information - The report indicates potential conflicts of interest due to BofA Securities' business relationships with covered issuers [6] - The document includes various disclosures and certifications relevant to the research [5][6] This summary encapsulates the key points from the conference call, focusing on industry trends, company-specific updates, and potential investment opportunities and risks.

Core Viewpoint - Horizon Copper Corp. has received final approval from the Supreme Court of British Columbia for its arrangement with Royal Gold, Inc., which will result in Royal Gold acquiring all outstanding shares and warrants of Horizon Copper [1][2]. Group 1: Transaction Details - The Horizon Transaction will see Horizon shareholders receive C$2.00 for each share held and C$2.00 minus the applicable exercise price for each warrant held [1]. - The completion of the Horizon Transaction is expected on October 20, 2025, pending customary closing conditions [2]. - Following the transaction, Horizon shares will be delisted from the TSX Venture Exchange, and the company will apply to cease being a reporting issuer [2]. Group 2: Company Overview - Horizon Copper holds significant copper assets, including a 1.66% net profits interest in the Antamina copper mine, a 24% equity ownership in Entrée Resources Ltd. related to the Oyu Tolgoi copper mine, and a 30% interest in the Hod Maden project [4].

Core Insights - Royal Gold, Inc. (RGLD) reported a sales update for Q3 2025, with 48,000 gold equivalent ounces (GEOs) sold, an increase from 40,600 GEOs in Q2 2025 but a decrease from 53,800 GEOs in Q3 2024 [1] - The average realized prices for gold, silver, and copper increased in Q3 2025 compared to Q2 2025, with gold at $3,415 per ounce, silver at $37.90 per ounce, and copper at $9,660 per ton [2][3] - The cost of sales for RGLD was $653 per GEO in Q3 2025, up from $596 in the previous quarter [3] Revenue Performance - In Q2 2025, Royal Gold achieved record revenues of $210 million, a 20.4% year-over-year increase, primarily driven by higher metal prices and production from Peñasquito and Manh Choh [4] - Stream revenues were $133 million and royalty revenues were $77 million in Q2 2025, with stream revenues increasing by 8.3% year-over-year and royalty revenues improving by 49.7% [5] - The consensus estimate for RGLD's Q3 earnings is $2.19, up from $1.47 in Q3 2024, indicating a positive outlook despite lower sales compared to the prior year [6][8] Stock Performance - Over the past year, RGLD's shares have increased by 36.9%, while the industry has seen a growth of 86.6% [7]