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Royal Gold(RGLD) - 2025 Q1 - Quarterly Report

PART I: FINANCIAL INFORMATION Financial Statements (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 acquisition2022 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 $1.7 million withholding tax refund47 Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) MD&A highlights strong Q1 2025 performance with increased revenue and net income, driven by higher metal prices and strategic operational updates Average Metal Prices (Q1 2025 vs Q1 2024) | Metal | Q1 2025 Average Price | Q1 2024 Average Price | | :--- | :--- | :--- | | Gold ($/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 Peñasquito86 - 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 Cortez91 - 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 debt9495 - Net cash used in investing activities was $58.3 million, primarily due to the $50 million payment for the additional Xavantina stream acquisition99 Quantitative and Qualitative Disclosures about Market Risk 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 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, 2025109 - No material changes in internal controls over financial reporting occurred during the quarter110 PART II: OTHER INFORMATION Legal Proceedings The company reported no legal proceedings during the quarter - None113 Risk Factors 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-K114 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities or related use of proceeds - None115 Defaults Upon Senior Securities The company reported no defaults upon senior securities during the quarter - None116 Mine Safety Disclosures This item is not applicable to the company - Not applicable117 Other Information 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, 2026119 Exhibits 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. executives121 - Required certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act are included as exhibits121