Royal Gold Q4 Earnings Call Highlights

Core Insights - Royal Gold achieved record financial results in fiscal 2025, with significant increases in revenue, operating cash flow, and earnings, driven by a strong gold price environment and strategic acquisitions [3][6][2] Financial Performance - Total revenue for fiscal 2025 was reported at $1.0 billion, representing a 43% increase compared to 2024 [2] - Operating cash flow reached $705 million, up 33% year over year [2] - Earnings for the year were $466 million, a 40% increase from the previous year, with adjusted net income hitting a record $510 million, up 47% year over year [2][6] Dividend and Shareholder Returns - Gold accounted for 78% of total revenue, and the company maintained an adjusted EBITDA margin of 82% [1] - Royal Gold paid over $118 million in dividends during 2025 and raised its annual dividend to $1.90 per share for 2026, marking the 25th consecutive annual increase [1][6] - Since initiating a dividend in 2000, the company has returned approximately $1.2 billion to shareholders [1] Acquisitions and Portfolio Growth - The company completed several key acquisitions in 2025, including Sandstorm Gold and Horizon Copper, which significantly boosted cash flow and revenue [5][6] - Integration of the acquired portfolios is largely complete, with further work underway to streamline assets [7][5] - Royal Gold expects to fully repay its revolver by early 2027, following a reduction in debt from $1.225 billion to $725 million [14] Fourth Quarter Highlights - In Q4, Royal Gold delivered 90,800 GEOs and achieved record quarterly revenue of $375 million, with stream revenue increasing by 110% to $265 million [4][9] - Royalty revenue rose 42% year over year to $111 million, driven by higher sales from key assets [9] - The company noted significant price increases for metals, with gold prices up 55%, silver up 74%, and copper up 21% compared to the prior year [9] Future Guidance and Market Outlook - The company plans to provide 2026 guidance and long-term direction at an Investor Day on March 31 [7] - Management indicated that the deal pipeline remains strong, with ongoing opportunities in third-party royalties and development-stage projects [15] - Royal Gold expects 2026 attributable gold sales from the Kansanshi mine to be between 26,000 and 31,000 ounces [11]