ROYAL GOLD INC 10-Q

ITEM 1. FINANCIAL STATEMENTS ROYAL GOLD, INC. Consolidated Balance Sheets (Unaudited, amounts in thousands except share data) March 31, 2025 December 31, 2024 ASSETS Cash and equivalents $ 240,760 $ 195,498 Royalty receivables 57,729 63,460 Income tax receivable 1,370 1,139 Stream inventory 14,556 12,973 Prepaid expenses and other 2,084 2,217 Total current assets 316,499 275,287 Stream and royalty interests, net (Note 3) 3,059,885 3,042,804 Other assets 81,934 74,039 Total assets $ 3,458,318 $ 3,392,130 LIABILITIES Accounts payable $ 2,464 $ 10,578 Dividends payable 29,634 29,611 Income tax payable 15,345 23,177 Other current liabilities 19,329 21,785 Total current liabilities 66,772 85,151 Deferred tax liabilities 131,879 132,308 Mount Milligan deferred liability (Note 4) 25,000 25,000 Other liabilities 19,521 18,465 Total liabilities 243,172 260,924 Commitments and contingencies (Note 10) EQUITY Preferred stock, $ .01 par value, 10,000,000 shares authorized; and 0 shares issued — — Common stock, $ .01 par value, 200,000,000 shares authorized; and 65,735,304 and 65,691,151 shares outstanding, respectively 657 657 Additional paid-in capital 2,228,497 2,228,311 Accumulated earnings 973,853 889,989 Total Royal Gold stockholders’ equity 3,203,007 3,118,957 Non-controlling interests 12,139 12,249 Total equity 3,215,146 3,131,206 Total liabilities and equity $ 3,458,318 $ 3,392,130 The accompanying notes are an integral part of these consolidated financial statements. 3 ROYAL GOLD, INC. Consolidated Statements of Operations and Comprehensive Income (Unaudited, amounts in thousands except share data) Three Months Ended March 31, 2025 March 31, 2024 Revenue (Note 5) $ 193,436 $ 148,902 Costs and expenses Cost of sales (excludes depreciation, depletion and amortization) 24,506 21,751 General and administrative 11,063 11,412 Production taxes 1,761 1,449 Depreciation, depletion and amortization 32,995 38,765 Total costs and expenses 70,325 73,377 Operating income 123,111 75,525 Fair value changes in equity securities ( 37 ) 447 Interest and other income 2,049 2,977 Interest and other expense ( 1,156 ) ( 4,607 ) Income before income taxes 123,967 74,342 Income tax expense (Note 8) ( 10,389 ) ( 27,033 ) Net income and comprehensive income 113,578 47,309 Net income and comprehensive income attributable to non-controlling interests ( 80 ) ( 143 ) Net income and comprehensive income attributable to Royal Gold common stockholders $ 113,498 $ 47,166 Net income per share attributable to Royal Gold common stockholders: Basic earnings per share $ 1.72 $ 0.72 Basic weighted average shares outstanding 65,705,157 65,637,428 Diluted earnings per share $ 1.72 $ 0.72 Diluted weighted average shares outstanding 65,791,551 65,740,260 Cash dividends declared per common share $ 0.45 $ 0.40 The accompanying notes are an integral part of these consolidated financial statements. 4 ROYAL GOLD, INC. Consolidated Statements of Changes in Stockholders’ Equity Three months ended March 31, 2025, and 2024 (unaudited, amounts in thousands except share data) Royal Gold Stockholders Common Shares Additional Paid-In Capital Accumulated Earnings Non-controlling Interests Total Equity Shares Amount Balance at December 31, 2024 65,691,151 $ 657 $ 2,228,311 $ 889,989 $ 12,249 $ 3,131,206 Stock-based compensation and related share issuances 44,153 — 186 — — 186 Distributions to non-controlling interests — — — — ( 190 ) ( 190 ) Net income and comprehensive income — — — 113,498 80 113,578 Dividends declared — — — ( 29,634 ) — ( 29,634 ) Balance at March 31, 2025 65,735,304 $ 657 $ 2,228,497 $ 973,853 $ 12,139 $ 3,215,146 Royal Gold Stockholders Common Shares Additional Paid-In Capital Accumulated Earnings Non-controlling Interests Total Equity Shares Amount Balance at December 31, 2023 65,631,760 $ 656 $ 2,221,039 $ 666,522 $ 12,424 $ 2,900,641 Stock-based compensation and related share issuances 17,071 — 1,982 — — 1,982 Distributions to non-controlling interests — — — — ( 255 ) ( 255 ) Net income and comprehensive income — — — 47,166 143 47,309 Dividends declared — — — ( 26,311 ) — ( 26,311 ) Balance at March 31, 2024 65,648,831 $ 656 $ 2,223,021 $ 687,377 $ 12,312 $ 2,923,366 The accompanying notes are an integral part of these consolidated financial statements. 5 ROYAL GOLD, INC. Consolidated Statements of Cash Flows (Unaudited, amounts in thousands) Three Months Ended March 31, 2025 March 31, 2024 Cash flows from operating activities: Net income and comprehensive income $ 113,578 $ 47,309 Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities: Depreciation, depletion and amortization 32,995 38,765 Non-cash employee stock compensation expense 3,198 2,988 Fair value changes in equity securities 37 ( 447 ) Deferred tax (benefit) expense ( 8,828 ) 648 Other 224 222 Changes in assets and liabilities: Royalty receivables 5,731 10,127 Stream inventory ( 1,583 ) ( 1,629 ) Income tax receivable ( 231 ) ( 433 ) Prepaid expenses and other assets 345 10,763 Accounts payable 135 158 Income tax payable ( 7,832 ) 6,465 Mount Milligan deferred liability — 25,000 Other liabilities ( 1,400 ) ( 1,652 ) Net cash provided by operating activities $ 136,369 $ 138,284 Cash flows from investing activities: Acquisition of stream and royalty interests ( 58,246 ) ( 1,104 ) Proceeds from Khoemacau debt facility — 25,000 Other ( 49 ) ( 305 ) Net cash (used in) provided by investing activities $ ( 58,295 ) $ 23,591 Cash flows from financing activities: Repayment of debt — ( 100,000 ) Net payments from issuance of common stock ( 3,011 ) ( 1,369 ) Common stock dividends ( 29,611 ) ( 26,292 ) Other ( 190 ) ( 431 ) Net cash used in financing activities $ ( 32,812 ) $ ( 128,092 ) Net increase in cash and equivalents 45,262 33,783 Cash and equivalents at beginning of period 195,498 104,167 Cash and equivalents at end of period $ 240,760 $ 137,950 The accompanying notes are an integral part of these consolidated financial statements. 6 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS Royal Gold, Inc., together with its subsidiaries (“Royal Gold,” the “Company,” “we,” “us,” or “our”), is engaged in the business of acquiring and managing precious metals streams, royalties and similar interests. We seek to acquire existing stream and royalty interests or to finance projects that are in the production, development or exploration stage in exchange for stream or royalty interests. A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right and obligation to purchase all or a portion of one or more metals produced from a mine at a price determined for the life of the transaction by the purchase agreement. Royalties are non-operating interests in a mining project that provide the right to revenue or metals produced from the project after deducting contractually specified costs, if any. Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in this Form 10-Q. Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2025. These interim unaudited consolidated financial statements should be read in conjunction with our Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on February 13, 2025 (“2024 10-K”). Recent Accounting Standards We have evaluated all the recently issued, but not yet effective, accounting standards that have been issued or proposed by the Financial Accounting Standards Board or other standards-setting bodies through the filing date of these unaudited consolidated financial statements and do not believe the future adoption of any such standards will have a material impact on our consolidated financial statements. 2. ACQUISITIONS Additional Xavantina Stream On March 28, 2025, we entered into an additional precious metals purchase agreement (“Additional Stream”) with Ero Gold Corporation, a wholly owned subsidiary of Ero Copper Corporation, and certain of its affiliates for gold produced from the Xavantina mine for an advance payment of $ 50 million. The Additional Stream is incremental to the existing precious metals purchase agreement between the parties dated June 29, 2021 (“Base Stream”), and significantly extends the area of interest. As of March 31, 2025, 46,500 ounces of gold have been delivered under the Base Stream at a cash purchase price of 20 % of the spot gold price for each ounce delivered, which will increase to 40 % of the spot gold price for each ounce delivered upon the delivery of 49,000 ounces. When considered with the Base Stream, the Additional Stream effectively increases the threshold for stream deliveries at the current 25 % stream rate from 93,000 ounces to 160,000 ounces, with the additional deliveries to be payable at a cash price of 40 % of the spot gold price. The Additional Stream has been accounted for as an asset acquisition. The $ 50 million advance payment, plus direct acquisition costs, have been recorded as an exploration stage stream interest (Note 3) within Stream and royalty interests, net on our consolidated balance sheets. The purchase price was funded with available cash on hand. 7 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 3. STREAM AND ROYALTY INTERESTS, NET The following tables summarize our stream and royalty interests, net as of March 31, 2025 and December 31, 2024. As of March 31, 2025 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ ( 468,140 ) $ 322,495 Pueblo Viejo 610,404 ( 311,009 ) 299,395 Andacollo 388,182 ( 179,451 ) 208,731 Khoemac a u 265,911 ( 61,848 ) 204,063 Rainy River 175,727 ( 88,577 ) 87,150 Other 241,830 ( 157,677 ) 84,153 Total production stage stream interests 2,472,689 ( 1,266,702 ) 1,205,987 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 353,850 ( 85,901 ) 267,949 Voisey's Bay 205,724 ( 126,201 ) 79,523 Red Chris 116,187 ( 9,033 ) 107,154 Peñasquito 99,172 ( 66,980 ) 32,192 Other 515,174 ( 420,803 ) 94,371 Total production stage royalty interests 1,290,107 ( 708,918 ) 581,189 Total production stage stream and royalty interests 3,762,796 ( 1,975,620 ) 1,787,176 Development stage stream interests: Ilovica 12,038 — 12,038 Development stage royalty interests: Cactus 55,122 — 55,122 Back River 42,948 — 42,948 La Fortuna 35,140 — 35,140 Other 25,576 — 25,576 Total development stage stream and royalty interests 170,824 — 170,824 Exploration stage stream interests: Xavantina 64,794 — 64,794 Exploration stage royalty interests: Cortez (Legacy Zone and CC Zone) 456,479 — 456,479 Great Bear 209,106 — 209,106 Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Côté 29,610 — 29,610 Other 115,311 — 115,311 Total exploration stage stream and royalty interests $ 1,101,885 $ — $ 1,101,885 Total stream and royalty interests, net $ 5,035,505 $ ( 1,975,620 ) $ 3,059,885 8 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) As of December 31, 2024 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ ( 462,412 ) $ 328,223 Pueblo Viejo 610,404 ( 308,283 ) 302,121 Andacollo 388,182 ( 177,059 ) 211,123 Khoemac a u 265,911 ( 58,043 ) 207,868 Rainy River 175,727 ( 86,307 ) 89,420 Other 241,830 ( 154,245 ) 87,585 Total production stage stream interests 2,472,689 ( 1,246,349 ) 1,226,340 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 353,850 ( 81,845 ) 272,005 Voisey's Bay 205,724 ( 124,526 ) 81,198 Red Chris 116,187 ( 5,966 ) 110,221 Peñasquito 99,172 ( 65,372 ) 33,800 Other 519,491 ( 418,648 ) 100,843 Total production stage royalty interests 1,294,424 ( 696,357 ) 598,067 Total production stage stream and royalty interests 3,767,113 ( 1,942,706 ) 1,824,407 Development stage stream interests: Ilovica 12,038 — 12,038 Development stage royalty interests: Cactus 55,128 — 55,128 Back River 42,948 — 42,948 La Fortuna 35,140 — 35,140 Other 21,133 — 21,133 Total development stage stream and royalty interests 166,387 — 166,387 Exploration stage stream interests: Xavantina 14,792 — 14,792 Exploration stage royalty interests: Cortez (Legacy Zone and CC Zone) 456,479 — 456,479 Great Bear 209,106 — 209,106 Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Côté 29,610 — 29,610 Other 115,438 — 115,438 Total exploration stage stream and royalty interests $ 1,052,010 $ — $ 1,052,010 Total stream and royalty interests, net $ 4,985,510 $ ( 1,942,706 ) $ 3,042,804 9 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 4. MOUNT MILLIGAN DEFERRED LIABILITY On February 13, 2024, we entered into a Processing Cost Support Agreement (the "Mount Milligan Cost Support Agreement") with Centerra Gold Inc. ("Centerra") with respect to the Mount Milligan mine for cash consideration of $ 24.5 million, 50,000 ounces of gold to be delivered in the future ("Deferred Gold Consideration") and a free cash flow interest. The cost support allowed for the extension of the mine from 2032 to 2035 and the potential to extend the mine life beyond 2035. The value of the cash consideration and free cash flow interest received from Centerra is recorded as a deferred liability in our consolidated balance sheets as of March 31, 2025. For further detail on the Mount Milligan Cost Support Agreement and the Deferred Gold Consideration refer to our 2024 10-K. 5. REVENUE Revenue Recognition A performance obligation is a promise in a contract to transfer control of a distinct good or service (or integrated package of goods and/or services) to a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, a performance obligation is satisfied. In accordance with this guidance, revenue attributable to our stream interests and royalty interests is generally recognized at the point in time that control of the related metal production transfers to our customers. The amount of revenue we recognize further reflects the consideration to which we are entitled under the respective stream or royalty agreement. A more detailed summary of our revenue recognition policies for our stream and royalty interests is discussed below. Stream Interests A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right and obligation to purchase all or a portion of one or more of the metals produced from a mine, at a price determined for the life of the transaction by the purchase agreement. Gold, silver and copper received under our metal streaming agreements are taken into inventory, and then sold primarily at cash average or spot market prices. The sales price for the averaging contracts is determined by the average daily gold, silver or copper spot prices during the term of the contract, typically a consecutive period between ten days and three months (depending on the frequency of deliveries under the respective streaming agreement and our sales policy in effect at the time), commencing shortly after receipt and purchase of the metal. We settle both averaging and spot sales contracts via physical delivery of the metal to the purchaser (our customer) on the settlement date specified in the contract. Under our sales contracts, there is a single performance obligation to sell a contractually specified volume of metal to the purchaser, and we satisfy this obligation at the point in time of physical delivery. Accordingly, revenue from our metal sales is recognized on the date of settlement, which is the date that control, custody and title to the metal transfer to the purchaser. Royalty Interests Royalties are non-operating interests in mining projects that provide the right to a percentage of revenue or metals produced from the project after deducting specified costs, if any. We are entitled to payment for our royalty interest in a mining project based on a contractually specified commodity price (for example, a monthly or quarterly average spot price) for the period in which metal production occurs. As a royalty holder, we act as a passive entity in the production and operations of the mining project, and the third-party operator of the mining project is responsible for all mining activities, including subsequent marketing and delivery of all metal production to its ultimate customer. In all of our material royalty interest arrangements, we have concluded that we transfer control of our interest in the metal production to the operator at the point at which production occurs, and thus, the operator is our customer. We have further determined that the transfer of each unit of metal production comprising our royalty interest to the operator represents a separate performance obligation under the contract, and each performance obligation is satisfied at the point in time of metal production by the operator. Accordingly, we recognize revenue attributable to our royalty interests in the period in which metal production occurs at the specified commodity price per the agreement, net of any contractually allowable costs. 10 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) Royalty Revenue Estimates For a small number of our royalty interests, we may not receive, or be entitled to receive, payment information, including production information from the operator, for the period in which metal production occurred prior to issuance of our financial statements for that period. As a result, we may estimate revenue for these royalties based on available information, including public information, from the operator. If adequate information is not available from the operator or from other public sources before we issue our financial statements, we will recognize royalty revenue during the period in which the necessary payment information is received. Differences between estimates and actual amounts could differ significantly and are recorded in the period that the actual amounts are known. Please also refer to our “Use of Estimates” accounting policy discussed in our 2024 10-K. For the three months ended March 31, 2025, royalty revenue that was estimated or was attributable to metal production for a period prior to the three months ended March 31, 2025, was not material. Disaggregation of Revenue We have identified two material revenue sources in our business: stream interests and royalty interests. These identified revenue sources are consistent with our reportable segments as discussed in Note 9. Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands): Three Months Ended March 31, 2025 March 31, 2024 Stream revenue: Gold $ 94,562 $ 78,277 Silver 18,699 14,747 Copper 9,221 9,504 Total stream revenue $ 122,482 $ 102,528 Royalty revenue: Gold $ 51,164 $ 33,496 Copper 7,591 3,621 Silver 4,901 4,328 Other 7,298 4,929 Total royalty revenue $ 70,954 $ 46,374 Total revenue $ 193,436 $ 148,902 11 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands): Three Months Ended Metal(s) March 31, 2025 March 31, 2024 Stream revenue: Mount Milligan Gold & Copper $ 42,808 $ 34,995 Pueblo Viejo Gold & Silver 28,751 17,760 Andacollo Gold 12,744 11,689 Other (1) Gold & Silver 38,179 38,084 Total stream revenue $ 122,482 $ 102,528 Royalty revenue: Cortez Legacy Zone Gold $ 11,143 $ 13,365 Cortez CC Zone Gold 3,554 4,411 Other (1) Various 56,257 28,598 Total royalty revenue $ 70,954 $ 46,374 Total revenue $ 193,436 $ 148,902 ______________________________________________ (1) In our 2024 10-K, Khoemac a u and Peñasquito were reclassified from principal to non-principal stream and royalty properties, respectively, and are shown within "Other" in the table above. Please refer to Note 9 for the geographical distribution of our revenue by reportable segment. 6. STOCK-BASED COMPENSATION We recognized stock-based compensation expense as follows (amounts in thousands): Three Months Ended March 31, 2025 March 31, 2024 Restricted stock $ 2,012 $ 1,971 Performance stock 1,186 1,017 Total stock-based compensation expense 3,198 2,988 Stock-based compensation expense is included within General and administrative expense in the consolidated statements of operations and comprehensive income. We granted the following stock-based compensation awards: Three Months Ended March 31, 2025 March 31, 2024 (Number of shares) Performance stock (at maximum 200 % attainment) 72,120 93,840 Restricted stock 50,264 65,850 Total equity awards granted 122,384 159,690 12 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) As of March 31, 2025, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows: Unrecognized compensation expense Weighted- average vesting period (years) Restricted stock $ 11,380 2.2 Performance stock 9,871 2.3 7. EARNINGS PER SHARE (“EPS”) Basic EPS was computed using the weighted average number of shares of common stock outstanding during the period, considering the effect of participating securities. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of EPS pursuant to the two-class method. Our unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared. Our unexercised stock option awards, unexercised stock-settled stock appreciation rights and unvested performance stock do not contain rights to dividends. Under the two-class method, the earnings used to determine basic EPS are reduced by an amount allocated to participating securities. Use of the two-class method has an immaterial impact on the calculation of basic and diluted EPS. The following table summarizes the effects of dilutive securities on diluted EPS for the periods shown below (amounts in thousands, except share data): Three Months Ended March 31, 2025 March 31, 2024 Net income attributable to Royal Gold common stockholders $ 113,498 $ 47,166 Weighted-average shares for basic EPS 65,705,157 65,637,428 Effect of other dilutive securities 86,394 102,832 Weighted-average shares for diluted EPS 65,791,551 65,740,260 Basic EPS $ 1.72 $ 0.72 Diluted EPS $ 1.72 $ 0.72 8. INCOME TAXES The following table provides the income tax expense (amounts in thousands) and effective tax rates for the periods indicated: Three Months Ended March 31, 2025 March 31, 2024 Income tax expense $ 10,389 $ 27,033 Effective tax rate 8.4 % 36.4 % The effective tax rate for the three months ended March 31, 2025, included a $ 12.0 million discrete benefit, net of valuation allowance, for additional recoverable basis in foreign jurisdictions and a $ 1.7 million discrete benefit related to a withholding tax refund on a foreign royalty. The effective tax rate for the three months ended March 31, 2024 included a $ 13.0 million discrete income tax expense related to the consideration from the Mount Milligan Cost Support Agreement. 9. SEGMENT INFORMATION We manage our business under two reportable segments, consisting of the acquisition and management of stream interests and the acquisition and management of royalty interests. Our President and Chief Executive Officer serves as our Chief Operating Decision Maker ("CODM") and is responsible for reviewing segment performance and making decisions regarding resource allocation. In addition to revenue, our CODM regularly reviews cost of sales, production taxes and 13 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) depletion for each of our reportable segments. Royal Gold's long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following table (amounts in thousands): As of March 31, 2025 As of December 31, 2024 Stream interest Royalty interest Total stream and royalty interests, net Stream interest Royalty interest Total stream and royalty interests, net Canada $ 409,644 $ 653,739 $ 1,063,383 $ 417,643 $ 659,070 $ 1,076,713 Dominican Republic 299,395 — 299,395 302,122 — 302,122 Africa 230,964 321 231,285 237,028 321 237,349 Chile 208,731 224,116 432,847 211,123 224,116 435,239 United States — 822,355 822,355 — 827,277 827,277 Mexico — 32,191 32,191 — 33,800 33,800 Australia — 18,723 18,723 — 19,265 19,265 Rest of world 134,085 25,621 159,706 85,254 25,785 111,039 Total $ 1,282,819 $ 1,777,066 $ 3,059,885 $ 1,253,170 $ 1,789,634 $ 3,042,804 Our reportable segments for purposes of assessing performance are shown below (amounts in thousands): Three Months Ended March 31, 2025 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 122,482 $ 24,506 $ — $ 20,353 $ 77,623 Royalty interests 70,954 — 1,761 12,562 56,631 Total $ 193,436 $ 24,506 $ 1,761 $ 32,915 $ 134,254 Three Months Ended March 31, 2024 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 102,528 $ 21,751 $ — $ 27,401 $ 53,376 Royalty interests 46,374 — 1,449 11,282 33,643 Total $ 148,902 $ 21,751 $ 1,449 $ 38,683 $ 87,019 _______________________________________________ (1) Excludes depreciation, depletion and amortization. (2) Depletion amounts are included within Depreciation, depletion and amortization on our consolidated statements of operations and comprehensive income. 14 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) A reconciliation of total segment gross profit to the consolidated Income before income taxes is shown below (amounts in thousands): Three Months Ended March 31, 2025 March 31, 2024 Total segment gross profit $ 134,254 $ 87,019 Costs and expenses General and administrative expenses 11,063 11,412 Depreciation and amortization 80 82 Operating income 123,111 75,525 Fair value changes in equity securities ( 37 ) 447 Interest and other income 2,049 2,977 Interest and other expense ( 1,156 ) ( 4,607 ) Income before income taxes $ 123,967 $ 74,342 Our revenue by reportable segment for the three months ended March 31, 2025 and 2024, is geographically distributed as shown in the following table (amounts in thousands): Three Months Ended March 31, 2025 March 31, 2024 Stream revenue: Canada $ 53,230 $ 44,705 Dominican Republic 28,751 17,760 Africa 22,381 19,101 Chile 12,744 11,689 Rest of world 5,376 9,273 Total stream revenue $ 122,482 $ 102,528 Royalty revenue: United States $ 31,006 $ 24,079 Mexico 17,071 10,768 Canada 10,712 5,131 Australia 7,956 4,975 Rest of world 4,209 1,421 Total royalty revenue $ 70,954 $ 46,374 Total revenue $ 193,436 $ 148,902 10. COMMITMENTS AND CONTINGENCIES Ilovica Gold Stream Acquisition As of March 31, 2025, our conditional funding schedule of $ 163.75 million, as part of the Ilovica gold stream acquisition entered into in October 2014, remains subject to certain conditions. 15