ROYAL GOLD INC 10-Q

ITEM 1. FINANCIAL STATEMENTS ROYAL GOLD, INC. Consolidated Balance Sheets (Unaudited, amounts in thousands except share data) June 30, 2025 December 31, 2024 ASSETS Cash and equivalents $ 248,180 $ 195,498 Royalty receivables 64,994 63,460 Income tax receivable 13,573 1,139 Stream inventory 13,337 12,973 Prepaid expenses and other 1,929 2,217 Total current assets 342,013 275,287 Stream and royalty interests, net (Note 3) 3,141,548 3,042,804 Other assets 88,892 74,039 Total assets $ 3,572,453 $ 3,392,130 LIABILITIES Accounts payable $ 5,506 $ 10,578 Dividends payable 29,640 29,611 Income tax payable 24,421 23,177 Other current liabilities 16,534 21,785 Total current liabilities 76,101 85,151 Deferred tax liabilities 131,644 132,308 Mount Milligan deferred liability (Note 5) 25,000 25,000 Other liabilities 20,749 18,465 Total liabilities 253,494 260,924 Commitments and contingencies (Note 11) 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 65,760,321 and 65,691,151 shares outstanding, respectively 658 657 Additional paid-in capital 2,229,722 2,228,311 Accumulated earnings 1,076,562 889,989 Total Royal Gold stockholders’ equity 3,306,942 3,118,957 Non-controlling interests 12,017 12,249 Total equity 3,318,959 3,131,206 Total liabilities and equity $ 3,572,453 $ 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 Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenue (Note 6) $ 209,643 $ 174,096 $ 403,080 $ 322,999 Costs and expenses Cost of sales (excludes depreciation, depletion and amortization) 24,180 24,174 48,685 45,924 General and administrative 10,269 10,511 21,333 21,923 Production taxes 2,201 1,581 3,962 3,031 Depreciation, depletion and amortization 31,153 35,747 64,148 74,512 Total costs and expenses 67,803 72,013 138,128 145,390 Operating income 141,840 102,083 264,952 177,609 Fair value changes in equity securities 3 ( 63 ) ( 34 ) 383 Interest and other income 2,713 807 4,762 3,783 Interest and other expense ( 1,544 ) ( 2,516 ) ( 2,701 ) ( 7,123 ) Income before income taxes 143,012 100,311 266,979 174,652 Income tax expense (Note 9) ( 10,538 ) ( 18,991 ) ( 20,927 ) ( 46,025 ) Net income and comprehensive income 132,474 81,320 246,052 128,627 Net income and comprehensive income attributable to non-controlling interests ( 125 ) ( 112 ) ( 205 ) ( 255 ) Net income and comprehensive income attributable to Royal Gold common stockholders $ 132,349 $ 81,208 $ 245,847 $ 128,372 Net income per share attributable to Royal Gold common stockholders: Basic earnings per share $ 2.01 $ 1.23 $ 3.73 $ 1.95 Basic weighted average shares outstanding 65,748,410 65,650,801 65,726,903 65,644,115 Diluted earnings per share $ 2.01 $ 1.23 $ 3.73 $ 1.95 Diluted weighted average shares outstanding 65,820,530 65,767,538 65,806,160 65,753,899 Cash dividends declared per common share $ 0.45 $ 0.40 $ 0.90 $ 0.80 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 June 30, 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 March 31, 2025 65,735,304 $ 657 $ 2,228,497 $ 973,853 $ 12,139 $ 3,215,146 Stock-based compensation and related share issuances 25,017 1 1,225 — — 1,226 Distributions to non-controlling interests — — — — ( 247 ) ( 247 ) Net income and comprehensive income — — — 132,349 125 132,474 Dividends declared — — — ( 29,640 ) — ( 29,640 ) Balance at June 30, 2025 65,760,321 $ 658 $ 2,229,722 $ 1,076,562 $ 12,017 $ 3,318,959 Royal Gold Stockholders Common Shares Additional Paid-In Capital Accumulated Earnings Non-controlling Interests Total Equity Shares Amount Balance at March 31, 2024 65,648,831 $ 656 $ 2,223,021 $ 687,377 $ 12,312 $ 2,923,366 Stock-based compensation and related share issuances 7,794 — 2,921 — — 2,921 Distributions to non-controlling interests — — — — ( 99 ) ( 99 ) Net income and comprehensive income — — — 81,208 112 81,320 Dividends declared — — — ( 26,315 ) — ( 26,315 ) Balance at June 30, 2024 65,656,625 $ 656 $ 2,225,942 $ 742,270 $ 12,325 $ 2,981,193 ROYAL GOLD, INC. Consolidated Statements of Changes in Stockholders’ Equity Six months ended June 30, 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 69,170 1 1,411 — — 1,412 Distributions to non-controlling interests — — — — ( 437 ) ( 437 ) Net income and comprehensive income — — — 245,847 205 246,052 Dividends declared — — — ( 59,274 ) — ( 59,274 ) Balance at June 30, 2025 65,760,321 $ 658 $ 2,229,722 $ 1,076,562 $ 12,017 $ 3,318,959 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 24,865 — 4,903 — — 4,903 Distributions to non-controlling interests — — — — ( 354 ) ( 354 ) Net income and comprehensive income — — — 128,372 255 128,627 Dividends declared — — — ( 52,624 ) — ( 52,624 ) Balance at June 30, 2024 65,656,625 $ 656 $ 2,225,942 $ 742,270 $ 12,325 $ 2,981,193 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) Six Months Ended June 30, 2025 June 30, 2024 Cash flows from operating activities: Net income and comprehensive income $ 246,052 $ 128,627 Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities: Depreciation, depletion and amortization 64,148 74,512 Non-cash employee stock compensation expense 5,911 6,336 Fair value changes in equity securities 34 ( 383 ) Deferred tax (benefit) expense ( 11,019 ) 3,419 Other 446 484 Changes in assets and liabilities: Royalty receivables ( 1,534 ) 8,546 Stream inventory ( 363 ) ( 1,116 ) Income tax receivable ( 12,434 ) ( 2,961 ) Prepaid expenses and other assets ( 3,525 ) 10,530 Accounts payable 3,178 1,786 Income tax payable 1,244 2,547 Mount Milligan deferred liability — 25,000 Other liabilities ( 2,967 ) ( 5,528 ) Net cash provided by operating activities $ 289,171 $ 251,799 Cash flows from investing activities: Acquisition of stream and royalty interests ( 170,979 ) ( 52,256 ) Proceeds from Khoemac a u debt facility — 25,000 Other ( 70 ) ( 85 ) Net cash used in investing activities $ ( 171,049 ) $ ( 27,341 ) Cash flows from financing activities: Repayment of debt — ( 200,000 ) Net payments from issuance of common stock ( 4,499 ) ( 1,432 ) Common stock dividends ( 59,245 ) ( 52,603 ) Other ( 1,696 ) ( 358 ) Net cash used in financing activities $ ( 65,440 ) $ ( 254,393 ) Net increase (decrease) in cash and equivalents 52,682 ( 29,935 ) Cash and equivalents at beginning of period 195,498 104,167 Cash and equivalents at end of period $ 248,180 $ 74,232 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 and six months ended June 30, 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. STREAM AND ROYALTY ACQUISITIONS Warintza Project Stream and Royalty On May 21, 2025, our wholly owned subsidiary, RGLD Gold AG ("RG AG"), entered into a gold purchase agreement ("Gold Stream Agreement"), and a separate net smelter return ("NSR") royalty agreement ("Royalty Agreement") for all metals with wholly owned subsidiaries of Solaris Resources, Inc. (collectively, "Solaris") for metals produced from the Warintza Project ("Warintza"). The advance payment for the acquisition totals $ 200 million in cash consideration, including $ 100 million paid upon closing, $ 50 million payable after technical approval of the environmental impact assessment and publication of a pre-feasibility study, which are expected to be completed in the third quarter of 2025, and $ 50 million payable one year after closing, subject to security perfection in Ecuador. The $ 100 million cash consideration paid at closing was funded with available cash on hand. Gold Stream Agreement Deliveries under the Gold Stream Agreement will be in an amount equal to 20 ounces of gold per million pounds of recovered copper in return for a cash payment for each ounce delivered of 20 % of the spot gold price until the delivery of 90,000 ounces, and 60 % of the spot gold price thereafter. The Gold Stream Agreement may be subject to early termination with the full return of the advance payment at the option of RG AG or Solaris if a change of control of Solaris or Warintza occurs, or by RG AG if deliveries have not begun by May 21, 2033. The area of interest for the Gold Stream Agreement 7 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) covers approximately 31 square kilometers, and will expand to 186 square kilometers if the early termination provisions have not been exercised and the first delivery has not been received by May 21, 2033. Royalty Agreement RG AG received a 0.30 % NSR royalty for all metals produced from an area of interest of approximately 186 square kilometers. The NSR rate will increase by 0.0375 % per year until the earlier to occur of the first delivery under the Gold Stream Agreement or May 21, 2033, to a maximum of 0.60 % NSR. If the Gold Stream Agreement is subject to early termination, the NSR rate will be the rate in place at the time of exercise if the early termination is exercised by RG AG, or 0.60 % if the early termination is exercised by Solaris. The Royalty Agreement and the Stream Agreement have been accounted for as asset acquisitions and are recorded as exploration stage royalty and stream interests (Note 3) within Stream and royalty interests, net on our consolidated balance sheets. Lawyers-Ranch Project Royalty On May 16, 2025, we acquired a 2.0 % NSR royalty on the Ranch portion of the Lawyers-Ranch Project operated by Thesis Gold Inc. from a private seller for cash consideration of $ 12.5 million. The royalty has been accounted for as an asset acquisition and recorded as an exploration stage royalty interest (Note 3) within Stream and royalty interests, net on our consolidated balance sheets. The purchase price was funded with available cash on hand. Additional Xavantina Stream On March 28, 2025, RG AG 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 June 30, 2025, 48,400 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. 8 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 June 30, 2025 and December 31, 2024. As of June 30, 2025 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ ( 475,605 ) $ 315,030 Pueblo Viejo 610,404 ( 313,178 ) 297,226 Andacollo 388,182 ( 181,057 ) 207,125 Khoemac a u 265,911 ( 65,554 ) 200,357 Rainy River 175,727 ( 90,333 ) 85,394 Other 241,830 ( 160,244 ) 81,586 Total production stage stream interests 2,472,689 ( 1,285,971 ) 1,186,718 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 366,435 ( 91,014 ) 275,421 Voisey's Bay 205,724 ( 127,798 ) 77,926 Red Chris 116,187 ( 9,033 ) 107,154 Peñasquito 99,172 ( 68,578 ) 30,594 Other 515,221 ( 424,296 ) 90,925 Total production stage royalty interests 1,302,739 ( 720,719 ) 582,020 Total production stage stream and royalty interests 3,775,428 ( 2,006,690 ) 1,768,738 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 25,566 — 25,566 Total development stage stream and royalty interests 170,814 — 170,814 Exploration stage stream interests: Warintza 95,203 — 95,203 Xavantina 64,813 — 64,813 Exploration stage royalty interests: Cortez (Legacy Zone and CC Zone) 443,894 — 443,894 Great Bear 209,106 — 209,106 Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Côté 29,610 — 29,610 Other 132,785 — 132,785 Total exploration stage stream and royalty interests $ 1,201,996 $ — $ 1,201,996 Total stream and royalty interests, net $ 5,148,238 $ ( 2,006,690 ) $ 3,141,548 9 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 4. DEBT On June 26, 2025, we entered into a sixth amendment to our revolving credit facility dated June 2, 2017, as amended. The amendment extended the maturity date from June 28, 2028, to June 30, 2030, increased the size of the accordion feature from $ 250 million to $ 400 million and revised the leverage ratio required to be less than or equal to 4.00 :1.00 for the two 10 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) fiscal quarters following the consummation of a material permitted acquisition (as defined) and 3.50 :1.00 at all other times. As of June 30, 2025, we had no amounts outstanding under our revolving credit facility and $ 1 billion available. In July 2025, we notified the members of the credit syndication group of our exercise of the accordion feature and received commitments from the group for the full $ 400 million of increased capacity. On August 5, 2025 , we closed on the accordion feature with our credit syndication group, bringing our total committed revolving credit facility to $ 1.4 billion. As part of the Kansanshi gold stream acquisition discussed in Note 12, we borrowed $ 825 million under our revolving credit facility. Following the draw as part of the Kansanshi gold stream acquisition, $ 575 million remains available. 5. 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 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 June 30, 2025. For further detail on the Mount Milligan Cost Support Agreement and the Deferred Gold Consideration refer to our 2024 10-K. 6. 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) 11 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 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. 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 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 June 30, 2025, royalty revenue that was estimated or was attributable to metal production for a period prior to the three months ended June 30, 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 10. Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands): Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Stream revenue: Gold $ 104,454 $ 91,597 $ 199,016 $ 169,874 Silver 19,047 16,880 37,746 31,628 Copper 9,690 14,475 18,911 23,979 Total stream revenue $ 133,191 $ 122,952 $ 255,673 $ 225,481 Royalty revenue: Gold $ 59,862 $ 37,171 $ 111,026 $ 70,667 Copper 5,074 3,648 12,665 7,269 Silver 5,017 4,978 9,917 9,307 Other 6,499 5,347 13,799 10,275 Total royalty revenue $ 76,452 $ 51,144 $ 147,407 $ 97,518 Total revenue $ 209,643 $ 174,096 $ 403,080 $ 322,999 12 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 Six Months Ended Metal(s) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Stream revenue: Mount Milligan Gold & Copper $ 63,655 $ 52,139 $ 106,463 $ 87,134 Pueblo Viejo Gold & Silver 25,619 19,801 54,369 37,562 Andacollo Gold 9,489 10,608 22,234 22,297 Other (1) Gold & Silver 34,428 40,404 72,607 78,488 Total stream revenue $ 133,191 $ 122,952 $ 255,673 $ 225,481 Royalty revenue: Cortez Legacy Zone Gold $ 8,508 $ 11,214 $ 19,650 $ 24,579 Cortez CC Zone Gold 8,088 4,548 11,642 8,959 Other (1) Various 59,856 35,382 116,115 63,980 Total royalty revenue $ 76,452 $ 51,144 $ 147,407 $ 97,518 Total revenue $ 209,643 $ 174,096 $ 403,080 $ 322,999 ______________________________________________ (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 10 for the geographical distribution of our revenue by reportable segment. 7. STOCK-BASED COMPENSATION We recognized stock-based compensation expense as follows (amounts in thousands): Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Restricted stock $ 1,884 $ 1,924 $ 3,896 $ 3,895 Performance stock 830 1,424 2,015 2,441 Total stock-based compensation expense $ 2,714 $ 3,348 $ 5,911 $ 6,336 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 Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 (Number of shares) (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 13 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) As of June 30, 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 $ 9,667 2.1 Performance stock 8,571 2.1 8. 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 Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net income attributable to Royal Gold common stockholders $ 132,349 $ 81,208 $ 245,847 $ 128,372 Weighted-average shares for basic EPS 65,748,410 65,650,801 65,726,903 65,644,115 Effect of other dilutive securities 72,120 116,737 79,257 109,784 Weighted-average shares for diluted EPS 65,820,530 65,767,538 65,806,160 65,753,899 Basic EPS $ 2.01 $ 1.23 $ 3.73 $ 1.95 Diluted EPS $ 2.01 $ 1.23 $ 3.73 $ 1.95 9. INCOME TAXES The following table provides the income tax expense (amounts in thousands) and effective tax rates for the periods indicated: Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Income tax expense $ 10,538 $ 18,991 $ 20,927 $ 46,025 Effective tax rate 7.4 % 18.9 % 7.8 % 26.4 % The effective tax rate for the three months ended June 30, 2025, included a $ 9.3 million discrete benefit related to withholding tax refund on a foreign royalty and a discrete tax benefit of $ 4.3 million attributable to the release of a valuation allowance. The effective tax rate for the six months ended June 30, 2025, included a $ 12.0 million discrete benefit for additional recoverable basis in foreign jurisdictions, a discrete tax benefit of $ 4.3 million attributable to the release of a valuation 14 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) allowance, and a $ 11.0 million discrete benefit related to withholding tax refunds on foreign royalties. The effective tax rate for the six months ended June 30, 2024 included a $ 13.0 million discrete income tax expense related to the consideration from the Mount Milligan Cost Support Agreement. H.R. 1., also known as the One Big Beautiful Bill Act ("OBBBA"), was enacted on July 4, 2025. The Company is currently evaluating the impact of these provisions, which could affect the Company's effective tax rate in future periods. 10. 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 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 June 30, 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 $ 400,425 $ 663,975 $ 1,064,400 $ 417,643 $ 659,070 $ 1,076,713 Dominican Republic 297,227 — 297,227 302,122 — 302,122 Africa 225,616 321 225,937 237,028 321 237,349 Chile 207,125 224,116 431,241 211,123 224,116 435,239 United States — 814,856 814,856 — 827,277 827,277 Mexico — 30,594 30,594 — 33,800 33,800 Australia — 18,485 18,485 — 19,265 19,265 Rest of world 228,379 30,429 258,808 85,254 25,785 111,039 Total $ 1,358,772 $ 1,782,776 $ 3,141,548 $ 1,253,170 $ 1,789,634 $ 3,042,804 15 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) Our reportable segments for purposes of assessing performance are shown below (amounts in thousands): Three Months Ended June 30, 2025 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 133,191 $ 24,180 $ — $ 19,269 $ 89,742 Royalty interests 76,452 — 2,201 11,800 62,451 Total $ 209,643 $ 24,180 $ 2,201 $ 31,069 $ 152,193 Three Months Ended June 30, 2024 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 122,952 $ 24,174 $ — $ 26,124 $ 72,654 Royalty interests 51,144 — 1,581 9,534 40,029 Total $ 174,096 $ 24,174 $ 1,581 $ 35,658 $ 112,683 Six Months Ended June 30, 2025 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 255,673 $ 48,685 $ — $ 39,623 $ 167,365 Royalty interests 147,407 — 3,962 24,363 119,082 Total $ 403,080 $ 48,685 $ 3,962 $ 63,986 $ 286,447 Six Months Ended June 30, 2024 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 225,481 $ 45,924 $ — $ 53,525 $ 126,032 Royalty interests 97,518 — 3,031 20,816 73,671 Total $ 322,999 $ 45,924 $ 3,031 $ 74,341 $ 199,703 _______________________________________________ (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. 16 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 Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Total segment gross profit $ 152,193 $ 112,683 $ 286,447 $ 199,703 Costs and expenses General and administrative expenses 10,269 10,511 21,333 21,923 Depreciation and amortization 84 89 162 171 Operating income 141,840 102,083 264,952 177,609 Fair value changes in equity securities 3 ( 63 ) ( 34 ) 383 Interest and other income 2,713 807 4,762 3,783 Interest and other expense ( 1,544 ) ( 2,516 ) ( 2,701 ) ( 7,123 ) Income before income taxes $ 143,012 $ 100,311 $ 266,979 $ 174,652 Our revenue by reportable segment for the three and six months ended June 30, 2025 and 2024, is geographically distributed as shown in the following table (amounts in thousands): Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Stream interests: Canada $ 72,750 $ 62,661 $ 125,980 $ 107,365 Dominican Republic 25,619 19,801 54,369 37,562 Africa 20,387 20,396 42,768 39,497 Chile 9,489 10,608 22,234 22,297 Rest of world 4,946 9,486 10,322 18,760 Total stream interests $ 133,191 $ 122,952 $ 255,673 $ 225,481 Royalty interests: United States $ 37,392 $ 25,273 $ 68,398 $ 49,352 Mexico 17,630 12,888 34,702 23,656 Australia 9,817 7,047 17,773 12,022 Canada 6,919 3,035 17,631 8,166 Rest of world 4,694 2,901 8,903 4,322 Total royalty interests $ 76,452 $ 51,144 $ 147,407 $ 97,518 Total revenue $ 209,643 $ 174,096 $ 403,080 $ 322,999 17 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 11. COMMITMENTS AND CONTINGENCIES Warintza Project Stream and Royalty Acquisition As of June 30, 2025, our conditional funding schedule of $ 100 million related to the acquisition of the Warintza Stream and Royalty Agreements made on May 21, 2025 (Note 2) remains subject to certain conditions. Ilovica Gold Stream Acquisition As of June 30, 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. 12. SUBSEQUENT EVENTS Kansanshi Gold Stream Acquisition As announced o n August 5, 2025, R G AG entered into a precious metals purchase agreement for gold deliveries referenced to copper production from the Kansanshi copper-gold mine in the North Western Province of Zambia, operated and 80 % owned by a subsidiary of First Quantum Minerals Ltd. (“First Quantum”). RG AG made an advance payment of $ 1.0 billion (“Advance”) in return for a gold stream referenced to copper production, with deliveries of 75 ounces of gold per million pounds of recovered copper produced until the delivery of 425,000 ounces; 55 ounces of gold per million pounds of recovered copper produced between the delivery of 425,001 ounces and 650,000 ounces; and 45 ounces of gold per million pounds of recovered copper produced thereafter. Additionally, and depending on the achievement of certain objectives as described below, RG AG has granted options to First Quantum to accelerate stream deliveries and reduce the outstanding Advance: i. Acceleration Option 1: From the earlier of the achievements by First Quantum of a minimum ‘BB’ or equivalent senior unsecured debt rating from a rating agency, or a Net Debt/TTM EBITDA ratio of 2.25 x or less over three consecutive quarters starting from March 31, 2026, it will have a one-year period to exercise the option and deliver gold worth up to $ 200 million over a 14-month period from the date of option exercise and reduce the stream rates and delivery thresholds by up to 20 %. ii. Acceleration Option 2: If First Quantum achieves either a minimum ‘BBB-’ or equivalent senior unsecured debt rating from a rating agency, or show a Net Debt/TTM EBITDA ratio of 1.25 x or less, over four consecutive quarters. and achieves certain operational conditions, it will have a one-year period to exercise the option and deliver gold worth up to $ 100 million over a 7-month period from the date of option exercise and reduce the stream rates and delivery thresholds by up to a further 10 %. RG AG will pay 20 % of the spot gold price for each ounce delivered. Should one of the conditions in Acceleration Option 1 be met, RG AG will pay 35 % of the spot gold price for each ounce delivered. The acquisition has been funded with available cash and a draw of $ 825 million on our revolving credit facility (see Note 4). Agreements to Acquire Sandstorm Gold and Horizon Copper On July 6, 2025, we entered into arrangement agreements to acquire each of Sandstorm Gold Ltd. (“Sandstorm”) and Horizon Copper Corp. (“Horizon”). Under the terms of the agreement with Sandstorm, Royal Gold has agreed to acquire 100 % of the issued share capital of Sandstorm in exchange for Royal Gold shares at an exchange ratio of 0.0625 of a share of Royal Gold common stock for each common share of Sandstorm (the “Sandstorm Transaction”), which reflected a transaction equity value of approximately $ 3.5 billion at the time of signing. Under the terms of the agreement with Horizon, Royal Gold has agreed to acquire 100 % of the issued share capital of Horizon in exchange for cash of C$ 2.00 per 18 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) share (the “Horizon Transaction” and together with the Sandstorm Transaction, the “Transactions”), which reflected a transaction equity value of approximately $ 196 million at the time of signing. Completion of the Transactions is subject to approval by Royal Gold's stockholders and Sandstorm's shareholders (in the case of the Sandstorm Transaction), approval by Horizon's securityholders (in the case of the Horizon Transaction), certain regulatory approvals, and other customary closing conditions. The Transactions are expected to close in the fourth quarter of 2025. 19