ROYAL GOLD INC 10-Q

ITEM 1. FINANCIAL STATEMENTS ROYAL GOLD, INC. Consolidated Balance Sheets (Unaudited, amounts in thousands except share data) September 30, 2025 December 31, 2024 ASSETS Cash and equivalents $ 172,849 $ 195,498 Royalty receivables 69,701 63,460 Income tax receivable 20,805 1,139 Stream inventory 21,009 12,973 Prepaid expenses and other 3,006 2,217 Total current assets 287,370 275,287 Stream and royalty interests, net (Note 3) 4,102,231 3,042,804 Other assets 75,499 74,039 Total assets $ 4,465,100 $ 3,392,130 LIABILITIES Accounts payable $ 6,047 $ 10,578 Dividends payable 29,640 29,611 Income tax payable 41,096 23,177 Other current liabilities 22,753 21,785 Total current liabilities 99,536 85,151 Debt (Note 4) 770,195 — Deferred tax liabilities 131,189 132,308 Mount Milligan deferred liability (Note 5) 25,000 25,000 Other liabilities 22,613 18,465 Total liabilities 1,048,533 260,924 Commitments and contingencies (Note 12) 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 65,763,800 and 65,691,151 shares outstanding, respectively 658 657 Additional paid-in capital 2,232,063 2,228,311 Accumulated earnings 1,173,746 889,989 Total Royal Gold stockholders’ equity 3,406,467 3,118,957 Non-controlling interests 10,100 12,249 Total equity 3,416,567 3,131,206 Total liabilities and equity $ 4,465,100 $ 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 Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Revenue (Note 6) $ 252,068 $ 193,837 $ 655,148 $ 516,835 Costs and expenses Cost of sales (excludes depreciation, depletion and amortization) 31,392 27,192 80,077 73,116 General and administrative 10,213 10,102 31,545 32,025 Production taxes 2,418 1,520 6,381 4,550 Depreciation, depletion and amortization 32,903 36,177 97,051 110,689 Acquisition related costs 12,798 — 12,798 — Total costs and expenses 89,724 74,991 227,852 220,380 Operating income 162,344 118,846 427,296 296,455 Fair value changes in equity securities — ( 425 ) ( 35 ) ( 42 ) Interest and other income 6,781 626 11,544 4,410 Interest and other expense ( 8,616 ) ( 1,207 ) ( 11,317 ) ( 8,330 ) Income before income taxes 160,509 117,840 427,488 292,493 Income tax expense (Note 9) ( 28,704 ) ( 21,510 ) ( 49,631 ) ( 67,535 ) Net income and comprehensive income 131,805 96,330 377,857 224,958 Net income and comprehensive income attributable to non-controlling interests ( 4,981 ) ( 88 ) ( 5,187 ) ( 343 ) Net income and comprehensive income attributable to Royal Gold common stockholders $ 126,824 $ 96,242 $ 372,670 $ 224,615 Net income per share attributable to Royal Gold common stockholders: Basic earnings per share $ 1.92 $ 1.46 $ 5.66 $ 3.41 Basic weighted average shares outstanding 65,761,896 65,670,381 65,738,696 65,652,934 Diluted earnings per share $ 1.92 $ 1.46 $ 5.65 $ 3.41 Diluted weighted average shares outstanding 65,831,341 65,795,014 65,814,682 65,767,668 Cash dividends declared per common share $ 0.45 $ 0.40 $ 1.35 $ 1.20 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 September 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 June 30, 2025 65,760,321 $ 658 $ 2,229,722 $ 1,076,562 $ 12,017 $ 3,318,959 Stock-based compensation and related share issuances 3,479 — 2,585 — — 2,585 Distributions to non-controlling interests — — — — ( 6,898 ) ( 6,898 ) Net income and comprehensive income — — — 126,824 4,981 131,805 Dividends declared — — — ( 29,640 ) — ( 29,640 ) Other — — ( 244 ) — — ( 244 ) Balance at September 30, 2025 65,763,800 $ 658 $ 2,232,063 $ 1,173,746 $ 10,100 $ 3,416,567 Royal Gold Stockholders Common Shares Additional Paid-In Capital Accumulated Earnings Non-controlling Interests Total Equity Shares Amount Balance at June 30, 2024 65,656,625 $ 656 $ 2,225,942 $ 742,270 $ 12,325 $ 2,981,193 Stock-based compensation and related share issuances 32,732 1 ( 154 ) — — ( 153 ) Distributions to non-controlling interests — — — — ( 122 ) ( 122 ) Net income and comprehensive income — — — 96,242 88 96,330 Dividends declared — — — ( 26,320 ) — ( 26,320 ) Balance at September 30, 2024 65,689,357 $ 657 $ 2,225,788 $ 812,192 $ 12,291 $ 3,050,928 ROYAL GOLD, INC. Consolidated Statements of Changes in Stockholders’ Equity Nine months ended September 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 72,649 1 3,996 — — 3,997 Distributions to non-controlling interests — — — — ( 7,336 ) ( 7,336 ) Net income and comprehensive income — — — 372,670 5,187 377,857 Dividends declared — — — ( 88,913 ) — ( 88,913 ) Other — — ( 244 ) — — ( 244 ) Balance at September 30, 2025 65,763,800 $ 658 $ 2,232,063 $ 1,173,746 $ 10,100 $ 3,416,567 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 57,597 1 4,749 — — 4,750 Distributions to non-controlling interests — — — — ( 476 ) ( 476 ) Net income and comprehensive income — — — 224,615 343 224,958 Dividends declared — — — ( 78,945 ) — ( 78,945 ) Balance at September 30, 2024 65,689,357 $ 657 $ 2,225,788 $ 812,192 $ 12,291 $ 3,050,928 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) Nine Months Ended September 30, 2025 September 30, 2024 Cash flows from operating activities: Net income and comprehensive income $ 377,857 $ 224,958 Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities: Depreciation, depletion and amortization 97,051 110,689 Non-cash employee stock compensation expense 8,853 9,313 Fair value changes in equity securities 35 42 Deferred tax (benefit) expense ( 8,085 ) 4,908 Other ( 4,163 ) 717 Changes in assets and liabilities: Royalty receivables ( 6,240 ) ( 1,234 ) Stream inventory ( 8,036 ) ( 1,832 ) Income tax receivable ( 19,666 ) ( 7,513 ) Prepaid expenses and other assets ( 1,219 ) 11,240 Accounts payable 3,719 1,804 Income tax payable 17,919 14,830 Mount Milligan deferred liability — 25,000 Other liabilities 5,116 ( 4,472 ) Net cash provided by operating activities $ 463,141 $ 388,450 Cash flows from investing activities: Acquisition of stream and royalty interests ( 1,164,483 ) ( 55,683 ) Proceeds from Khoemac a u debt facility — 25,000 Proceeds from the sale of inventory - restricted 7,681 — Other ( 161 ) ( 91 ) Net cash used in investing activities $ ( 1,156,963 ) $ ( 30,774 ) Cash flows from financing activities: Borrowings from revolving credit facility 825,000 — Repayment of debt ( 50,000 ) ( 250,000 ) Net payments from issuance of common stock ( 4,856 ) ( 4,564 ) Common stock dividends ( 88,885 ) ( 78,917 ) Distributions to non-controlling interests ( 7,336 ) ( 476 ) Other ( 2,750 ) ( 4 ) Net cash provided by (used in) financing activities $ 671,173 $ ( 333,961 ) Net (decrease) increase in cash and equivalents ( 22,649 ) 23,715 Cash and equivalents at beginning of period 195,498 104,167 Cash and equivalents at end of period $ 172,849 $ 127,882 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 nine months ended September 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 Kansanshi Stream O n August 5, 2025, our wholly owned subsidiary, RGLD Gold AG ("RG 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 shows 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 7 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 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 stream acquisition was accounted for as an asset acquisition and recorded as a producing stage stream interest (Note 3) within Stream and royalty interests, net on our consolidated balance sheets. The acquisition was funded with available cash and a draw of $ 825.0 million on our revolving credit facility (see Note 4). Warintza Project Stream and Royalty On May 21, 2025, RG AG entered into a gold purchase agreement ("Gold Stream Agreement") with Solaris Resources Inc., and a separate net smelter return ("NSR") royalty agreement ("Royalty Agreement") covering all metals with Solaris Resources AG, a wholly owned subsidiary of Solaris Resources, Inc. (collectively, "Solaris") for metals produced from the Warintza Project ("Warintza") located in Southeastern Ecuador. The advance payment for the acquisition totals $ 200.0 million in cash consideration, including $ 100.0 million paid upon closing, $ 50.0 million payable after technical approval of the environmental impact assessment and publication of a pre-feasibility study for the project, which are expected to be completed in the fourth quarter of 2025, and $ 50.0 million payable one year after closing, subject to certain conditions including registration of security in Ecuador. The $ 100.0 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 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 covers approximately 31 square kilometers, and will expand to 186 square kilometers if the 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 termination for any of the events referenced above, the NSR rate will be the rate in place at the time of exercise if the termination is exercised by RG AG, or 0.60 % if the termination is exercised by Solaris. The area of interest will reduce to approximately 31 square kilometers if the termination is exercised by RG AG. 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 $ 50.0 million. The Additional Stream is incremental to the existing 8 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) precious metals purchase agreement between the parties dated June 29, 2021 (“Base Stream”), and significantly extends the area of interest. As of September 30, 2025, 50,400 ounces of gold have been delivered under the Base Stream and Additional Stream at a cash purchase price of 20 % of the spot gold price for the first 49,000 ounces delivered , and 40 % of the spot gold price for each ounce delivered over the 49,000 ounces. Wh en 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 $ 50.0 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. 9 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 September 30, 2025 and December 31, 2024. As of September 30, 2025 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Kansanshi $ 1,000,388 $ — $ 1,000,388 Mount Milligan 790,635 ( 480,076 ) 310,559 Pueblo Viejo 610,404 ( 315,400 ) 295,004 Andacollo 388,182 ( 184,754 ) 203,428 Khoemac a u 265,911 ( 69,350 ) 196,561 Rainy River 175,727 ( 94,146 ) 81,581 Other 241,830 ( 163,533 ) 78,297 Total production stage stream interests 3,473,077 ( 1,307,259 ) 2,165,818 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 366,435 ( 96,350 ) 270,085 Voisey's Bay 205,724 ( 129,985 ) 75,739 Red Chris 116,187 ( 9,033 ) 107,154 Peñasquito 99,172 ( 70,205 ) 28,967 Other 519,720 ( 426,680 ) 93,040 Total production stage royalty interests 1,307,238 ( 732,253 ) 574,985 Total production stage stream and royalty interests 4,780,315 ( 2,039,512 ) 2,740,803 Development stage stream interests: Ilovica 12,038 — 12,038 Development stage royalty interests: Cactus 48,126 — 48,126 Back River 42,948 — 42,948 La Fortuna 35,140 — 35,140 Other 21,133 — 21,133 Total development stage stream and royalty interests 159,385 — 159,385 Exploration stage stream interests: Warintza 95,252 — 95,252 Xavantina 64,834 — 64,834 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 132,762 — 132,762 Total exploration stage stream and royalty interests $ 1,202,043 $ — $ 1,202,043 Total stream and royalty interests, net $ 6,141,743 $ ( 2,039,512 ) $ 4,102,231 10 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 11 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 4. DEBT The Company's debt as of September 30, 2025 and December 31, 2024 consists of the following (amounts in thousands): As of September 30, 2025 As of December 31, 2024 Principal Debt Issuance Costs Total Principal Debt Issuance Costs (1) Total Revolving credit facility $ 775,000 $ ( 4,805 ) $ 770,195 $ — $ — $ — Total debt $ 775,000 $ ( 4,805 ) $ 770,195 $ — $ — $ — _______________________________________________ (1) Debt issuance costs of $ 3.1 million included within Other assets on our consolidated balance sheets. Revolving credit facility 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 $ 250.0 million to $ 400.0 million and revised the leverage ratio required to be less than or equal to 4.00 :1.00 at all times, rather than 4.00 :1.00 for only the two fiscal quarters following the consummation of a material permitted acquisition (as defined) and 3.50 :1.00 at all other times. 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 $ 400.0 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. On August 1, 2025, we borrowed $ 825.0 million under our revolving credit facility for the acquisition of the Kansanshi gold stream. Refer to Note 2 for further discussion on the Kansanshi gold stream acquisition. In September 2025, we repaid $ 50.0 million of the outstanding borrowings. As of September 30, 2025, we had $ 775.0 million outstanding and $ 625.0 million available under our revolving credit facility. Interest expense, which includes interest on outstanding borrowings and amortization of the debt issuance costs, was $ 8.1 million and $ 8.7 million for the three and nine months ended September 30, 2025, respectively, and $ 0.4 million and $ 6.1 million for the three and nine months ended September 30, 2024, respectively. We were in compliance with each financial covenant (leverage ratio and interest coverage ratio) under our revolving credit facility as of September 30, 2025. In October 2025, we borrowed $ 450.0 million under our revolving credit facility for the acquisition of Sandstorm Gold Ltd. and Horizon Copper Corp. (Note 13) and have $ 175.0 million undrawn and available as of the date of this report. We may repay borrowings under our revolving credit facility at any time without premium or penalty . The interest rate on borrowings under our credit facility as of September 30, 2025, was SOFR plus 1.10 % for an all-in rate of 5.3 %. 5. MOUNT MILLIGAN DEFERRED LIABILITY On February 13, 2024, we entered into a 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 September 30, 2025. For further detail on the Mount Milligan Cost Support Agreement and the Deferred Gold Consideration refer to our 2024 10-K. 12 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 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) 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 September 30, 2025, royalty revenue that was estimated or was attributable to metal production for a period prior to the three months ended September 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. 13 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands): Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Stream revenue: Gold $ 131,950 $ 100,126 $ 330,965 $ 270,000 Silver 22,533 20,026 60,279 51,653 Copper 11,598 12,900 30,510 36,878 Total stream revenue $ 166,081 $ 133,052 $ 421,754 $ 358,531 Royalty revenue: Gold $ 64,655 $ 46,837 $ 175,681 $ 117,504 Silver 7,767 3,674 17,684 12,981 Copper 4,794 4,808 17,459 12,077 Other 8,771 5,466 22,570 15,742 Total royalty revenue $ 85,987 $ 60,785 $ 233,394 $ 158,304 Total revenue $ 252,068 $ 193,837 $ 655,148 $ 516,835 Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands): Three Months Ended Nine Months Ended Metal(s) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Stream revenue: Mount Milligan Gold & Copper $ 61,057 $ 56,570 $ 167,520 $ 143,704 Pueblo Viejo Gold & Silver 28,141 26,585 82,509 64,147 Andacollo Gold 23,022 9,652 45,255 31,949 Other (1) Gold & Silver 53,861 40,245 126,470 118,731 Total stream revenue $ 166,081 $ 133,052 $ 421,754 $ 358,531 Royalty revenue: Cortez Legacy Zone Gold $ 6,782 $ 13,047 $ 26,432 $ 41,610 Cortez CC Zone Gold 10,412 2,739 22,054 7,713 Other (1) Various 68,793 44,999 184,908 108,981 Total royalty revenue $ 85,987 $ 60,785 $ 233,394 $ 158,304 Total revenue $ 252,068 $ 193,837 $ 655,148 $ 516,835 ______________________________________________ (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. 14 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 7. STOCK-BASED COMPENSATION We recognized stock-based compensation expense as follows (amounts in thousands): Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Restricted stock $ 1,609 $ 1,667 $ 5,505 $ 5,562 Performance stock 1,333 1,310 3,348 3,751 Total stock-based compensation expense $ 2,942 $ 2,977 $ 8,853 $ 9,313 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 Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 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 As of September 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 $ 8,213 1.9 Performance stock 7,430 2.0 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. 15 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 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 Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net income attributable to Royal Gold common stockholders $ 126,824 $ 96,242 $ 372,670 $ 224,615 Weighted-average shares for basic EPS 65,761,896 65,670,381 65,738,696 65,652,934 Effect of other dilutive securities 69,445 124,633 75,986 114,734 Weighted-average shares for diluted EPS 65,831,341 65,795,014 65,814,682 65,767,668 Basic EPS $ 1.92 $ 1.46 $ 5.66 $ 3.41 Diluted EPS $ 1.92 $ 1.46 $ 5.65 $ 3.41 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 Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Income tax expense $ 28,704 $ 21,510 $ 49,631 $ 67,535 Effective tax rate 17.9 % 18.3 % 11.6 % 23.1 % The effective tax rate for the nine months ended September 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 allowance, and a $ 11.0 million discrete benefit related to withholding tax refunds on foreign royalties. The effective tax rate for the nine months ended September 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, was enacted on July 4, 2025. The Company is currently evaluating the impact of these provisions on our effective tax rate; however, we do not expect a material impact on our 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 16 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 September 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 Africa 1,219,873 321 1,220,194 237,028 321 237,349 Canada 392,140 660,631 1,052,771 417,643 659,070 1,076,713 Dominican Republic 295,004 — 295,004 302,122 — 302,122 Chile 203,428 224,116 427,544 211,123 224,116 435,239 United States — 801,697 801,697 — 827,277 827,277 Mexico — 28,967 28,967 — 33,800 33,800 Australia — 18,181 18,181 — 19,265 19,265 Rest of world 227,497 30,376 257,873 85,254 25,785 111,039 Total $ 2,337,942 $ 1,764,289 $ 4,102,231 $ 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 September 30, 2025 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 166,081 $ 31,392 $ — $ 21,287 $ 113,402 Royalty interests 85,987 — 2,418 11,534 72,035 Total $ 252,068 $ 31,392 $ 2,418 $ 32,821 $ 185,437 Three Months Ended September 30, 2024 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 133,052 $ 27,192 $ — $ 26,674 $ 79,186 Royalty interests 60,785 — 1,520 9,417 49,848 Total $ 193,837 $ 27,192 $ 1,520 $ 36,091 $ 129,034 Nine Months Ended September 30, 2025 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 421,754 $ 80,077 $ — $ 60,910 $ 280,767 Royalty interests 233,394 — 6,381 35,897 191,116 Total $ 655,148 $ 80,077 $ 6,381 $ 96,807 $ 471,883 Nine Months Ended September 30, 2024 Revenue Cost of sales (1) Production taxes Depletion (2) Segment gross profit Stream interests $ 358,531 $ 73,116 $ — $ 80,199 $ 205,216 Royalty interests 158,304 — 4,550 30,234 123,520 Total $ 516,835 $ 73,116 $ 4,550 $ 110,433 $ 328,736 _______________________________________________ (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. 17 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 Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Total segment gross profit $ 185,437 $ 129,034 $ 471,883 $ 328,736 Costs and expenses General and administrative expenses 10,213 10,102 31,545 32,025 Depreciation and amortization 82 86 244 256 Acquisition related costs 12,798 — 12,798 — Operating income 162,344 118,846 427,296 296,455 Fair value changes in equity securities — ( 425 ) ( 35 ) ( 42 ) Interest and other income 6,781 626 11,544 4,410 Interest and other expense ( 8,616 ) ( 1,207 ) ( 11,317 ) ( 8,330 ) Income before income taxes $ 160,509 $ 117,840 $ 427,488 $ 292,493 Our revenue by reportable segment for the three and nine months ended September 30, 2025 and 2024, is geographically distributed as shown in the following table (amounts in thousands): Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Stream interests: Canada $ 82,364 $ 66,372 $ 208,344 $ 173,737 Dominican Republic 28,140 26,585 82,509 64,147 Africa 27,288 19,973 70,055 59,470 Chile 23,022 9,652 45,255 31,949 Rest of world 5,267 10,470 15,591 29,228 Total stream interests $ 166,081 $ 133,052 $ 421,754 $ 358,531 Royalty interests: United States $ 37,080 $ 34,131 $ 105,478 $ 83,484 Mexico 19,957 10,853 54,659 34,509 Canada 14,439 5,269 32,070 13,435 Australia 10,589 7,476 28,362 19,498 Rest of world 3,922 3,056 12,825 7,378 Total royalty interests $ 85,987 $ 60,785 $ 233,394 $ 158,304 Total revenue $ 252,068 $ 193,837 $ 655,148 $ 516,835 18 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) 11. FAIR VALUE MEASUREMENTS Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, we utilize a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Quoted prices for identical instruments in active markets; Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3: Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). As of September 30, 2025 and December 31, 2024, we had financial assets in the form of marketable securities which are measured at fair value on a recurring basis; however, the carrying value of such financial assets is not material. The carrying value of our revolving credit facility (Note 4) approximates fair value as of September 30, 2025. As of September 30, 2025, we had assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis like those associated with stream and royalty interests, intangible assets and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if any of these assets are determined to be impaired. If recognition of these assets at their fair value becomes necessary, such measurements will be determined utilizing Level 3 inputs. 12. COMMITMENTS AND CONTINGENCIES Warintza Project Stream and Royalty Acquisition As of September 30, 2025 , our conditional funding schedule of $ 100.0 million related to the acquisition of the Warintza Gold Stream and Royalty Agreements made on May 21, 2025 (Note 2) remains subject to certain conditions. Ilovica Gold Stream Acquisition As of September 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. 13. SUBSEQUENT EVENTS Closing of Sandstorm Gold and Horizon Copper Acquisitions On October 20, 2025, we closed the previously announced acquisitions to acquire all of the issued and outstanding common shares of Sandstorm Gold Ltd. (“Sandstorm” and the “Sandstorm Transaction”) and Horizon Copper Corp. (“Horizon” and the “Horizon Transaction”). Sandstorm and Horizon were global resource-based companies based in Vancouver, British Columbia, that held interests in mining assets, including royalty and stream interests, on mining projects across various stages of development. With respect to the Sandstorm Transaction, Royal Gold issued 18.6 million shares of common stock to Sandstorm shareholders and assumed stock options exercisable for 0.7 million shares of common stock to complete the transaction and paid $ 380.9 million in cash to fully repay the outstanding balance drawn on the Sandstorm credit facility. Upon completion of the Sandstorm Transaction, Royal Gold's outstanding share count increased to 84.4 million shares. With respect to the Horizon Transaction, Royal Gold paid C$ 127.1 million in cash consideration to the shareholders of Horizon (excluding Sandstorm) and funded Horizon's purchase of its outstanding warrants for C$ 40.6 million. 19 ROYAL GOLD, INC. Notes to Consolidated Financial Statements (Unaudited) The Company expects the Sandstorm and Horizon Transactions to qualify as business combinations. As such, approximately $ 12.8 million of acquisition related costs have been expensed as of September 30, 2025. Due to the close proximity of the acquisition date and the Company's filing of its quarterly report on Form 10-Q for the nine months ended September 30, 2025, the initial accounting for the business combinations is incomplete and we are unable to disclose the information required by Accounting Standards Codification 805, Business Combinations. We anticipate including the relevant disclosures in our Form 10-K for the year ended December 31, 2025. Mount Milligan Deferred Gold Consideration On October 3, 2025, we received 11,111 ounces of gold from the Deferred Gold Consideration related to the Mount Milligan Cost Support Agreement, leaving 38,889 gold ounces remaining. Proceeds of $ 44.2 million from the sale of the 11,111 ounces of gold will be recorded to the Mount Milligan Deferred Liability (Note 5) on our consolidated balance sheets and does not impact revenue. 20