What changed in this filing

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Item 2. Properties

2021-08-12 compared with 2020-08-06 · 143 added, 157 removed, 324 unchanged (48% of the section changed)

We do not own or operate the properties on which we hold stream or royalty interests, except for our interest in the Peak Gold JV, and therefore much of the information disclosed in this Form 10-K regarding these properties is provided to us by the operators.

We do not own or operate the properties on which we hold stream or royalty interests and therefore much of the information disclosed in this Form 10-K regarding these properties is provided to us by the operators.

For example, the operators of certain properties provide us information regarding metals production, estimates of mineral reserves and additional mineralized material and production estimates.

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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.

The description of our principal streams and royalties set forth below includes the location, operator, stream or royalty rate, access and any material current developments at the property.

The description of our principal stream and royalty interests set forth below includes the location, operator, stream or royalty rate, access and any material current developments at the property.

For any reported production amounts discussed below, we consider reported production to relate to the amount of metal sales subject to our stream and royalty interests.

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The map below illustrates the location of our principal producing stage properties.

In 2018, the SEC adopted amendments to the disclosure requirements for mining properties.

Effective for fiscal years beginning on or after January 1, 2021, the disclosure requirements under SEC Industry Guide 7 have been replaced with new disclosure requirements under Regulation S-K Subpart 1300.

The property and reserve disclosures as of June 30, 2021, contained in this report are presented in accordance with SEC Industry Guide 7.

We expect that the property and reserve disclosures as of December 31, 2021, contained in our Transitional Report on Form 10-KT to be filed in early 2022 will be presented in accordance with Regulation S-K Subpart 1300.

Principal Producing Properties

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Currently, we consider the properties discussed below (listed alphabetically by stream and royalty interest) to be principal to our business.

Based on the factors discussed above, we no longer consider Rainy River to be a principal property.

Stream Interests

Andacollo (Region IV, Chile)

The Company’s wholly owned subsidiary, RGLD Gold AG (“RGLD Gold”) owns the right to purchase 100% of the gold produced from the Andacollo copper-gold mine until 900,000 ounces of payable gold have been delivered, and 50% thereafter.

Our wholly owned subsidiary, RGLD Gold AG (“RGLD Gold”), owns the right to purchase 100% of the gold produced from the Andacollo copper-gold mine until 900,000 ounces of payable gold have been delivered, and 50% thereafter.

The cash purchase price equals 15% of the monthly average gold price for the month preceding the delivery date for all gold purchased.

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Stream deliveries from Andacollo were approximately 46,400 ounces of gold during the fiscal year ended June 30, 2021, compared to approximately 43,900 ounces of gold during the fiscal year ended June 30, 2020.

Stream deliveries decreased as a result of the temporary suspension of operations during the quarter ended December 31, 2019, due to a workers’ strike from October 14, 2019 through December 5, 2019, which was resolved with the ratification of a new 36-month collective agreement.

Teck expects grades to continue to decline towards reserve grades in calendar year 2020 and future years.

Teck expects grades to continue to decline towards reserve grades.

The current life of mine for Andacollo is expected to continue until calendar year 2035.

Additional permits or permit amendments will be required to execute the life of mine plan.

According to Teck, additional permits or permit amendments will be required to execute the life of mine plan.

Khoemac a u Project (Botswana)

In February 2019, RGLD Gold entered into a silver stream with Khoemac a u Copper Mining (Pty.) Limited (“KCM”) for the purchase of silver produced from the Khoemac a u Project (“Khoemac a u”).

Under the purchase and sale agreement, subject to the satisfaction of certain conditions, RGLD Gold will make advance payments totaling $212 million toward the purchase of 80% of the silver produced from Khoemac a u until certain delivery thresholds are met (the “Base Silver Stream”).

At KCM’s option and subject to various conditions, RGLD Gold will make up to an additional $53 million in advance payments for up to the remaining 20% of the silver produced from Khoemac a u (the “Option Silver Stream”).

The stream rate will drop to 40% of silver produced from Khoemac a u following delivery to RGLD Gold of 32 million silver ounces under the Base Silver Stream, or to 50% of the silver produced from Khoemac a u following delivery of 40 million silver ounces to RGLD Gold should KCM exercise the entire Option Silver Stream.

RGLD Gold will pay a cash price equal to 20% of the spot silver price for each ounce delivered under the Base Silver Stream and Option Silver Stream;

however, if KCM achieves mill expansion throughput levels above 13,000 tonnes per day (30% above current mill design capacity), RGLD Gold will pay a higher ongoing cash price under the Base Silver Stream and Option Silver Stream for silver ounces delivered in excess of specific annual thresholds.

Khoemac a u is a copper-silver development project located within the North West and Ghanzi Districts of Botswana owned by KCM.

The license area is generally southwest of the town of Maun and northeast of the town of Ghanzi.

Khoemac a u is accessed from the city of Maun, approximately 40 miles southwest to the town of Toteng on a major travel route, Botswana’s A3 highway, a paved road and then approximately 16 miles on gravel road to reach the Boseto plant site.

The Zone 5 mining area is connected to the Boseto plant by a 20-mile gravel road.

According to KCM, progress continued at Khoemac a u during the June 2020 quarter and the project reached approximately 54% of construction completion as of June 30, 2020 with 81% of the capital committed.

According to KCM, activities are focused on refurbishment of the Boseto mill, underground development, completion of accommodation, power and water infrastructure at Zone 5 and completing construction of the haul road between Zone 5 and the Boseto mill.

Also, according to KCM, underground development has cumulatively advanced 2,360 meters in the five declines, which is in line with planned development rates.

On July 5, 2020, RGLD Gold made its fourth advance payment of $11.1 million, which brings the total contribution to $146.8 million.

RGLD Gold expects to commit approximately $35 - $45 million during the remainder of calendar year 2020, and assuming the midpoint of this range, the total remaining commitment in calendar year 2021 is expected to range from approximately $25 million for the Base Silver Stream up to approximately $78 million should KCM elect to fully exercise the Option Silver Stream.

Further payments are subject to certain conditions and are scheduled to be made on a quarterly basis using an agreed formula and certification process as project spending progresses.

According to KCM, although a six-month state of emergency has been declared by the Government of Botswana to help prevent the spread of COVID-19, mining has been designated an “essential service” and general development activity at Khoemac a u is continuing.

However, due to the impacts experienced from travel restrictions, some activities have been slowed or rescheduled.

Barring any potential further impacts caused by COVID-19 considerations, we now expect the first shipment of concentrate to occur late in the third calendar quarter of 2021.

Mount Milligan (British Columbia, Canada)

RGLD Gold owns the right to receive 84% of the payable silver produced from Khoemac a u Project (“Khoemac a u”) until the delivery of approximately 33.6 million silver ounces, and 42% thereafter.

RGLD Gold will pay a cash price equal to 20% of the spot silver price for each ounce delivered;

however, if Khoemac a u Copper Mining (Pty.) Limited (“KCM”) achieves mill expansion throughput levels above 13,000 tonnes per day (30% above current mill design capacity), RGLD Gold will pay a higher ongoing cash price for silver ounces delivered in excess of specific annual thresholds.

Khoemac a u is a copper-silver development project located within the North West and Ghanzi Districts of Botswana, and is owned by KCM.

The license area is generally south-west of the town of Maun and north-east of the town of Ghanzi.

Khoemac a u is accessed from the city of Maun, approximately 40 miles southwest of the town of Toteng on a major travel route, the A3 highway, a paved road and then approximately 16 miles on gravel road to reach the Boseto plant site.

Khoemac a u includes a fully mechanized underground mining operation at the Zone 5 deposit and treatment of sulphide ores at the Boseto concentrator.

Ore is transported 20 miles from Zone 5 to the Boseto processing facility via a sealed haul road.

Since underground development of Zone 5 commenced in early calendar year 2020, more than 350,000 tonnes of high-grade sulfide ore has been stockpiled on surface.

While the state of emergency declared by the Government of Botswana to help prevent the spread of COVID-19 remains in place until at least September 30, 2021, mining remains designated as an “essential service” and KCM reports that activities at site are continuing.

Absent any potential further unforeseen impacts caused by COVID-19 considerations, KCM expects to ramp up through the balance of calendar year 2021 and reach full production in early calendar year 2022.

At full production, Khoemac a u has the capacity to produce 155,000 to 165,000 tonnes of high-grade copper and silver concentrate a year, containing approximately 60,000 to 65,000 tonnes of payable copper and 1.8 to 2.0 million ounces of payable silver.

As of June 30, 2021, Royal Gold had remaining committed funding of $49.4 million to KCM in the form of $42.4 million of additional advance payments under the stream and $7.0 million remaining on a subordinated debt facility, both of which may be drawn at the election of KCM prior to the earlier of completion of development or 60 days after the start of commercial production.

On July 7, 2021, KCM drew the remaining $7.0 million amount on the subordinated debt facility, reducing Royal Gold’s remaining committed funding to $42.4 million of additional advance payments.

The subordinated debt facility has a term of seven years, carries interest at a rate of LIBOR +11% and requires mandatory repayment upon certain events.

KCM has indicated that it does not expect to draw any material amounts from this remaining committed funding.

Mount Milliga n (British Columbia, Canada)

RGLD Gold owns the right to purchase 35% of the payable gold and 18.75% of the payable copper produced from the Mount Milligan copper-gold mine in British Columbia, Canada, which is operated by an indirect subsidiary of Centerra Gold Inc.

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Gold stream deliveries from Mount Milligan were approximately 62,300 ounces during the fiscal year ended June 30, 2021, compared to approximately 59,900 ounces during the fiscal year ended June 30, 2020.

The decrease reflects differences in the timing of shipments and settlements during the periods, in addition to lower gold grades processed and lower gold recovery, slightly offset by increased tonnage processed.

Copper stream deliveries from Mount Milligan were approximately 16.9 million pounds during the fiscal year ended June 30, 2021, compared to approximately 12.7 million pounds during the fiscal year ended June 30, 2020.

Increased deliveries resulted from differences in the timing of shipments and settlements during the periods, in addition to higher tonnage and higher copper grades processed, slightly offset by lower copper recovery.

On March 26, 2020, Centerra published an updated National Instrument 43-101 (“NI 43-101”) technical report for the Mount Milligan mine, which provided a detailed update to the life of mine plan contained in the previous NI 43-101 report for Mount Milligan published by Centerra in calendar 2017.

Centerra reported a reduction in proven and probable reserves due to increased costs, lower expected productivities, and lower process plant throughput compared to their calendar 2017 technical report, as well as an update to the resource model and re-estimation of metallurgical recoveries.

Details for the reserves and updated mine plan, which does not contemplate any growth capital or inclusion of additional mineralized material, were reported by Centerra as follows:

● Reserves as of December 31, 2019 containing 2.4 million ounces of gold and 959 million pounds of copper (comprised of 191.0 million tonnes grading 0.39 grams per tonne of gold and 0.23% of copper).

Reserves were calculated using a gold price of $1,250 per ounce, a copper price of $3.00 per pound, and an exchange rate of US$ 1.00 to C$ 1.25;

● Production based on a 9-year reserve life through calendar 2028;

● Average life of mine recoveries of 61.8% for gold and 80.6% for copper;

● Life of mine payable gold production of 1.45 million ounces, or an average of 161,000 ounces per year;

● Life of mine payable copper production of 735.6 million pounds, or an average of 81.7 million pounds per year;

● Average life of mine all-in sustaining cost of $704 per ounce of gold sold on a by-product basis, which includes sustaining capital and copper revenue credits (assuming a copper price of $3.00 per pound and an exchange rate of US$ 1.00 to C$ 1.25).

Significant reductions in proven and probable reserves or mineralized material are indicators of potential impairment for our stream and royalty interests.

As part of our regular asset impairment analysis during the quarter ended March 31, 2020, we determined that an impairment of our stream interest at Mount Milligan was not necessary as (i) the earlier financial impairment taken by Centerra does not impact the mine operating performance, and (ii) the reduction in reserves and mineralized material at Mount Milligan resulted in updated gold and copper depletion rates that remain well below current and long-term consensus gold and copper prices.

Due to the reduction in gold and copper reserves, as reported by Centerra, the depletion rate of our investment at Mount Milligan increased from $402 to $764 per ounce of gold and from $0.81 to $1.48 per pound of copper.

On April 1, 2020, Centerra announced that reductions of manpower and throughput at Mount Milligan would occur as a result of actions implemented to combat the COVID-19 pandemic.

Centerra has since reported that workforce numbers returned to normal over the month of May resulting in mining and plant tonnages returning to planned levels.

According to Centerra, process plant throughput averaged approximately 60% of target levels and mining operations experienced a four week partial shutdown during the reduction period, and during April, the process plant was shut down for eleven days to perform routine maintenance and reline the SAG mill.

Centerra also reported that stored water inventory at Mount Milligan, which is critical to the ability to process ore through the mill on a sustainable basis, was in excess of six million cubic meters as at June 30, 2020.

Centerra reported that spring water pumping started in April, and substantial snowpack and a wet spring led to volumes pumped as of the end of June that exceeded those of the entire 2019 pumping season.

In addition, Centerra reported that Mount Milligan continued to access ground water from the Lower Rainbow Valley wellfield and other groundwater wells near the tailings storage facility during the quarter ended June 30, 2020.

Centerra also reported that it continued exploration activities focused on extending the groundwater capacity in the vicinity of the existing infrastructure, and these activities will continue for the remainder of 2020.

Further, Centerra reported that it continues to pursue a longer-term solution to its water requirements at Mount Milligan.

On July 31, 2020, Centerra confirmed that there is no change to the previously issued production guidance for Mount Milligan for calendar year 2020 of 140,000 to 160,000 payable ounces of gold and 80 to 90 million pounds of copper.

Centerra reported in May that given productivity improvements, cost controls and brownfield exploration success, it was updating the Mount Milligan life of mine plan.

On August 10, 2021, Centerra reported that exploration activity is ongoing and results from drilling during the quarter ended June 30, 2021, include significant mineralization at several targets below the ultimate open pit boundary and along the eastern and southeastern margins of the open pit.

With respect to water supply, on August 10, 2021, Centerra reported that Mount Milligan accessed water from surface water sources and groundwater wells near the tailings storage facility in the quarter ended June 30, 2021, and with stored water inventory in excess of eight million cubic meters it estimates that Mount Milligan has sufficient water to enable continuous production for at least twelve months.

Centerra also reported that it continues to pursue a longer-term solution to its water requirements at Mount Milligan and is in discussions with regulators, First Nations partners and other stakeholders.

Centerra reported that in the first half of calendar year 2021 it obtained an environmental assessment certificate amendment and related permits to access surface water sources for Mount Milligan through November 2023.

On August 10, 2021, Centerra also reported that it is on track to achieve calendar year 2021 production guidance of between 180,000 and 200,000 ounces of gold and between 70 million and 80 million pounds of copper at Mount Milligan.

However, Centerra also reported that forest fires in the Province of British Columbia have the potential to disrupt shipments to and from the mine and the operation itself.

Pueblo Viejo (Sanchez Ramirez, Dominican Republic)

RGLD Gold owns the right to purchase 7.5% of Barrick’s interest in the gold produced from the Pueblo Viejo mine until 990,000 ounces of gold have been delivered, and 3.75% thereafter.

RGLD Gold owns the right to purchase 7.5% of Barrick Gold Corporation’s (“Barrick”) interest in the gold produced from the Pueblo Viejo mine until 990,000 ounces of gold have been delivered, and 3.75% thereafter.

The cash purchase price for gold is 30% of the spot price of gold per ounce delivered until 550,000 ounces of gold have been delivered, and 60% of the spot price of gold per ounce delivered thereafter.

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As of June 30, 2021, approximately 267,200 ounces of payable gold and 9.4 million ounces of payable silver have been delivered to RGLD Gold.

The Pueblo Viejo mine is located in the province of Sanchez Ramirez, Dominican Republic, approximately 60 miles northwest of Santo Domingo, and is owned by a joint venture in which Barrick holds a 60% interest and is responsible for operations, and in which Newmont Corporation holds a 40% interest.

Pueblo Viejo is accessed from Santo Domingo by traveling northwest on Autopista Duarte, Highway #1, approximately 48 miles to Piedra Blanca and proceeding east for approximately 14 miles on Highway #17 to the gatehouse for Pueblo Viejo.

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Gold stream deliveries from Pueblo Viejo were approximately 40,800 ounces of gold during the fiscal year ended June 30, 2021, compared to approximately 45,000 ounces of gold during the fiscal year ended June 30, 2020.

The decrease was attributable to lower tonnes processed, lower ore grades and lower recovery in fiscal year 2021.

Silver stream deliveries were approximately 1.5 million ounces of silver during the fiscal year ended June 30, 2021, compared to approximately 1.7 million ounces of silver during the fiscal year ended June 30, 2020.

Barrick reports that it continues to advance engineering and evaluation work towards a feasibility study for the process plant expansion and proposed tailings storage facility that could extend the mine life at Pueblo Viejo to beyond calendar year 2040.

Barrick estimates that the process plant and tailings expansion project could significantly increase throughput and allow the mine to maintain average annual gold production of approximately 800,000 ounces after calendar year 2022 (on a 100% basis), and that the increase in tailings storage capacity has the potential to convert approximately 11 million ounces of mineralized material to reserves (on a 100% basis).

The decrease was attributable to lower silver recoveries resulting from temporary operational issues with the silver circuit that caused recoveries to fall below the fixed 70% recovery rate specified in the stream agreement.

The stream agreement includes a deferral mechanism for ounces that cannot be delivered at this fixed recovery rate, with the economic impact of any shortfall in deliveries to be made up in future periods.

As of June 30, 2021, approximately 437,000 ounces of silver deliveries have been deferred.

Barrick has advised that maintenance work on the silver recovery circuit is complete and silver recovery has steadily improved over the past quarter.

Barrick also advised that modifications to further improve

silver recovery are underway and are expected to be complete during the current quarter.

With the recovery improvements, we expect delivery of the deferred ounces to begin next quarter.

Barrick reported continued progress at Pueblo Viejo during the June 2021 quarter to expand the process plant and tailings storage facilities.

Barrick estimates that the expansion project could significantly increase throughput and allow the mine to maintain average annual gold production of approximately 800,000 ounces after calendar year 2022 (on a 100% basis), and that the increase in tailings storage capacity has the potential to convert over 9 million ounces of mineralized material to reserves (on a 100% basis).

Barrick reported that as of June 30, 2021, the engineering design of the process plant expansion is 87% complete, construction is 10% complete, and completion of the process plant expansion is expected by the end of calendar 2022.

Barrick also reported an agreement with key stakeholders to allow independent government-led oversight of the strategic environmental and social impact assessment studies for the new tailings storage facility, which is an important first step in starting fieldwork and advancing the permitting process.

Barrick expects the proportion of lower grade stockpile ore in the feed blend to steadily increase until the mine expansion pits are fully developed as part of the decision on the proposed plant and tailings expansion project.

Barrick also reported lower gold production during the June 2020 quarter as a result of a planned maintenance shutdown.

For calendar year 2020, Barrick indicated production attributable to their interest at Pueblo Viejo is expected to be between 530,000 and 580,000 ounces of gold.

In calendar year 2021, gold production from Barrick’s 60% interest in Pueblo Viejo is expected to be between 470,000 and 510,000 ounces, compared to actual gold production of 542,000 ounces in calendar year 2020.

Wassa (Western Region, Ghana)

RGLD Gold owns the right to purchase 10.5% of the gold produced from the Wassa, Prestea and Bogoso mines, operated by Golden Star Resources Ltd.

RGLD Gold owns the right to purchase 10.5% of the gold produced from the Wassa mine, operated by Golden Star Resources Ltd.

(“Golden Star”), until an aggregate 240,000 ounces have been delivered.

Once the applicable delivery threshold is met, the stream percentage will decrease to 5.5%.

The cash purchase price for gold is 20%

of the spot price per ounce delivered until 240,000 ounces of gold have been delivered, and 30% of the spot price per ounce delivered thereafter.

As of June 30, 2020, approximately 110,500 ounces of payable gold have been delivered from Wassa, Prestea and Bogoso mines, of that 69,700 ounces of payable gold have been delivered from Wassa to RGLD Gold.

As of June 30, 2021, approximately 128,000 ounces of payable gold attributable to the ounce threshold have been delivered to RGLD Gold.

The Wassa underground mine and oxide ore mill are located near the village of Akyempim in the Wassa East District, in the Western Region of Ghana, approximately 50 miles north of Cape Coast and 93 miles west of the capital Accra.

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Stream deliveries from Wassa were approximately 16,700 ounces of gold during the fiscal year ended June 30, 2021, compared to approximately 16,500 ounces of gold during the fiscal year ended June 30, 2020.

On March 27, 2020, Golden Star reported that deep drilling in calendar year 2019 successfully extended the mineralization at Wassa by approximately 700 feet to the south where the deposit remains open to the south and down dip.

Golden Star further reported that the exploration strategy during calendar year 2020 would transition away from growth of the overall resource to infill drilling to help define the potential mine plans for the southern extension of the operation.

According to Golden Star, as of December 31, 2019 the proven mineral reserve at Wassa increased 87% over the prior year period to 1.4 million ounces of gold, and total underground mineralized material at Wassa contained approximately 11.2 million ounces of gold.

On July 27, 2020, Golden Star announced that it had signed a binding agreement with Future Global Resources Limited (“FGR”) for the sale of the Prestea and Bogoso mines.

This transaction will require the separation of the RGLD Gold stream agreement into separate stream agreements for each of Wassa and Prestea/Bogoso, which is conditional on, among other things, the approval of the board of directors of Royal Gold.

Further, on July 28, 2020, Golden Star announced that, if approved, the separated Wassa stream agreement would require Golden Star to deliver 10.5% of the gold produced from Wassa in return for a cash purchase price for gold of 20% of the spot price per ounce delivered, until the delivery of 240,000 ounces, after which the obligation would decrease to 5.5% of the gold produced from Wassa in return for a cash purchase price for gold of 30% of the spot price per ounce delivered.

On July 28, 2020, Golden Star reported calendar year 2020 gold production guidance for Wassa of between 165,000 to 170,000 ounces, up from the previous guidance range of 155,000 to 165,000 ounces.

On June 28, 2021, Golden Star announced that production guidance for calendar 2021 would be reduced to between 145,000 and 155,000 ounces of gold from between 165,000 and 175,000 ounces of gold due to a delay in the commissioning of a new paste fill plant and subsequent changes to the mine plan.

On July 28, 2021, Golden Star further reported positive results from paste fill test work, that if continued, could see a potential restart of the planned filling schedule in the fourth quarter of 2021 and return to the previously planned production from secondary stopes in calendar year 2022.

Additionally, on June 28, 2021, Golden Star disclosed that COVID-19 has impacted the availability of expatriate operators, contributing to lower than planned development rates.

Operational improvements and the recruitment of additional jumbo operators have since resulted in an increase in development rates.

Royalty Interests

Cortez (Nevada, USA)

Cortez is a series of large open-pit and underground mines, utilizing mill and heap leach processing, which are operated by Nevada Gold Mines LLC (“NGM”), a joint venture between Barrick and Newmont Corporation (“Newmont”) with respect to their Nevada operations.

The operation is located approximately 60 air miles southwest of Elko, Nevada, in Lander County.

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This is a sliding-scale GSR royalty for all products from an area outside of the Reserve Claims, originally known as the “GAS Claims,” which encompasses approximately 50% of the Gap deposit and all of the Crossroads deposit.

The GSR2 royalty rate is tied to the gold price, without

indexing for inflation or deflation.

The GSR2 royalty rate is tied to the gold price, without indexing for inflation or deflation.

The GSR2 royalty rate is 5.0% at a gold price of $470 per ounce and higher.

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We also own three other royalties in the Cortez area where there is currently no production and no reserves attributed to these royalty interests.

Production attributable to our royalty interest at Cortez increased to 173,300 ounces of gold over the prior fiscal year of 96,700 ounces of gold, as a result of production ramping up at the Crossroads deposit, which is subject to our NVR1 (Crossroads) and GSR2 royalty interests and portions of the NVR1 and GSR3 royalty interests.

During the quarter ended March 31, 2020, Barrick provided us with an updated reserve statement and life of mine plan for Cortez.

According to Barrick, as of December 31, 2019, total proven and probable reserves subject to our royalty interests contained 3.5 million ounces of gold (consisting of 87.0 million tonnes of ore at a grade of 1.26 grams per tonne).

Reserves were calculated at a gold price of $1,200 per ounce.

Further according to Barrick, total gold production at Cortez from the regions subject to our interests is expected to be approximately 175,000 ounces in calendar year 2020, increasing to an approximate average of 425,000 ounces from calendar 2021 through calendar 2026.

The expected production increase from calendar year 2020 to calendar year 2021 is primarily due to higher contribution from the Crossroads deposit, which is expected to ramp up through calendar year 2023 and offset declining production from the other royalty regions.

Production attributable to our royalty interests at Cortez increased to 237,000 ounces of gold in fiscal year 2021 compared to 173,300 ounces of gold in the prior year.

The increase was a result of production ramping up at the Crossroads deposit.

NGM expects total gold production from the regions subject to our interests at Cortez to be approximately 350,000 to 375,000 ounces in calendar year 2021, compared to actual calendar year 2020 gold production of 206,000, and average approximately 415,000 ounces per year from calendar year 2022 through calendar year 2026.

The Crossroads deposit is expected to provide the majority of the royalty ounces during this period.

Peñasquito (Zacatecas, Mexico)

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There are two access routes to the site.

The first is via a turnoff from Highway 54 onto the State La Pardita road, then onto the Mazapil to Cedros State road.

via a turnoff from Highway 54 onto the State La Pardita road, then onto the Mazapil to Cedros State road.

The second access is via the Salaverna by-pass road from Highway 54 approximately 16 miles south of Concepción del Oro.

There is a private airport on site and commercial airports in the cities of Saltillo, Zacatecas and Monterrey.

For fiscal 2020, gold production attributable to our royalty interest at Peñasquito increased to 312,200 ounces over the prior fiscal year of 158,800 ounces;

For fiscal year 2021, gold production attributable to our royalty interest at Peñasquito increased to 701,500 ounces compared to 312,200 ounces in fiscal year 2020;

silver production increased to 30.9 million ounces over the prior fiscal year of 27.8 million ounces;

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and zinc increased to 412.7 million pounds over the prior fiscal year of 393.9 million pounds.

The increase in production is attributable to higher grades and recoveries and tons processed compared to the prior fiscal year, as well as the suspension of operations during the June 2019 quarter, resulting in significantly lower sales from Peñasquito during the prior fiscal year.

On April 22, 2020, Newmont announced Peñasquito reached a definitive agreement with the San Juan de Cedros community (one of 25 neighboring communities) in Zacatecas, Mexico on land use, water availability, infrastructure and social investments, which includes access to 10,000 hectares for exploration and operational purposes, and resolves all outstanding issues with the community.

On May 5, 2020, Newmont announced that operations at Peñasquito were placed on care and maintenance on April 12 due to a Mexican federal government decree to temporarily suspend all non-essential activities in Mexico as part of a nationwide effort to help slow the spread of COVID-19.

According to Newmont, a phased ramp-up began in mid-May with milling and mining activities ramping up at the beginning of June, and production in the plant was back to pre-COVID levels by mid-June.

On July 30, Newmont provided full year 2020 production guidance for Peñasquito of 510,000 ounces of gold, 28 million ounces of silver, 360 million pounds of zinc, and 190 million pounds of lead.

Fiscal year 2020 production was adversely impacted by multiple blockades and operations being placed on care and maintenance in April 2020 due to a Mexican federal government decree to temporarily suspend all non-essential activities in Mexico as part of a nationwide effort to help slow the spread of COVID-19.

Newmont provided full calendar year 2021 production guidance for Peñasquito of 660,000 ounces of gold, 30 million ounces of silver, 475 million pounds of zinc and 190 million pounds of lead, compared to calendar year 2020 actual production of 526,000 ounces of gold, 28 million ounces of silver, 318 million pounds of zinc and 179 million pounds of lead.

Reserve Information

24 unchanged sentences

1.0 - 2.0% NSR (10,11) ;

United States

0.6 - 0.9% NSR (12)

United States

Goldstrike (SJ Claims)

2 unchanged sentences

Hasbrouck Mountain (DEV)

West Vault Mining/Clover Nevada

West Vault Mining

United States

2 unchanged sentences

United States

3.0% NSR (13,14)

Waterton Precious Metals Fund

United States

Granite Creek (DEV)

3.0% NSR (13,14) ;

Relief Canyon (DEV)

2.94% NSR (13,15)

Americas Silver

I-80 Gold Corp

United States

Relief Canyon

3.0% NSR (16)

Americas Gold and Silver

United States

8 unchanged sentences

Sabina Gold & Silver

Bateman Gold (DEV)

Evolution Mining

Canadian Malartic

1 unchanged sentence

Agnico Eagle/Yamana

0.00013 x quarterly avg.

Kirkland Lake

Cochenour (DEV)

Evolution Mining

Côté Gold Project (DEV)

Kutcho Creek (DEV)

Capstone Mining

Kutcho Copper Corp

LaRonde Zone 5

7 unchanged sentences

1.4% NSR (23)

Don Mario (DEV)

7.5% of payable gold (24)

4 unchanged sentences

Amarillo Gold

Consolidated Tin

Bellevue (DEV)

Bellevue Gold

Jaguar Nickel (DEV)

2 unchanged sentences

King of the Hills

1.5% NSR (25)

0.45% or 1.5% NSR (25)

Westgold Resources

South Laverton

1.5% NSR (26)

Northern Star

Southern Cross

Shandong Tianye

Shandong Tianye Group

Wembley Durack (DEV)

1 unchanged sentence

5.5% of payable gold (28)

Golden Star Resources

Future Global Resources

10.5% of payable gold (29)

4 unchanged sentences

1.0 - 2.0% NSR (10,11) ;

United States

0.6 - 0.9% NSR (12)

United States

Hasbrouck Mountain (DEV)

West Vault Mining/Clover Nevada

West Vault Mining

United States

Relief Canyon (DEV)

Relief Canyon

3.0% NSR (16)

Americas Silver

Americas Gold and Silver

United States

Kutcho Creek (DEV)

Kutcho Copper

Kutcho Copper Corp

60% of silver produced (21)

Don Mario (DEV)

75% of payable silver (24)

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La India (DEV)

Consolidated Tin

Jaguar Nickel (DEV)

1 unchanged sentence

Soul Pattinson

Khoemac a u (DEV)

Khoemacau (DEV)

84% of payable silver (31)

Khoemacau Copper Mining

Cupric Canyon

Operators’ Estimated Proven and Probable Base Metal Reserves

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ROYALTY/METAL STREAM

United States

Kutcho Creek (DEV)

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Centerra Gold

Don Mario (DEV)

La Fortuna (DEV)

1.4% NSR (23)

Consolidated Tin

Jaguar Nickel (DEV)

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Contained Lbs (6)

Consolidated Tin

RESERVES (3)(4)(5)

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Kutcho Copper

Consolidated Tin

2.0% NSR - Sulfide

Jaguar Nickel (DEV)

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Contained Lbs (6)

Mt Goode Cosmos (DEV)

Western Areas

RESERVES (3)(4)(5)

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Reserves have been reported by the operators of record as of December 31, 2020, with the exception of the following properties where reserves have been reported by the operators of record or their predecessors in interest and are unadjusted for production since these dates:

Bellevue - February 28, 2021;

Back River - January 15, 2021;

King of the Hills - September 30, 2020;

Mt Goode Cosmos - August 3, 2020;

Dolores, Gwalia Deeps, Khoemac a u, Meekatharra, Relief Canyon and South Laverton - June 30, 2020;

Mara Rosa - May 31, 2020;

Don Mario - September 30, 2019;

Dolores, Gwalia Deeps, King of the Hills, Meekatharra, Relief Canyon and South Laverton - June 30, 2019;

La India - January 25, 2019;

Wharf - December 31, 2018;

Wembley Durack - June 30, 2018;

Khoemac a u - April 17, 2018;

Pine Cove, Taparko and Williams - December 31, 2017;

Jaguar Nickel - June 30, 2017;

Kutcho Creek - June 15, 2017;

Bald Mountain, Gold Hill, Inata and Robinson - December 31, 2016;

Bald Mountain, Gold Hill and Inata - December 31, 2016;

Southern Cross - July 24, 2016;

Back River - August 15, 2015;

Hasbrouck Mountain - June 3, 2015;

La Fortuna, Pinson and Ruby Hill - December 31, 2014;

Don Nicolas - December 31, 2011;

and Balcooma - June 30, 2011.

Granite Creek and Ruby Hill - December 31, 2014.

We are not able to disclose reserves for Robinson.

Gold reserves were calculated by the operators at the following per ounce prices:

A$1,800 - King of the Hills;

A$1,725 - Meekatharra;

A$1,600 - Southern Cross and South Laverton;

$1,600 - Pine Cove;

A$2,000 - King of the Hills and Meekatharra;

A$1,750 - South Laverton;

A$1,600 - Gwalia and Southern Cross;

$1,500 - Don Mario;

A$1,350 - Gwalia Deeps;

$1,350 - El Limon;

$1,300 - Andacollo, Dolores, La Fortuna, Mara Rosa, Pinson, Prestea, Relief Canyon and Wassa;

$1,275 - Rainy River;

$1,250 - Back River, Holt, Inata, La India, Marigold, Mount Milligan, Robinson, Taparko and Wharf;

$1,400 - El Limon, Mara Rosa, Rainy River, Taparko and Wharf;

$1,350 - Dolores;

$1,300 - Andacollo, La Fortuna, Granite Creek, Prestea, Relief Canyon and Wassa;

$1,250 - Canadian Malartic, Inata, Kutcho Creek, La India, La Ronde Zone 5, Marigold and Mount Milligan;

$1,225 - Hasbrouck Mountain;

$1,200 - Bald Mountain, Canadian Malartic, Cortez, Gold Hill, Goldstrike, LaRonde Zone 5, Leeville, Peñasquito, Pueblo Viejo, Twin Creeks and Williams;

and $1,100 - Don Nicolas and Ruby Hill.

No gold price was reported for Balcooma, Jaguar Nickel, Kutcho Creek, or Wembley Durack.

$1,200 - Bald Mountain, Cortez, Côté Gold Project, Gold Hill, Goldstrike, Leeville, Peñasquito, Pueblo Viejo, Twin Creeks and Williams;

and $1,100 - Ruby Hill.

No gold price was reported for Robinson.

Set forth below are the definitions of proven and probable reserves used by the SEC.

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The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observation.

Certain reserve estimates are provided by operators that are foreign issuers and are not based on the SEC's definitions for proven and probable reserves.

We have disclosed a number of reserve estimates that are provided by operators that are foreign issuers and are not based on the SEC's definitions for proven and probable reserves.

For Canadian issuers, definitions of "mineral reserve,"

"proven mineral reserve,"

and "probable

mineral reserve"

and "probable mineral reserve"

conform to the Canadian Institute of Mining, Metallurgy and Petroleum definitions of these terms as of the effective date of estimation as required by National Instrument 43-101 of the Canadian Securities Administrators.

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"proven mineral reserve,"

and "probable mineral reserve"

and "probable mineral

reserve"

conform with the Australasian Code for Reporting of Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia, as amended ("JORC Code").

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Royalty only applies to Section 29 which currently holds about 95% of the reserves reported for the property.

A Cordilleran royalty of 5% NSR applies to a portion of Section 28.

An additional Cordilleran royalty of 5% NSR applies to a portion of Section 28.

Different Rayrock royalty rates apply to Sections 28, 32 and 33;

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New Gold will deliver:

(a) gold in amounts equal to 6.50% of gold produced until 230,000 ounces have been delivered, and 3.25% of gold produced thereafter, and (b) silver in amounts equal to 60% of silver produced until 3.10 million ounces have been delivered, and 30% of silver produced thereafter, in each case at a purchase price equal to 25% of the spot price per ounce delivered.

ounce delivered.

As of June 30, 2021, approximately 54,000 ounces of payable gold and 699,400 ounces of payable silver have been delivered.

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As of June 30, 2021, approximately 267,200 ounces of payable gold and 9.4 million ounces of payable silver have been delivered.

At Paddy's Flat an additional royalty of A$10 per ounce applies on production above 50,000 ounces;

The royalty rate depends on the tenement and the base rate is either 0.45% or 1.5%.

In addition, Paddy's Flat production is subject to a royalty of A$10 per ounce on production above 50,000 ounces.

At Reedy's an additional 1.5% to 2.5% NSR sliding-scale royalty pays at a rate of 1.5% for the first 75,000 ounces produced in any 12-month period and at a rate of 2.5% on production above 75,000 ounces during that 12-month period and a 1.0% NSR royalty applies to the Rand area only.

At Yaloginda the royalty is 0.45% NSR.

We hold an additional 4.0% net profits interest royalty that applies to certain South Laverton tenements (Kurnalpi), as well as an A$6.00 per ounce royalty once 265,745 ounces of gold have been produced and an A$10.00 per ounce royalty once 160,333 ounces of gold have been produced from certain South Laverton tenements.

There is a 0.75% GSR milling royalty that applies to ore that is mined outside of the defined area of the Taparko-Bouroum project that is processed through the Taparko facilities up to a maximum of 1.1 million tons per year.

Golden Star will deliver 10.5% of payable gold produced until 240,000 ounces have been delivered from Wassa and Prestea, and 5.5% of payable gold produced thereafter.

Future Global Resources Limited (“FGR”) will deliver 5.5% of payable gold produced from Prestea and Bogoso.

The purchase price for gold ounces delivered is 30% of the spot gold price.

Golden Star will deliver 10.5% of payable gold produced until 240,000 ounces have been delivered from Wassa, and 5.5% of payable gold produced thereafter.

The purchase price for gold ounces delivered is 20% of the spot gold price until the threshold has been met, and 30% of the spot gold price thereafter.

As of June 30, 2020, approximately 110,500 ounces of payable gold have been delivered from Wassa and Prestea.

As of June 31, 2021, approximately 128,000 ounces of payable gold attributable to the ounce threshold have been delivered.

Silver reserves were calculated by the operators at the following prices per ounce:

$25.00 - Don Nicolas;

$20.00 - Gold Hill;

$18.00 - Dolores and Rainy River;

$17.75 - Khoemac a u;

$17.50 - Hasbrouck Mountain;

$17.00 - Don Mario, Dolores and Rainy River;

$17.00 - Don Mario, Kutcho Creek and Relief Canyon;

$16.50 - Pueblo Viejo;

$16.00 - Peñasquito;

and $15.00 - Khoemac a u.

No silver price was reported for Balcooma, Jaguar Nickel or Kutcho Creek.

When production commences, KCM will deliver 80% of payable silver produced, subject to a fixed payable percentage of 90%.

At KCM’s option and subject to various conditions, Royal Gold will make an additional advance payment for the right to purchase up to an additional 20% of the payable silver.

The stream rate will drop by 50% upon the delivery of 32 million ounces of silver at the 80% stream level, and 40 million ounces of silver at the 100% stream level if the option is fully exercised.

and $16.00 - Peñasquito.

No silver price was reported for La India, Kutcho Creek or Jaguar Nickel.

When production commences, Cupric will deliver 84% of payable silver produced, until approximately 33.6 million ounces of silver have been delivered from Khoemac a u, and 42% thereafter, subject to a fixed payable percentage of 90%.

The purchase price is 20% of the spot price of silver.

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Copper reserves were calculated by the operators at the following prices per pound:

$3.00 - Andacollo, La Fortuna and Mount Milligan;

$2.95 - Robinson;

$3.00 - Andacollo, Khoemac a u, La Fortuna and Mount Milligan;

$2.81 - Voisey's Bay;

$2.75 - Las Cruces;

and $2.50 - Don Mario and Khoemac a u.

No copper reserve price was reported for Balcooma, Jaguar Nickel or Kutcho Creek.

$2.75 – Kutcho Creek and Las Cruces;

and $2.50 - Don Mario.

No copper price was reported for Jaguar Nickel or Kutcho Creek.

Lead reserve price was calculated by the operators at the following prices per pound:

$0.95 - Peñasquito.

No lead reserve price was reported for Balcooma.

Zinc reserve price was calculated by the operators at the following prices per pound:

$1.15 - Peñasquito;

No zinc reserve price was reported for Balcooma, Jaguar Nickel or Kutcho Creek.

and $1.10 - Kutcho Creek.

No zinc price was reported for Jaguar Nickel.

Nickel reserve price was calculated by the operator at the following price per pound:

$5.66 - Voisey's Bay.

$7.50 - Mt Goode Cosmos;

and $6.12 - Voisey's Bay.

Cobalt reserve price was calculated by the operator at the following price per pound:

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LEGAL PROCEEDINGS

Not applicable.

MINE SAFETY DISCLOSURE

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties