ROYAL GOLD INC 10-K

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK Our earnings and cash flows are significantly impacted by changes in the market price of gold and other metals. Gold, silver, copper, and other metal prices can fluctuate significantly and are affected by numerous factors, such as demand, production levels, economic policies of central banks, producer hedging, world political and economic events, and the strength of the U.S. dollar relative to other currencies. Please see the risk factor entitled “ Our revenue is subject to volatility in metal prices, which could negatively affect our results of operations or cash flow. ” under Part I, Item 1A of this report for more information about risks associated with metal price volatility. ​ During the fiscal year ended June 30, 2021, we reported revenue of $615.9 million, with an average gold price for the period of $1,849 per ounce, an average silver price of $25.38 per ounce, and an average copper price of $3.60 per pound. The table below shows the impact that a 10% increase or decrease in the average price of the specified metal would have had on our total reported revenue for the fiscal year ended June 30, 2021: ​ ​ ​ ​ Metal Percentage of Total Reported Revenue Associated with Specified Metal Amount by Which Total Reported Revenue Would Have Increased or Decreased If Price of Specified Metal Had Averaged 10% Higher or Lower in Period Gold 74% $46.7 million Copper 12% $7.8 million Silver 10% $6.2 million ​ ​ ​ ​ 41 Table of Contents ​