ROYAL GOLD INC Q3 FY2024 earnings call

Financial Performance - Strong quarter with record revenue, operating cash flow, and earnings. - Adjusted EBITDA margin remained strong at 81%. - Debt-free with over $1.1 billion in available liquidity. - Paid regular quarterly dividend and repaid the remaining $50 million on the revolving credit facility. ### Portfolio Developments - First revenue from 2 new producing assets in the portfolio. - Notable updates on principal properties like Mount Milligan, Penasquito, Con Macau, with advancements in exploration and mine life extensions. - Expect to amend 2023 Form 10-K due to SEC's Regulation SK 1300, but reserves and resources remain disclosed in 8-K filings and on the website.

Revenue for the quarter was a record $194 million, a 40% increase over the prior year. Operating cash flow was $137 million, up 39% year-over-year. Earnings were $96 million or $1.46 per share, a 95% increase from the prior year. Adjusted net income was $97 million or $1.47 per share. Revenue was 76% gold, with nearly 60% of revenue generated from the U.S., Canada, and Australia. Adjusted EBITDA margin was 81% for the quarter. The royalty segment contributed $61 million, about 31% of total revenue, with royalty revenue up ~53% from the prior year. The stream segment generated $133 million, up ~34% from the prior year.

2024 Guidance - Tracking well with gold sales at mid to lower range of guidance, copper and other metals sales at higher end. - Silver sales modestly below low end of guidance due to timing of deliveries. - Q4 expected to be softer due to timing of metal deliveries. - DD&A and effective tax rate within guidance ranges. ### Future Outlook - Busy on business development with rising gold price creating opportunities. - Balance sheet and liquidity allow competitive positioning, focusing on familiar metals markets, safe jurisdictions, and quality counterparties.

• SEC Disclosure Issue: Impact of SEC's Regulation SK 1300 on reserve and resource disclosures in filings, but no change to risk profile or business model. - Political and Operational Risks: Uncertainties with new government in Botswana and potential impacts on projects, as well as operational risks related to timing of deliveries and mine production changes.

Q: Clarity on SK 1300 standard A: Bill explains that they need to amend the 10-K due to SEC's SK 1300, but reserves and resources are still available on the website and 8-K filings.

Q: 2024 guidance details A: Gold sales mid to lower range, copper and other metals higher end, silver below low end due to timing. Q4 softer due to delivery timing.

Q: Transaction environment and deals A: Dan Breeze mentions robust deal pipeline with various opportunities, still focusing on quality projects in safe jurisdictions.

Q: Political risk in Botswana A: Bill and Martin state election results in Botswana are a surprise, but no immediate concerns seen, with government supporting mine expansion for employment.

Q: Deal pipeline and Africa appetite A: Dan Breeze says they selectively look at Africa, but predominantly see opportunities in Americas and Australia due to safe jurisdictions.