Business Wire | Aug 11, 2021 04:16PM EDT

Royal Gold Reports Record Revenue and Strong Financial Results for the Fourth Quarter, and Record Revenue, Earnings and Cash Flow for Fiscal Year 2021

Aug. 11, 2021

DENVER--(BUSINESS WIRE)--Aug. 11, 2021--Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, "Royal Gold" or the "Company," "we," "us," or "our") reports fiscal year 2021 ("fiscal 2021") net income of $302.5 million, or $4.61 per share, on revenue of $615.9 million and operating cash flow of $407.2 million. Adjusted net income1 was $236.5 million, or $3.59 per share.

Key Fiscal 2021 Highlights:

* Record financial performance with revenue of $615.9 million, operating cash flow of $407.2 million and earnings of $302.5 million, increases of 23%, 19% and 52%, respectively, over the prior year * 74% of revenue from gold and 10% from silver * Volume of 333,100 GEOs2 * Ended the year debt free, with net cash3 of $222 million and available liquidity of $1.2 billion * Increased dividend for the 20th consecutive year to $1.20 per share, a 7% increase over the prior year * Continued Board renewal with election of Fabiana Chubbs

Key Fourth Quarter Highlights:

* Record revenue of $168.0 million and operating cash flow of $120.9 million * Acquired royalty on the Ct Gold development project * Announced gold stream on the NX Gold Mine, including ESG funding commitment * Khoemacau stream rate increased to 84% of payable silver, with first concentrate produced June 30

Post Quarter Events:

* Acquired royalty on the world-class Red Chris Mine * Drew $100 million on revolving credit facility to fund acquisitions

"Not only did we produce record financial results, but we also achieved several significant strategic goals in fiscal 2021," commented Bill Heissenbuttel, President and CEO of Royal Gold, "including the following highlights for the year:

* We funded our base silver stream at Khoemacau and, with an incremental stream advance, are now positioned to purchase 84% of the payable silver from a project that has recently produced its first concentrate, * We sharpened our focus on our core royalty and streaming business with the sale of our Peak Gold joint venture interest, and with our three recent acquisitions we remain committed to both gold as our strategic metal of focus, and investing in properties with exploration and production upside, * We completed our acquisitions with existing sources of liquidity and without equity dilution to our shareholders, while also increasing our return of capital to our shareholders through the 20th consecutive increase in our annual dividend, * We extended our revolving credit to July 2026, securing a key source of liquidity to finance accretive growth for another five years, * We completed community support arrangements with two of our principal property operators and introduced an ongoing ESG support structure to our NX Gold stream, and * We will transition to a December 31 fiscal year end in order to align our reporting with our precious metal peers and facilitate comparative analysis for our analysts and shareholders.

We achieved all of these accomplishments only through the efforts of our dedicated employees, who continue to work with great professionalism and dedication while successfully working through the various challenges of the COVID-19 environment."

Fiscal Fourth Quarter Results

For the fiscal fourth quarter ended June 30, 2021 ("fourth quarter"), net income of $81.7 million, or $1.24 per share, was reported on record revenue of $168.0 million and record operating cash flow of $120.9 million. Adjusted net income 1 was $68.7 million, or $1.04 per share.

1 Adjusted net income and adjusted net income per share are a non-GAAP financial measures. See Schedule A of this press release for additional information, including a detailed description of adjustments to net income. 2 See Schedule A of this press release for additional information about gold equivalent ounces, or GEOs. 3 Net debt (and net cash) is a non-GAAP financial measure. See Schedule A of this press release for additional information.

Recent Developments

First Concentrate Production and Shipment at the Khoemacau Project

According to Khoemacau Copper Mining (Pty.) Limited ("KCM"), a major milestone was achieved at the Khoemacau Project ("Khoemacau") in Botswana on June 30, 2021, with the production of the first copper silver concentrate from the Boseto process plant. This milestone was achieved safely, within schedule and the overall project remains within 3% of the original budget. The project is currently undergoing commissioning activities and the first shipment of concentrate was made in mid-July 2021.

Since underground development of Zone 5 commenced in early calendar 2020, more than 350,000 tonnes of high-grade sulphide 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 2021 and reach full production in early 2022. At full production, Khoemacau 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.

Royal Gold holds the right to receive 84% of the payable silver produced from Khoemacau until the delivery of approximately 33.6 million silver ounces, and 42% thereafter. Royal Gold will pay a cash price equal to 20% of the spot silver price for each ounce delivered; however, if KCM achieves mill expansion throughput levels above 13,000 tonnes per day (30% above current mill design capacity), Royal Gold will pay a higher ongoing cash price for silver ounces delivered in excess of specific annual thresholds.

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.

Acquisition of Royalty on the Red Chris Mine

On August 11, 2021, Royal Gold acquired a 1.0% net smelter return royalty on certain areas of the Red Chris Mine in British Columbia, Canada, from a subsidiary of Glencore International AG for $165 million in cash. The royalty covers an area of approximately 5,100 hectares which includes the currently known mineralization and prospective exploration targets.

The Red Chris Mine is an operating open pit mine producing gold, copper and silver, and is located on the northern edge of the Skeena Mountains. The mine is owned and operated by the Red Chris JV, which is owned 70% by Newcrest Mining Ltd. ("Newcrest") and 30% by Imperial Metals Corporation, in which Newcrest is the operator.

Acquisition of Gold Stream on the NX Gold Mine

As previously announced, Royal Gold entered into a stream agreement on June 30, 2021, for gold produced from the NX Gold Mine in Brazil with Ero Gold Corp., a wholly owned subsidiary of Ero Copper Corp., and certain of its affiliates (together, "Ero").

The transaction closed on August 6, 2021, and Royal Gold made an advance payment of $100 million upon closing. Royal Gold will make up to an additional $10 million of further payments from the beginning of calendar 2022 through the end of calendar 2024 based on Ero's achievement of success-based targets related to regional exploration and resource additions. In return, Royal Gold will receive 25% of the gold produced from the NX Gold Mine until the delivery of 93,000 ounces, and 10% thereafter. Royal Gold will pay 20% of the spot gold price for each ounce delivered until the delivery of 49,000 ounces, and 40% of the spot gold price thereafter. Royal Gold will also contribute $5 per ounce of gold delivered under the stream agreement towards Ero's environmental, social and governance ("ESG") commitments within the area of influence of the NX Gold Mine.

A delivery of approximately 2,500 ounces of gold based on mine production through to closing is expected to be received from Ero within five business days of closing the transaction.

On July 7, 2021, Ero announced that nine drill rigs were operating on the property with a focus on extending the Santo Antonio Vein, identifying new veins within and adjacent to the mine's infrastructure, and conducting the first regional exploration drill program on newly identified structures. Results reported included a 9 meter intercept grading 22.7 grams per tonne gold located approximately 10 meters beyond the limit of the 2020 inferred mineral resource shell at the Santo Antonio Vein, and the discovery of a new high-grade extension of the Matinha Vein. Regional drilling resulted in the discovery of two new mineralized gold systems located approximately 1.2 kilometers Northeast (Sovaco de Cobra) and 25 kilometers East-Northeast (Mata Verde) of the NX Gold Mine.

On August 4, 2021, Ero reaffirmed 2021 gold production guidance for the NX Gold Mine of 34,500 ounces to 37,500 ounces.

Acquisition of Royalty on the Ct Gold Project

On June 7, 2021, Royal Gold acquired a 1.0% net smelter return royalty on certain claims covering the Ct Gold Project in Northern Ontario, Canada, for $75 million in cash. The Ct Gold Project is owned 92.5% by the Ct Gold Joint Venture (a joint venture owned 70% by IAMGOLD Corporation ("Iamgold") and 30% by Sumitomo Metal Mining Co., Ltd.), and 7.5% by a third party. The royalty covers the Chester 3 claims, which contain approximately 70% of the current reserves of the Ct Gold Project, as well as other areas outside the current project area.

The Ct Gold Project is currently under construction by the Ct Gold Joint Venture, with Iamgold as the operator. A positive investment decision was made on July 21, 2020, and Iamgold reported that approximately $276 million of the $1,605 to $1,680 million total estimated cost had been incurred as of June 30, 2021. According to Iamgold, the Ct Gold Project was approximately 27% complete as of June 30, 2021, and is currently on schedule and on track for commercial production in the second half of calendar 2023.

The Ct Gold Project has Proven and Probable Reserves of 7.3 million ounces of gold and is expected to operate for a mine life of at least 18 years. Iamgold expects the mine to produce an average of 367,000 ounces of gold per year with an average of 493,000 ounces per year in the first five years of production. Life of mine total cash costs are expected to be $600 per ounce with all-sustaining costs of $771 per ounce.

Mount Milligan Life of Mine Plan and Water Supply Update

Centerra Gold Inc. ("Centerra") reported in May 2021 that given productivity improvements, cost controls and brownfield exploration success, it is 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 indicate significant mineralization at targets below the ultimate open pit boundary and along the eastern and southeastern margins of the open pit.

With respect to water supply, 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 estimated 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 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 previously-provided 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 advised 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 Expansion Continues and Silver Recoveries Improving

Barrick Gold Corporation ("Barrick") reported continued progress at Pueblo Viejo during the June 2021 quarter to expand the process plant and tailings storage capacity. 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 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.

Silver stream deliveries were approximately 1.5 million ounces of silver during fiscal 2021, compared to approximately 1.7 million ounces of silver during fiscal 2020. The decrease in silver deliveries during the fiscal year ended June 30, 2021, is 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 completed during the current quarter. With the recovery improvements, Royal Gold expects that delivery of the deferred ounces to begin next quarter.

Repayment and Amendment of Revolving Credit Facility

On April 1, 2021, Royal Gold repaid the then-remaining $150 million outstanding balance under the revolving credit facility, reducing the amount outstanding to $0 for the remainder of the fourth quarter.

On July 7, 2021, Royal Gold entered into a fourth amendment to the revolving credit facility dated as of June 2, 2017. The amendment extends the maturity date from June 3, 2024, to July 7, 2026, provides for the eventual replacement of LIBOR and makes certain changes to the lenders under the agreement.

In August 2021, the Company drew $100 million on the revolving credit facility for business development activities, leaving $900 million available under the credit facility.

Change to Fiscal Year End and Provision of Full Year Guidance

On August 9, 2021, the Royal Gold Board of Directors approved a change to Royal Gold's fiscal year end from June 30 to December 31, effective as of December 31, 2021. To complete the change, Royal Gold will use a six-month transition period from July 1, 2021, to December 31, 2021. As part of this change, Royal Gold will hold its 2022 annual stockholders' meeting on May 25, 2022.

Additionally, Royal Gold expects to issue one-year guidance for total GEO sales, depreciation, depletion and amortization expense, and effective tax rate during the second calendar quarter of 2022. With this change, Royal Gold will no longer provide guidance for stream sales on a quarterly basis.

These changes are intended to more closely align Royal Gold's reporting and disclosure with that of the majority of its counterparties and the precious metals sector, which will allow market participants to more closely evaluate and compare Royal Gold's performance.

Fiscal 2021 Overview

For fiscal 2021, the Company recorded net income of $302.5 million, or $4.61 per basic share and $4.60 per diluted share, as compared to net income of $199.3 million, or $3.04 per basic share and $3.03 per diluted share, for fiscal 2020. The increase in earnings was primarily attributable to (i) an increase in revenue, (ii) a one-time gain attributable to the sale of the Peak Gold JV interest during the September 2020 quarter and (iii) various discrete income tax benefits recognized during the September 2020 and June 2021 quarters. These increases were partially offset by increases in the cost of sales and depreciation, depletion and amortization expense, each discussed further below.

For fiscal 2021, the Company recognized total revenue of $615.9 million, which is comprised of stream revenue of $424.0 million and royalty revenue of $191.9 million, at an average gold price of $1,849 per ounce, an average silver price of $25.38 per ounce and an average copper price of $3.60 per pound, compared to total revenue of $498.8 million, which is comprised of stream revenue of $359.9 million and royalty revenue of $138.9 million, at an average gold price of $1,560 per ounce, an average silver price of $16.90 per ounce and an average copper price of $2.57 per pound, for fiscal 2020. The increase in total revenue for fiscal 2021 compared with fiscal 2020 resulted primarily from an increase in the average gold, silver and copper prices compared to the prior period and an increase in production within the royalty segment.

Cost of sales increased to $92.9 million for fiscal 2021 from $83.9 million for fiscal 2020. The increase was primarily due to an increase in the gold, silver and copper prices and an increase in copper sales at Mount Milligan when compared to the prior period. This increase was partially offset by a decrease in gold sales at Mount Milligan and Andacollo when compared to the prior period. Cost of sales, which excludes depreciation, depletion and amortization, is specific to the Company's stream agreements and is the result of the purchase of gold, silver and copper for a cash payment. The cash payment for gold from Mount Milligan is the lesser of $435 per ounce or the prevailing market price of gold when purchased, while the cash payment for all other streams is a set contractual percentage of the gold, silver or copper spot price, as applicable, near the date of metal delivery.

General and administrative costs decreased to $28.4 million for fiscal 2021 from $30.2 million for fiscal 2020. The decrease was primarily due to additional non-cash stock compensation expense of approximately $3.3 million recognized in the prior year period due to the accelerated vesting of certain equity awards in connection with the retirement of the Company's former President and Chief Executive Officer and former Vice President and General Counsel in January 2020.

Exploration costs decreased to $0.6 million for fiscal 2021 from $5.2 million for fiscal 2020. Exploration costs were specific to the exploration and advancement of the Peak Gold JV. On September 30, 2020, the Company sold the Peak Gold JV interest for cash consideration of $61.3 million and certain incremental net smelter return royalties.

Depreciation, depletion and amortization increased to $183.6 million for fiscal 2021 from $175.4 million for fiscal 2020. The increase was primarily due to higher copper sales at Mount Milligan and an increase in depletion rates at Mount Milligan through the six months ended December 31, 2020, as previously discussed in the Company's Annual Report on Form 10-K for the year ended June 30, 2020. The increase in depreciation, depletion and amortization was offset by a decrease in gold sales at Mount Milligan and Andacollo.

The Company recognized a gain in fair value changes in equity securities of $6.0 million for fiscal 2021, compared to a gain in fair value changes in equity securities of $1.4 million for fiscal 2020.

Interest and other expense decreased to $6.4 million for fiscal 2021, from $9.8 million for fiscal 2020. The decrease was primarily attributable to lower interest expense as a result of a decrease in average debt amounts outstanding during the current period when compared to the prior period.

During fiscal 2021 the Company recognized income tax expense totaling $36.9 million compared with an income tax benefit of $3.7 million during fiscal 2020. This resulted in an effective tax rate of 10.9% during the current period, compared with (1.9%) in the prior period. The effective tax rate for fiscal 2021 was primarily impacted by the release of uncertain tax liabilities resulting from settlement agreements with foreign tax authorities in various jurisdictions. The effective tax rate for fiscal 2020 was primarily impacted by a net step-up of tax assets due to the enactment of the Federal Act on Tax Reform and AHV Financing in Switzerland (Swiss Tax Reform) and the release of an uncertain tax liability resulting from a settlement agreement with a foreign tax authority. Absent these discrete income tax items, the Company's effective tax rate would have been approximately 21% for fiscal 2021.

Net cash provided by operating activities totaled $407.2 million for fiscal 2021 compared to $340.8 million for fiscal 2020. The change was primarily due to an increase in proceeds received from the Company's stream and royalty interests, net of cost of sales and production taxes, of approximately $86.1 million over fiscal 2020. This increase was offset by $27.4 million of higher cash taxes paid, net of refunds over the fiscal and lower income taxes paid over fiscal 2020.

At June 30, 2021, the Company had current assets of $297.1 million compared to current liabilities of $52.1 million resulting in working capital of $245.0 million. This compares to current assets of $362.2 million and current liabilities of $43.6 million at June 30, 2020, resulting in working capital of $318.6 million. The decrease in working capital was primarily attributable to the repayment of outstanding debt.

During fiscal 2021, liquidity needs were met from $407.2 million in net cash provided by operating activities and available cash resources. As of June 30, 2021, the Company had $1 billion available and no amounts outstanding under the revolving credit facility. Working capital, combined with available capacity under the revolving credit facility, resulted in approximately $1.2 billion of total liquidity at June 30, 2021. In August 2021, the Company borrowed $100 million under the revolving credit facility for business development activities.

Fourth Quarter 2021 Overview

Fourth quarter revenue was $168.0 million compared to $120.0 million in the prior year quarter, with stream revenue totaling $114.4 million and royalty revenue totaling $53.6 million. The increase in total revenue for the fourth quarter compared to the prior year quarter was due to higher average gold, silver and copper prices, higher gold stream sales from Andacollo, higher copper stream sales from Mount Milligan and higher royalty revenue primarily from Peasquito, Cortez and Voisey's Bay. These increases were partially offset by lower gold sales from Mount Milligan and lower silver sales from Pueblo Viejo.

Cost of sales, which excludes depreciation, depletion and amortization, increased to $24.7 million for the fourth quarter from $20.7 million for the prior year quarter. The increase was primarily due to higher gold, silver and copper prices, higher gold sales from Andacollo and higher copper sales from Mount Milligan, partially offset by lower gold sales from Mount Milligan and lower silver sales from Pueblo Viejo. Cost of sales is specific to the Company's stream agreements and is the result of the purchase of gold, silver and copper for a cash payment.

Depreciation, depletion and amortization increased to $48.0 million for the fourth quarter from $45.4 million for the prior year quarter. The increase was primarily due to higher GEO volumes.

During the fourth quarter, the Company recognized a gain of $2.0 million on changes in fair value of equity securities related to warrants to purchase common shares of TriStar Gold Inc., compared to a gain of $6.4 million in the prior year period. Holdings in the prior period also included shares in Contango ORE, Inc., which were sold in September 2020, and shares in Battle North Gold Corporation, which were sold in May 2021.

Interest and other expense decreased to $1.1 million for the fourth quarter, from $2.7 million for the prior year period. The decrease was primarily attributable to lower interest expense as a result of a decrease in average debt amounts outstanding when compared to the prior year quarter.

During the fourth quarter, the Company recognized an income tax expense of $5.5 million, compared with an income tax expense of $0.045 million during the prior year period. The current period tax expense was primarily impacted by the release of an uncertain tax liability resulting from a settlement agreement with a foreign tax authority related to withholding tax. Absent the discrete income tax benefit, the Company's effective tax rate would have been approximately 20% for the fourth quarter.

Outlook

For the quarter ended September 30, 2021, Royal Gold expects stream segment sales to range between 62,000 and 67,000 GEOs with quarter-end inventory ranging between 22,000 and 27,000 GEOs.

For the 6-month stub period ended December 31, 2021, Royal Gold expects total stream segment and royalty sales volume to range between 175,000 and 185,000 GEOs4. For the same period, depreciation, depletion and amortization expense is expected to range between $520 and $570 per GEO.

Other than potential remaining conditional funding at the Khoemacau Project and potential exploration and resource payments under the NX Gold Mine stream, both as described above, Royal Gold has no other project capital commitments or financing obligations.

4 Commodity price assumptions for GEO projections include: $1,750 per ounce of gold, $25.50 per ounce of silver, $4.15 per pound of copper, $8.00 per pound of nickel, $0.95 per pound of lead, and $1.25 per pound of zinc

Property Highlights

A breakdown of revenue for the stream and royalty portfolio can be found on Table 1. Historical production reported by operators of the Company's principal stream and royalty properties can be found on Table 2. Calendar year 2021 operator production estimates for the Company's principal stream and royalty properties compared to actual production at these properties through June 30, 2021 can be found on Table 3. Results of the streaming business for the fiscal 2021 and the fourth quarter, compared to fiscal 2020 and prior year quarter, respectively, can be found on Table 4. Highlights at certain of the Company's principal producing and development properties during the fourth quarter, compared to the prior year quarter, are detailed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2021.

CORPORATE PROFILE

Royal Gold is a precious metals stream and royalty company engaged in the acquisition and management of precious metal streams, royalties and similar production-based interests. As of June 30, 2021, the Company owned interests on 187 properties on five continents, including interests on 41 producing mines and 17 development stage projects. Royal Gold is publicly traded on the Nasdaq Global Select Market under the symbol "RGLD." The Company's website is located at www.royalgold.com.

Fourth Quarter and Fiscal Year 2021 Call Information:



Dial-In 855-209-8260 (U.S.); toll free

855-669-9657 (Canada); toll freeNumbers: 412-542-4106 (International)

Conference Title: Royal Gold



Webcast URL: www.royalgold.com under Investors, Events & Presentations



Note: Management's conference call reviewing the fourth quarter and fiscal 2021results will be held on Thursday, August 12, 2021, at noon Eastern Time (10:00a.m. Mountain Time). The call will be webcast and archived on the Company'swebsite for a limited time.

Additional Investor Information: Royal Gold routinely posts important information, including information about upcoming investor presentations and press releases, on its website under the Investors tab. Investors and other interested parties are encouraged to enroll at www.royalgold.com to receive automatic email alerts for new postings.

Forward-Looking Statements: This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from these statements. Forward-looking statements are often identified by words like "will," "may," "could," "should," "would," "believe," "estimate," "expect," "anticipate," "plan," "forecast," "potential," "intend," "continue," "project," or negatives of these words or similar expressions. Forward-looking statements include, among others, the following: statements about our expected financial performance and outlook, including sales volume, revenue, expenses, tax rates, earnings or cash flow; operators' expected operating and financial performance, including production, deliveries, mine plans and reserves, development, cash flows and capital expenditures; planned and potential acquisitions or dispositions, including funding schedules and conditions; liquidity, financing and stockholder returns; our overall investment portfolio; macroeconomic and market conditions including the impacts of COVID-19; prices for gold, silver, copper, nickel and other metals; potential impairments; or tax changes.

Factors that could cause actual results to differ materially from these forward-looking statements include, among others, the following: a lower-price environment for gold, silver, copper, nickel or other metals; operating activities or financial performance of properties on which we hold stream or royalty interests, including variations between actual and forecasted performance, operators' ability to complete projects on schedule and as planned, changes to mine plans and reserves, liquidity needs, mining and environmental hazards, labor disputes, distribution and supply chain disruptions, permitting and licensing issues, contractual issues involving our stream or royalty agreements, or operational disruptions due to COVID-19, including due to variant strains of the virus; risks associated with doing business in foreign countries; increased competition for stream and royalty interests; environmental risks, included those caused by climate change; potential cyber-attacks, including ransomware; our ability to identify, finance, value and complete acquisitions; adverse economic and market conditions; changes in laws or regulations governing us, operators or operating properties; changes in management and key employees; and other factors described in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended June 30, 2021. Most of these factors are beyond our ability to predict or control.

Forward-looking statements speak only as of the date on which they are made. We disclaim any obligation to update any forward-looking statements, except as required by law. Readers are cautioned not to put undue reliance on forward-looking statements.

Statement Regarding Third-Party Information: Certain information provided in this press release, including production estimates, has been provided to us by the operators of the relevant properties or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of any such third-party information and refers the reader to the public reports filed by the operators for information regarding those properties.

Information in this press release concerning the Khoemacau Copper Project was provided to the Company by Cupric Canyon Capital L.P., the privately held owner and developer of Khoemacau. Such information may not have been prepared in accordance with applicable laws, stock exchange rules or international standards governing preparation and public disclosure of technical data and information relating to mineral properties. Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of this third-party information, and investors are cautioned not to rely upon this information.

TABLE 1

Fourth Quarter Fiscal 2021

Revenue by Stream and Royalty Interests

(In thousands)



Three Months Ended Year Ended

June 30, June 30,

CurrentStream/Royalty Metal Stream/ 2021 2020 2021 2020 (s) Royalty Interest^1

Stream:

Canada

35% of Gold, payable goldMount Milligan copper and 18.75% of $ 43,802 $ 38,001 $ 156,938 $ 131,425 payable copper

6.5% of goldRainy River Gold, produced and 8,238 7,745 33,599 27,311 silver 60% of silver produced

Latin America

7.5% of Barrick's interest in Gold, payable goldPueblo Viejo silver and 75% of $ 26,585 $ 23,444 $ 115,583 $ 96,978 Barrick's interest in payable silver

Andacollo Gold 100% of 27,867 10,895 82,164 74,219 payable gold

Africa

Wassa Gold 10.5% of $ 7,129 $ 4,443 $ 31,772 $ 23,203 payable gold

Prestea and Gold 5.5% of 800 1,275 3,933 6,732Bogoso payable gold

Total stream $ 114,421 $ 85,803 $ 423,989 $ 359,868revenue

Royalty:

Canada

Holt Gold 0.00013 x Au $ - $ 866 $ - $ 11,108 price NSR

Copper,Voisey's Bay nickel, 2.7% NVR 5,310 682 16,302 6,880 cobalt

Canadian 1.0%-1.5%Malartic Gold sliding-scale 2,379 1,166 8,776 6,758 NSR

Williams Gold 0.97% NSR 681 741 3,082 2,736

LaRonde Zone 5 Gold 2.0% NSR 619 399 2,247 1,786

Other-Canada Various Various 611 587 1,264 1,256

United States

GSR1, GSR2,Cortez Gold GSR3, NVR1, $ 13,739 $ 8,233 $ 36,160 $ 22,342 NVR1C

Robinson Gold, 3.0% NSR 2,899 2,079 11,955 8,712 copper

Marigold Gold 2.0% NSR 2,101 1,676 9,184 - 6,722

Goldstrike Gold 0.9% NSR 587 756 3,146 3,401

0.0%-2.0%Wharf Gold sliding-scale 873 851 3,550 2,873 GSR

Other-United Various Various 1,149 1,284 4,615 4,641States

Latin America

Gold,Penasquito silver, 2.0% NSR $ 13,399 $ 6,076 $ 49,688 $ 25,498 lead, zinc

Gold, 3.25% NSRDolores silver (gold), 2.0% 2,792 1,732 8,524 7,233 NSR (silver)

El Limon Gold 3.0% NSR 1,234 551 5,071 3,063

Other-Latin Various Various - 6 664 1,052America

Africa

2.0% GSR,Taparko Gold 0.75% GSR $ 559 $ 848 $ 2,801 $ 2,575 (milling royalty)

Other - Africa Various Various - - - -

Australia

South Laverton Gold 1.5% NSR, $ 1,826 $ 1,516 $ 7,006 $ 5,263 4.0% NPI

Gwalia Deeps Gold 1.5% NSR 1,178 1,317 4,118 4,166

Meekatharra Gold 0.45% or 1.5% 738 758 4,033 3,027 NSR

Other-Australia Various Various 507 595 6,308 2,796

Europe

Las Cruces Copper 1.5% NSR $ 423 $ 1,445 $ 3,372 $ 5,062

Other-Europe Various Various - - - -

Total royalty $ 53,606 $ 34,162 $ 191,867 $ 138,951revenue

Total revenue $ 168,027 $ 119,965 $ 615,856 $ 498,819

1

Refer to Part I, Item 2, of the Company's Fiscal 2021 Form 10-K for a full description of the Company's stream and royalty interests.

^ Refer to Part I, Item 2, of the Company's Fiscal 2021 Form 10-K for a full1 description of the Company's stream and royalty interests.

TABLE 2

Operators' Historical Production

Reported Production For The Quarter Ended1

Property

Operator

Stream/Royalty

Metal(s)

Jun. 30, 2021

Mar. 31, 2021

Dec. 31, 2020

Sep. 30, 2020

Jun. 30, 2020

Stream:

Mount Milligan

Centerra

35% of payable gold

Gold

16,100

oz

9,200

oz

16,900

oz

11,800

oz

20,200

oz

18.75% of payable copper

Copper

3.4

Mlb

4.4

Mlb

4.1

Mlb

4.1

Mlb

1.7

Mlb

Pueblo Viejo

Barrick (60%)

7.5% of Barrick's interest in payable gold up to 990,000 ounces; 3.75% thereafter

Gold

11,100

oz

10,500

oz

9,400

oz

11,100

oz

10,200

oz

75% of Barrick's interest in payable silver up to 50 million ounces; 37.5% thereafter(2)

Silver

247,500

oz

418,200

oz

408,600

oz

451,200

oz

394,700

oz

Andacollo

Teck

100% of payable gold up to 900,000 ounces; 50% thereafter

Gold

15,400

oz

7,100

oz

9,500

oz

12,200

oz

6,300

oz

Wassa

Golden Star

10.5% of payable gold up to 240,000 ounces; 5.5% thereafter

Gold

4,000

oz

4,800

oz

3,600

oz

4,900

oz

2,600

oz

Royalty:

Pe?asquito

Newmont Corporation

2.0% NSR

Gold

179,800

oz

180,400

oz

210,600

oz

130,700

oz

83,700

oz

Silver

7.6

Moz

8.1

Moz

8.7

Moz

6.4

Moz

5.2

Moz

Lead

41.8

Mlb

50.1

Mlb

52.1

Mlb

41.7

Mlb

30.6

Mlb

Zinc

101.7

Mlb

119.3

Mlb

93.8

Mlb

98.0

Mlb

90.2

Mlb

Cortez

Nevada Gold Mines LLC

GSR1, GSR2, GSR3, NVR1, NVR1C(3)

Gold

89,800

oz

51,900

oz

57,600

oz

37,600

oz

52,500

oz

TABLE 2

Operators' Historical Production



Reported Production For The Quarter Ended^1

Property Operator Stream/ Metal Jun. 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Sep. 30, 2020 Jun. 30, 2020 Royalty (s)

Stream:

Mount 35% ofMilligan Centerra payable Gold 16,100 oz 9,200 oz 16,900 oz 11,800 oz 20,200 oz gold

18.75% of payable Copper 3.4 Mlb 4.4 Mlb 4.1 Mlb 4.1 Mlb 1.7 Mlb copper

7.5% of Barrick's interestPueblo Barrick in payableViejo (60%) gold up to Gold 11,100 oz 10,500 oz 9,400 oz 11,100 oz 10,200 oz 990,000 ounces; 3.75% thereafter

75% of Barrick's interest in payable silver up to 50 Silver 247,500 oz 418,200 oz 408,600 oz 451,200 oz 394,700 oz million ounces; 37.5% thereafter ^(2)

100% of payable gold up toAndacollo Teck 900,000 Gold 15,400 oz 7,100 oz 9,500 oz 12,200 oz 6,300 oz ounces; 50% thereafter

10.5% of payable gold up toWassa Golden Star 240,000 Gold 4,000 oz 4,800 oz 3,600 oz 4,900 oz 2,600 oz ounces; 5.5% thereafter

Royalty:

Pe? Newmont 2.0% NSR Gold 179,800 oz 180,400 oz 210,600 oz 130,700 oz 83,700 ozasquito Corporation

Silver 7.6 Moz 8.1 Moz 8.7 Moz 6.4 Moz 5.2 Moz

Lead 41.8 Mlb 50.1 Mlb 52.1 Mlb 41.7 Mlb 30.6 Mlb

Zinc 101.7 Mlb 119.3 Mlb 93.8 Mlb 98.0 Mlb 90.2 Mlb

GSR1, Nevada Gold GSR2,Cortez Mines LLC GSR3, Gold 89,800 oz 51,900 oz 57,600 oz 37,600 oz 52,500 oz NVR1, NVR1C^(3)



1

Reported production relates to the amount of metal sales subject to our stream and royalty interests for the stated periods and may differ from the operators' public reporting.

2The Pueblo Viejo silver stream is determined based on a fixed metallurgical recovery of 70% of silver in mill feed.

3Production includes applicable royalty deductions. Please refer to Part I, Item 2, of the Company's Fiscal 2021 Form 10-K for a full description of the Company's royalty interests at Cortez.

^ Reported production relates to the amount of metal sales subject to our1 stream and royalty interests for the stated periods and may differ from the operators' public reporting.

^ The Pueblo Viejo silver stream is determined based on a fixed metallurgical2 recovery of 70% of silver in mill feed.

Production includes applicable royalty deductions. Please refer to Part I,^ Item 2, of the Company's Fiscal 2021 Form 10-K for a full description of the3 Company's royalty interests at Cortez.

TABLE 3

Operator's Estimated and Actual Production



Operator's Estimated Production Operator's Actual Calendar for 2021

Full Year Calendar 2021^(1) Production^(2)

Stream/ Silver Base Gold Silver BaseRoyalty Gold (oz) (oz) Metals (oz) (oz) Metals (lb) (lb)

Stream:

Andacollo^ N/A 19,700 (3)

Mount 180,000 -Milligan^ 200,000 97,300 (4)

Copper 70 - 80 M 38.4 M

Pueblo 470,000 - N/A 254,000 N/A Viejo^(5) 510,000

Wassa^(6) 145,000 - 78,000 155,000

Royalty:

Cortez^(7) 350,000 - 141,700 375,000

Pe?asquito^ 660,000 30 M 348,000 15.6 M (8)

Lead 190 M 94 M

Zinc 475 M 216 M



1Production estimates received from the operators are for calendar 2021. There can be no assurance that production estimates received from the operators will be achieved. Please also refer to our cautionary language regarding forward-looking statements above, as well as the Risk Factors identified in Part I, Item 1A, of the Company's Fiscal 2021 Form 10-K for information regarding factors that could affect actual results.

2Actual production figures shown are from the operators and cover the period January 1, 2021 through June 30, 2021, unless otherwise noted in footnotes to this table.

3The actual production figure shown for Andacollo is contained gold in concentrate. The estimated production figure was not available on the date of this release.

4The estimated production figures shown for Mount Milligan are payable gold and copper in concentrate.

5The estimated and actual production figures shown for Pueblo Viejo are payable gold in dor? and represent the 60% interest in Pueblo Viejo held by Barrick Gold Corporation ("Barrick"). Barrick did not provide estimated or actual silver production.

6The estimated and actual production figures shown for Wassa are payable gold in dor?.

7Production from Cortez subject to Royal Gold's royalty interests.

8The estimated and actual gold production figures shown for Pe?asquito are payable gold and silver in concentrate and dor?. The estimated and actual lead and zinc production figures shown are payable lead and zinc in concentrate.

Production estimates received from the operators are for calendar 2021. There can be no assurance that production estimates received from the^ operators will be achieved. Please also refer to our cautionary language1 regarding forward-looking statements above, as well as the Risk Factors identified in Part I, Item 1A, of the Company's Fiscal 2021 Form 10-K for information regarding factors that could affect actual results.

Actual production figures shown are from the operators and cover the period^ January 1, 2021 through June 30, 2021, unless otherwise noted in footnotes2 to this table.

The actual production figure shown for Andacollo is contained gold in^ concentrate. The estimated production figure was not available on the date3 of this release.

^ The estimated production figures shown for Mount Milligan are payable gold4 and copper in concentrate.

The estimated and actual production figures shown for Pueblo Viejo are^ payable gold in dor? and represent the 60% interest in Pueblo Viejo held by5 Barrick Gold Corporation ("Barrick"). Barrick did not provide estimated or actual silver production.

^ The estimated and actual production figures shown for Wassa are payable gold6 in dor?.

^ Production from Cortez subject to Royal Gold's royalty interests.7 The estimated and actual gold production figures shown for Pe?asquito are^ payable gold and silver in concentrate and dor?. The estimated and actual8 lead and zinc production figures shown are payable lead and zinc in concentrate.

TABLE 4

Stream Summary

Three Months Ended

Three Months Ended

As of

As of

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Gold Stream

Purchases (oz)

Sales (oz)

Purchases (oz)

Sales (oz)

Inventory (oz)

Inventory (oz)

Mount Milligan

20,800

16,100

15,000

20,200

11,400

3,300

Andacollo

11,300

15,400

6,100

6,300

2,400

100

Pueblo Viejo

9,800

11,100

11,100

10,200

9,800

11,100

Wassa

3,600

4,000

4,900

2,500

2,300

2,900

Other

3,800

4,000

3,700

4,900

1,300

1,500

Total

49,300

50,600

40,800

44,100

27,200

18,900

Three Months Ended

Three Months Ended

As of

As of

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Silver Stream

Purchases (oz)

Sales (oz)

Purchases (oz)

Sales (oz)

Inventory (oz)

Inventory (oz)

Pueblo Viejo

386,500

247,500

451,200

394,700

386,500

451,200

Other

98,600

72,000

37,400

55,300

98,900

23,400

Total

485,100

319,500

488,600

450,000

485,400

474,600

Three Months Ended

Three Months Ended

As of

As of

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Copper Stream

Purchases (Mlb)

Sales (Mlb)

Purchases (Mlb)

Sales (Mlb)

Inventory (Mlb)

Inventory (Mlb)

Mount Milligan

5.1

3.4

2.4

1.7

1.7

0.8

TABLE 4

Stream Summary



Three Months Ended Three Months Ended As of As of

June 30, 2021 June 30, 2020 June 30, June 30, 2021 2020

Gold Purchases Sales Purchases Sales Inventory InventoryStream (oz) (oz) (oz) (oz) (oz) (oz)

Mount 20,800 16,100 15,000 20,200 11,400 3,300Milligan

Andacollo 11,300 15,400 6,100 6,300 2,400 100

Pueblo 9,800 11,100 11,100 10,200 9,800 11,100Viejo

Wassa 3,600 4,000 4,900 2,500 2,300 2,900

Other 3,800 4,000 3,700 4,900 1,300 1,500

Total 49,300 50,600 40,800 44,100 27,200 18,900



Three Months Ended Three Months Ended As of As of

June 30, 2021 June 30, 2020 June 30, June 30, 2021 2020

Silver Purchases Sales Purchases Sales Inventory InventoryStream (oz) (oz) (oz) (oz) (oz) (oz)

Pueblo 386,500 247,500 451,200 394,700 386,500 451,200Viejo

Other 98,600 72,000 37,400 55,300 98,900 23,400

Total 485,100 319,500 488,600 450,000 485,400 474,600



Three Months Ended Three Months Ended As of As of

June 30, 2021 June 30, 2020 June 30, June 30, 2021 2020

Copper Purchases Sales Purchases Sales Inventory InventoryStream (Mlb) (Mlb) (Mlb) (Mlb) (Mlb) (Mlb)

Mount 5.1 3.4 2.4 1.7 1.7 0.8Milligan



Year Ended

Year Ended

As of

As of

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Gold Stream

Purchases (oz)

Sales (oz)

Purchases (oz)

Sales (oz)

Inventory (oz)

Inventory (oz)

Mount Milligan

62,300

54,200

59,900

63,700

11,400

3,300

Andacollo

46,400

44,100

43,900

48,100

2,400

100

Pueblo Viejo

40,800

42,100

45,000

43,300

9,800

11,100

Wassa

16,700

17,300

16,500

15,000

2,300

2,900

Other

17,100

17,400

19,500

20,300

1,300

1,500

Total

183,300

175,100

184,800

190,400

27,200

18,900

Year Ended

Year Ended

As of

As of

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Silver Stream

Purchases (oz)

Sales (oz)

Purchases (oz)

Sales (oz)

Inventory (oz)

Inventory (oz)

Pueblo Viejo

1,460,800

1,525,500

1,726,100

1,750,400

386,500

451,200

Other

288,900

213,400

175,700

188,800

98,900

23,400

Total

1,749,700

1,738,900

1,901,800

1,939,200

485,400

474,600

Year Ended

Year Ended

As of

As of

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Copper Stream

Purchases (Mlb)

Sales (Mlb)

Purchases (Mlb)

Sales (Mlb)

Inventory (Mlb)

Inventory (Mlb)

Mount Milligan

16.9

15.9

12.6

12.7

1.7

0.8



Year Ended Year Ended As of As of

June 30, 2021 June 30, 2020 June 30, June 30, 2021 2020

Gold Purchases Sales Purchases Sales Inventory InventoryStream (oz) (oz) (oz) (oz) (oz) (oz)

Mount 62,300 54,200 59,900 63,700 11,400 3,300Milligan

Andacollo 46,400 44,100 43,900 48,100 2,400 100

Pueblo 40,800 42,100 45,000 43,300 9,800 11,100Viejo

Wassa 16,700 17,300 16,500 15,000 2,300 2,900

Other 17,100 17,400 19,500 20,300 1,300 1,500

Total 183,300 175,100 184,800 190,400 27,200 18,900



Year Ended Year Ended As of As of

June 30, 2021 June 30, 2020 June 30, June 30, 2021 2020

Silver Purchases Sales Purchases Sales Inventory InventoryStream (oz) (oz) (oz) (oz) (oz) (oz)

Pueblo 1,460,800 1,525,500 1,726,100 1,750,400 386,500 451,200Viejo

Other 288,900 213,400 175,700 188,800 98,900 23,400

Total 1,749,700 1,738,900 1,901,800 1,939,200 485,400 474,600



Year Ended Year Ended As of As of

June 30, 2021 June 30, 2020 June 30, June 30, 2021 2020

Copper Purchases Sales Purchases Sales Inventory InventoryStream (Mlb) (Mlb) (Mlb) (Mlb) (Mlb) (Mlb)

Mount 16.9 15.9 12.6 12.7 1.7 0.8Milligan

ROYAL GOLD, INC.

Consolidated Balance Sheets

(Unaudited, in thousands except share data)

June 30, 2021

June 30, 2020

ASSETS

Cash and equivalents

$

225,916

$

319,128

Royalty receivables

47,242

27,689

Income tax receivable

4,520

2,435

Stream inventory

17,684

11,671

Prepaid expenses and other

1,773

1,227

Total current assets

297,135

362,150

Stream and royalty interests, net

2,262,158

2,318,913

Other assets

92,312

85,224

Total assets

$

2,651,605

$

2,766,287

LIABILITIES

Accounts payable

$

6,398

$

2,484

Dividends payable

19,681

18,364

Income tax payable

14,479

13,323

Other current liabilities

11,525

9,384

Total current liabilities

52,083

43,555

Debt

-

300,439

Deferred tax liabilities

88,000

86,439

Uncertain tax positions

910

25,427

Other liabilities

7,197

8,308

Total liabilities

148,190

464,168

Commitments and contingencies

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 65,551,061 and 65,531,288 shares outstanding, respectively

656

655

Additional paid-in capital

2,203,863

2,210,429

Accumulated earnings

286,249

61,133

Total Royal Gold stockholders' equity

2,490,768

2,272,217

Non-controlling interests

12,647

29,902

Total equity

2,503,415

2,302,119

Total liabilities and equity

$

2,651,605

$

2,766,287

ROYAL GOLD, INC.

Consolidated Balance Sheets

(Unaudited, in thousands except share data)



June 30, June 30, 2021 2020

ASSETS

Cash and equivalents $ 225,916 $ 319,128

Royalty receivables 47,242 27,689

Income tax receivable 4,520 2,435

Stream inventory 17,684 11,671

Prepaid expenses and other 1,773 1,227

Total current assets 297,135 362,150

Stream and royalty interests, net 2,262,158 2,318,913

Other assets 92,312 85,224

Total assets $ 2,651,605 $ 2,766,287

LIABILITIES

Accounts payable $ 6,398 $ 2,484

Dividends payable 19,681 18,364

Income tax payable 14,479 13,323

Other current liabilities 11,525 9,384

Total current liabilities 52,083 43,555

Debt - 300,439

Deferred tax liabilities 88,000 86,439

Uncertain tax positions 910 25,427

Other liabilities 7,197 8,308

Total liabilities 148,190 464,168

Commitments and contingencies

EQUITY

Preferred stock, $.01 par value, 10,000,000 - -shares authorized; and 0 shares issued

Common stock, $.01 par value, 200,000,000shares authorized; and 65,551,061 and 656 65565,531,288 shares outstanding, respectively

Additional paid-in capital 2,203,863 2,210,429

Accumulated earnings 286,249 61,133

Total Royal Gold stockholders' equity 2,490,768 2,272,217

Non-controlling interests 12,647 29,902

Total equity 2,503,415 2,302,119

Total liabilities and equity $ 2,651,605 $ 2,766,287

ROYAL GOLD, INC.

Consolidated Statements of Operations and Comprehensive Income

(Unaudited, in thousands except for per share data)

For The Three Months Ended

For The Year Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Revenue

$

168,027

$

119,965

$

615,856

$

498,819

Costs and expenses

Cost of sales (excludes depletion, depreciation and amortization)

24,668

20,741

92,898

83,890

General and administrative

7,212

6,537

28,387

30,195

Production taxes

2,152

890

6,743

3,824

Exploration costs

-

485

563

5,190

Depreciation, depletion and amortization

48,028

45,396

183,569

175,434

Impairment of royalty interests

-

1,341

-

1,341

Total costs and expenses

82,060

75,390

312,160

299,874

Gain on sale of Peak Gold JV interest

-

-

33,906

-

Operating income

85,967

44,576

337,602

198,945

Fair value changes in equity securities

1,957

6,390

6,017

1,418

Interest and other income

676

425

2,443

2,046

Interest and other expense

(1,145)

(2,674)

(6,419)

(9,813)

Income before income taxes

87,455

48,717

339,643

192,596

Income tax (expense) benefit

(5,536)

(45)

(36,867)

3,654

Net income and comprehensive income

81,919

48,672

302,776

196,250

Net (income) loss and comprehensive (income) loss attributable to non-controlling interests

(242)

343

(244)

3,093

Net income and comprehensive income attributable to Royal Gold common stockholders

$

81,677

$

49,015

$

302,532

$

199,343

Net income per share attributable to Royal Gold common stockholders:

Basic earnings per share

$

1.24

$

0.75

$

4.61

$

3.04

Basic weighted average shares outstanding

65,550,682

65,522,569

65,546,400

65,523,024

Diluted earnings per share

$

1.24

$

0.75

$

4.60

$

3.03

Diluted weighted average shares outstanding

65,636,964

65,627,851

65,627,591

65,643,390

Cash dividends declared per common share

$

0.30

$

0.28

$

1.18

$

1.11

ROYAL GOLD, INC.

Consolidated Statements of Operations and Comprehensive Income

(Unaudited, in thousands except for per share data)



For The Three Months Ended For The Year Ended

June 30, June 30, June 30, June 30, 2021 2020 2021 2020

Revenue $ 168,027 $ 119,965 $ 615,856 $ 498,819

Costs and expenses

Cost of sales(excludesdepletion, 24,668 20,741 92,898 83,890depreciationandamortization)

General and 7,212 6,537 28,387 30,195administrative

Production 2,152 890 6,743 3,824taxes

Exploration - 485 563 5,190costs

Depreciation,depletion and 48,028 45,396 183,569 175,434amortization

Impairment ofroyalty - 1,341 - 1,341interests

Total costs and 82,060 75,390 312,160 299,874expenses

Gain on sale ofPeak Gold JV - - 33,906 -interest

Operating 85,967 44,576 337,602 198,945income

Fair valuechanges in 1,957 6,390 6,017 1,418equitysecurities

Interest and 676 425 2,443 2,046other income

Interest and (1,145) (2,674) (6,419) (9,813)other expense

Income before 87,455 48,717 339,643 192,596income taxes

Income tax(expense) (5,536) (45) (36,867) 3,654benefit

Net income andcomprehensive 81,919 48,672 302,776 196,250income

Net (income)loss andcomprehensive(income) loss (242) 343 (244) 3,093attributable tonon-controllinginterests

Net income andcomprehensiveincomeattributable to $ 81,677 $ 49,015 $ 302,532 $ 199,343Royal Goldcommonstockholders

Net income pershareattributable to Royal Goldcommonstockholders:

Basic earnings $ 1.24 $ 0.75 $ 4.61 $ 3.04per share

Basic weightedaverage shares 65,550,682 65,522,569 65,546,400 65,523,024outstanding

Dilutedearnings per $ 1.24 $ 0.75 $ 4.60 $ 3.03share

Dilutedweighted 65,636,964 65,627,851 65,627,591 65,643,390average sharesoutstanding

Cash dividendsdeclared per $ 0.30 $ 0.28 $ 1.18 $ 1.11common share

ROYAL GOLD, INC.

Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Three Months Ended

Year Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Cash flows from operating activities:

Net income and comprehensive income

$

81,920

$

48,672

$

302,776

$

196,250

Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities:

Depreciation, depletion and amortization

48,028

45,395

183,569

175,434

Amortization of debt discount and issuance costs

1,148

285

1,148

1,136

Gain on sale of Peak Gold JV interest

-

-

(33,906)

-

Non-cash employee stock compensation expense

1,494

833

5,730

9,116

Fair value changes in equity securities

(1,957)

(6,390)

(6,017)

(1,418)

Deferred tax (benefit) expense

9,506

4,718

456

(32,399)

Impairment of royalty interests

-

1,341

-

1,341

Other

(861)

-

(177)

(148)

Changes in assets and liabilities:

Royalty receivables

(1,814)

4,632

(19,552)

(6,957)

Stream inventory

(3,194)

276

(6,014)

(291)

Income tax receivable

10,150

8,926

(2,085)

268

Prepaid expenses and other assets

(680)

(2,057)

318

(7,828)

Accounts payable

1,993

1,020

3,237

(275)

Income tax payable

(11,181)

(7,705)

1,156

6,349

Uncertain tax positions

(12,048)

(11,014)

(24,518)

(11,146)

Other liabilities

(1,651)

2,625

1,030

11,320

Net cash provided by operating activities

$

120,853

$

91,557

$

407,151

$

340,752

Cash flows from investing activities:

Acquisition of stream and royalty interests

(85,659)

(48,130)

(168,147)

(155,985)

Khoemacau subordinated debt facility

(18,000)

-

(18,000)

-

Proceeds from sale of Peak Gold JV interest

-

-

49,154

-

Proceeds from sale of equity securities

8,651

-

20,797

-

Other

(90)

360

(541)

3,126

Net used in provided by investing activities

$

(95,098)

$

(47,770)

$

(116,737)

$

(152,859)

Cash flows from financing activities:

Repayment of debt

(150,000)

-

(305,000)

(115,000)

Borrowings from revolving credit facility

-

200,000

-

200,000

Net payments from issuance of common stock

(40)

77

(1,465)

(4,180)

Common stock dividends

(19,682)

(18,360)

(76,099)

(71,471)

Other

(377)

(91)

(1,062)

2,411

Net cash (used in) provided by financing activities

$

(170,099)

$

181,626

$

(383,626)

$

11,760

Net (decrease) increase in cash and equivalents

(144,344)

225,413

(93,212)

199,653

Cash and equivalents at beginning of period

370,260

93,715

319,128

119,475

Cash and equivalents at end of period

$

225,916

$

319,128

$

225,916

$

319,128

Schedule A - Non-GAAP Financial Measures and Certain Other Measures

Overview of non-GAAP financial measures:

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by U.S. generally accepted accounting principles ("GAAP"). These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. In addition, because the presentation of these non-GAAP financial measures varies among companies, these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

We have provided below reconciliations of our non-GAAP financial measures to the comparable GAAP measures. We believe these non-GAAP financial measures provide useful information to investors for analysis of our business. We use these non-GAAP financial measures to compare period-over-period performance on a consistent basis and when planning and forecasting for future periods. We believe these non-GAAP financial measures are used by professional research analysts and others in the valuation, comparison and investment recommendations of companies in our industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions. The adjustments made to calculate our non-GAAP financial measures are subjective and involve significant management judgement. Non-GAAP financial measures used by management in this report or elsewhere include the following:

* Adjusted earnings before interest, taxes, depreciation, depletion and amortization, or adjusted EBITDA, is a non-GAAP financial measure that is calculated by the Company as net income adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. We consider adjusted EBITDA to be useful because the measure reflects our operating performance before the effects of certain non-cash items and other items that we believe are not indicative of our core operations. * Net debt (or net cash) is a non-GAAP financial measure that is calculated by the Company as debt (excluding debt issuance costs) as of a date minus cash and equivalents for that same date. Net debt (or net cash) to trailing twelve months (TTM) adjusted EBITDA is a non-GAAP financial measure that is calculated by the Company as net debt (or net cash) as of a date divided by the TTM adjusted EBITDA (as defined above) ending on that date. We believe that these measures are important to monitor leverage and evaluate the balance sheet. Cash and equivalents are subtracted from the GAAP measure because they could be used to reduce our debt obligations. A limitation associated with using net debt (or net cash) is that it subtracts cash and equivalents and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. We believe that investors may find these measures useful to monitor leverage and evaluate the balance sheet. * Adjusted net income and adjusted net income per share are non-GAAP financial measures that are calculated by the Company as net income and net income per share adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliations below. We consider these non-GAAP financial measures to be useful because they allow for period-to-period comparisons of our operating results excluding items that we believe are not indicative of our fundamental ongoing operations. The tax effect of adjustments is computed by applying the statutory tax rate in the applicable jurisdictions to the income or expense items that are adjusted in the period presented. If a valuation allowance exists, the rate applied is zero. * Free cash flow is a non-GAAP financial measure that is calculated by the Company as net cash provided by operating activities for a period minus acquisition of stream and royalty interests for that same period. We believe that free cash flow represents an additional way of viewing liquidity as it is adjusted for contractual investments made during such period. Free cash flow does not represent the residual cash flow available for discretionary expenditures. We believe it is important to view free cash flow as a complement to our consolidated statements of cash flows. * Cash general and administrative expense, or cash G&A, is a non-GAAP financial measure that is calculated by the Company as general and administrative expenses for a period minus non-cash employee stock compensation expense for the same period. We believe that cash G&A is useful as an indicator of overhead efficiency without regard to non-cash expenses associated with employee stock compensation.ROYAL GOLD, INC.

Consolidated Statements of Cash Flows

(Unaudited, in thousands)



Three Months Ended Year Ended

June 30, June 30, June 30, June 30, 2021 2020 2021 2020

Cash flows from operating activities:

Net income and $ 81,920 $ 48,672 $ 302,776 $ 196,250comprehensive income

Adjustments to reconcilenet income andcomprehensive income to net cash provided byoperating activities:

Depreciation, depletion 48,028 45,395 183,569 175,434and amortization

Amortization of debtdiscount and issuance 1,148 285 1,148 1,136costs

Gain on sale of Peak - - (33,906) -Gold JV interest

Non-cash employee stock 1,494 833 5,730 9,116compensation expense

Fair value changes in (1,957) (6,390) (6,017) (1,418)equity securities

Deferred tax (benefit) 9,506 4,718 456 (32,399)expense

Impairment of royalty - 1,341 - 1,341interests

Other (861) - (177) (148)

Changes in assets and liabilities:

Royalty receivables (1,814) 4,632 (19,552) (6,957)

Stream inventory (3,194) 276 (6,014) (291)

Income tax receivable 10,150 8,926 (2,085) 268

Prepaid expenses and (680) (2,057) 318 (7,828)other assets

Accounts payable 1,993 1,020 3,237 (275)

Income tax payable (11,181) (7,705) 1,156 6,349

Uncertain tax positions (12,048) (11,014) (24,518) (11,146)

Other liabilities (1,651) 2,625 1,030 11,320

Net cash provided by $ 120,853 $ 91,557 $ 407,151 $ 340,752operating activities

Cash flows from investing activities:

Acquisition of stream (85,659) (48,130) (168,147) (155,985)and royalty interests

Khoemacau subordinated (18,000) - (18,000) -debt facility

Proceeds from sale of - - 49,154 -Peak Gold JV interest

Proceeds from sale of 8,651 - 20,797 -equity securities

Other (90) 360 (541) 3,126

Net used in provided by $ (95,098) $ (47,770) $ (116,737) $ (152,859)investing activities

Cash flows from financing activities:

Repayment of debt (150,000) - (305,000) (115,000)

Borrowings fromrevolving credit - 200,000 - 200,000facility

Net payments from (40) 77 (1,465) (4,180)issuance of common stock

Common stock dividends (19,682) (18,360) (76,099) (71,471)

Other (377) (91) (1,062) 2,411

Net cash (used in)provided by financing $ (170,099) $ 181,626 $ (383,626) $ 11,760activities

Net (decrease) increase (144,344) 225,413 (93,212) 199,653in cash and equivalents

Cash and equivalents at 370,260 93,715 319,128 119,475beginning of period

Cash and equivalents at $ 225,916 $ 319,128 $ 225,916 $ 319,128end of period

Schedule A - Non-GAAP Financial Measures and Certain Other Measures

Overview of non-GAAP financial measures:

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by U.S. generally accepted accounting principles ("GAAP"). These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. In addition, because the presentation of these non-GAAP financial measures varies among companies, these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

We have provided below reconciliations of our non-GAAP financial measures to the comparable GAAP measures. We believe these non-GAAP financial measures provide useful information to investors for analysis of our business. We use these non-GAAP financial measures to compare period-over-period performance on a consistent basis and when planning and forecasting for future periods. We believe these non-GAAP financial measures are used by professional research analysts and others in the valuation, comparison and investment recommendations of companies in our industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions. The adjustments made to calculate our non-GAAP financial measures are subjective and involve significant management judgement. Non-GAAP financial measures used by management in this report or elsewhere include the following:

* Adjusted earnings before interest, taxes, depreciation, depletion and amortization, or adjusted EBITDA, is a non-GAAP financial measure that is calculated by the Company as net income adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. We consider adjusted EBITDA to be useful because the measure reflects our operating performance before the effects of certain non-cash items and other items that we believe are not indicative of our core operations. * Net debt (or net cash) is a non-GAAP financial measure that is calculated by the Company as debt (excluding debt issuance costs) as of a date minus cash and equivalents for that same date. Net debt (or net cash) to trailing twelve months (TTM) adjusted EBITDA is a non-GAAP financial measure that is calculated by the Company as net debt (or net cash) as of a date divided by the TTM adjusted EBITDA (as defined above) ending on that date. We believe that these measures are important to monitor leverage and evaluate the balance sheet. Cash and equivalents are subtracted from the GAAP measure because they could be used to reduce our debt obligations. A limitation associated with using net debt (or net cash) is that it subtracts cash and equivalents and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. We believe that investors may find these measures useful to monitor leverage and evaluate the balance sheet. * Adjusted net income and adjusted net income per share are non-GAAP financial measures that are calculated by the Company as net income and net income per share adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliations below. We consider these non-GAAP financial measures to be useful because they allow for period-to-period comparisons of our operating results excluding items that we believe are not indicative of our fundamental ongoing operations. The tax effect of adjustments is computed by applying the statutory tax rate in the applicable jurisdictions to the income or expense items that are adjusted in the period presented. If a valuation allowance exists, the rate applied is zero. * Free cash flow is a non-GAAP financial measure that is calculated by the Company as net cash provided by operating activities for a period minus acquisition of stream and royalty interests for that same period. We believe that free cash flow represents an additional way of viewing liquidity as it is adjusted for contractual investments made during such period. Free cash flow does not represent the residual cash flow available for discretionary expenditures. We believe it is important to view free cash flow as a complement to our consolidated statements of cash flows. * Cash general and administrative expense, or cash G&A, is a non-GAAP financial measure that is calculated by the Company as general and administrative expenses for a period minus non-cash employee stock compensation expense for the same period. We believe that cash G&A is useful as an indicator of overhead efficiency without regard to non-cash expenses associated with employee stock compensation.Reconciliation of non-GAAP financial measures to U.S. GAAP measures

Adjusted EBITDA, net cash, and net cash to TTM adjusted EBITDA:



Three Months Ended Year Ended

June 30, June 30,

(amounts in thousands) 2021 2020 2021 2020

Net income and comprehensive $ 81,919 $ 48,672 $ 302,774 $ 196,250income

Depreciation, depletion and 48,028 45,396 183,569 175,434amortization

Non-cash employee stock 1,494 833 5,729 9,116compensation

Impairment of royalty - 1,341 - 1,341interests

Gain on sale of Peak Gold JV - - (33,906) -interest

Fair value changes in equity (1,957) (6,390) (6,016) (1,418)securities

Interest and other, net 469 2,249 3,975 7,767

Income tax expense (benefit) 5,536 45 36,869 (3,654)

Non-controlling interests inoperating (income) loss of (242) 343 (243) 3,241consolidated subsidiaries

Adjusted EBITDA $ 135,247 $ 92,489 $ 492,751 $ 388,077

Three Months Ended

June 30,

March 31,

December 31,

September 30,

(amounts in thousands)

2021

2021

2020

2020

Net income and comprehensive income

$

81,919

$

54,193

$

59,988

$

106,674

Depreciation, depletion and amortization

48,028

41,296

47,945

46,300

Non-cash employee stock compensation

1,494

1,344

1,398

1,493

Gain on sale of Peak Gold JV interest

-

-

-

(33,906)

Fair value changes in equity securities

(1,957)

(1,902)

382

(2,539)

Interest and other, net

469

1,087

965

1,454

Income tax expense (benefit)

5,536

17,679

16,031

(2,377)

Non-controlling interests in operating (income) loss of consolidated subsidiaries

(242)

(167)

(99)

265

Adjusted EBITDA

$

135,247

$

113,530

$

126,610

$

117,364

TTM adjusted EBITDA

$

492,751

Debt

$

-

Debt issuance costs

3,443

Cash and equivalents

(225,916)

Net (cash)

$

(222,473)

Net cash to TTM adjusted EBITDA

(0.45)x



Three Months Ended

June 30, March 31, December September 31, 30,

(amounts in thousands) 2021 2021 2020 2020

Net income and comprehensive $ 81,919 $ 54,193 $ 59,988 $ 106,674income

Depreciation, depletion and 48,028 41,296 47,945 46,300amortization

Non-cash employee stock 1,494 1,344 1,398 1,493compensation

Gain on sale of Peak Gold JV - - - (33,906)interest

Fair value changes in equity (1,957) (1,902) 382 (2,539)securities

Interest and other, net 469 1,087 965 1,454

Income tax expense (benefit) 5,536 17,679 16,031 (2,377)

Non-controlling interests inoperating (income) loss of (242) (167) (99) 265consolidated subsidiaries

Adjusted EBITDA $ 135,247 $ 113,530 $ 126,610 $ 117,364



TTM adjusted EBITDA $ 492,751



Debt $ -

Debt issuance costs 3,443

Cash and equivalents (225,916)

Net (cash) $ (222,473)



Net cash to TTM adjusted (0.45)x EBITDA

Cash G&A:

Three Months Ended

Year Ended

June 30,

June 30,

(amounts in thousands)

2021

2020

2021

2020

General and administrative expense

$

7,212

$

6,537

$

28,387

$

30,195

Non-cash employee stock compensation

(1,494)

(833)

(5,729)

(9,116)

Cash G&A

$

5,718

$

5,704

$

22,658

$

21,079

Cash G&A:



Three Months Ended Year Ended

June 30, June 30,

(amounts in thousands) 2021 2020 2021 2020

General and administrative expense $ 7,212 $ 6,537 $ 28,387 $ 30,195

Non-cash employee stock (1,494) (833) (5,729) (9,116)compensation

Cash G&A $ 5,718 $ 5,704 $ 22,658 $ 21,079

Three Months Ended

June 30,

March 31,

December 31,

September 30,

(amounts in thousands)

2021

2021

2020

2020

General and administrative expense

$

7,212

$

6,932

$

6,789

$

7,454

Non-cash employee stock compensation

(1,494)

(1,344)

(1,398)

(1,493)

Cash G&A

$

5,718

$

5,588

$

5,391

$

5,961

TTM cash G&A

$

22,658



Three Months Ended

June 30, March 31, December September 31, 30,

(amounts in thousands) 2021 2021 2020 2020

General and administrative $ 7,212 $ 6,932 $ 6,789 $ 7,454expense

Non-cash employee stock (1,494) (1,344) (1,398) (1,493)compensation

Cash G&A $ 5,718 $ 5,588 $ 5,391 $ 5,961



TTM cash G&A $ 22,658

Adjusted net income and adjusted net income per share:



Three Months Ended Year Ended

June 30, June 30,

(amounts in thousands, 2021 2020 2021 2020except per share data)

Net income andcomprehensive income $ 81,677 $ 49,015 $ 302,532 $ 199,343attributable to Royal Goldcommon stockholders

Fair value changes in (1,957) (6,390) (6,017) (1,418)equity securities

Impairment of royalty - 1,341 - 1,341interests

Gain on sale of Peak Gold - - (33,906) -JV interest

Discrete tax benefits (11,488) (11,477) (34,686) (40,014)

Non-recurring non-cash - - - 3,338employee stock compensation

Tax effect of adjustments 499 1,741 8,532 (180)

Adjusted net income andcomprehensive income 68,731 34,230 $ 236,455 $ 162,410attributable to Royal Goldcommon stockholders



Net income attributable toRoyal Gold common $ 1.24 $ 0.75 4.60 3.03stockholders per dilutedshare

Fair value changes in (0.03) (0.10) (0.09) (0.02)equity securities

Impairment of royalty - 0.02 - 0.02interests

Gain on sale of Peak Gold - - (0.52) -JV interest

Discrete tax benefits (0.18) (0.17) (0.53) (0.61)

Non-recurring non-cash - - - 0.05employee stock compensation

Tax effect of adjustments 0.01 0.03 0.13 -

Adjusted net incomeattributable to Royal Gold $ 1.04 $ 0.53 $ 3.59 $ 2.47common stockholders perdiluted share

Free cash flow:



Three Months Ended Year Ended

June 30, June 30,

(amounts in thousands) 2021 2020 2021 2020

Net cash provided by $ 120,853 $ 91,557 $ 407,151 $ 340,752operating activities

Acquisition of stream (85,659) (48,130) (168,147) (155,985)and royalty interests

Free cash flow $ 35,194 $ 43,427 $ 239,004 $ 184,767



Net cash used in $ (95,098) $ (47,770) $ (116,737) $ (152,859)investing activities

Net cash (used in)provided by financing $ (170,099) $ 181,626 $ (383,626) $ 11,760activities

Other measures

We use certain other measures in managing and evaluating our business. We believe these measures may provide useful information to investors for analysis of our business. We use these measures to compare period-over-period performance and liquidity on a consistent basis and when planning and forecasting for future periods. We believe these measures are used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in our industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions. Other measures used by management in this report and elsewhere include the following:

* Gold equivalent ounces, or GEOs, is calculated by the Company as revenue (in total or by reportable segment) for a period divided by the average gold price for that same period. * Depreciation, depletion, and amortization, or DD&A, per GEO is calculated by the Company as depreciation, depletion, and amortization for a period divided by GEOs (as defined above) for that same period. * Working capital is calculated by the Company as current assets as of a date minus current liabilities as of that same date. Liquidity is calculated by the Company as working capital plus available capacity under the Company's revolving credit facility. * Dividend payout ratio is calculated by the Company as dividends paid during a period divided by net cash provided by operating activities for that same period. * Operating margin is calculated by the Company as operating income for a period divided by revenue for that same period. View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005829/en/

CONTACT: For further information, please contact: Alistair Baker Vice President Investor Relations and Business Development (720) 554-6995