Business Wire | Dec 15, 2021 04:23PM EST

Royal Gold Provides Details on Fiscal Year End Change

Dec. 15, 2021

DENVER--(BUSINESS WIRE)--Dec. 15, 2021--Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, "Royal Gold" or the "Company," "we" or "our") announced today additional details with respect to the previously announced change in Royal Gold's fiscal year end.

As previously announced, Royal Gold is transitioning its fiscal year end from June 30 to December 31, effective as of December 31, 2021. This change in fiscal year end will better align Royal Gold's reporting and disclosure with that of most of its streaming and royalty counterparties and other companies in the precious metals sector.

Important investor considerations for this change include:

* Royal Gold is currently in a transition period that covers the six months between the end of the previous fiscal year on June 30, 2021, and December 31, 2021; * The 10-KT report for the transition period ending December 31, 2021, will be filed within 60 days of the end of the transition period; * 10-Q reports for each of the March 31, June 30 and September 30 quarters will be filed within 40 days of the end of each quarter; * The 2022 stockholders' meeting is expected to be held on May 25, 2022; * The Board of Directors expects that any dividend declarations will continue on a quarterly schedule, with the determination of dividend record and payout dates to remain consistent with past practice; * Stream segment sales and inventory figures for each quarter are expected to be made available prior to filing quarterly financial results, consistent with past practice; and * One-year guidance for total GEO sales, depreciation, depletion and amortization expense, and effective tax rate is expected to be provided during the second calendar quarter of 2022.

In order to ease the transition to the new fiscal year end, certain unaudited financial metrics on a calendar year basis are shown in Tables 1 and 2 of this press release for the five-year period 2016 through 2020 inclusive. Table 1 contains an unaudited summary of revenue by property, and Table 2 contains select unaudited financial metrics. Royal Gold expects to provide further historical financial metrics along with the filing of financial results in the future.

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 September 30, 2021, the Company owned interests on 190 properties on five continents, including interests on 44 producing mines and 16 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.

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, statements about our fiscal year end change and future reporting practices. 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, or contractual issues involving our stream or royalty agreements; risks associated with doing business in foreign countries; 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; the impacts of the COVID-19 pandemic; 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, and subsequent Forms 10-Q. 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.

TABLE 1 Five-Year Historical Revenue by Stream and Royalty Interests(In $ thousands unless noted otherwise,unaudited) Twelve Months Ended December 31,

Metal Current Stream/ 2020 2019 2018 2017 2016 Stream/Royalty (s) Royalty Interest^ 1Stream:Canada Gold, 35% of payable 149,631 125,121 116,966 120,270 129,730 Mount Milligan copper gold and 18.75% $ $ $ $ $ of payable copper 6.5% of goldRainy River Gold, produced and 60% 29,139 26,875 17,635 1,070 -- silver of silver producedOther-Canada -- -- -- -- 140

Latin America 7.5% of Barrick's interest inPueblo Viejo Gold, payable gold and $ 110,571 $ 90,359 $ 81,014 $ 95,960 $ 77,670 silver 75% of Barrick's interest in payable silverAndacollo Gold 100% of payable 74,225 75,155 58,852 63,035 63,964 goldNX Gold Gold 25% of gold -- -- -- -- -- producedAfricaWassa Gold 10.5% of payable $ 28,960 $ 20,427 $ 18,889 $ 16,925 $ 11,313 goldPrestea and Gold 5.5% of payable 4,960 6,777 10,827 15,289 9,554 Bogoso goldKhoemacau Silver 90% of payable -- -- -- -- -- silverTotal stream $ 397,486 $ 344,714 $ 304,183 $ 312,549 $ 292,371 revenueRoyalty:CanadaHolt Gold 0.00013 x Au $ 5,565 $ 9,960 $ 10,202 $ 12,031 $ 11,568 price NSR Copper, 7,654 9,706 8,853 -- 2,778 Voisey's Bay nickel, 2.7% NVR cobaltCanadian Gold 1.0%-1.5% 7,377 6,745 8,113 7,486 7,146 Malartic sliding-scale NSRWilliams Gold 0.97% NSR 3,074 2,252 1,778 2,008 1,957

LaRonde Zone 5 Gold 2.0% NSR 2,044 1,810 187 13 -

Other-Canada Various Various 1,310 1,371 1,351 1,287 1,491

United StatesCortez Gold GSR1, GSR2, GSR3, $ 28,444 $ 16,155 $ 5,172 $ 8,552 $ 6,994 NVR1, NVR1CRobinson Gold, 3.0% NSR 10,669 8,337 9,110 8,881 7,896 copperMarigold Gold 2.0% NSR 8,134 6,057 5,025 5,009 5,005

Goldstrike Gold 0.9% NSR 3,419 3,359 3,268 3,328 4,403

Wharf Gold 0.0%-2.0% 3,340 2,384 1,818 2,243 2,409 sliding-scale GSROther-United Various Various 4,860 4,828 6,716 10,883 9,192 StatesLatin America Gold,Pe?asquito silver, 2.0% NSR $ 36,661 $ 17,566 $ 20,197 $ 27,719 $ 20,716 lead, zincDolores Gold, 3.25% NSR (gold), 7,058 7,022 6,806 5,511 5,278 silver 2.0% NSR (silver)El Limon Gold 3.0% NSR 4,172 2,451 1,980 1,160 1,802

Other-Latin Various Various 1,661 3,380 12,538 11,761 11,054 AmericaAfrica 2.0% GSR, 0.75% 2,971 1,490 2,075 2,589 2,725 Taparko Gold GSR (milling $ $ $ $ $ royalty)AustraliaSouth Laverton Gold 1.5% NSR, 4.0% $ 10,176 $ 4,239 $ 4,387 $ 3,257 $ 2,549 NPIGwalia Deeps Gold 1.5% NSR 4,023 3,859 5,057 4,747 4,957

Meekatharra Gold 0.45% or 1.5% NSR 3,904 2,786 2,424 2,667 1,758

Other-Australia Various Various 2,657 3,054 1,511 2,127 3,114

EuropeLas Cruces Copper 1.5% NSR $ 4,986 $ 4,366 $ 7,053 $ 6,920 $ 5,365

Other-Europe Various Various - - - - -

Total royalty $ 164,157 $ 123,174 $ 125,620 $ 130,180 $ 120,155 revenueTotal revenue $ 561,643 $ 467,888 $ 429,803 $ 442,729 $ 412,526

GEOs Sold^2 Ounces 317,700 336,800 338,300 352,100 352,300

Revenue byCommodityGold % 78 % 77 % 77 % 80 % 88 %

Silver % 9 % 9 % 9 % 9 % 6 %

Copper % 10 % 10 % 10 % 8 % 3 %

Other % 3 % 4 % 4 % 3 % 3 %

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.2 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.^1 Refer to Part I, Item 2, of the Company's Fiscal 2021 Form 10-K for a fulldescription of the Company's stream and royalty interests.^2 Gold equivalent ounces, or GEOs, is calculated by the Company as revenue (intotal or by reportable segment) for a period divided by the average gold pricefor that same period.TABLE 2Five-Year Historical Select Financial Metrics(Unaudited)Twelve Months Ended December 31,

MetricUnits2020

2019

2018

2017

2016

Adjusted EBITDA1$ thousands445,026

356,367

316,923

331,557

304,285

Operating Cash Flow$ thousands385,320

299,194

285,058

289,215

240,135

Operating Cash Flow$ per diluted share5.87

4.56

4.35

4.42

3.68

Common Stock Dividends$ thousands73,451

69,478

65,494

62,752

60,056

Common Stock Dividends$ per diluted share1.12

1.06

1.00

0.96

0.92

TABLE 2 Five-Year Historical SelectFinancial Metrics(Unaudited) Twelve Months Ended December 31,

Metric Units 2020 2019 2018 2017 2016

Adjusted $ thousands 445,026 356,367 316,923 331,557 304,285EBITDA^1Operating Cash $ thousands 385,320 299,194 285,058 289,215 240,135FlowOperating Cash $ per diluted 5.87 4.56 4.35 4.42 3.68Flow shareCommon Stock $ thousands 73,451 69,478 65,494 62,752 60,056DividendsCommon Stock $ per diluted 1.12 1.06 1.00 0.96 0.92Dividends share1 Adjusted EBITDA is a non-GAAP financial measure. See below for additional information. For purposes of this table and the reconciliation below, calendar-year adjusted EBITDA was calculated by adding together previously reported adjusted EBITDA amounts for the four quarterly periods in the calendar year. These amounts were calculated based on the previous June 30 fiscal year end and do not reflect any changes to income tax expense (benefit) that would have occurred if historical results had been presented based on a December 31 fiscal year end. 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 non-GAAP financial measures varies among companies, non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

We have provided below a reconciliation of our non-GAAP financial measure to the comparable GAAP measure. We believe non-GAAP financial measures provide useful information to investors for analysis of our business. We use non-GAAP financial measures to compare period-over-period performance on a consistent basis and when planning and forecasting for future periods. We believe 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 measure are subjective and involve significant management judgement.

The non-GAAP financial measure used by management in this press release is adjusted earnings before interest, taxes, depreciation, depletion and amortization, or adjusted EBITDA, which 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.

^1 Adjusted EBITDA is a non-GAAP financial measure. See below for additionalinformation. For purposes of this table and the reconciliation below,calendar-year adjusted EBITDA was calculated by adding together previouslyreported adjusted EBITDA amounts for the four quarterly periods in thecalendar year. These amounts were calculated based on the previous June 30fiscal year end and do not reflect any changes to income tax expense(benefit) that would have occurred if historical results had been presentedbased on a December 31 fiscal year end. 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 non-GAAP financial measures varies among companies, non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

We have provided below a reconciliation of our non-GAAP financial measure to the comparable GAAP measure. We believe non-GAAP financial measures provide useful information to investors for analysis of our business. We use non-GAAP financial measures to compare period-over-period performance on a consistent basis and when planning and forecasting for future periods. We believe 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 measure are subjective and involve significant management judgement.

The non-GAAP financial measure used by management in this press release is adjusted earnings before interest, taxes, depreciation, depletion and amortization, or adjusted EBITDA, which 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.

Reconciliation of non-GAAPfinancial measures to U.S. GAAPmeasures:TTM Adjusted EBITDA: Three Months Ended

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

(In $ thousands, unaudited) 2020 2020 2020 2020

Net income 59,988 106,674 48,672 38,292

Depreciation, depletion and 47,945 46,300 45,396 51,228amortizationNon-cash employee stock 1,398 1,493 833 4,644compensationImpairment of royalty interests -- -- 1,341 --

Gain on sale of Peak Gold JV -- (33,906 ) -- --interestFair value changes in equity 382 (2,539 ) (6,390 ) 3,819securitiesInterest and other, net 965 1,454 2,249 1,468

Income tax expense (benefit) 16,031 (2,377 ) 45 8,702

Non-controlling interest in (99 265 343 410operating (income) loss of )consolidated subsidiariesAdjusted EBITDA 126,610 117,364 92,489 108,563

TTM adjusted EBITDA 445,026

Three Months Ended December September June 30, March 31, 31, 30,(In $ thousands, unaudited) 2019 2019 2019 2019

Net income 40,414 68,872 25,466 28,594

Depreciation, depletion and 40,096 38,714 42,331 39,368amortizationNon-cash employee stock 1,538 2,101 1,107 1,440compensationFair value changes in equity (222 ) 1,375 3,482 (1,781 )securitiesInterest and other, net 1,991 2,059 5,633 7,000

Income tax expense (benefit) 11,124 (23,525 ) 6,143 9,388

Non-controlling interest in 907 1,581 993 178operating (income) loss ofconsolidated subsidiariesAdjusted EBITDA 95,848 91,177 85,155 84,187



TTM adjusted EBITDA 356,367

Three Months Ended December September June 30, March 31, 31, 30,(In $ thousands, unaudited) 2018 2018 2018 2018

Net income (loss) 23,043 11,976 24,007 (154,118 )

Depreciation, depletion and 38,807 42,551 42,317 39,679amortizationNon-cash employee stock 1,625 2,444 2,322 1,563compensationImpairment of royalty interests -- -- -- 239,364

Fair value changes in equity 3,631 1,468 -- --securitiesInterest and other, net 6,923 7,774 7,512 6,513

Income tax expense (benefit) (2,148 ) 4,115 4,728 (45,859 )

Non-controlling interest in 543 3,032 2,643 468operating (income) loss ofconsolidated subsidiariesAdjusted EBITDA 72,424 73,360 83,529 87,610



TTM adjusted EBITDA 316,923

Three Months Ended December September June 30, March 31, 31, 30,(In $ thousands, unaudited) 2017 2017 2017 2017

Net income (loss) (15,787 ) 26,548 16,836 21,531

Depreciation, depletion and 42,008 39,692 39,851 40,164amortizationNon-cash employee stock 2,021 2,373 3,224 314compensationInterest and other, net 8,389 7,628 10,067 7,928

Income tax expense (benefit) 48,360 7,544 7,717 6,492

Non-controlling interest in 1,022 2,083 3,422 2,130operating (income) loss ofconsolidated subsidiariesAdjusted EBITDA 86,013 85,868 81,117 78,559



TTM adjusted EBITDA 331,557

Three Months Ended December September June 30, March 31, 31, 30,(In $ thousands, unaudited) 2016 2016 2016 2016

Net income (loss) 27,102 26,955 18,082 (69,498 )

Depreciation, depletion and 39,519 40,102 35,391 38,163amortizationNon-cash employee stock 2,299 4,144 2,250 2,340compensationImpairment of royalty interests -- -- -- 98,973

Interest and other, net 2,335 6,748 5,409 5,702

Income tax expense (benefit) 5,044 7,188 5,025 (8,262 )

Non-controlling interest in 2,091 2,984 2,357 1,842operating (income) loss ofconsolidated subsidiariesAdjusted EBITDA 78,390 88,121 68,514 69,260



TTM adjusted EBITDA 304,285

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