Royal Gold, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Royal Gold, Inc. filed its Q1 2024 10-Q report, detailing financial performance and asset interests.</b>

AI Summary

ROYAL GOLD INC (RGLD) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Royal Gold, Inc. reported its Q1 2024 results on May 9, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. Key assets include interests in Mt. Milligan, Pueblo Viejo, Andacollo, Khoemacau, Rainy River, Cortez, Voiseys Bay, Red Chris, and Penasquito. The company's fiscal year ends on December 31. Royal Gold, Inc. is incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking ROYAL GOLD INC, this filing contains several important signals. This filing provides investors with the latest financial snapshot of Royal Gold's operations and asset portfolio for the first quarter of 2024. Understanding the specific asset interests and their performance is crucial for evaluating the company's revenue streams and future growth potential.

Risk Assessment

Risk Level: low — ROYAL GOLD INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not indicate any immediate or significant new risks beyond the typical operational and market risks inherent in the mining and royalty sector.

Analyst Insight

Review the detailed asset performance and financial statements within the 10-Q to assess the company's current financial health and future outlook.

Key Numbers

• 2024-03-31 — Conformed Period of Report (Quarterly filing period)
• 2024-05-09 — Filed As Of Date (Date the report was filed)
• 1231 — Fiscal Year End (Annual fiscal year closing date)
• 6795 — Standard Industrial Classification (Industry code for Mineral Royalty Traders)

Key Players & Entities

• ROYAL GOLD INC (company) — Filer
• 0000085535 (company) — Central Index Key
• DE (company) — State of Incorporation
• DENVER (company) — Business Address City
• CO (company) — Business Address State
• 80202 (company) — Business Address Zip
• 303-573-1660 (company) — Business Phone
• 2024-03-31 (date) — Conformed Period of Report

FAQ

Industry Context

Royal Gold operates as a precious metals streaming company, providing capital to mining companies in exchange for the right to purchase a portion of their metal production at a lower cost.

Regulatory Implications

The company is subject to SEC regulations for public companies, including the requirement to file quarterly reports (10-Q) detailing financial performance and material business information.

What Investors Should Do

1. Analyze the specific asset interests listed (Mt. Milligan, Pueblo Viejo, etc.) for their contribution to revenue.
2. Examine any financial data presented in the full filing to understand revenue, net income, and other key financial metrics.
3. Review the business address and contact information for any potential investor relations or operational insights.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the Q1 2024 10-Q filing, providing an update from the previous fiscal year-end report.

Key Financial Figures

• $0.01 — ange on which Registered Common Stock, $0.01 par value RGLD Nasdaq Global Select Ma

Filing Documents

• rgld-20240331.htm (10-Q) — 967KB
• rgld-20240331xex311.htm (EX-31.1) — 10KB
• rgld-20240331xex312.htm (EX-31.2) — 10KB
• rgld-20240331xex321.htm (EX-32.1) — 5KB
• rgld-20240331xex322.htm (EX-32.2) — 5KB
• 0000085535-24-000010.txt (&nbsp;) — 5265KB
• rgld-20240331.xsd (EX-101.SCH) — 33KB
• rgld-20240331_cal.xml (EX-101.CAL) — 48KB
• rgld-20240331_def.xml (EX-101.DEF) — 115KB
• rgld-20240331_lab.xml (EX-101.LAB) — 401KB
• rgld-20240331_pre.xml (EX-101.PRE) — 275KB
• rgld-20240331_htm.xml (XML) — 921KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Balance Sheets 3 Consolidated Statements of Operations and Comprehensive Income 4 Consolidated Statements of Changes in Stockholders' Equity 5 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 26 Item 4.

Controls and Procedures

Controls and Procedures 27 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 27 Item 1A.

Risk Factors

Risk Factors 27 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28 Item 3. Defaults Upon Senior Securities 28 Item 4. Mine Safety Disclosure s 28 Item 5. Other Information 28 Item 6. Exhibits 29

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ROYAL GOLD, INC. Consolidated Balance Sheets (Unaudited, amounts in thousands except share data) March 31, 2024 December 31, 2023 ASSETS Cash and equivalents $ 137,950 $ 104,167 Royalty receivables 38,757 48,884 Income tax receivable 3,109 2,676 Stream inventory 11,417 9,788 Prepaid expenses and other 1,815 1,911 Total current assets 193,048 167,426 Stream and royalty interests, net (Note 2) 3,038,495 3,075,574 Other assets 81,765 118,057 Total assets $ 3,313,308 $ 3,361,057 LIABILITIES Accounts payable $ 11,599 $ 11,441 Dividends payable 26,311 26,292 Income tax payable 22,022 15,557 Other current liabilities 17,213 19,132 Total current liabilities 77,145 72,422 Debt (Note 3) 146,187 245,967 Deferred tax liabilities 133,934 134,299 Mount Milligan support liability (Note 4) 25,000 — Other liabilities 7,676 7,728 Total liabilities 389,942 460,416 Commitments and contingencies (Note 11) 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 65,648,831 and 65,631,760 shares outstanding, respectively 656 656 Additional paid-in capital 2,223,021 2,221,039 Accumulated earnings 687,377 666,522 Total Royal Gold stockholders' equity 2,911,054 2,888,217 Non-controlling interests 12,312 12,424 Total equity 2,923,366 2,900,641 Total liabilities and equity $ 3,313,308 $ 3,361,057 The accompanying notes are an integral part of these consolidated financial statements. 3 ROYAL GOLD, INC. Consolidated Statements of Operations and Comprehensive Income (Unaudited, amounts in thousands except share data) Three Months Ended March 31, 2024 March 31, 2023 Revenue (Note 5) $ 148,902 $ 170,392 Costs and expenses Cost of sales (excludes depreciation, depletion and amortization) 21,751 25,020 General and administrative 11,412 11,000 Production taxes 1,449 1,989 Depreciation, depletion and amortization 38,

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING STANDARDS Royal Gold, Inc., together with its subsidiaries ("Royal Gold," the "Company," "we," "us," or "our"), is engaged in the business of acquiring and managing precious metals streams, royalties and similar interests. We seek to acquire existing stream and royalty interests or to finance projects that are in production or in the development stage in exchange for stream or royalty interests. A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right and obligation to purchase all or a portion of one or more metals produced from a mine at a price determined for the life of the transaction by the purchase agreement. Royalties are non-operating interests in a mining project that provide the right to revenue or metals produced from the project after deducting contractually specified costs, if any. Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in this Form 10-Q. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2024. These interim unaudited consolidated financial statements should be read in conjunction with our Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Comm

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 2. STREAM AND ROYALTY INTERESTS, NET The following tables summarize our stream and royalty interests, net as of March 31, 2024 and December 31, 2023. As of March 31, 2024 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ ( 437,053 ) $ 353,582 Pueblo Viejo 610,404 ( 301,590 ) 308,814 Andacollo 388,182 ( 168,789 ) 219,393 Khoemac a u 265,911 ( 47,415 ) 218,496 Rainy River 175,727 ( 77,698 ) 98,029 Other 237,059 ( 138,405 ) 98,654 Total production stage stream interests 2,467,918 ( 1,170,950 ) 1,296,968 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 353,850 ( 67,166 ) 286,684 Voisey's Bay 205,724 ( 121,664 ) 84,060 Red Chris 116,187 ( 5,966 ) 110,221 Peasquito 99,172 ( 61,240 ) 37,932 Other 448,899 ( 410,318 ) 38,581 Total production stage royalty interests 1,223,832 ( 666,354 ) 557,478 Total production stage stream and royalty interests 3,691,750 ( 1,837,304 ) 1,854,446 Development stage stream interests: Other 12,038 — 12,038 Development stage royalty interests: Ct 45,421 — 45,421 La Fortuna 35,140 — 35,140 Other 47,584 — 47,584 Total development stage stream and royalty interests 140,183 — 140,183 Exploration stage stream interests: Xavantina 16,313 — 16,313 Exploration stage royalty interests: Cortez (Legacy Zone and CC Zone) 456,479 — 456,479 Great Bear 209,106 — 209,106 Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Ct 29,610 — 29,610 Other 105,773 — 105,773 Total exploration stage stream and royalty interests 1,043,866 — 1,043,866 Total stream and royalty interests, net $ 4,875,799 $ ( 1,837,304 ) $ 3,038,495 8 ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) As of December 31, 2023 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ ( 430,106 ) $ 360,529 Pueblo Viejo 610,404 ( 299,354 ) 311,050 Andacollo 388,182 ( 165,553 ) 222,629 Khoemac a u 265,911 ( 41,635 ) 224,276 Rainy River 175,727 ( 74,858 ) 100,869 Other 232,703 ( 132,043 ) 100,660 Total production stage stream interests 2,463,562 ( 1,143,549 ) 1,320,013 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 353,850 ( 61,891 ) 291,959 Voisey's Bay 205,724 ( 121,000 ) 84,724 Red Chris 116,187 ( 3,758 ) 112,429 Peasquito 99,172 ( 59,900 ) 39,272 Other 448,899 ( 408,522 ) 40,377 Total production stage royalty interests 1,223,832 ( 655,071 ) 568,761 Total production stage stream and royalty interests 3,687,394 ( 1,798,620 ) 1,888,774 Development stage stream interests: Other 12,038 — 12,038 Development stage royalty interests: Ct 45,421 — 45,421 La Fortuna 35,140 — 35,140 Other 45,992 — 45,992 Total development stage stream and royalty interests 138,591 — 138,591 Exploration stage stream interests: Xavantina 19,565 — 19,565 Exploration stage royalty interests: Cortez (Legacy Zone and CC Zone) 456,479 — 456,479 Great Bear 209,106 — 209,106 Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Ct 29,610 — 29,610 Other 106,864 — 106,864 Total exploration stage royalty interests 1,048,209 — 1,048,209 Total stream and royalty interests, net $ 4,874,194 $ ( 1,798,620 ) $ 3,075,574 9 ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 3. DEBT Our debt as of March 31, 2024 and December 31, 2023 consists of the following (amounts in thousands): As of March 31, 2024 As of December 31, 2023 Principal Debt Issuance Costs Total Principal Debt Issuance Costs Total Revolving credit facility $ 150,000 $ ( 3,813 ) $ 146,187 $ 250,000 $ ( 4,033 ) $ 245,967 Total debt $ 150,000 $ ( 3,813 ) $ 146,187 $ 250,000 $ ( 4,033 ) $ 245,967 Revolving credit facility As of March 31, 2024, we had $ 150 million outstanding and $ 850 million available under our revolving credit facility. The interest rate on borrowings under our revolving credit facility as of March 31, 2024, was Term SOFR plus 1.20 % for an all-in rate of 6.5 %. Interest expense, which includes interest on outstanding borrowings and amortization of debt issuance costs, was $ 3.9 million and $ 8.5 million for the three months ended March 31, 2024 and 2023, respectively. We were in compliance with each financial covenant (leverage ratio and interest coverage ratio) under our revolving credit facility as of March 31, 2024. We repaid $ 100 million, $ 25 million and $ 50 million of our outstanding revolving credit facility on March 6, 2024, April 8, 2024 and May 8, 2024, respectively. We may repay any borrowings under our revolving credit facility at any time without premium or penalty. 4. MOUNT MILLIGAN SUPPORT LIABILITY On February 13, 2024, RGLD Gold AG, a subsidiary of the Company, entered into a Processing Cost Support Agreement (the "Mount Milligan Cost Support Agreement") with Centerra Gold Inc. ("Centerra") with respect to the Mount Milligan Mine ("Mount Milligan") for cash consideration of $ 24.5 million, 50,000 ounces ("Deferred Gold Consideration") of gold to be delivered in the future and a free cash flow interest. The cost support allowed for the extension of the mine from 2032 to 2035 and the potential to extend the mine life beyond 2035. The value of the cash consideratio

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Cost Support Metal deliveries referenced in the Mount Milligan Cost Support Agreement are those with a bill of lading date on or after January 1, 2024 (the "Reference Date"). Delivery thresholds used to define the periods of cost support are the earlier deliveries of: a. 375,000 ounces of gold or 30,000 tonnes of copper from the Reference Date (the "First Threshold"). b. 665,000 ounces of gold or 60,000 tonnes of copper from the Reference Date (the "Second Threshold"). Near-Term Cost Support Through Approximately 2029 At Centerra's request, in the event that both the gold price is at or below $ 1,600 per ounce and the copper price is at or below $ 3.50 per pound, for each delivery under the existing Mount Milligan stream agreement, we will pay the lower of either $ 415 per ounce of gold, or 66 % of the spot gold price less $ 435 per ounce, and 35 % of the spot copper price for each pound of copper delivered (the "Pre-Threshold Support"). This near-term cost support will be made available from the Reference Date through to the First Threshold, which is expected to be through approximately 2029. Any Pre-Threshold Support we provide will be recoverable from any cost support calculated after the First Threshold at metal prices above $ 1,600 per ounce of gold and $ 3.50 per pound of copper. For gold, any cost support payment will be reduced by the difference between the gold price and $ 1,600 per ounce. For copper, any cost support payment will be reduced by the difference between the copper price and $ 3.50 per pound. Cost Support from Approximately 2030 Through Approximately 2035 We will provide Centerra cost support payments from the First Threshold until the Second Threshold as follows: a. With respect to gold, the lower of either $ 415 per ounce, or 50 % of the spot gold price less $ 435 per ounce, for each ounce of gold delivered under the existing Mount Milligan stream agreement. b. With respect t

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) and recognized as revenue when, or as, a performance obligation is satisfied. In accordance with this guidance, revenue attributable to our stream interests and royalty interests is generally recognized at the point in time that control of the related metal production transfers to our customers. The amount of revenue we recognize further reflects the consideration to which we are entitled under the respective stream or royalty agreement. A more detailed summary of our revenue recognition policies for our stream and royalty interests is discussed below. Stream Interests A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right and obligation to purchase all or a portion of one or more of the metals produced from a mine, at a price determined for the life of the transaction by the purchase agreement. Gold, silver and copper received under our metal streaming agreements are taken into inventory, and then sold primarily at cash average or spot market prices. The sales price for the averaging contracts is determined by the average daily gold, silver or copper spot prices during the term of the contract, typically a consecutive period between ten days and three months (depending on the frequency of deliveries under the respective streaming agreement and our sales policy in effect at the time), commencing shortly after receipt and purchase of the metal. We settle both averaging and spot sales contracts via physical delivery of the metal to the purchaser (our customer) on the settlement date specified in the contract. Under our sales contracts, there is a single performance obligation to sell a contractually specified volume of metal to the purchaser, and we satisfy this obligation at the point in time of physical delivery. Accordingly, revenue from our metal sales is recognized on the date of settlement, which is the date that control, custody and title to the meta

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands): Three Months Ended March 31, 2024 March 31, 2023 Stream revenue: Gold $ 78,277 $ 78,629 Silver 14,747 18,308 Copper 9,504 18,053 Total stream revenue $ 102,528 $ 114,990 Royalty revenue: Gold $ 33,496 $ 42,868 Silver 4,328 2,946 Copper 3,621 5,058 Other 4,929 4,530 Total royalty revenue $ 46,374 $ 55,402 Total revenue $ 148,902 $ 170,392 Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands): Three Months Ended Metal(s) March 31, 2024 March 31, 2023 Stream revenue: Mount Milligan Gold & Copper $ 34,995 $ 46,656 Pueblo Viejo Gold & Silver 17,760 22,358 Andacollo Gold 11,689 12,934 Khoemac a u Silver 7,758 9,153 Other Gold & Silver 30,326 23,889 Total stream revenue $ 102,528 $ 114,990 Royalty revenue: Cortez Legacy Zone Gold $ 13,365 $ 23,087 Cortez CC Zone Gold 4,411 3,206 Peasquito Gold, Silver, Lead & Zinc 9,229 7,433 Other Various 19,369 21,676 Total royalty revenue $ 46,374 $ 55,402 Total revenue $ 148,902 $ 170,392 Please refer to Note 9 for the geographical distribution of our revenue by reportable segment. 13 ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 6. STOCK-BASED COMPENSATION We recognized stock-based compensation expense as follows (amounts in thousands): Three Months Ended March 31, 2024 March 31, 2023 Restricted stock $ 1,971 $ 1,614 Performance stock 1,017 810 Stock appreciation rights — 205 Stock options — 7 Total stock-b

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