Royal Gold's Q3 Earnings Soar on Major Stream Acquisitions

Ticker: RGLD · Form: 10-Q · Filed: 2025-11-06T00:00:00.000Z

Sentiment: bullish

Topics: Precious Metals, Mining Royalties, Stream Financing, Earnings Growth, Debt Financing, Kansanshi Mine, Warintza Project

Related Tickers: RGLD, FM, SLRS, ERO

TL;DR

**Royal Gold's massive acquisitions are paying off big, but that $770M debt is a ticking time bomb if gold prices falter.**

AI Summary

Royal Gold, Inc. reported a significant increase in revenue and net income for the three and nine months ended September 30, 2025. Revenue surged to $252.07 million for the three months, up 29.01% from $193.84 million in the prior year, and to $655.15 million for the nine months, a 26.78% increase from $516.84 million. Net income attributable to common stockholders rose to $126.82 million for the quarter, a 31.78% increase from $96.24 million, and to $372.67 million for the nine months, a 65.02% jump from $224.62 million. This growth was largely driven by substantial acquisitions, including a $1.0 billion gold stream on the Kansanshi mine and a $200.0 million gold stream and NSR royalty on the Warintza Project. The company also increased its debt significantly, drawing $825.0 million from its revolving credit facility to fund these acquisitions, resulting in total debt of $770.20 million as of September 30, 2025, up from zero at December 31, 2024. Basic earnings per share increased to $1.92 for the quarter and $5.66 for the nine months. Cash dividends declared per common share also increased to $0.45 for the quarter and $1.35 for the nine months.

Why It Matters

This robust performance, fueled by strategic acquisitions like the $1.0 billion Kansanshi gold stream, signals Royal Gold's aggressive growth strategy in the precious metals sector. For investors, the significant increase in net income and EPS, alongside a higher dividend, suggests strong shareholder returns, but the substantial increase in debt to $770.20 million warrants careful consideration. Employees and customers of the underlying mining operations, such as First Quantum Minerals Ltd. at Kansanshi, benefit from the capital injection and continued project development. In the broader market, Royal Gold's expansion could intensify competition for high-quality stream and royalty assets, potentially driving up valuations for future deals.

Risk Assessment

Risk Level: medium — The company's debt increased from $0 at December 31, 2024, to $770.195 million at September 30, 2025, primarily due to a $825.0 million draw on its revolving credit facility to fund the Kansanshi stream acquisition. While this debt is for growth, it represents a new financial leverage that could expose Royal Gold to interest rate fluctuations and repayment risks, especially if commodity prices decline or project performance underperforms expectations.

Analyst Insight

Investors should closely monitor Royal Gold's debt management and the performance of its newly acquired stream and royalty interests, particularly Kansanshi. While the growth is impressive, a deeper dive into the long-term cash flow generation from these assets versus the increased debt servicing costs is crucial before making further investment decisions.

Financial Highlights

debt To Equity
0.23
revenue
$655.15M
operating Margin
65.6%
total Assets
$4,465.10M
total Debt
$770.20M
net Income
$372.67M
eps
$5.66
gross Margin
79.8%
cash Position
$172.85M
revenue Growth
+26.78%

Revenue Breakdown

SegmentRevenueGrowth
Total Revenue$252.07M+29.01%
Total Revenue (Nine Months)$655.15M+26.78%

Key Numbers

Key Players & Entities

FAQ

What were Royal Gold's revenues for the three and nine months ended September 30, 2025?

Royal Gold's revenue for the three months ended September 30, 2025, was $252.068 million, a 29.01% increase from $193.837 million in the same period of 2024. For the nine months ended September 30, 2025, revenue was $655.148 million, up 26.78% from $516.835 million in the prior year.

How did Royal Gold's net income attributable to common stockholders change in Q3 2025?

Net income attributable to Royal Gold common stockholders for the three months ended September 30, 2025, was $126.824 million, a 31.78% increase compared to $96.242 million for the same period in 2024. For the nine months, it increased 65.02% to $372.670 million from $224.615 million.

What major acquisitions did Royal Gold make during the nine months ended September 30, 2025?

Royal Gold made several significant acquisitions, including a $1.0 billion gold stream on the Kansanshi copper-gold mine from First Quantum Minerals Ltd. on August 5, 2025. Additionally, on May 21, 2025, it acquired a gold stream and a 0.30% NSR royalty on the Warintza Project for an advance payment totaling $200.0 million.

How did Royal Gold fund its recent acquisitions, and what was the impact on its debt?

The Kansanshi stream acquisition was funded with available cash and a draw of $825.0 million on Royal Gold's revolving credit facility. This resulted in total debt increasing from $0 at December 31, 2024, to $770.195 million as of September 30, 2025.

What was Royal Gold's basic earnings per share for the three and nine months ended September 30, 2025?

Royal Gold's basic earnings per share for the three months ended September 30, 2025, was $1.92, up from $1.46 in the prior year. For the nine months ended September 30, 2025, basic earnings per share was $5.66, compared to $3.41 in the same period of 2024.

What is the risk associated with Royal Gold's increased debt?

The significant increase in debt to $770.195 million, primarily from drawing on the revolving credit facility, introduces financial leverage. This exposes Royal Gold to potential risks such as higher interest expenses, which were $8.616 million for the quarter, and challenges in debt repayment if commodity prices decline or if the acquired assets do not generate expected cash flows.

How much did Royal Gold declare in cash dividends per common share for the quarter and nine months ended September 30, 2025?

Royal Gold declared cash dividends of $0.45 per common share for the three months ended September 30, 2025, an increase from $0.40 in the prior year. For the nine months ended September 30, 2025, total cash dividends declared were $1.35 per common share, up from $1.20 in the same period of 2024.

What are the key terms of the Kansanshi Stream agreement for Royal Gold?

Under the Kansanshi Stream agreement, Royal Gold's subsidiary, RGLD Gold AG, made a $1.0 billion advance payment. In return, it will receive 75 ounces of gold per million pounds of recovered copper until 425,000 ounces are delivered, then 55 ounces per million pounds until 650,000 ounces, and 45 ounces thereafter. Royal Gold will pay 20% of the spot gold price for each ounce delivered, potentially increasing to 35% under certain acceleration options.

What was the change in Royal Gold's cash and equivalents during the nine months ended September 30, 2025?

Royal Gold's cash and equivalents decreased by $22.649 million during the nine months ended September 30, 2025, starting at $195.498 million at the beginning of the period and ending at $172.849 million. This decrease was primarily due to significant investing activities, despite strong operating cash flows.

What is Royal Gold's business model as described in the filing?

Royal Gold is engaged in acquiring and managing precious metals streams, royalties, and similar interests. Its business model involves making upfront deposit payments for metal streams, which grant the right to purchase a portion of metals produced from a mine at a predetermined price, or acquiring non-operating royalty interests that provide a right to revenue or metals after specified costs.

Risk Factors

Industry Context

The precious metals streaming and royalty sector continues to be a vital financing mechanism for mining companies, offering an alternative to traditional debt or equity. Royal Gold operates in a competitive landscape with other major players like Franco-Nevada and Wheaton Precious Metals. Industry trends include a focus on acquiring assets in politically stable jurisdictions and a growing interest in base metal streams alongside gold.

Regulatory Implications

Royal Gold's operations are indirectly affected by mining regulations in the jurisdictions where its partners operate. Changes in environmental laws, tax regimes, or permitting processes in countries like Zambia or Ecuador could impact production and, consequently, Royal Gold's revenue. The company must also comply with SEC reporting requirements.

What Investors Should Do

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Key Dates

Glossary

Stream
A purchase agreement where a company pays an upfront deposit for the right to buy a portion of metals produced from a mine at a fixed price for the life of the mine. (Key to Royal Gold's business model, driving revenue through upfront payments and ongoing metal purchases.)
Royalty
A non-operating interest in a mining project that grants the right to a percentage of revenue or metals produced after deducting specified costs. (Another core revenue-generating asset for Royal Gold, providing a stream of income from mining operations.)
NSR Royalty
Net Smelter Return royalty, a type of royalty based on the net revenue received from the sale of metals after certain deductions, typically including smelting and refining costs. (The Warintza Project acquisition includes an NSR royalty, adding another layer to the company's diversified revenue streams.)
Revolving Credit Facility
A type of credit facility that allows a company to borrow, repay, and re-borrow funds up to a certain limit over a specified period. (Used by Royal Gold to finance its significant acquisitions, leading to a substantial increase in its debt.)
Accumulated Earnings
The total net income of a company that has been retained and reinvested in the business over its lifetime, rather than being distributed as dividends. (Shows the company's historical profitability and retained value, which increased significantly in the nine months ended September 30, 2025.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Royal Gold has demonstrated robust growth, with revenue increasing by 26.78% to $655.15 million and net income surging by 65.02% to $372.67 million. This performance is largely attributable to strategic acquisitions, including the Kansanshi and Warintza projects. However, this growth has been financed by a significant increase in debt, which rose from zero at the end of 2024 to $770.20 million by September 30, 2025, introducing a new financial risk factor.

Filing Stats: 4,724 words · 19 min read · ~16 pages · Grade level 13.8 · Accepted 2025-11-05 18:52:32

Key Financial Figures

Filing Documents

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 21 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 35 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37 Item 3. Defaults Upon Senior Securities 37 Item 4. Mine Safety Disclosures 37 Item 5. Other Information 37 Item 6. Exhibits 38

SIGNATURES

SIGNATURES 39 2

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) September 30, 2025 December 31, 2024 ASSETS Cash and equivalents $ 172,849 $ 195,498 Royalty receivables 69,701 63,460 Income tax receivable 20,805 1,139 Stream inventory 21,009 12,973 Prepaid expenses and other 3,006 2,217 Total current assets 287,370 275,287 Stream and royalty interests, net (Note 3) 4,102,231 3,042,804 Other assets 75,499 74,039 Total assets $ 4,465,100 $ 3,392,130 LIABILITIES Accounts payable $ 6,047 $ 10,578 Dividends payable 29,640 29,611 Income tax payable 41,096 23,177 Other current liabilities 22,753 21,785 Total current liabilities 99,536 85,151 Debt (Note 4) 770,195 — Deferred tax liabilities 131,189 132,308 Mount Milligan deferred liability (Note 5) 25,000 25,000 Other liabilities 22,613 18,465 Total liabilities 1,048,533 260,924 Commitments and contingencies (Note 12) 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 65,763,800 and 65,691,151 shares outstanding, respectively 658 657 Additional paid-in capital 2,232,063 2,228,311 Accumulated earnings 1,173,746 889,989 Total Royal Gold stockholders' equity 3,406,467 3,118,957 Non-controlling interests 10,100 12,249 Total equity 3,416,567 3,131,206 Total liabilities and equity $ 4,465,100 $ 3,392,130 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 Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Revenue (Note 6) $ 252,068 $ 193,837 $ 655,148 $ 516,835 Costs and expenses Cost of sales (excludes depreciation, depletion and amortization) 31,392 27,192 80,077 73,116 General

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 the production, development or exploration 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 and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2025. These interim unaudited consolidated financial statements should be read in conjunction with our Form 10-K for the year ended December 31, 2024, filed with the Secur

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) deliver gold worth up to $ 100 million over a 7-month period from the date of option exercise and reduce the stream rates and delivery thresholds by up to a further 10 %. RG AG will pay 20 % of the spot gold price for each ounce delivered. Should one of the conditions in Acceleration Option 1 be met, RG AG will pay 35 % of the spot gold price for each ounce delivered. The stream acquisition was accounted for as an asset acquisition and recorded as a producing stage stream interest (Note 3) within Stream and royalty interests, net on our consolidated balance sheets. The acquisition was funded with available cash and a draw of $ 825.0 million on our revolving credit facility (see Note 4). Warintza Project Stream and Royalty On May 21, 2025, RG AG entered into a gold purchase agreement ("Gold Stream Agreement") with Solaris Resources Inc., and a separate net smelter return ("NSR") royalty agreement ("Royalty Agreement") covering all metals with Solaris Resources AG, a wholly owned subsidiary of Solaris Resources, Inc. (collectively, "Solaris") for metals produced from the Warintza Project ("Warintza") located in Southeastern Ecuador. The advance payment for the acquisition totals $ 200.0 million in cash consideration, including $ 100.0 million paid upon closing, $ 50.0 million payable after technical approval of the environmental impact assessment and publication of a pre-feasibility study for the project, which are expected to be completed in the fourth quarter of 2025, and $ 50.0 million payable one year after closing, subject to certain conditions including registration of security in Ecuador. The $ 100.0 million cash consideration paid at closing was funded with available cash on hand. Gold Stream Agreement Deliveries under the Gold Stream Agreement will be in an amount equal to 20 ounces of gold per million pounds of recovered copper in return for a cash payment for each ounce delivered of 20 % of the

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) precious metals purchase agreement between the parties dated June 29, 2021 ("Base Stream"), and significantly extends the area of interest. As of September 30, 2025, 50,400 ounces of gold have been delivered under the Base Stream and Additional Stream at a cash purchase price of 20 % of the spot gold price for the first 49,000 ounces delivered , and 40 % of the spot gold price for each ounce delivered over the 49,000 ounces. Wh en considered with the Base Stream, the Additional Stream effectively increases the threshold for stream deliveries at the current 25 % stream rate from 93,000 ounces to 160,000 ounces, with the additional deliveries to be payable at a cash price of 40 % of the spot gold price. The Additional Stream has been accounted for as an asset acquisition. The $ 50.0 million advance payment, plus direct acquisition costs, have been recorded as an exploration stage stream interest (Note 3) within Stream and royalty interests, net on our consolidated balance sheets. The purchase price was funded with available cash on hand. 9 ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 3. STREAM AND ROYALTY INTERESTS, NET The following tables summarize our stream and royalty interests, net as of September 30, 2025 and December 31, 2024. As of September 30, 2025 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Kansanshi $ 1,000,388 $ — $ 1,000,388 Mount Milligan 790,635 ( 480,076 ) 310,559 Pueblo Viejo 610,404 ( 315,400 ) 295,004 Andacollo 388,182 ( 184,754 ) 203,428 Khoemac a u 265,911 ( 69,350 ) 196,561 Rainy River 175,727 ( 94,146 ) 81,581 Other 241,830 ( 163,533 ) 78,297 Total production stage stream interests 3,473,077 ( 1,307,259 ) 2,165,818 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 366,435 ( 96,350 ) 270,085 Voisey's Bay 205,724 ( 129,985 ) 75,739 Red Chris 116,187 ( 9,033 ) 107,154 Peasquito 99,172 ( 70,205 ) 28,967 Other 519,720 ( 426,680 ) 93,040 Total production stage royalty interests 1,307,238 ( 732,253 ) 574,985 Total production stage stream and royalty interests 4,780,315 ( 2,039,512 ) 2,740,803 Development stage stream interests: Ilovica 12,038 — 12,038 Development stage royalty interests: Cactus 48,126 — 48,126 Back River 42,948 — 42,948 La Fortuna 35,140 — 35,140 Other 21,133 — 21,133 Total development stage stream and royalty interests 159,385 — 159,385 Exploration stage stream interests: Warintza 95,252 — 95,252 Xavantina 64,834 — 64,834 Exploration stage royalty interests: Cortez (Legacy Zone and CC Zone) 443,894 — 443,894 Great Bear 209,106 — 209,106 Pascua-Lama 177,690 — 177,690 Red Chris 48,895 — 48,895 Ct 29,610 — 29,610 Other 132,762 — 132,762 Total exploration stage stream and royalty interests $ 1,202,043 $ — $ 1,202,043 Total stream and royalty interests, net $ 6,141,743 $ ( 2,039,512 ) $ 4,102,231 10 ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) As of December 31, 2024 (Amounts in thousands): Cost Accumulated Depletion Net Production stage stream interests: Mount Milligan $ 790,635 $ ( 462,412 ) $ 328,223 Pueblo Viejo 610,404 ( 308,283 ) 302,121 Andacollo 388,182 ( 177,059 ) 211,123 Khoemac a u 265,911 ( 58,043 ) 207,868 Rainy River 175,727 ( 86,307 ) 89,420 Other 241,830 ( 154,245 ) 87,585 Total production stage stream interests 2,472,689 ( 1,246,349 ) 1,226,340 Production stage royalty interests: Cortez (Legacy Zone and CC Zone) 353,850 ( 81,845 ) 272,005 Voisey's Bay 205,724 ( 124,526 ) 81,198 Red Chris 116,187 ( 5,966 ) 110,221 Peasquito 99,172 ( 65,372 ) 33,800 Other 519,491 ( 418,648 ) 100,843 Total production stage royalty interests 1,294,424 ( 696,357 ) 598,067 Total production stage stream and royalty interests 3,767,113 ( 1,942,706 ) 1,824,407 Development stage stream interests: Ilovica 12,038 — 12,038 Development stage royalty interests: Cactus 55,128 — 55,128 Back River 42,948 — 42,948 La Fortuna 35,140 — 35,140 Other 21,133 — 21,133 Total development stage stream and royalty interests 166,387 — 166,387 Exploration stage stream interests: Xavantina 14,792 — 14,792 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 115,438 — 115,438 Total exploration stage stream and royalty interests $ 1,052,010 $ — $ 1,052,010 Total stream and royalty interests, net $ 4,985,510 $ ( 1,942,706 ) $ 3,042,804 11 ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 4. DEBT The Company's debt as of September 30, 2025 and December 31, 2024 consists of the following (amounts in thousands): As of September 30, 2025 As of December 31, 2024 Principal Debt Issuance Costs Total Principal Debt Issuance Costs (1) Total Revolving credit facility $ 775,000 $ ( 4,805 ) $ 770,195 $ — $ — $ — Total debt $ 775,000 $ ( 4,805 ) $ 770,195 $ — $ — $ — _______________________________________________ (1) Debt issuance costs of $ 3.1 million included within Other assets on our consolidated balance sheets. Revolving credit facility On June 26, 2025, we entered into a sixth amendment to our revolving credit facility dated June 2, 2017, as amended. The amendment extended the maturity date from June 28, 2028, to June 30, 2030, increased the size of the accordion feature from $ 250.0 million to $ 400.0 million and revised the leverage ratio required to be less than or equal to 4.00 :1.00 at all times, rather than 4.00 :1.00 for only the two fiscal quarters following the consummation of a material permitted acquisition (as defined) and 3.50 :1.00 at all other times. In July 2025, we notified the members of the credit syndication group of our exercise of the accordion feature and received commitments from the group for the full $ 400.0 million of increased capacity. On August 5, 2025 , we closed on the accordion feature with our credit syndication group, bringing our total committed revolving credit facility to $ 1.4 billion. On August 1, 2025, we borrowed $ 825.0 million under our revolving credit facility for the acquisition of the Kansanshi gold stream. Refer to Note 2 for further discussion on the Kansanshi gold stream acquisition. In September 2025, we repaid $ 50.0 million of the outstanding borrowings. As of September 30, 2025, we had $ 775.0 million outstanding and $ 625.0 million available under our revolving credit facility. Interest expense, which includes interest on outs

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 6. REVENUE Revenue Recognition A performance obligation is a promise in a contract to transfer control of a distinct good or service (or integrated package of goods and/or services) to a customer. A contract's transaction price is allocated to each distinct performance obligation 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 entitle

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