UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  February 6, 2019
 
ROYAL GOLD, INC.
(Exact name of registrant as specified in its charter)

Delaware	 	001-13357	 	84-0835164	
(State or other jurisdiction	 	(Commission	 	(IRS Employer	
of incorporation)	 	File Number)	 	Identification No.)	

1660 Wynkoop Street, Suite 1000, Denver, CO	 	80202-1132	
(Address of principal executive offices)	 	(Zip Code)	

Registrant’s telephone number, including area code:  303-573-1660
 
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

Item 2.02
 
On February 6, 2019, Royal Gold, Inc. (the “Company”) reported its second quarter fiscal 2019 results. Copies of the press release and an earnings presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K.
 
The information furnished under this Item 2.02, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by reference to such filing.
 
Item 9.01     Financial Statements and Exhibits.
 
(d) Exhibits

Exhibit
 No.	    	Description	
99.1	 	Press Release dated F ebruary 6 , 2019 regarding S econd Quarter Fiscal 2019 Results.	
99.2	 	Royal Gold, Inc. February 7, 2019 Earnings Presentation.	
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Feb	 	 	 	
 	Royal Gold, Inc.	
 	(Registrant)	

Dated:  February 7, 2019	By:	/s/ Bruce C. Kirchhoff	
 	 	Name:	Bruce C. Kirchhoff	
 	 	Title:	Vice President, General Counsel and Secretary	

2

EXHIBIT 99.1

 
Royal Gold Reports Second Quarter 2019 Results
 
DENVER, COLORADO.  FEBRUARY 6, 2019: ROYAL GOLD, INC. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) reports net income of $23.6 million, or $0.36 per share, on revenue of $97.6 million in its fiscal second quarter ended December 31, 2018 (“second quarter”).  Second quarter reported earnings included an income tax benefit resulting from the Company’s updated analysis of the tax impacts attributable to H.R. 1, originally known as the Tax Cuts and Jobs Act (the “Act”), which was partially offset by a decrease in the fair value of equity securities.
 
Second Quarter Key Metrics Compared to Prior Year Quarter:
 
	·		Revenue of $97.6 million, a decrease of 14.6%	
	·		Operating cash flow of $58.8 million, a decrease of 22.2%	
	·		Volume of 79,600 GEOs, 1  a decrease of 11.3%	
	·		Dividends paid of $16.4 million, an increase of 4.3%	
	·		Average price of $1,226 per gold ounce, a decrease of 3.8%	
 
“Our second quarter consolidated operating performance was consistent with our guidance,” commented Tony Jensen, President and CEO.  “We were pleased to see several positive developments in our portfolio during the quarter, including good operating performance at Mount Milligan despite water supply challenges, continued improvement in production levels at Rainy River, and the start of commercial production at the Pyrite Leach Project at Peñasquito.  As we look forward in calendar 2019, we expect to see continued improvement at Rainy River and further positive news with respect to resolving water supply issues at Mount Milligan.”
 
“We also took our first step toward realizing value for our equity interest in the Peak Gold Project (“Peak Gold”) near Tok, Alaska,” Mr. Jensen continued.  “We believe that Peak Gold is a very attractive opportunity for an operating company that can bring additional talent to advance the project towards production.  Royal Gold will remain committed to the project over the long term through our existing royalty interests, and our considerations for any potential transfer of ownership will include a commitment to advance the project as a priority while respecting best practices for responsible development.” 
 
Recent Developments
 
Mount Milligan
 
At the Mount Milligan mine, Centerra Gold Inc. (“Centerra”) reported that there were sufficient water resources in the fourth calendar quarter of 2018 to enable the mill facility to run at a higher than anticipated throughput rate, allowing the operation to achieve the upper end of gold and copper production guidance for the 2018 calendar year.  Calendar year 2018 gold production was 194,993 ounces compared to the guidance range of 175,000 to 195,000 ounces, and copper production was 47.1 million pounds compared to the guidance range of 40 million to 47 million pounds.  During the fourth  quarter of calendar 2018, production from Mount Milligan was 60,271 ounces of gold and 11.8 million pounds of copper.

1 Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. GEOs net of stream payments were 64,800 in the second quarter, compared to 74,100 in the prior second quarter.

1

 
For calendar year 2019, Centerra expects mill throughput at Mount Milligan to be reduced during the remainder of the winter season to properly manage the water balance until the water flow increases in the spring.   Once the spring melt has commenced, typically in April, Centerra expects mill throughput levels to return to full capacity.  In the second half of calendar 2019, Centerra expects to achieve an average throughput of approximately 55,000 tonnes per calendar day. For the full calendar year, Centerra expects Mount Milligan’s payable gold production to be in the range of 155,000 to 175,000 ounces, and payable copper production to be in the range of 65 to 75 million pounds.
 
With respect to water sourcing and permitting activities at Mount Milligan, Centerra reports that permit applications are in process to allow the mine to draw additional flow during the spring melt period for the next three years from each of Philip Lake, Rainbow Creek and Meadows Creek.  This additional water would be stored in the tailings storage facility for use during the remainder of the year, which Centerra expects to be sufficient to allow operations to continue at a rate of 55,000 tonnes per calendar day.  Centerra also reports that it is completing an inventory of regional water sources to identify other potential long-term water sources that could provide additional water through to the end of the mine life.
 
Rainy River
 
Improved operating performance at the Rainy River mine, owned and operated by New Gold Inc. (“New Gold”), continued during the fourth calendar quarter of 2018.  Quarterly gold production was 77,202 ounces, a 39% increase over the prior quarter due mainly to higher grade, recovery and throughput rate.  Mill processing reached a run rate of 25,835 tonnes per operating day, the first full quarter in which the mill averaged a daily run rate above the target 24,000 tonnes per day, and the average throughput was 20,558 tonnes per calendar day at an 80% availability.  New Gold expects to replace the ball mill trunnion during the first calendar quarter of 2019 and that recoveries will continue to improve throughout the calendar year.
 
New Gold also announced that the underground development plan at Rainy River was deferred to 2020, and that it will review alternative underground mining scenarios during calendar 2019 with the overall objective of reducing capital requirements and improving the return on investment for the underground portion of the mine.
 
Adviser Retained to Assist with Peak Gold Project
 
Royal Gold retained Scotia Capital Inc. (“Scotia”) to assist in identifying parties interested in advancing Peak Gold.  We own a 40% indirect equity interest in Peak Gold, held through our wholly owned subsidiary Royal Alaska, LLC, and 809,744 common shares (or approximately 12.7%) of Contango ORE, Inc. (“CORE”), our joint venture partner.  In addition to the ownership interests in Peak Gold and CORE equity, the Company also has the right to sell up to 20% of CORE’s aggregate membership interest in the joint venture (for a total sale of up to 60% of the joint venture membership interest) and holds two net smelter return royalties on the Peak Gold land package.
 
Second Quarter 2019 Overview
 
Second quarter revenue was $97.6 million compared to $114.3 million in the prior year quarter, with stream revenue totaling $67.7 million and royalty revenue totaling $29.9 million.  The decrease in total revenue for the second quarter compared to the prior year quarter was due to lower average gold, silver and copper prices, as well as lower overall sales and production.  Lower gold stream sales from Andacollo and Pueblo Viejo were partially offset by higher gold and copper sales from Mount Milligan and initial contributions from Rainy River, while a decrease in royalty revenue was due to lower production at Peñasquito and Cortez.
 
Second quarter cost of sales was approximately $18.2 million, compared to $19.9 million in the prior year quarter.  The decrease was primarily due to lower gold sales from Andacollo.  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.
 
General and administrative expenses decreased to $7.4 million in the second quarter from $9.6 million during the prior year quarter.  The decrease during the current period was primarily due to a decrease in legal costs related to the settlement of the Voisey’s Bay royalty calculation dispute during the first quarter of fiscal 2019. 
 
Depreciation, depletion and amortization expense decreased to $38.8 million in the second quarter from $42.0 million in the prior year quarter.  The decrease was primarily attributable to a decrease in gold sales at Andacollo and Pueblo Viejo, partially offset by an increase in metal sales at Mount Milligan and Rainy River. 

2

On July 1, 2018, the Company adopted new Accounting Standards Update guidance which impacts how changes in fair value of equity securities are recognized at each reporting period.  As a result, for the three months ended December 31, 2018, the Company recognized a loss of $3.6 million on changes in fair value of equity securities related to the holdings in CORE and Rubicon Minerals Corporation.  The new guidance could increase earnings volatility in the future.
 
The Company recognized a second quarter income tax benefit of $2.1 million, compared to an expense of $48.4 million during the prior year quarter.  The effective tax rate for the second quarter was (10.3)% compared to 148.5% for the prior year quarter.  The lower than expected effective tax rate is due to approximately $6.0 million of discrete tax items recorded in the quarter attributable to true-ups made after completing the Company’s analysis of the Act and consideration of recently-issued U.S. Treasury and IRS guidance.  The Company does not anticipate future material changes due to evolving guidance; however, many aspects of the law remain unclear and further regulatory guidance could impact the Company’s effective tax rate.
 
At December 31, 2018, the Company had current assets of $203.7 million compared to current liabilities of $37.2 million, resulting in working capital of $166.5 million.  This compares to current assets of $125.8 million and current liabilities of $51.4 million at June 30, 2018, resulting in working capital of $74.4 million. 
 
During the second quarter, liquidity needs were met from $79.4 million in net revenue and available cash resources.  As of December 31, 2018, the Company had no amounts outstanding and the full $1 billion available under its revolving credit facility.  Working capital, combined with the Company’s undrawn revolving credit facility, resulted in approximately $1.2 billion of total liquidity at December 31, 2018. 
 
Property Highlights
 
A summary of second quarter and historical production reported by operators of the Company’s stream and royalty properties can be found on Tables 1 and 2.  Calendar year 2018 operator production estimates for certain properties in which the Company has interests compared to actual production at those properties through December 31, 2018 can be found on Table 3.  Results of the streaming business for the second quarter, compared to the prior year quarter, can be found on Table 4.  Highlights at certain of the Company’s principal producing and development properties during the second quarter, compared to the prior year quarter, are detailed in the Quarterly Report on Form 10-Q.
 
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 December 31, 2018, the Company owns interests on 191 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 .
 
For further information, please contact:
 
Alistair Baker
Director, Business Development
(720) 554-6995
 
Note:    Management’s conference call reviewing the second quarter results will be held on Thursday, February 7, 2019, at noon Eastern Time (10:00 a.m. Mountain Time).  The call will be webcast and archived on the Company’s website for a limited time.
 
Second Quarter Earnings Call Information:

Dial-In Numbers:	 	855-209-8260 (U.S.); toll free	
 	 	855-669-9657 (Canada); toll free	
 	 	412-542-4106 (International)	
Conference Title:	 	Royal Gold	
Webcast URL:	 	www.royalgold.com under Investors, Events & Presentations	

3

Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995:  With the exception of historical matters, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein.  Such forward-looking statements include statements about solid quarterly results; future production contributions from Peñasquito, Mount Milligan and Rainy River; expectations for continued improvement at Rainy River and positive water supply developments at Mount Milligan; the value to be realized from the Company’s interests in Peak Gold and CORE common shares following a strategic review process; the belief that Peak Gold is an attractive opportunity for an operating company; calendar year 2019 mill throughput, water availability and total payable gold and copper production from Mount Milligan; the impact, if any, on Mount Milligan of Centerra’s water permit applications, whether or not granted, and its regional water source inventory; New Gold’s expectations for improved mill recoveries and the impact of its review of underground mining scenarios; changes in taxes and tax rates resulting from future tax legislation and regulatory guidance; and operators’ estimated and actual production for calendar year 2018, 2019 and future years, and their estimates of reserves and mineralized material.  Net gold and metal reserves attributable to Royal Gold’s stream, royalty and other interests are subject to certain assumptions and, like reserves, do not reflect actual ounces that will be produced.  Like any stream, royalty or similar interest on a non-producing or not-yet-in-development project, our interests on development projects are subject to certain risks, such as the ability of the operators to bring the projects into production and operate in accordance with their feasibility studies and mine plans, and the ability of Royal Gold to make accurate assumptions regarding valuation and timing and amount of payments.  In addition, many of our interests are subject to risks associated with conducting business in a foreign country, including application of foreign laws to contract and other disputes, foreign environmental laws and enforcement and uncertain political and economic environments.  Factors that could cause actual results to differ materially from projections include, among others,  precious metals, copper and nickel prices; performance of and production at  the Company's stream and royalty properties; the ability of operators to finance project construction to completion and bring projects into production as expected, including development stage mining properties, mine and mill expansion projects and other development and construction projects; operators’ delays in securing or inability to secure or maintain necessary governmental permits; decisions and activities of the operators of the Company'  s  stream and royalty properties; unanticipated grade, environmental, geological, seismic, metallurgical, processing, liquidity or other problems the operators of the Company’s stream and royalty properties may encounter; operators’ inability to access sufficient raw materials, water or power; changes in operators’ project parameters as plans continue to be refined; changes in estimates of reserves and mineralization by the operators of the Company’s stream and royalty properties; contests to the Company’s stream and royalty interests and title and other defects in the properties where the Company holds stream and royalty interests; errors or disputes in calculating stream deliveries and royalty payments, or deliveries or payments not made in accordance with stream and royalty agreements; economic and market conditions; changes in laws governing the Company and its stream and royalty interests or the operators of the properties subject to such interests, and other subsequent events; as well as other factors described in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission.  Most of these factors are beyond the Company’s ability to predict or control.  The Company disclaims any obligation to update any forward-looking statement made herein.  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 for calendar 2019, 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 such third-party information and refers the reader to the public reports filed by the operators for information regarding those properties.

4

TABLE 1
Second Quarter Fiscal 2019
Revenue and Operators’ Reported Production for Principal Stream and Royalty Interests
(In thousands, except reported production in oz. and lbs.)

 	 	 	 	Three Months Ended	 	Three Months Ended	 	
 	 	 	 	December 31, 2018	 	December 31, 2017	 	
 	    	    	    	    	 	    	Reported	    	    	 	    	Reported	 	
Stream/Royalty	 	Metal(s)	 	Revenue	 	Production 1	 	Revenue	 	Production 1	 	
Stream:	 	  	 	 	  	 	  	 	 	  	 	  	 	
Mount Milligan	 	 	 	$	28,169	 	 	 	$	21,632	 	 	 	
 	 	Gold	 	 	 	 	17,700	oz.	 	 	 	12,600	oz.	
 	 	Copper	 	 	 	 	2.4	Mlbs.	 	 	 	1.8	Mlbs.	
Pueblo Viejo	 	 	 	$	18,230	 	 	 	$	26,355	 	 	 	
 	 	Gold	 	 	 	 	8,900	oz.	 	 	 	14,500	oz.	
 	 	Silver	 	 	  	 	509,500	oz.	 	  	 	469,600	oz.	
Wassa and Prestea	 	Gold	 	$	9,550	 	7,800	oz.	$	8,629	 	6,800	oz.	
Andacollo	 	Gold	 	$	7,635	 	6,200	oz.	$	21,601	 	17,000	oz.	
Other	 	 	 	$	4,095	 	 	 	$	1,070	 	 	 	
 	 	Gold	 	 	 	 	2,900	oz.	 	 	 	800.0	oz.	
 	 	Silver	 	 	 	 	36,000	oz.	 	 	 	N/A	 	
Total stream revenue	 	  	 	$	67,679	 	  	 	$	79,287	 	  	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Royalty:	 	  	 	 	  	 	  	 	 	  	 	  	 	
Peñasquito	 	  	 	$	4,660	 	  	 	$	6,190	 	  	 	
 	 	Gold	 	 	  	 	53,400	oz.	 	  	 	71,100	oz.	
 	 	Silver	 	 	  	 	5.0	Moz.	 	  	 	5.1	Moz.	
 	 	Lead	 	 	  	 	36.1	Mlbs.	 	  	 	33.4	Mlbs.	
 	 	Zinc	 	 	  	 	83.1	Mlbs.	 	  	 	94.4	Mlbs.	
Cortez	 	Gold	 	$	2,335	 	19,900	oz.	$	2,934	 	25,000	oz.	
Other	 	Various	 	$	22,918	 	N/A	 	$	25,937	 	N/A	 	
Total royalty revenue	 	  	 	$	29,913	 	  	 	$	35,061	 	  	 	
Total Revenue	 	  	 	$	97,592	 	  	 	$	114,348	 	  	 	

5

TABLE 1
Second Quarter Fiscal 2019
Revenue and Operators’ Reported Production for Principal Stream and Royalty Interests
(In thousands, except reported production in oz. and lbs.)

 	 	 	 	Six Months Ended	 	Six Months Ended	 	
 	 	 	 	December 31, 2018	 	December 31, 2017	 	
 	    	    	    	    	 	    	Reported	    	    	 	    	Reported	 	
Stream/Royalty	 	Metal(s)	 	Revenue	 	Production 1	 	Revenue	 	Production 1	 	
Stream:	 	  	 	 	  	 	  	 	 	  	 	  	 	
Pueblo Viejo	 	 	 	$	37,717	 	 	 	$	51,758	 	 	 	
 	 	Gold	 	 	  	 	18,100	oz.	 	  	 	27,400	oz.	
 	 	Silver	 	 	  	 	1.0	Moz.	 	  	 	1.0	Moz.	
Mount Milligan	 	  	 	$	37,015	 	  	 	$	53,584	 	  	 	
 	 	Gold	 	 	  	 	23,300	oz.	 	  	 	31,300	oz.	
 	 	Copper	 	 	  	 	3.2	Mlbs.	 	  	 	4.4	Mlbs.	
Andacollo	 	Gold	 	$	35,378	 	28,900	oz.	$	33,938	 	26,700	oz.	
Wassa and Prestea	 	Gold	 	$	17,611	 	14,400	oz.	$	17,699	 	13,900	oz.	
Other	 	 	 	$	9,995	 	 	 	$	1,070	 	 	 	
 	 	Gold	 	 	 	 	7,400	oz.	 	 	 	800	oz.	
 	 	Silver	 	 	 	 	67,500	oz.	 	 	 	N/A	 	
Total stream revenue	 	 	 	$	137,716	 	  	 	$	158,049	 	  	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Royalty:	 	  	 	 	  	 	  	 	 	  	 	  	 	
Peñasquito	 	  	 	$	8,297	 	  	 	$	13,986	 	  	 	
 	 	Gold	 	 	  	 	103,700	oz.	 	  	 	205,100	oz.	
 	 	Silver	 	 	  	 	9.2	Moz.	 	  	 	11.0	Moz.	
 	 	Lead	 	 	  	 	65.9	Mlbs.	 	  	 	69.6	Mlbs.	
 	 	Zinc	 	 	  	 	147.3	Mlbs.	 	  	 	186.8	Mlbs.	
Cortez	 	Gold	 	$	2,939	 	26,900	oz.	$	5,922	 	54,900	oz.	
Other	 	Various	 	$	48,633	 	N/A	 	$	48,867	 	N/A	 	
Total royalty revenue	 	  	 	$	59,869	 	  	 	$	68,775	 	  	 	
Total revenue	 	  	 	$	197,585	 	  	 	$	226,824	 	  	 	

 

6

 

TABLE 2
Operators’ Historical Production

 	 	 	 	 	 	 	 	Reported Production For The Quarter Ended 1	 	
Property	    	Operator	    	Stream/Royalty	    	Metal(s)	    	Dec.   31,   2018	 	    	Sep. 30, 2018	    	Jun. 30, 2018	    	Mar. 31, 2018	    	Dec. 31, 2017	    	
Stream:	 	  	 	  	 	  	 	 	 	 	  	 	  	 	  	 	  	 	
Mount Milligan	 	Centerra	 	35% of payable gold	 	Gold	 	
17,700	oz.	 	5,500	oz.	20,700	oz.	25,800	oz.	12,600	oz.	
 	 	  	 	18.75% of payable copper	 	Copper	 	
2.4	Mlbs.	 	0.8	Mlbs.	1.6	Mlbs.	4.3	Mlbs.	1.8	Mlbs.	
Pueblo Viejo	 	Barrick (60%)	 	7.5% of gold produced up to 990,000 ounces; 3.75% therafter	 	Gold	 	
8,900	oz.	 	9,200	oz.	13,200	oz.	8,500	oz.	14,500	oz.	
 	 	  	 	75% of payable silver up to 50 million ounces; 37.5% therafter	 	Silver	 	
509,500	oz.	 	540,200	oz.	616,300	oz.	260,800	oz.	469,600	oz.	
Andacollo	 	Teck	 	100% of gold produced	 	Gold	 	
6,200	oz.	 	22,700	oz.	12,400	oz.	5,400	oz.	17,000	oz.	
Wassa and Prestea	 	Golden Star	 	10.5% of gold produced up to 240,000 ounces; 5.5% therafter	 	Gold	 	
7,800	oz.	 	6,500	oz.	2,800	oz.	6,300	oz.	6,800	oz.	
Royalty:	 	  	 	  	 	  	 	 	 	 	  	 	  	 	  	 	  	 	
Peñasquito	 	Goldcorp	 	2.0% NSR	 	  	 	 	 	 	  	 	  	 	  	 	  	 	
 	 	  	 	  	 	Gold	 	
53,400	oz.	 	50,300	oz.	79,600	oz.	91,200	oz.	71,100	oz.	
 	 	  	 	  	 	Silver	 	5.0	Moz.	 	4.2	Moz.	5.0	Moz.	5.0	Moz.	5.1	Moz.	
 	 	  	 	  	 	Lead	 	
36.1	Mlbs.	 	29.9	Mlbs.	26.6	Mlbs.	26.0	Mlbs.	33.4	Mlbs.	
 	 	  	 	  	 	Zinc	 	
83.1	Mlbs.	 	64.2	Mlbs.	73.7	Mlbs.	88.0	Mlbs.	94.4	Mlbs.	
Cortez	 	Barrick	 	GSR1 and GSR2, GSR3, NVR1	 	Gold	 	
19,900	oz.	 	7,000	oz.	3,900	oz.	18,900	oz.	25,000	oz.	

FOOTNOTES
Tables 1 and 2
 
1     Reported production relates to the amount of metal sales that are subject to the Company’s stream and royalty interests for the stated period, as reported to the Company by operators of the mines.
2     Individually, no stream or royalty included within the “Other” category contributed greater than 5% of the Company’s total revenue for either period, except Rainy River for the six months ended December 31, 2018.  The “Other” category for streams is the Rainy River gold and silver stream.  
3     The gold stream percentage at Wassa and Prestea increased to 10.5% from 9.25%, effective January 1, 2018.

7

 

TABLE 3
Calendar 2018 Operator’s Production Estimate vs Actual Production

 	 	Calendar 2018 Operator’s Production	 	Calendar 2018 Operator’s Production	
 	 	Estimate 1	 	Actual 2,3	
 	    	Gold	    	Silver	    	Base Metals	    	Gold	    	Silver	    	Base Metals	
Stream/Royalty	 	(oz.)	 	(oz.)	 	(lbs.)	 	(oz.)	 	(oz.)	 	(lbs.)	
Stream:	 	  	 	  	 	  	 	  	 	  	 	  	
Andacollo 4	 	66,700	 	  	 	  	 	59,600	 	  	 	  	
Mount Milligan 5	 	175,000 - 195,000	 	  	 	  	 	195,000	 	  	 	  	
Copper	 	  	 	  	 	40 – 47 million	 	  	 	  	 	47.1 million	
Pueblo Viejo 6	 	575,000 - 590,000	 	Not provided	 	  	 	581,000	 	Not provided	 	  	
Wassa and Prestea 7	 	225,000 - 235,000	 	  	 	  	 	224,900	 	  	 	  	
Royalty:	 	  	 	  	 	  	 	  	 	  	 	  	
Cortez GSR1	 	48,300	 	  	 	  	 	44,600	 	  	 	  	
Cortez GSR2	 	2,200	 	  	 	  	 	5,200	 	  	 	  	
Cortez GSR3	 	50,500	 	  	 	  	 	49,800	 	  	 	  	
Cortez NVR1	 	31,600	 	  	 	  	 	36,600	 	  	 	  	
Peñasquito 8	 	310,000	 	Not provided	 	  	 	220,000	 	14.1 million	 	  	
Lead	 	  	 	  	 	160 million	 	  	 	  	 	82.5 million	
Zinc	 	  	 	  	 	300 million	 	  	 	  	 	225.9 million	

	1		Production estimates received from the operators are for calendar 2018.  There can be no assurance that production estimates received from the operators will be achieved.  Please refer to the cautionary language regarding forward-looking statements and the statement regarding third party information contained in this press release, as well as the Risk Factors identified in Part I, Item 1A, of the Company’s Fiscal 2018 Form 10-K for information regarding factors that could affect actual results.	
	2		Actual production figures shown are from the operators and cover the period January 1, 2018 through December 31, 2018, except for Peñasquito which covers the period from January 1, 2018 through September 30, 2018.	
	3		Actual production figures for Cortez are based on information provided to the Company by Barrick, and actual production figures for Andacollo, Mount Milligan, Pueblo Viejo, Peñasquito (gold) and Wassa and Prestea are the publicly reported figures of the operators of those properties.	
	4		The estimated and actual production figures shown for Andacollo are contained gold in concentrate.	
	5		The estimated and actual production figures shown for Mount Milligan are payable gold and copper in concentrate.	
	6		The estimated and actual production figures shown for Pueblo Viejo are payable gold in doré and represent Barrick’s 60% interest gold produced from Pueblo Viejo.  The operator did not provide estimated silver production.	
	7		The estimated gold   production figures shown for Wassa and Prestea are payable gold in concentrate and doré.  	
	8		The estimated and actual gold production figures shown for Peñasquito are payable gold in concentrate and doré.  The estimated and actual lead and zinc production figures shown are payable lead and zinc from concentrate.  The operator did not provide estimated silver production and the actual silver production figure shown is payable silver in concentrate and doré.	

8

 

TABLE 4
Stream Summary

 	 	Three Months Ended	 	Three Months Ended	 	As of	 	As of	
 	 	December 31, 2018	 	December 31, 2017	 	December 31, 2018	 	June 30, 2018	
Gold Stream	    	Purchases (oz.)	    	Sales (oz.)	    	Purchases (oz.)	    	Sales (oz.)	    	Inventory (oz.)	    	Inventory (oz.)	
Andacollo	 	10,700	 	6,200	 	13,500	 	17,000	 	4,500	 	7,400	
Pueblo Viejo	 	10,400	 	8,900	 	12,600	 	14,500	 	10,400	 	9,200	
Mount Milligan	 	10,300	 	17,700	 	17,700	 	12,700	 	—	 	300	
Wassa and Prestea	 	4,700	 	7,900	 	6,000	 	6,800	 	700	 	3,900	
Rainy River	 	4,500	 	2,900	 	1,000	 	800	 	1,600	 	800	
Total	 	40,600	 	43,600	 	50,800	 	51,800	 	17,200	 	21,600	

 	 	Three Months Ended	 	Three Months Ended	 	As of	 	As of	
 	 	December 31, 2018	 	December 31, 2017	 	December 31, 2018	 	June 30, 2018	
Silver Stream	    	Purchases (oz.)	    	Sales (oz.)	    	Purchases (oz.)	    	Sales (oz.)	    	Inventory (oz.)	    	Inventory (oz.)	
Pueblo Viejo	 	469,000	 	509,500	 	260,200	 	469,600	 	469,000	 	540,200	
Rainy River	 	41,700	 	36,000	 	11,900	 	 —	 	41,700	 	32,300	
Total	 	510,700	 	545,500	 	272,100	 	469,600	 	510,700	 	572,500	

 	 	Three Months Ended	 	Three Months Ended	 	As of	 	As of	
 	 	December 31, 2018	 	December 31, 2017	 	December 31, 2018	 	June 30, 2018	
Copper Stream	    	Purchases (Mlbs.)	    	Sales (Mlbs.)	    	Purchases (Mlbs.)	    	Sales (Mlbs.)	    	Inventory (Mlbs.)	    	Inventory (Mlbs.)	
Mount Milligan	 	2.5	 	2.4	 	2.7	 	1.8	 	0.9	 	 —	

 	 	Six Months Ended	 	Six Months Ended	 	As of	 	As of	
 	 	December 31, 2018	 	December 31, 2017	 	December 31, 2018	 	June 30, 2018	
Gold Stream	    	Purchases (oz.)	    	Sales (oz.)	    	Purchases (oz.)	    	Sales (oz.)	    	Inventory (oz.)	    	Inventory (oz.)	
Andacollo	 	26,000	 	28,900	 	26,500	 	26,700	 	4,500	 	7,400	
Mount Milligan	 	23,000	 	23,300	 	36,400	 	31,300	 	—	 	300	
Pueblo Viejo	 	19,300	 	18,100	 	23,100	 	27,400	 	10,400	 	9,200	
Wassa and Prestea	 	11,200	 	14,300	 	13,400	 	13,900	 	700	 	3,900	
Rainy River	 	8,100	 	7,400	 	1,000	 	800	 	1,600	 	800	
Total	 	87,600	 	92,000	 	100,400	 	100,100	 	17,200	 	21,600	

 	 	Six Months Ended	 	Six Months Ended	 	As of	 	As of	
 	 	December 31, 2018	 	December 31, 2017	 	December 31, 2018	 	June 30, 2018	
Silver Stream	    	Purchases (oz.)	    	Sales (oz.)	    	Purchases (oz.)	    	Sales (oz.)	    	Inventory (oz.)	    	Inventory (oz.)	
Pueblo Viejo	 	978,400	 	1,049,700	 	730,200	 	1,006,200	 	469,000	 	540,200	
Rainy River	 	76,900	 	67,400	 	11,900	 	 —	 	41,700	 	32,300	
Total	 	1,055,300	 	1,117,100	 	742,100	 	1,006,200	 	510,700	 	572,500	

 	 	Six Months Ended	 	Six Months Ended	 	As of	 	As of	
 	 	December 31, 2018	 	December 31, 2017	 	December 31, 2018	 	June 30, 2018	
Copper Stream	    	Purchases (Mlbs.)	    	Sales (Mlbs.)	    	Purchases (Mlbs.)	    	Sales (Mlbs.)	    	Inventory (Mlbs.)	    	Inventory (Mlbs.)	
Mount Milligan	 	4.2	 	3.2	 	5.3	 	4.4	 	0.9	 	 —	

9

 

ROYAL GOLD, INC.
Consolidated Balance Sheets
(Unaudited, in thousands except share data)

 	    	December 31, 2018	    	June 30, 2018	
 	 	 	 	 	 	 	
ASSETS	 	 	  	 	 	  	
Cash and equivalents	 	$	156,536	 	$	88,750	
Royalty receivables	 	 	25,659	 	 	26,356	
Income tax receivable	 	 	12,793	 	 	40	
Stream inventory	 	 	7,954	 	 	9,311	
Prepaid expenses and other	 	 	793	 	 	1,350	
Total current assets	 	 	203,735	 	 	125,807	
Stream and royalty interests, net	 	 	2,419,908	 	 	2,501,117	
Other assets	 	 	51,463	 	 	55,092	
Total assets	 	$	2,675,106	 	$	2,682,016	
LIABILITIES	 	 	  	 	 	  	
Accounts payable	 	$	2,291	 	$	9,090	
Dividends payable	 	 	17,359	 	 	16,375	
Income tax payable	 	 	10,739	 	 	18,253	
Withholding taxes payable	 	 	2,348	 	 	3,254	
Other current liabilities	 	 	4,439	 	 	4,411	
Total current liabilities	 	 	37,176	 	 	51,383	
Debt	 	 	358,897	 	 	351,027	
Deferred tax liabilities	 	 	90,700	 	 	91,147	
Uncertain tax positions	 	 	35,590	 	 	33,394	
Other long-term liabilities	 	 	5,773	 	 	13,796	
Total liabilities	 	 	528,136	 	 	540,747	
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 65,396,339 and 65,360,041 shares outstanding, respectively	 	 	654	 	 	654	
Additional paid-in capital	 	 	2,197,254	 	 	2,192,612	
Accumulated other comprehensive loss	 	 	 —	 	 	(1,201)	
Accumulated losses	 	 	(86,238)	 	 	(89,898)	
Total Royal Gold stockholders’ equity	 	 	2,111,670	 	 	2,102,167	
Non-controlling interests	 	 	35,300	 	 	39,102	
Total equity	 	 	2,146,970	 	 	2,141,269	
Total liabilities and equity	 	$	2,675,106	 	$	2,682,016	

10

 

ROYAL GOLD, INC.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited, in thousands except for per share data)

 	 	Three Months Ended	 	Six Months Ended	
 	    	December 31, 	    	December 31, 	    	December 31, 	    	December 31, 	
 	 	2018	 	2017	 	2018	 	2017	
Revenue	 	$	97,592	 	$	114,348	 	$	197,585	 	$	226,824	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses	 	 	  	 	 	  	 	 	  	 	 	  	
Cost of sales	 	 	18,162	 	 	19,863	 	 	34,689	 	 	40,282	
General and administrative	 	 	7,423	 	 	9,555	 	 	17,349	 	 	16,455	
Production taxes	 	 	909	 	 	602	 	 	2,201	 	 	1,145	
Exploration costs	 	 	842	 	 	1,358	 	 	5,204	 	 	4,561	
Depreciation, depletion and amortization	 	 	38,807	 	 	42,008	 	 	81,358	 	 	81,701	
Total costs and expenses	 	 	66,143	 	 	73,386	 	 	140,801	 	 	144,144	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	 	 	31,449	 	 	40,962	 	 	56,784	 	 	82,680	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Fair value changes in equity securities	 	 	(3,631)	 	 	 —	 	 	(5,099)	 	 	 —	
Interest and other income	 	 	487	 	 	645	 	 	590	 	 	1,634	
Interest and other expense	 	 	(7,410)	 	 	(9,034)	 	 	(15,287)	 	 	(17,651)	
Income before income taxes	 	 	20,895	 	 	32,573	 	 	36,988	 	 	66,663	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Income tax expense	 	 	2,148	 	 	(48,360)	 	 	(1,967)	 	 	(55,904)	
Net income (loss)	 	 	23,043	 	 	(15,787)	 	 	35,021	 	 	10,759	
Net loss attributable to non-controlling interests	 	 	543	 	 	1,022	 	 	3,575	 	 	3,105	
Net income (loss) attributable to Royal Gold common stockholders	 	$	23,586	 	$	(14,765)	 	$	38,596	 	$	13,864	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	$	23,043	 	$	(15,787)	 	$	35,021	 	$	10,759	
Adjustments to comprehensive income (loss), net of tax Unrealized change in market value of available-for-sale securities	 	 	—	 	 	(390)	 	 	—	 	 	(193)	
Comprehensive income (loss)	 	 	23,043	 	 	(16,177)	 	 	35,021	 	 	10,566	
Comprehensive loss attributable to non-controlling interests	 	 	543	 	 	1,022	 	 	3,575	 	 	3,105	
Comprehensive income (loss) attributable to Royal Gold stockholders	 	$	23,586	 	$	(15,155)	 	$	38,596	 	$	13,671	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) per share available to Royal Gold common stockholders:	 	 	  	 	 	  	 	 	  	 	 	  	
Basic earnings (loss) per share	 	$	0.36	 	$	(0.23)	 	$	0.59	 	$	0.21	
Basic weighted average shares outstanding	 	 	65,395,457	 	 	65,306,766	 	 	65,385,161	 	 	65,271,131	
Diluted earnings (loss) per share	 	$	0.36	 	$	(0.23)	 	$	0.59	 	$	0.21	
Diluted weighted average shares outstanding	 	 	65,473,400	 	 	65,306,766	 	 	65,485,423	 	 	65,460,430	
Cash dividends declared per common share	 	$	0.265	 	$	0.25	 	$	0.515	 	$	0.49	

11

 

ROYAL GOLD, INC.
Consolidated Statements of Cash Flows
(Unaudited, in thousands)

 	 	Three Months Ended	 	Six Months Ended	
 	    	December 31, 	    	December 31, 	    	December 31, 	    	December 31, 	
 	 	2018	 	2017	 	2018	 	2017	
Cash flows from operating activities:	 	 	  	 	 	  	 	 	  	 	 	  	
Net income (loss)	 	$	23,043	 	$	(15,787)	 	$	35,021	 	$	10,759	
Adjustments to reconcile net income (loss) to net cash provided by operating activities:	 	 	  	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation, depletion and amortization	 	 	38,807	 	 	42,008	 	 	81,358	 	 	81,701	
Amortization of debt discount and issuance costs	 	 	3,961	 	 	3,734	 	 	7,864	 	 	7,413	
Non-cash employee stock compensation expense	 	 	1,625	 	 	2,021	 	 	4,070	 	 	4,395	
Fair value changes in equity securities	 	 	3,631	 	 	—	 	 	5,099	 	 	—	
Deferred tax expense (benefit)	 	 	1,374	 	 	29,685	 	 	(307)	 	 	28,958	
Other	 	 	 —	 	 	65	 	 	—	 	 	(158)	
Changes in assets and liabilities:	 	 	  	 	 	 	 	 	 	 	 	 	
Royalty receivables	 	 	(553)	 	 	(206)	 	 	697	 	 	(2,399)	
Stream inventory	 	 	2,057	 	 	435	 	 	1,356	 	 	524	
Income tax receivable	 	 	(6,412)	 	 	(1,343)	 	 	(12,753)	 	 	(5,197)	
Prepaid expenses and other assets	 	 	1,244	 	 	1,326	 	 	2,305	 	 	(328)	
Accounts payable	 	 	(2,966)	 	 	(673)	 	 	(7,026)	 	 	(1,658)	
Income tax payable	 	 	2,727	 	 	3,410	 	 	(7,514)	 	 	9,445	
Withholding taxes payable	 	 	(203)	 	 	(11)	 	 	(906)	 	 	26	
Uncertain tax positions	 	 	(1,069)	 	 	2,067	 	 	2,197	 	 	4,560	
Other liabilities	 	 	(8,435)	 	 	8,894	 	 	(7,993)	 	 	9,193	
Net cash provided by operating activities	 	$	58,831	 	$	75,625	 	$	103,468	 	$	147,234	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from investing activities:	 	 	  	 	 	  	 	 	  	 	 	  	
Acquisition of stream and royalty interests	 	 	(52)	 	 	 5	 	 	(55)	 	 	 —	
Purchase of equity securities	 	 	(3,569)	 	 	—	 	 	(3,569)	 	 	 —	
Other	 	 	34	 	 	(194)	 	 	(87)	 	 	(94)	
Net cash used in investing activities	 	$	(3,587)	 	$	(189)	 	$	(3,711)	 	$	(94)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from financing activities:	 	 	  	 	 	  	 	 	  	 	 	  	
Repayment of revolving credit facility	 	 	 —	 	 	(50,000)	 	 	—	 	 	(100,000)	
Net payments from issuance of common stock	 	 	(245)	 	 	(12)	 	 	(2,217)	 	 	(3,541)	
Common stock dividends	 	 	(16,378)	 	 	(15,709)	 	 	(32,754)	 	 	(31,391)	
Contributions from non-controlling interest	 	 	2,790	 	 	 —	 	 	2,790	 	 	—	
Other	 	 	(1,953)	 	 	22	 	 	210	 	 	77	
Net cash used in financing activities	 	$	(15,786)	 	$	(65,699)	 	$	(31,971)	 	$	(134,855)	
Net increase in cash and equivalents	 	 	39,458	 	 	9,737	 	 	67,786	 	 	12,285	
Cash and equivalents at beginning of period	 	 	117,078	 	 	88,395	 	 	88,750	 	 	85,847	
Cash and equivalents at end of period	 	$	156,536	 	$	98,132	 	$	156,536	 	$	98,132	

12

Exhibit 99.2
	NASDAQ: RGLD Second Fiscal Quarter 2019 Results February 7, 2019	

	NASDAQ: RGD 2 Cautionary Statement Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: This presentation contains certain forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from the projections and estimates contained herein and include, but are not limited to statements with regard to: solid, steady and successful performance; balance sheet continuing to strengthen; well-positioned for new investment opportunities; positive results of the Peak Gold PEA including mineralized material, expected initial capital and expected total cash cost; realizing value from the Company’s interests in Peak Gold and CTGO equity following strategic review process; belief that Peak Gold is an attractive opportunity for an operating company; achieving operators’ production guidance at Mount Milligan, Rainy River and Peñasquito; results of continuing work on near- and long-term water solutions and expected throughput at Mount Milligan; continued ramp-up efforts, higher grade and evaluation of underground development alternatives at Rainy River; expectations for annual and life-of-mine production at the Peñasquito Pyrite Leach Project and expectations for improved calendar 2019 grades and recoveries at Peñasquito; sources of embedded growth at Cortez Crossroads, Pueblo Viejo and Wassa underground; expected higher grade and mining rate at Cortez Crossroads; results of combined expansion project pre-feasibility study, potential throughput increases and conversion of mineral resources to reserves at Pueblo Viejo; production and achieving production guidance at Wassa and Prestea; results and impact of PEA on optimal long-term development at Wassa; expectations to repay June 2019 bonds with cash from revolver; fiscal second quarter operating performance guidance met; strong liquidity and positive business environment. Factors that could cause actual results to differ materially from these forward- looking statements include, among others: the risks inherent in the operation of mining properties; a decreased price environment for gold and other metals on which our stream and royalty interests are determined; performance of and production at properties, and variation of actual production from the production estimates and forecasts made by the operators of those stream and royalty properties; decisions and activities of the Company’s management affecting margins, use of capital and changes in strategy; unexpected operating costs, decisions and activities of the operators of the Company’s stream and royalty properties; changes in operators’ mining and processing techniques or stream or royalty calculation methodologies; resolution of regulatory and legal proceedings; unanticipated grade, geological, metallurgical, environmental, processing or other problems at the properties; operators’ inability to access sufficient raw materials, water or power; inability of operators to bring projects into production as expected, including development stage mining properties, mine and mill expansion projects and other development and construction projects; revisions or inaccuracies in technical reports, reserve, resources and economic and production estimates; changes in project parameters as plans of the operators are refined; the results of current or planned exploration activities; errors or disputes in calculating stream deliveries and royalty payments, or deliveries or payments under stream or royalty agreements; the liquidity and future financial needs of the Company; economic and market conditions; the impact of future acquisitions and stream and royalty financing transactions; the impact of issuances of additional common stock; and risks associated with conducting business in foreign countries, including application of foreign laws to contract and other disputes, environmental laws, enforcement and uncertain political and economic environments. These risks and other factors are discussed in more detail in the Company’s public filings with the Securities and Exchange Commission. Statements made herein are as of the date hereof or as of the date indicated and should not be relied upon as of any subsequent date. The Company’s past performance is not necessarily indicative of its future performance. The Company disclaims any obligation to update any forward-looking statements. Third-party information: Certain information provided in this presentation has been provided to the Company by the operators of properties subject to our stream and royalty interests, or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. The Company has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of such third-party information and refers readers to the public reports filed by the operators for information regarding those properties.	

	NASDAQ: RGD Today’s Speakers 3 Tony Jensen President and CEO Bill Heissenbuttel CFO and VP Strategy Mark Isto VP Operations, Royal Gold Corporation	

	NASDAQ: RGD Highlights Revenue of $97.6M Volume of 79,600 GEOs1 Earnings of $0.36/share Cash flow from operations of $58.8M Dividends of $16.4M Dividend raised from $1.00 to $1.06 per share Balance sheet continues to strengthen $1.2 billion of liquidity Well-positioned for new investment opportunities Q2 2019 Overview 4	

	NASDAQ: RGD Joint Venture ownership: — 60% Contango Ore Inc. (CTGO) — 40% Royal Gold; plus: ‐ 12.7% equity interest in CTGO ‐ 2% and 3% royalty interests ‐ Operator Recent Developments 5 Positive PEA2 results announced September 2018 — M&I resource3 9.2M t @ 4.08 g/t — $294M initial capital — $428/oz total cash cost Advisor retained to help consider strategic alternatives Decision criteria will include commitment to responsible development Peak Gold Project	

	NASDAQ: RGD Recent Developments 6 Mount Milligan as reported by the operator4 Achieved high end of 2018 revised guidance Work continuing on long-term water solution Reduced throughput expected until start of spring melt, increasing to 55k t/day in H2 2019 2019 guidance: 155-175k oz gold, 65-75M lb copper Mount Milligan Mount Milligan	

	NASDAQ: RGD Recent Developments 7 Rainy River, Peñasquito as reported by the operators Calendar Q4 2018 mill run rate 25,835 t/operating day (20,668 t/calendar day at 80% availability) 1.42 g/t gold milled grade for calendar Q4 2018 Gold production of 77,202 oz in calendar Q4 2018, 227,284 oz in calendar 2018 Underground mine development plan deferred to evaluate alternativesRainy River Pyrite Leach Project (“PLP”) completed PLP expected to recover 1M oz gold, 44M oz silver over remaining mine life Calendar 2019 grades and recoveries expected to improve Peñasquito	

	NASDAQ: RGD Sources of embedded growth, as reported by the operators Upcoming Catalysts 8 Mount Milligan Enhancements Peñasquito Peñasquito Pyrite Leach ProjectPeñasquito Pyrite Leach Project Higher grade and mining rate expected in calendar 2019 4.5% NVR & 5% GSR royalty 3.2M oz gold in reserves5 Calendar Q4 stream deliveries of 10.4k oz gold, 469k oz silver Combined Expansion Project pre-feasibility study underway Potential 50% throughput increase to maintain 800k oz/year gold production (100% basis) Calendar 2018 Wassa production was 150k oz Wassa guidance is 170-180k oz for calendar 2019 PEA expected H2 calendar 2019 on optimal long-term development Wassa Underground Pueblo Viejo Cortez Crossroads	

	NASDAQ: RGD Fiscal Q2 Financial Results 9 $97.6M revenue $23.5M earnings Lower earnings this quarter compared to fiscal Q2 2018: —GEO volume of 79,600 vs 89,700 —Prices down: Au ↓4%, Ag ↓13%, Cu ↓9% —$6.0M tax benefit —$3.6M equity mark-to-market charge G&A of $7.4M DD&A of $488/GEO OCF of $58.8M	

	NASDAQ: RGD $1.2B of liquidity available Working capital increased to $167M at December 31, 2018 Expect to repay $370M June 2019 bonds with cash from revolver Fiscal Q2 Liquidity 10 December 31, 2018 Amount (US$ M) Undrawn revolver $1,000 Working capital $167 Total available liquidity $1,167 Additional near term commitments $0	

	NASDAQ: RGD Q2 2019 operating performance met guidance Strong liquidity Positive business environment → Well-positioned for new business opportunities Solid, Steady, Successful 11	

	1660 Wynkoop Street, #1000 Denver, CO 80202 303.573.1660 info@royalgold.com www.royalgold.com NASDAQ: RGLD	

	NASDAQ: RGLD Endnotes 13 1. Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. 2. The results of the Preliminary Economic Assessment (PEA) are preliminary in nature and are based on various assumptions. These assumptions may be affected by environmental, permitting, legal, title, taxation, socio-political, market or other relevant factors, including changes in metal prices. In addition, no decision has been made to proceed with the mine plan described in the PEA.A decision to proceed with the mine plan, would require significant further technical, economic, environmental, permitting, legal, engineering and other work, including a full-scale feasibility study. No decision has been made by the Peak Gold Joint Venture to proceed with a further economic study. Accordingly, there is no certainty that the results of the PEA would be realized should the Peak Gold Joint Venture decide to proceed with the mine plan described in the PEA at any point in the future. 3. The PEA was prepared in accordance with Canadian National Instrument 43-101 (NI 43-101). The terms “measured”, “indicated”, “M&I” and “inferred” as used in the PEA are Canadian mining resource classifications stated in accordance with NI 43-101; however, these terms are not defined terms under the U.S. Securities and Exchange Commission’s Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. The estimation of measured resources and indicated resources involves greater uncertainty as to their existence and the legal and economic feasibility of extraction than the estimation of proven and probable reserves. Conversion of mineral resources to proven and probable mineral reserves generally requires a further economic study, such as a preliminary feasibility study. The PEA is not a preliminary feasibility study and does not support an estimate of proven and probable mineral reserves. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Investors are also cautioned not to assume that all or any part of measured or indicated resources will ever be converted into mineral reserves. In addition, the SEC normally only permits issuers to report mineralization that does not constitute mineral reserves as in-place tonnage and grade without reference to unit amounts. 4. The information on slides 6 through 8 has been provided to the Company by the operators of these properties or is publicly available information disclosed by the operators. 5. Reserves information shown is as of December 31, 2017.