Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	Apr. 30, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	001-13357
Entity Registrant Name	Royal Gold, Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-0835164
Entity Address, Address Line One	1144 15th Street, Suite 2500
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	303
Local Phone Number	573-1660
Title of 12(b) Security	Common Stock
Trading Symbol	RGLD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Shares Outstanding		65,581,083
Entity Central Index Key	0000085535
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
ASSETS
Cash and equivalents	$ 93,715	$ 119,475
Royalty receivables	32,322	20,733
Income tax receivable	11,361	2,702
Stream inventory	11,947	11,380
Prepaid expenses and other	1,232	389
Total current assets	150,577	154,679
Stream and royalty interests, net	2,317,413	2,339,316
Other assets	81,874	50,156
Total assets	2,549,864	2,544,151
LIABILITIES
Accounts payable	1,501	2,890
Dividends payable	18,359	17,372
Income tax payable	21,027	6,974
Other current liabilities	8,943	6,374
Total current liabilities	49,830	33,610
Debt (Note 5)	100,154	214,554
Deferred tax liabilities	86,776	88,961
Uncertain tax positions	36,441	36,573
Other long-term liabilities	6,128
Total liabilities	279,329	373,698
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 65,512,248 and 65,440,492 shares outstanding, respectively	655	655
Additional paid-in capital	2,209,098	2,201,773
Accumulated earnings (losses)	30,483	(65,747)
Total Royal Gold stockholders' equity	2,240,236	2,136,681
Non-controlling interests	30,299	33,772
Total equity	2,270,535	2,170,453
Total liabilities and equity	$ 2,549,864	$ 2,544,151

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Jun. 30, 2019
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares outstanding	65,512,248	65,440,492

Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements of Operations and Comprehensive Income
Revenue	$ 136,437	$ 109,778	$ 378,853	$ 307,362
Costs and expenses
Cost of sales (excludes depreciation, depletion and amortization)	21,961	19,075	63,149	53,764
General and administrative	9,551	6,798	23,658	24,147
Production taxes	851	1,006	2,934	3,206
Exploration costs	565	330	4,705	5,534
Depreciation, depletion and amortization	51,228	39,368	130,038	120,726
Total costs and expenses	84,156	66,577	224,484	207,377
Operating income	52,281	43,201	154,369	99,985
Fair value changes in equity securities	(3,819)	1,781	(4,972)	(3,318)
Interest and other income	620	499	1,621	1,089
Interest and other expense	(2,088)	(7,499)	(7,139)	(22,786)
Income before income taxes	46,994	37,982	143,879	74,970
Income tax (expense) benefit	(8,702)	(9,388)	3,700	(11,355)
Net income	38,292	28,594	147,579	63,615
Net comprehensive income	38,292	28,594	147,579	63,615
Net loss attributable to non-controlling interests	262	178	2,750	3,753
Net income attributable to Royal Gold common stockholders	38,554	28,772	150,329	67,368
Net comprehensive income available to Royal Gold common stockholders	$ 38,554	$ 28,772	$ 150,329	$ 67,368
Net income per share available to Royal Gold common stockholders:
Basic earnings per share (in dollars per share)	$ 0.59	$ 0.44	$ 2.30	$ 1.03
Basic weighted average shares outstanding (in shares)	65,511,878	65,398,369	65,501,678	65,389,499
Diluted earnings per share (in dollars per share)	$ 0.59	$ 0.44	$ 2.29	$ 1.03
Diluted weighted average shares outstanding (in shares)	65,600,770	65,515,234	65,626,400	65,494,902
Cash dividends declared per common share (in dollars per share)	$ 0.28	$ 0.265	$ 0.825	$ 0.78

Consolidated Statements of Changes in Stockholder's Equity - USD ($) $ in Thousands	Common Shares	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated (Losses) Earnings	Noncontrolling Interests	Total
Balance at Jun. 30, 2018	$ 654	$ 2,192,612	$ (1,201)	$ (89,898)	$ 39,102	$ 2,141,269
Balance (in shares) at Jun. 30, 2018	65,360,041
Increase (Decrease) in Stockholders' Equity
Stock-based compensation and related share issuances		3,527				3,527
Stock-based compensation and related share issuances (in shares)	40,263
Other				266		266
Distributions from (to) non-controlling interests		3,210			(428)	2,782
Net income and comprehensive income				67,368	(3,753)	63,615
Other comprehensive income (loss)			$ 1,201	(1,201)
Dividends declared				(51,098)		(51,098)
Balance at Mar. 31, 2019	$ 654	2,199,349		(74,563)	34,921	2,160,361
Balance (in shares) at Mar. 31, 2019	65,400,304
Balance at Dec. 31, 2018	$ 654	2,197,254		(86,238)	35,300	2,146,970
Balance (in shares) at Dec. 31, 2018	65,396,339
Increase (Decrease) in Stockholders' Equity
Stock-based compensation and related share issuances		1,675				1,675
Stock-based compensation and related share issuances (in shares)	3,965
Other				266		266
Distributions from (to) non-controlling interests		420			(201)	219
Net income and comprehensive income				28,772	(178)	28,594
Dividends declared				(17,363)		(17,363)
Balance at Mar. 31, 2019	$ 654	2,199,349		(74,563)	34,921	2,160,361
Balance (in shares) at Mar. 31, 2019	65,400,304
Balance at Jun. 30, 2019	$ 655	2,201,773		(65,747)	33,772	2,170,453
Balance (in shares) at Jun. 30, 2019	65,440,492
Increase (Decrease) in Stockholders' Equity
Stock-based compensation and related share issuances		4,025				4,025
Stock-based compensation and related share issuances (in shares)	71,756
Distributions from (to) non-controlling interests		3,300			(723)	2,577
Net income and comprehensive income				150,329	(2,750)	147,579
Dividends declared				(54,099)		(54,099)
Balance at Mar. 31, 2020	$ 655	2,209,098		30,483	30,299	2,270,535
Balance (in shares) at Mar. 31, 2020	65,512,248
Balance at Dec. 31, 2019	$ 655	2,205,364		10,290	30,905	2,247,214
Balance (in shares) at Dec. 31, 2019	65,496,004
Increase (Decrease) in Stockholders' Equity
Stock-based compensation and related share issuances		3,134				3,134
Stock-based compensation and related share issuances (in shares)	16,244
Distributions from (to) non-controlling interests		600			(344)	256
Net income and comprehensive income				38,554	(262)	38,292
Dividends declared				(18,361)		(18,361)
Balance at Mar. 31, 2020	$ 655	$ 2,209,098		$ 30,483	$ 30,299	$ 2,270,535
Balance (in shares) at Mar. 31, 2020	65,512,248

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income and comprehensive income	$ 147,579	$ 63,615
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	130,038	120,726
Amortization of debt discount and issuance costs	851	11,882
Non-cash employee stock compensation expense	8,283	5,510
Fair value changes in equity securities	4,972	3,318
Deferred tax benefit	(37,117)	(5,329)
Other	(148)
Changes in assets and liabilities:
Royalty receivables	(11,589)	(1,198)
Stream inventory	(567)	(3,102)
Income tax receivable	(8,658)	(8,750)
Prepaid expenses and other assets	(5,771)	2,474
Accounts payable	(1,295)	(4,326)
Income tax payable	14,054	(2,002)
Uncertain tax positions	(132)	3,130
Other liabilities	8,695	(5,039)
Net cash provided by operating activities	249,195	180,909
Cash flows from investing activities:
Acquisition of stream and royalty interests	(107,855)	(1,055)
Purchase of equity securities	(461)	(3,573)
Other	3,227	(157)
Net cash used in investing activities	(105,089)	(4,785)
Cash flows from financing activities:
Repayment of debt	(115,000)
Net payments from issuance of common stock	(4,257)	(1,982)
Common stock dividends	(53,111)	(50,114)
Contributions from non-controlling interest	3,300	3,210
Other	(798)	8
Net cash used in financing activities	(169,866)	(48,878)
Net (decrease) increase in cash and equivalents	(25,760)	127,246
Cash and equivalents at beginning of period	119,475	88,750
Cash and equivalents at end of period	$ 93,715	$ 215,996

OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS

9 Months Ended

Mar. 31, 2020

OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS

OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS

1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS

Royal Gold, Inc. (“Royal Gold”, the “Company”, “we”, “us”, or “our”), together with its subsidiaries, is engaged in the business of acquiring and managing metal streams, royalties and similar interests. We seek to acquire existing stream and royalty interests or to finance mining 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 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. A royalty is a non-operating interest in a mining project that provides 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 under the Securities Exchange Act of 1934, as amended. 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 March 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2020. These interim unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 filed with the Securities and Exchange Commission on August 8, 2019 (“Fiscal 2019 10-K”).

Certain amounts in the prior period consolidated balance sheet have been reclassified for comparative purposes to conform with the presentation in the current period balance sheet. Reclassified amounts were not material.

Recently Adopted Accounting Standards

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which requires recognition of right-of-use assets and lease payment liabilities on the balance sheet by lessees for all leases with terms greater than twelve months. Classification of leases as either a finance or operating lease will determine the recognition, measurement and presentation of expenses. ASU 2016-02 also requires certain quantitative and qualitative disclosures about material leasing arrangements.

Subsequently, in July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”). ASU 2018-11 provides an additional modified retrospective transition method for adopting ASU 2016-02, which eliminates the need for adjusting prior period comparable financial statements prepared under legacy lease accounting guidance.

ASU 2016-02, together with ASU 2018-11, was effective for the Company July 1, 2019. The Company adopted the new guidance using the modified retrospective approach set forth in ASU 2018-11, with the date of initial application on July 1, 2019. Comparative reporting periods were not adjusted upon adoption.

As permitted under the transition guidance, the Company has elected to use the following practical expedients at transition:

●

To not reassess whether any expired or existing contracts were or contained leases; and

●

To not reassess the lease classification for any expired or existing leases.

In addition, the Company has elected to use the following practical expedients at and subsequent to adoption in accordance with ASU 2016-02:

●

Not to separate non-lease from lease components, and instead account for each lease component and any associated non-lease components as a single lease component; and

●

Not to recognize right-of-use assets and associated liabilities for short-term contracts with lease terms of 12 months or less.

The Company’s significant lease arrangements relate to its office spaces. These arrangements are for leases of assets such as corporate office space and office equipment. Through the implementation process, the Company evaluated its lease arrangements, which included an analysis of contracts, and updating the internal controls and processes that are necessary to track and calculate the additional accounting and disclosure requirements as required upon adoption of ASU 2016-02.

The Company leases office space and office equipment under operating leases expiring at various dates through the fiscal year ending June 30, 2030. The following amounts were recorded in the consolidated balance sheets at March 31, 2020 (amounts in thousands):


	Classification	March 31, 2020
Operating Leases
Right-of-use assets - current	Prepaid expenses and other	$	608
Right-of-use assets - non-current	Other assets		5,065
Total right-of-use assets		$	5,673

Lease liabilities - current	Other current liabilities	$	549
Lease liabilities - non-current	Other long-term liabilities		6,128
Total operating lease liabilities		$	6,677

Maturities of operating lease liabilities at March 31, 2020 were as follows (amounts in thousands):


Fiscal Years:	Operating Leases
2020	$	93
2021		826
2022		823
2023		811
2024		822
Thereafter		4,149
Total lease payments	$	7,524
Less imputed interest		(847)
Total	$	6,677

Other information pertaining to leases consist of the following:


	March 31, 2020
Operating Lease Term and Discount Rate
Weighted average remaining lease term in years		9
Weighted average discount rate		2.5%

The Company did not have any finance leases as of March 31, 2020. The adoption of ASU 2016-02 did not impact accumulated earnings (losses), our consolidated statements of operations and comprehensive income, or our consolidated statements of cash flows.

Recently Issued Accounting Standards

Current Expected Credit Loss

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments, which, together with subsequent amendments, changes how an entity will record credit losses from an “incurred loss” approach to an “expected loss” approach. This update is effective for annual periods beginning after December 15, 2019 (i.e. July 1, 2020 for the Company) and interim financial statement periods within those years, with early adoption permitted. The Company is currently undergoing its assessment of the new guidance and the impact it will have on our consolidated financial statements and related disclosures. Based on procedures performed as of March 31, 2020, the Company does not expect the adoption to have a material impact on the Company’s consolidated financial statements. The Company will adopt the new guidance effective July 1, 2020.

ACQUISITIONS

9 Months Ended

Mar. 31, 2020

ACQUISITIONS

ACQUISITIONS

2. ACQUISITIONS

Alturas royalty acquisition

On January 29, 2020, a wholly-owned subsidiary of the Company entered into an agreement with various private individuals for the acquisition of a net smelter return (“NSR”) royalty of up to 1.06% (gold) and up to 1.59% (copper) on mining concessions included as part of the Alturas project, which is located within the Coquimbo Region of Chile and held by a subsidiary of Barrick Gold Corporation (“Barrick”), Compañia Minera Salitrales Limitada. Total consideration for the royalty is up to $41 million, of which $11 million was paid on January 29, 2020. The $11 million paid as part of the funding schedule, plus direct acquisition costs, have been recorded as an exploration stage royalty interest within Stream and royalty interests, net on our consolidated balance sheets. A future payment of up to $20 million is conditional based on a project construction decision by Barrick and the size of the minable mineralized material on the date of the construction decision. A further future payment of up to $10 million will be made to the private individuals upon first production from the mining concessions.

Castelo de Sonhos royalty acquisition

In August 2019, a subsidiary of the Company entered into an agreement with TriStar Gold Inc. and its subsidiaries (together “TriStar”) to acquire (i) up to a 1.5% NSR royalty on the Castelo de Sonhos gold project (“CDS”), located in Brazil, and (ii) warrants to purchase up to 19,640,000 common shares of TriStar. Total consideration is $7.5 million and is payable over three payments, of which $4.5 million was paid in August 2019, $1.5 million was paid in November 2019, and the final payment of $1.5 million was paid on March 30, 2020.

The CDS royalty acquisition has been accounted for as an asset acquisition. The $7.5 million paid as part of the aggregate funding schedule, plus direct acquisition costs, have been recorded as an exploration stage royalty interest within Stream and royalty interests, net on our consolidated balance sheets.

The warrants have been recorded within Other assets on our consolidated balance sheets and have a carrying value of approximately $0.3 million as of March 31, 2020. The warrants have been classified as a financial asset instrument and are recorded at fair value at each reporting date using the Black-Scholes model. Any change in fair value of the warrants at subsequent reporting periods will be recorded within Fair value changes in equity securities on our consolidated statements of operations and comprehensive income. As of March 31, 2020, the Company holds 19,640,000 warrants at an exercise price of C$0.25 per common share with a term of approximately five years.

STREAM AND ROYALTY INTERESTS, NET

9 Months Ended

Mar. 31, 2020

STREAM AND ROYALTY INTERESTS, NET

STREAM AND ROYALTY INTERESTS, NET

3. STREAM AND ROYALTY INTERESTS, NET

The following tables summarize the Company’s stream and royalty interests, net as of March 31, 2020 and June 30, 2019.


As of March 31, 2020 (Amounts in thousands):	Cost		Accumulated Depletion		Net
Production stage stream interests:
Mount Milligan	$	790,635	$	(218,378)	$	572,257
Pueblo Viejo		610,404		(193,109)		417,295
Andacollo		388,182		(107,501)		280,681
Rainy River		175,727		(23,176)		152,551
Wassa and Prestea		146,475		(65,746)		80,729
Total production stage stream interests		2,111,423		(607,910)		1,503,513
Production stage royalty interests:
Voisey's Bay		205,724		(100,140)		105,584
Peñasquito		99,172		(43,744)		55,428
Holt		34,612		(23,796)		10,816
Cortez		80,681		(13,702)		66,979
Other		487,224		(399,127)		88,097
Total production stage royalty interests		907,413		(580,509)		326,904
Total production stage stream and royalty interests		3,018,836		(1,188,419)		1,830,417

Development stage stream interests:
Khoemacau		88,641		—		88,641
Other		12,037		—		12,037
Development stage royalty interests:
Other		70,952		—		70,952
Total development stage stream and royalty interests		171,630		—		171,630

Exploration stage royalty interests:
Pascua-Lama		177,690		—		177,690
Other		137,676		—		137,676
Total exploration stage royalty interests		315,366		—		315,366
Total stream and royalty interests, net	$	3,505,832	$	(1,188,419)	$	2,317,413


As of June 30, 2019 (Amounts in thousands):	Cost		Accumulated Depletion		Net
Production stage stream interests:
Mount Milligan	$	790,635	$	(184,091)	$	606,544
Pueblo Viejo		610,404		(158,819)		451,585
Andacollo		388,182		(86,675)		301,507
Rainy River		175,727		(14,522)		161,205
Wassa and Prestea		146,475		(56,919)		89,556
Total production stage stream interests		2,111,423		(501,026)		1,610,397
Total production stage stream and royalty interests
Production stage royalty interests:
Voisey's Bay		205,724		(95,564)		110,160
Peñasquito		99,172		(40,659)		58,513
Holt		34,612		(22,570)		12,042
Cortez		20,878		(12,362)		8,516
Other		487,224		(386,501)		100,723
Total production stage royalty interests		847,610		(557,656)		289,954
Total production stage stream and royalty interests		2,959,033		(1,058,682)		1,900,351
Development stage stream interests:
Other		12,038		—		12,038

Development stage royalty interests:
Cortez		59,803		—		59,803
Other		70,952		—		70,952
Total development stage royalty interests		130,755		—		130,755
Total development stage stream and royalty interests		142,793		—		142,793

Exploration stage royalty interests:
Pascua-Lama		177,690		—		177,690
Other		118,482		—		118,482
Total exploration stage royalty interests		296,172		—		296,172
Total stream and royalty interests, net	$	3,397,998	$	(1,058,682)	$	2,339,316

Mount Milligan

The Company’s wholly-owned subsidiary, RGLD Gold AG (“RGLD Gold”), owns the right to purchase 35% of the payable gold and 18.75% of the payable copper produced from the Mount Milligan copper-gold mine in British Columbia, Canada, which is operated by an indirect subsidiary of Centerra Gold Inc. (“Centerra”). The Company’s carrying value for its stream interest at Mount Milligan is $572.3 million as of March 31, 2020.

On October 30, 2019, Centerra reported that issues identified with decreasing long-term gold recoveries and increased costs in the short-to medium-term led them to record an impairment charge against their carrying value of the Mount Milligan mine under applicable accounting standards, and that it had begun a comprehensive technical review of the operation with the objective of publishing an updated National Instrument 43-101 (“NI 43-101”) technical report.

On March 26, 2020, Centerra published an updated NI 43-101 technical report for Mount Milligan which provided, among other things, a detailed update to the life of mine plan and reductions to the proven and probable reserves due to increased costs, lower expected productivities and lower process plant throughput.

Significant reductions in proven and probable reserves or mineralized material are indicators of potential impairment for Royal Gold’s stream and royalty interests. As part of the Company’s regular asset impairment analysis, the Company determined that an impairment of our stream interest at Mount Milligan was not necessary as (i) the financial impairment taken by Centerra does not impact the mine operating performance, and (ii) the reduction in reserves and mineralized material at Mount Milligan resulted in gold and copper depletion rates that are well below current and long-term consensus gold and copper prices. As of March 31, 2020, the gold and copper depletion rates at our Mount Milligan stream interest are $764 per ounce of gold and $1.48 per pound of copper. Depletion rates well below current and long-term consensus metal prices are a strong indicator the carrying value of our stream or royalty interests are recoverable.

Rainy River

RGLD Gold owns the right to purchase 6.50% of the gold produced from the Rainy River mine, which is located in northwestern Ontario, Canada and is operated by New Gold, Inc. (“New Gold”), until 230,000 gold ounces have been delivered, and 3.25% thereafter; and 60% of the silver produced from the Rainy River mine until 3.1 million silver ounces have been delivered, and 30% thereafter. As of March 31, 2020, approximately 35,700 ounces of gold and approximately 373,100 ounces of silver have been delivered to RGLD Gold. The Company’s carrying value for its stream interest at Rainy River is $152.6 million as of March 31, 2020.

During the quarter ended December 31, 2019, New Gold reported that it continued to advance a comprehensive mine optimization study that would include a review of alternative open pit and underground mining scenarios at Rainy River On February 13, 2020, New Gold reported the results of the comprehensive optimization study that included an updated mine plan, which resulted in, among other things, a reduction in gold and silver reserves and the potential to extend the underground mine life beyond calendar 2028. New Gold published an updated NI 43-101 technical report for Rainy River on March 27, 2020, reflecting the updated mine plan and reserves.

Significant reductions in proven and probable reserves or mineralized material are indicators of potential impairment for the Company’s stream and royalty interests. As a result of the new information from New Gold, and as part of the Company’s regular asset impairment analysis, the Company determined that an impairment on its Rainy River stream interest was not necessary as of March 31, 2020 as the reduction in gold and silver reserves resulted in depletion rates that are well below current and long-term consensus gold and silver prices. As of March 31, 2020, the gold and silver depletion rates at our Rainy River stream interest are $848 per ounce of gold and $11.27 per ounce of silver. Depletion rates well below current and long-term metal prices are a strong indicator the carrying value of our stream or royalty interests are recoverable.

COVID-19 and current economic environment

Several of our operating counterparties have recently announced temporary operational curtailments or the withdrawal or review of previously disclosed guidance due to the ongoing COVID-19 pandemic. The economic and societal impacts associated with COVID-19 are fluid and changing rapidly, and we are currently unable to predict the nature or extent of any impact on our results of operations and financial condition. The Company will continue to monitor any further developments that the COVID-19 pandemic may have on stream or royalty interests as part of our regular asset impairment analysis.

Other

During the quarter ended June 30, 2019, the Company was made aware of insolvency proceedings at one of our non-principal producing properties, El Toqui. The outcome of these insolvency proceedings may impact our royalty interests and the associated carrying value, which is approximately $1.3 million as of March 31, 2020. The Company continues to monitor these insolvency proceedings as part of our regular asset impairment analysis. Based on the results of these insolvency proceedings, the Company could determine that a future write-down of our interest to an amount less than the current carrying value or to zero is necessary.

MARKETABLE EQUITY SECURITIES

9 Months Ended

Mar. 31, 2020

MARKETABLE EQUITY SECURITIES

MARKETABLE EQUITY SECURITIES

4. MARKETABLE EQUITY SECURITIES

As of March 31, 2020, the Company’s marketable equity securities include 809,744 common shares of Contango Ore, Inc., 3,949,575 common shares of Rubicon Minerals Corporation, and warrants to purchase up to 19,640,000 common shares of TriStar. Our marketable equity securities are measured at fair value (Note 11) each reporting period with any changes in fair value recognized in net income.

The fair value of our marketable equity securities decreased $3.8 million and $5.0 million for the three and nine months ended March 31, 2020, respectively, and increased $1.8 million and decreased $3.3 million for the three and nine months ended March 31, 2019, respectively, and is included in Fair value changes in equity securities on our consolidated statements of operations and comprehensive income. The carrying value of the Company’s marketable equity securities as of March 31, 2020 and June 30, 2019 was $11.5 million and $16.0 million, respectively, and is included in Other assets on the Company’s consolidated balance sheets.

DEBT

9 Months Ended

Mar. 31, 2020

DEBT

DEBT

5. DEBT

The Company’s debt as of March 31, 2020 and June 30, 2019 consists of the following:


	As of March 31, 2020						As of June 30, 2019
	Principal		Debt Issuance Costs		Total		Principal		Debt Issuance Costs		Total
		(Amounts in thousands)						(Amounts in thousands)
Revolving credit facility	$	105,000	$	(4,846)	$	100,154	$	220,000	$	(5,446)	$	214,554
Total debt	$	105,000	$	(4,846)	$	100,154	$	220,000	$	(5,446)	$	214,554

Revolving credit facility

On September 20, 2019, the Company entered into a third amendment to our revolving credit facility dated as of June 2, 2017. Under the amendment, the Company’s Swiss subsidiary RGLD Gold was added as a co-borrower and joint and several obligor, certain of the Company’s Canadian subsidiaries were added as guarantors, and certain equity pledges that previously had been granted in favor of the lenders to support the facility were released, with the result that the facility is now unsecured.

As of March 31, 2020, the Company had $105 million outstanding and $895 million available under the revolving credit facility. As of March 31, 2020, the interest rate on borrowings under the revolving credit facility was LIBOR plus 1.10% for an all-in rate of 1.87%. Interest expense, which includes interest on the outstanding borrowings under the revolving credit facility and the amortization of the debt issuance costs, was $1.2 million and $5.0 million for the three and nine months ended March 31, 2020, respectively, and $0.3 million and $0.9 million for the three and nine months ended March 31, 2019, respectively. As discussed in Note 5 to the consolidated financial statements in the Company’s Fiscal 2019 10-K, the Company has financial covenants associated with its revolving credit facility. As of March 31, 2020, the Company was in compliance with each financial covenant.

On April 3, 2020, the Company drew an additional $200 million on its revolving credit facility at an interest rate of LIBOR plus 1.10% for an all-in rate of 2.54%, resulting in a total of $305 million outstanding and $695 million available. There is no immediate requirement for the additional funds. However, due to the uncertain environment caused by the COVID-19 pandemic and the impact on certain operations where we hold a stream or royalty interest, we believe the drawdown was a prudent precautionary measure to help ensure cash is readily available to support continued business activities. We occasionally borrow and repay amounts under our revolving credit facility and may do so in the future.

Royal Gold may repay any borrowings under the revolving credit facility at any time without premium or penalty.

REVENUE

9 Months Ended

Mar. 31, 2020

REVENUE

REVENUE

6. REVENUE

Revenue Recognition

Under current ASC 606 – Revenue from Contracts with Customers (“ASC 606”) guidance, 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 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 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 using average spot rate gold, silver and copper forward contracts. The sales price for these average

spot rate forward contracts is determined by the average daily gold, silver or copper spot prices during the term of the contract, typically a consecutive number of trading days 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 our forward sales contracts via physical delivery of the metal to the purchaser (our customer) on the settlement date specified in the contract. Under our forward 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 metal transfer to the purchaser.

Royalty Interests

Royalties are non-operating interests in mining projects that provide the right to a percentage of revenue or metals produced from the project after deducting specified costs, if any. We are entitled to payment for our royalty interest in a mining project based on a contractually specified commodity price (for example, a monthly or quarterly average spot price) for the period in which metal production occurs. As a royalty holder, we act as a passive entity in the production and operations of the mining project, and the third-party operator of the mining project is responsible for all mining activities, including subsequent marketing and delivery of all metal production to their ultimate customer. In all of our material royalty interest arrangements, we have concluded that we transfer control of our interest in the metal production to the operator at the point at which production occurs, and thus, the operator is our customer. We have further determined that the transfer of each unit of metal production comprising our royalty interest to the operator represents a separate performance obligation under the contract, and each performance obligation is satisfied at the point in time of metal production by the operator. Accordingly, we recognize revenue attributable to our royalty interests in the period in which metal production occurs at the specified commodity price per the agreement, net of any contractually allowable offsite treatment, refining, transportation and, if applicable, mining costs.

Royalty Revenue Estimates

For a small number of our royalty interests, we may not receive, or be entitled to receive, payment information, including production information from the operator, for the period in which metal production occurred prior to issuance of our financial statements for that period. As a result, we may estimate revenue for these royalties based on available information, including public information, from the operator. If adequate information is not available from the operator or from other public sources before we issue our financial statements, the Company will recognize royalty revenue during the period in which the necessary payment information is received. Differences between estimates and actual amounts could differ significantly and are recorded in the period that the actual amounts are known. Please also refer to our “Use of Estimates” accounting policy discussed in our Fiscal 2019 10-K. For the three and nine months ended March 31, 2020, royalty revenue that was estimated or was attributable to metal production for a period prior to March 31, 2020, was not material.

Disaggregation of Revenue

We have identified two material revenue sources in our business: stream interests and royalty interests. These identified revenue sources are consistent with our reportable segments as discussed in Note 10.

Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands):


	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
Stream revenue:
Gold	$	78,503	$	62,856	$	219,838	$	175,149
Silver		8,284		7,908		25,648		24,512
Copper		10,673		7,001		28,579		15,819
Total stream revenue	$	97,460	$	77,765	$	274,065	$	215,480
Royalty revenue:
Gold	$	28,792	$	22,041	$	72,617	$	60,251
Silver		2,666		1,608		7,860		4,527
Copper		3,340		3,056		10,427		11,030
Other		4,179		5,308		13,884		16,074
Total royalty revenue	$	38,977	$	32,013	$	104,788	$	91,882
Total revenue	$	136,437	$	109,778	$	378,853	$	307,362

Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands):


		Three Months Ended				Nine Months Ended
		March 31,		March 31,		March 31,		March 31,
	Metal(s)	2020		2019		2020		2019
Stream revenue:
Mount Milligan	Gold & Copper	$	32,298	$	26,938	$	93,423	$	63,954
Pueblo Viejo	Gold & Silver		28,302		20,787		73,534		58,504
Andacollo	Gold		22,055		15,638		63,324		51,016
Wassa	Gold		8,647		5,773		18,760		17,557
Rainy River	Gold & Silver		4,838		7,074		19,566		17,067
Other	Gold		1,320		1,555		5,458		7,382
Total stream revenue		$	97,460	$	77,765	$	274,065	$	215,480
Royalty revenue:
Peñasquito	Gold, Silver, Lead & Zinc	$	7,425	$	4,465	$	19,422	$	12,763
Cortez	Gold		6,400		4,127		14,109		7,066
Other	Various		25,152		23,421		71,257		72,053
Total royalty revenue		$	38,977	$	32,013	$	104,788	$	91,882
Total revenue		$	136,437	$	109,778	$	378,853	$	307,362

Please refer to Note 10 for the geographical distribution of our revenue by reportable segment.

Contract Receivables

Under our forward sales contracts related to our metal streaming arrangements, payment is due from the purchaser on the day of settlement. Accordingly, our metal stream sales contracts do not give rise to a receivable under ASC 606.

Under our royalty arrangements, payment is typically due by the royalty payor either (i) monthly, typically thirty days after month-end or (ii) quarterly, typically thirty to sixty days after the respective quarter-end. Revenue related to production that has occurred as of the reporting date but for which payment has not been received represents a receivable (rather than a contract asset) under ASC 606 as payment by the operator is unconditional upon the production of metal. As of March 31, 2020, and June 30, 2019, our royalty receivables were $32.3 million and $20.7 million, respectively.

Practical Expedients Utilized

Our forward sales contracts related to our metal streaming arrangements are short-term in nature with a term of one year or less. For these contracts, we have utilized the practical expedient allowed in ASC 606 that exempts us from presenting the transaction price allocated to remaining performance obligations (i.e. forecasts of unearned revenue) for contracts with an original expected term of one year or less.

Our royalty arrangements generally cover metal production over the life of a mine and, thus, have a contract term that is greater than one year. Under these contracts, variability related to future production volumes and market pricing is allocated entirely to those future production volumes from the mining operation. Consequently, we have utilized an alternative practical expedient allowed in ASC 606 that exempts us from presenting the transaction price allocated to remaining performance obligations (i.e. forecasts of unearned revenue) if the variable consideration in a contract is allocated entirely to a wholly unsatisfied performance obligation.

STOCK-BASED COMPENSATION

9 Months Ended

Mar. 31, 2020

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

7. STOCK-BASED COMPENSATION

The Company recognized stock-based compensation expense as follows:


	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
		(Amounts in thousands)				(Amounts in thousands)
Stock options	$	94	$	33	$	151	$	187
Stock appreciation rights		1,365		417		2,237		1,592
Restricted stock		2,659		679		4,599		2,636
Performance stock		526		311		1,296		1,095
Total stock-based compensation expense	$	4,644	$	1,440	$	8,283	$	5,510

Stock-based compensation expense is included within General and administrative expense in the consolidated statements of operations and comprehensive income.

During the three and nine months ended March 31, 2020, the Company granted the following stock-based compensation awards:


	Three Months Ended		Nine Months Ended
	March 31,	March 31,	March 31,	March 31,
	2020	2019	2020	2019
	(Number of shares)		(Number of shares)
Stock options	—	—	1,604	6,430
Stock appreciation rights	6,890	3,500	53,616	72,860
Restricted stock	2,050	1,200	26,026	43,460
Performance stock (at maximum 200% attainment)	4,280	2,400	32,840	59,820
Total equity awards granted	13,220	7,100	114,086	182,570

As of March 31, 2020, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows:


	Unrecognized		Weighted-
	compensation		average vesting
	expense		period (years)
Stock options	$	55		1.6
Stock appreciation rights		1,790		2.0
Restricted stock		3,736		3.2
Performance stock		1,795		2.3

EARNINGS PER SHARE ("EPS")

9 Months Ended

Mar. 31, 2020

EARNINGS PER SHARE ("EPS")

EARNINGS PER SHARE ("EPS")

8. EARNINGS PER SHARE (“EPS”)

Basic earnings per common share were computed using the weighted average number of shares of common stock outstanding during the period, considering the effect of participating securities. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Company’s unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared. The Company’s unexercised stock option awards and unexercised SSARs and unvested performance stock do not contain rights to dividends. Under the two-class method, the earnings used to determine basic earnings per

common share are reduced by an amount allocated to participating securities. Use of the two-class method has an immaterial impact on the calculation of basic and diluted earnings per common share.

The following tables summarize the effects of dilutive securities on diluted EPS for the period (amounts in thousands, except share data):


	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
Net income and comprehensive income available to Royal Gold common stockholders	$	38,554	$	28,772	$	150,329	$	67,368
Weighted-average shares for basic EPS		65,511,878		65,398,369		65,501,678		65,389,499
Effect of other dilutive securities		88,892		116,865		124,722		105,403
Weighted-average shares for diluted EPS		65,600,770		65,515,234		65,626,400		65,494,902
Basic earnings per share	$	0.59	$	0.44	$	2.30	$	1.03
Diluted earnings per share	$	0.59	$	0.44	$	2.29	$	1.03

INCOME TAXES

9 Months Ended

Mar. 31, 2020

INCOME TAXES

INCOME TAXES

9. INCOME TAXES


	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
	(Amounts in thousands, except rate)				(Amounts in thousands, except rate)
Income tax (expense) benefit	$	(8,702)	$	(9,388)	$	3,700	$	(11,355)
Effective tax rate		18.5%		24.7%		(2.6%)		15.1%

The effective tax rate for the nine months ended March 31, 2020, included discrete tax benefits attributable to the remeasurement of certain deferred tax assets and a net step-up in the basis of tax assets due to the enactment of the Federal Act on Tax Reform and AHV Financing (Swiss Tax Reform). The effective tax rate for the nine months ended March 31, 2019 included benefits related to the transition tax as part of H.R. 1, originally known as the Tax Cuts and Jobs Act, which was due to consideration of new U.S. Treasury regulations and IRS guidance released during the period.

On April 30, 2020, the Company entered into a settlement agreement with a foreign taxing authority related to an uncertain tax position recorded on our consolidated balance sheets as of March 31, 2020. We continue to analyze the impacts of the settlement on our consolidated financial statements, including the release of uncertain tax positions during our fourth quarter ending June 30, 2020.

SEGMENT INFORMATION

9 Months Ended

Mar. 31, 2020

SEGMENT INFORMATION

SEGMENT INFORMATION

10. SEGMENT INFORMATION

The Company manages its business under two reportable segments, consisting of the acquisition and management of stream interests and the acquisition and management of royalty interests. Royal Gold’s long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following table (amounts in thousands):


	As of March 31, 2020						As of June 30, 2019
					Total stream						Total stream
	Stream		Royalty		and royalty		Stream		Royalty		and royalty
	interest		interest		interests, net		interest		interest		interests, net
Canada	$	724,808	$	191,809	$	916,617	$	767,749	$	200,251	$	968,000
Dominican Republic		417,295		—		417,295		451,585		—		451,585
Chile		280,681		225,100		505,781		301,507		214,226		515,733
Africa		169,370		321		169,691		89,555		321		89,876
Mexico		—		77,694		77,694		—		83,748		83,748
United States		—		161,223		161,223		—		163,398		163,398
Australia		—		30,376		30,376		—		31,944		31,944
Rest of world		12,038		26,698		38,736		12,039		22,993		35,032
Total	$	1,604,192	$	713,221	$	2,317,413	$	1,622,435	$	716,881		2,339,316

The Company’s reportable segments for purposes of assessing performance are shown below (amounts in thousands):


	Three Months Ended March 31, 2020
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	97,460	$	21,961	$	—	$	43,240	$	32,259
Royalty interests		38,977		—		851		7,875		30,251
Total	$	136,437	$	21,961	$	851	$	51,115	$	62,510

	Three Months Ended March 31, 2019
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	77,765	$	19,075	$	—	$	31,061	$	27,629
Royalty interests		32,013		—		1,006		8,255		22,752
Total	$	109,778	$	19,075	$	1,006	$	39,316	$	50,381


	Nine Months Ended March 31, 2020
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	274,065	$	63,149	$	—	$	106,883	$	104,033
Royalty interests		104,788		—		2,934		22,875		78,979
Total	$	378,853	$	63,149	$	2,934	$	129,758	$	183,012

	Nine Months Ended March 31, 2019
	Revenue		Cost of sales		Production taxes		Depletion		Segment gross profit
Stream interests	$	215,480	$	53,764	$	—	$	91,794	$	69,922
Royalty interests		91,882		—		3,206		28,786		59,890
Total	$	307,362	$	53,764	$	3,206	$	120,580	$	129,812

(1)	Excludes depreciation, depletion and amortization

(2)	Depletion amounts are included within Depreciation, depletion and amortization on our consolidated statements of operations and comprehensive income.

A reconciliation of total segment gross profit to the consolidated Income before income taxes is shown below (amounts in thousands):


	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
		2020		2019		2020		2019
Total segment gross profit	$	62,510	$	50,381	$	183,012	$	129,812

Costs and expenses
General and administrative expenses		9,551		6,798		23,658		24,147
Exploration costs		565		330		4,705		5,534
Depreciation and amortization		113		52		280		146
Operating income		52,281		43,201		154,369		99,985
Fair value changes in equity securities		(3,819)		1,781		(4,972)		(3,318)
Interest and other income		620		499		1,621		1,089
Interest and other expense		(2,088)		(7,499)		(7,139)		(22,786)
Income before income taxes	$	46,994	$	37,982	$	143,879	$	74,970

The Company’s revenue by reportable segment for the three and nine months ended March 31, 2020 and 2019 is geographically distributed as shown in the following table (amounts in thousands):


	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
Stream interests:
Canada	$	37,136	$	34,012	$	112,990	$	81,021
Dominican Republic		28,302		20,787		73,534		58,504
Chile		22,055		15,638		63,323		51,016
Africa		9,967		7,328		24,218		24,939
Total stream interests	$	97,460	$	77,765	$	274,065	$	215,480

Royalty interests:
United States	$	13,199	$	9,813	$	33,813	$	24,153
Canada		9,126		8,201		26,084		25,918
Mexico		9,160		8,719		24,923		24,551
Australia		3,714		3,234		11,062		9,451
Africa		925		161		2,531		1,185
Rest of world		2,853		1,885		6,375		6,624
Total royalty interests	$	38,977	$	32,013	$	104,788	$	91,882
Total revenue	$	136,437	$	109,778	$	378,853	$	307,362

FAIR VALUE MEASUREMENTS

9 Months Ended

Mar. 31, 2020

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

11. FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:

Level 1: Quoted prices for identical instruments in active markets;

Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

Level 3: Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The following table sets forth the Company’s financial assets measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy.


	As of March 31, 2020
			Fair Value
	Carrying Amount		Total		Level 1		Level 2		Level 3
Assets (amounts in thousands):
Marketable equity securities⁽¹⁾	$	11,472	$	11,472	$	8,345	$	3,127	$	—

(1) Included in Other assets on the Company’s consolidated balance sheets.

The Company’s marketable equity securities classified within Level 1 of the fair value hierarchy are valued using quoted market prices in active markets multiplied by the quantity of shares held by the Company. The warrants classified within Level 2 of the fair value hierarchy are valued each period using the Black-Scholes model. The warrants are part of the TriStar transaction (Note 2), and have been classified as a financial asset instrument. The carrying value of the Company’s revolving credit facility (Note 5) approximates fair value as of March 31, 2020.

As of March 31, 2020, the Company also had assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis like those associated with stream and royalty interests, intangible assets and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if any of these assets are determined to be impaired. If recognition of these assets at their fair value becomes necessary, such measurements will be determined utilizing Level 3 inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Mar. 31, 2020

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

12. COMMITMENTS AND CONTINGENCIES

Khoemacau Silver Stream Acquisition

Pursuant to its Khoemacau silver stream transaction in February 2019, RGLD Gold made its first advance payment of $65.8 million on November 5, 2019 and its second advance payment of $22.0 million on February 2, 2020. As of March 31, 2020, the Company’s conditional funding schedule for $124.2 million up to $177.2 million pursuant to its Khoemacau silver stream acquisition remains subject to certain conditions. On April 3, 2020, RGLD Gold made its third advance payment of $47.9 million. Refer to our Fiscal 2019 10-K for further details on the Khoemacau silver stream acquisition.

Ilovica Gold Stream Acquisition

As of March 31, 2020, the Company’s conditional funding schedule for $163.75 million related to its Ilovica gold stream acquisition made in October 2014 remains subject to certain conditions.

OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS (Policies)

9 Months Ended

Mar. 31, 2020

OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS

Basis of Consolidation

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 under the Securities Exchange Act of 1934, as amended. 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 March 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2020. These interim unaudited financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 filed with the Securities and Exchange Commission on August 8, 2019 (“Fiscal 2019 10-K”).

Certain amounts in the prior period consolidated balance sheet have been reclassified for comparative purposes to conform with the presentation in the current period balance sheet. Reclassified amounts were not material.

Recently Adopted and Recently Issued Accounting Standards

Recently Adopted Accounting Standards

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), which requires recognition of right-of-use assets and lease payment liabilities on the balance sheet by lessees for all leases with terms greater than twelve months. Classification of leases as either a finance or operating lease will determine the recognition, measurement and presentation of expenses. ASU 2016-02 also requires certain quantitative and qualitative disclosures about material leasing arrangements.

Subsequently, in July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”). ASU 2018-11 provides an additional modified retrospective transition method for adopting ASU 2016-02, which eliminates the need for adjusting prior period comparable financial statements prepared under legacy lease accounting guidance.

ASU 2016-02, together with ASU 2018-11, was effective for the Company July 1, 2019. The Company adopted the new guidance using the modified retrospective approach set forth in ASU 2018-11, with the date of initial application on July 1, 2019. Comparative reporting periods were not adjusted upon adoption.

As permitted under the transition guidance, the Company has elected to use the following practical expedients at transition:

●

To not reassess whether any expired or existing contracts were or contained leases; and

●

To not reassess the lease classification for any expired or existing leases.

In addition, the Company has elected to use the following practical expedients at and subsequent to adoption in accordance with ASU 2016-02:

●

Not to separate non-lease from lease components, and instead account for each lease component and any associated non-lease components as a single lease component; and

●

Not to recognize right-of-use assets and associated liabilities for short-term contracts with lease terms of 12 months or less.

The Company’s significant lease arrangements relate to its office spaces. These arrangements are for leases of assets such as corporate office space and office equipment. Through the implementation process, the Company evaluated its lease arrangements, which included an analysis of contracts, and updating the internal controls and processes that are necessary to track and calculate the additional accounting and disclosure requirements as required upon adoption of ASU 2016-02.

The Company leases office space and office equipment under operating leases expiring at various dates through the fiscal year ending June 30, 2030. The following amounts were recorded in the consolidated balance sheets at March 31, 2020 (amounts in thousands):


	Classification	March 31, 2020
Operating Leases
Right-of-use assets - current	Prepaid expenses and other	$	608
Right-of-use assets - non-current	Other assets		5,065
Total right-of-use assets		$	5,673

Lease liabilities - current	Other current liabilities	$	549
Lease liabilities - non-current	Other long-term liabilities		6,128
Total operating lease liabilities		$	6,677

Maturities of operating lease liabilities at March 31, 2020 were as follows (amounts in thousands):


Fiscal Years:	Operating Leases
2020	$	93
2021		826
2022		823
2023		811
2024		822
Thereafter		4,149
Total lease payments	$	7,524
Less imputed interest		(847)
Total	$	6,677

Other information pertaining to leases consist of the following:


	March 31, 2020
Operating Lease Term and Discount Rate
Weighted average remaining lease term in years		9
Weighted average discount rate		2.5%

The Company did not have any finance leases as of March 31, 2020. The adoption of ASU 2016-02 did not impact accumulated earnings (losses), our consolidated statements of operations and comprehensive income, or our consolidated statements of cash flows.

Recently Issued Accounting Standards

Current Expected Credit Loss

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments, which, together with subsequent amendments, changes how an entity will record credit losses from an “incurred loss” approach to an “expected loss” approach. This update is effective for annual periods beginning after December 15, 2019 (i.e. July 1, 2020 for the Company) and interim financial statement periods within those years, with early adoption permitted. The Company is currently undergoing its assessment of the new guidance and the impact it will have on our consolidated financial statements and related disclosures. Based on procedures performed as of March 31, 2020, the Company does not expect the adoption to have a material impact on the Company’s consolidated financial statements. The Company will adopt the new guidance effective July 1, 2020.

OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS (Tables)

9 Months Ended

Mar. 31, 2020

OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS

Schedule of lease balance sheet locations


	Classification	March 31, 2020
Operating Leases
Right-of-use assets - current	Prepaid expenses and other	$	608
Right-of-use assets - non-current	Other assets		5,065
Total right-of-use assets		$	5,673

Lease liabilities - current	Other current liabilities	$	549
Lease liabilities - non-current	Other long-term liabilities		6,128
Total operating lease liabilities		$	6,677

Schedule of lease maturities

Maturities of operating lease liabilities at March 31, 2020 were as follows (amounts in thousands):


Fiscal Years:	Operating Leases
2020	$	93
2021		826
2022		823
2023		811
2024		822
Thereafter		4,149
Total lease payments	$	7,524
Less imputed interest		(847)
Total	$	6,677

Schedule of other lease information


	March 31, 2020
Operating Lease Term and Discount Rate
Weighted average remaining lease term in years		9
Weighted average discount rate		2.5%

STREAM AND ROYALTY INTERESTS, NET (Tables)

9 Months Ended

Mar. 31, 2020

STREAM AND ROYALTY INTERESTS, NET

Schedule of stream and royalty interests


As of March 31, 2020 (Amounts in thousands):	Cost		Accumulated Depletion		Net
Production stage stream interests:
Mount Milligan	$	790,635	$	(218,378)	$	572,257
Pueblo Viejo		610,404		(193,109)		417,295
Andacollo		388,182		(107,501)		280,681
Rainy River		175,727		(23,176)		152,551
Wassa and Prestea		146,475		(65,746)		80,729
Total production stage stream interests		2,111,423		(607,910)		1,503,513
Production stage royalty interests:
Voisey's Bay		205,724		(100,140)		105,584
Peñasquito		99,172		(43,744)		55,428
Holt		34,612		(23,796)		10,816
Cortez		80,681		(13,702)		66,979
Other		487,224		(399,127)		88,097
Total production stage royalty interests		907,413		(580,509)		326,904
Total production stage stream and royalty interests		3,018,836		(1,188,419)		1,830,417

Development stage stream interests:
Khoemacau		88,641		—		88,641
Other		12,037		—		12,037
Development stage royalty interests:
Other		70,952		—		70,952
Total development stage stream and royalty interests		171,630		—		171,630

Exploration stage royalty interests:
Pascua-Lama		177,690		—		177,690
Other		137,676		—		137,676
Total exploration stage royalty interests		315,366		—		315,366
Total stream and royalty interests, net	$	3,505,832	$	(1,188,419)	$	2,317,413


As of June 30, 2019 (Amounts in thousands):	Cost		Accumulated Depletion		Net
Production stage stream interests:
Mount Milligan	$	790,635	$	(184,091)	$	606,544
Pueblo Viejo		610,404		(158,819)		451,585
Andacollo		388,182		(86,675)		301,507
Rainy River		175,727		(14,522)		161,205
Wassa and Prestea		146,475		(56,919)		89,556
Total production stage stream interests		2,111,423		(501,026)		1,610,397
Total production stage stream and royalty interests
Production stage royalty interests:
Voisey's Bay		205,724		(95,564)		110,160
Peñasquito		99,172		(40,659)		58,513
Holt		34,612		(22,570)		12,042
Cortez		20,878		(12,362)		8,516
Other		487,224		(386,501)		100,723
Total production stage royalty interests		847,610		(557,656)		289,954
Total production stage stream and royalty interests		2,959,033		(1,058,682)		1,900,351
Development stage stream interests:
Other		12,038		—		12,038

Development stage royalty interests:
Cortez		59,803		—		59,803
Other		70,952		—		70,952
Total development stage royalty interests		130,755		—		130,755
Total development stage stream and royalty interests		142,793		—		142,793

Exploration stage royalty interests:
Pascua-Lama		177,690		—		177,690
Other		118,482		—		118,482
Total exploration stage royalty interests		296,172		—		296,172
Total stream and royalty interests, net	$	3,397,998	$	(1,058,682)	$	2,339,316

DEBT (Tables)

9 Months Ended

Mar. 31, 2020

DEBT

Schedule of debt


	As of March 31, 2020						As of June 30, 2019
	Principal		Debt Issuance Costs		Total		Principal		Debt Issuance Costs		Total
		(Amounts in thousands)						(Amounts in thousands)
Revolving credit facility	$	105,000	$	(4,846)	$	100,154	$	220,000	$	(5,446)	$	214,554
Total debt	$	105,000	$	(4,846)	$	100,154	$	220,000	$	(5,446)	$	214,554

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

REVENUE (Tables)

9 Months Ended

Mar. 31, 2020

REVENUE

Summary of disaggregated revenue

Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands):


	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
Stream revenue:
Gold	$	78,503	$	62,856	$	219,838	$	175,149
Silver		8,284		7,908		25,648		24,512
Copper		10,673		7,001		28,579		15,819
Total stream revenue	$	97,460	$	77,765	$	274,065	$	215,480
Royalty revenue:
Gold	$	28,792	$	22,041	$	72,617	$	60,251
Silver		2,666		1,608		7,860		4,527
Copper		3,340		3,056		10,427		11,030
Other		4,179		5,308		13,884		16,074
Total royalty revenue	$	38,977	$	32,013	$	104,788	$	91,882
Total revenue	$	136,437	$	109,778	$	378,853	$	307,362

Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands):


		Three Months Ended				Nine Months Ended
		March 31,		March 31,		March 31,		March 31,
	Metal(s)	2020		2019		2020		2019
Stream revenue:
Mount Milligan	Gold & Copper	$	32,298	$	26,938	$	93,423	$	63,954
Pueblo Viejo	Gold & Silver		28,302		20,787		73,534		58,504
Andacollo	Gold		22,055		15,638		63,324		51,016
Wassa	Gold		8,647		5,773		18,760		17,557
Rainy River	Gold & Silver		4,838		7,074		19,566		17,067
Other	Gold		1,320		1,555		5,458		7,382
Total stream revenue		$	97,460	$	77,765	$	274,065	$	215,480
Royalty revenue:
Peñasquito	Gold, Silver, Lead & Zinc	$	7,425	$	4,465	$	19,422	$	12,763
Cortez	Gold		6,400		4,127		14,109		7,066
Other	Various		25,152		23,421		71,257		72,053
Total royalty revenue		$	38,977	$	32,013	$	104,788	$	91,882
Total revenue		$	136,437	$	109,778	$	378,853	$	307,362

STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Mar. 31, 2020

STOCK-BASED COMPENSATION

Schedule of recognized stock-based compensation expense


	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
		(Amounts in thousands)				(Amounts in thousands)
Stock options	$	94	$	33	$	151	$	187
Stock appreciation rights		1,365		417		2,237		1,592
Restricted stock		2,659		679		4,599		2,636
Performance stock		526		311		1,296		1,095
Total stock-based compensation expense	$	4,644	$	1,440	$	8,283	$	5,510

Schedule of stock-based compensation awards


	Three Months Ended		Nine Months Ended
	March 31,	March 31,	March 31,	March 31,
	2020	2019	2020	2019
	(Number of shares)		(Number of shares)
Stock options	—	—	1,604	6,430
Stock appreciation rights	6,890	3,500	53,616	72,860
Restricted stock	2,050	1,200	26,026	43,460
Performance stock (at maximum 200% attainment)	4,280	2,400	32,840	59,820
Total equity awards granted	13,220	7,100	114,086	182,570

Schedule of unrecognized compensation expense

As of March 31, 2020, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows:


	Unrecognized		Weighted-
	compensation		average vesting
	expense		period (years)
Stock options	$	55		1.6
Stock appreciation rights		1,790		2.0
Restricted stock		3,736		3.2
Performance stock		1,795		2.3

EARNINGS PER SHARE ("EPS") (Tables)

9 Months Ended

Mar. 31, 2020

EARNINGS PER SHARE ("EPS")

Summary of the effects of dilutive securities on diluted EPS


	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
Net income and comprehensive income available to Royal Gold common stockholders	$	38,554	$	28,772	$	150,329	$	67,368
Weighted-average shares for basic EPS		65,511,878		65,398,369		65,501,678		65,389,499
Effect of other dilutive securities		88,892		116,865		124,722		105,403
Weighted-average shares for diluted EPS		65,600,770		65,515,234		65,626,400		65,494,902
Basic earnings per share	$	0.59	$	0.44	$	2.30	$	1.03
Diluted earnings per share	$	0.59	$	0.44	$	2.29	$	1.03

INCOME TAXES (Tables)

9 Months Ended

Mar. 31, 2020

INCOME TAXES

Schedule of income tax expense and effective tax rate


	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
	(Amounts in thousands, except rate)				(Amounts in thousands, except rate)
Income tax (expense) benefit	$	(8,702)	$	(9,388)	$	3,700	$	(11,355)
Effective tax rate		18.5%		24.7%		(2.6%)		15.1%

SEGMENT INFORMATION (Tables)

9 Months Ended

Mar. 31, 2020

SEGMENT INFORMATION

Schedule of geographical distribution of long-lived assets


	As of March 31, 2020						As of June 30, 2019
					Total stream						Total stream
	Stream		Royalty		and royalty		Stream		Royalty		and royalty
	interest		interest		interests, net		interest		interest		interests, net
Canada	$	724,808	$	191,809	$	916,617	$	767,749	$	200,251	$	968,000
Dominican Republic		417,295		—		417,295		451,585		—		451,585
Chile		280,681		225,100		505,781		301,507		214,226		515,733
Africa		169,370		321		169,691		89,555		321		89,876
Mexico		—		77,694		77,694		—		83,748		83,748
United States		—		161,223		161,223		—		163,398		163,398
Australia		—		30,376		30,376		—		31,944		31,944
Rest of world		12,038		26,698		38,736		12,039		22,993		35,032
Total	$	1,604,192	$	713,221	$	2,317,413	$	1,622,435	$	716,881		2,339,316

Schedule of reportable segments for assessing performance

The Company’s reportable segments for purposes of assessing performance are shown below (amounts in thousands):


	Three Months Ended March 31, 2020
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	97,460	$	21,961	$	—	$	43,240	$	32,259
Royalty interests		38,977		—		851		7,875		30,251
Total	$	136,437	$	21,961	$	851	$	51,115	$	62,510

	Three Months Ended March 31, 2019
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	77,765	$	19,075	$	—	$	31,061	$	27,629
Royalty interests		32,013		—		1,006		8,255		22,752
Total	$	109,778	$	19,075	$	1,006	$	39,316	$	50,381


	Nine Months Ended March 31, 2020
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	274,065	$	63,149	$	—	$	106,883	$	104,033
Royalty interests		104,788		—		2,934		22,875		78,979
Total	$	378,853	$	63,149	$	2,934	$	129,758	$	183,012

	Nine Months Ended March 31, 2019
	Revenue		Cost of sales		Production taxes		Depletion		Segment gross profit
Stream interests	$	215,480	$	53,764	$	—	$	91,794	$	69,922
Royalty interests		91,882		—		3,206		28,786		59,890
Total	$	307,362	$	53,764	$	3,206	$	120,580	$	129,812

(1)	Excludes depreciation, depletion and amortization

(2)	Depletion amounts are included within Depreciation, depletion and amortization on our consolidated statements of operations and comprehensive income.

Schedule of reconciliation of segment gross profit to consolidated income (loss)

A reconciliation of total segment gross profit to the consolidated Income before income taxes is shown below (amounts in thousands):


	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
		2020		2019		2020		2019
Total segment gross profit	$	62,510	$	50,381	$	183,012	$	129,812

Costs and expenses
General and administrative expenses		9,551		6,798		23,658		24,147
Exploration costs		565		330		4,705		5,534
Depreciation and amortization		113		52		280		146
Operating income		52,281		43,201		154,369		99,985
Fair value changes in equity securities		(3,819)		1,781		(4,972)		(3,318)
Interest and other income		620		499		1,621		1,089
Interest and other expense		(2,088)		(7,499)		(7,139)		(22,786)
Income before income taxes	$	46,994	$	37,982	$	143,879	$	74,970

Schedule of revenue by reportable segment geographically distributed

The Company’s revenue by reportable segment for the three and nine months ended March 31, 2020 and 2019 is geographically distributed as shown in the following table (amounts in thousands):


	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
Stream interests:
Canada	$	37,136	$	34,012	$	112,990	$	81,021
Dominican Republic		28,302		20,787		73,534		58,504
Chile		22,055		15,638		63,323		51,016
Africa		9,967		7,328		24,218		24,939
Total stream interests	$	97,460	$	77,765	$	274,065	$	215,480

Royalty interests:
United States	$	13,199	$	9,813	$	33,813	$	24,153
Canada		9,126		8,201		26,084		25,918
Mexico		9,160		8,719		24,923		24,551
Australia		3,714		3,234		11,062		9,451
Africa		925		161		2,531		1,185
Rest of world		2,853		1,885		6,375		6,624
Total royalty interests	$	38,977	$	32,013	$	104,788	$	91,882
Total revenue	$	136,437	$	109,778	$	378,853	$	307,362

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Mar. 31, 2020

FAIR VALUE MEASUREMENTS

Schedule of financial assets and liabilities measured at fair value on recurring basis


	As of March 31, 2020
			Fair Value
	Carrying Amount		Total		Level 1		Level 2		Level 3
Assets (amounts in thousands):
Marketable equity securities⁽¹⁾	$	11,472	$	11,472	$	8,345	$	3,127	$	—

(1) Included in Other assets on the Company’s consolidated balance sheets.

OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS (Details)	9 Months Ended
	Mar. 31, 2020 item
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS
Minimum number of metals produced from a mine	1

OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS - Lease balance sheet (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2020 USD ($)
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS
Right-of-use assets - current	$ 608
Operating Lease, Right-of-Use Asset, Current, Statement of Financial Position [Extensible List]	us-gaap:PrepaidExpenseAndOtherAssetsCurrent
Right-of-use assets - non-current	$ 5,065
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets, Noncurrent
Total right-of-use assets	$ 5,673
Lease liabilities - current	$ 549
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities, Current
Lease liabilities - non-current	$ 6,128
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent
Total operating lease liabilities	$ 6,677

OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS - Lease maturities (Details) $ in Thousands	Mar. 31, 2020 USD ($)
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS
2020	$ 93
2021	826
2022	823
2023	811
2024	822
Thereafter	4,149
Total lease payments	7,524
Less imputed interest	(847)
Total	$ 6,677

OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS - Lease other (Details)	Mar. 31, 2020
OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS
Weighted average remaining lease term in years	9 years
Weighted average discount rate	2.50%

ACQUISITIONS (Details) $ in Thousands			1 Months Ended		9 Months Ended
ACQUISITIONS (Details) $ in Thousands	Mar. 30, 2020 USD ($)	Jan. 29, 2020 USD ($)	Nov. 30, 2019 USD ($)	Aug. 31, 2019 USD ($) payment	Mar. 31, 2020 USD ($) shares	Mar. 31, 2019 USD ($)	Aug. 31, 2019 $ / shares shares	Jun. 30, 2019 USD ($)
Acquisitions
Acquisition consideration paid					$ 107,855	$ 1,055
Investment value					$ 11,500			$ 16,000
TriStar
Acquisitions
Common stock that can be purchased by warrants (in shares) \| shares					19,640,000
Alturas
Acquisitions
Acquisition consideration paid		$ 11,000
Future payment based on project decisions		20,000
Alturas \| Maximum
Acquisitions
Acquisition consideration		41,000
Future payment to private individuals upon first production		$ 10,000
Alturas \| Gold
Acquisitions
Net smelter return (NSR) (as a percent)		1.06%
Alturas \| Copper
Acquisitions
Net smelter return (NSR) (as a percent)		1.59%
CDS
Acquisitions
Net smelter return (NSR) (as a percent)				1.50%
Acquisition consideration				$ 7,500
Acquisition consideration paid	$ 1,500		$ 1,500	$ 4,500
Number of installments \| payment				3
Acquisition payment, excluding associated costs				$ 7,500
CDS \| TriStar
Acquisitions
Common stock that can be purchased by warrants (in shares) \| shares					19,640,000		19,640,000
Investment value					$ 300
Exercise price of warrants \| $ / shares							$ 0.25
Term of warrants					5 years

STREAM AND ROYALTY INTERESTS, NET - Summary (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
Cost	$ 3,505,832	$ 3,397,998
Accumulated Depletion	(1,188,419)	(1,058,682)
Net	2,317,413	2,339,316
Mount Milligan
Net	572,300
Rainy River
Net	152,600
Total production stage stream and royalty interests
Cost	3,018,836	2,959,033
Accumulated Depletion	(1,188,419)	(1,058,682)
Net	1,830,417	1,900,351
Production stage stream interests
Cost	2,111,423	2,111,423
Accumulated Depletion	(607,910)	(501,026)
Net	1,503,513	1,610,397
Production stage stream interests \| Mount Milligan
Cost	790,635	790,635
Accumulated Depletion	(218,378)	(184,091)
Net	572,257	606,544
Production stage stream interests \| Pueblo Viejo
Cost	610,404	610,404
Accumulated Depletion	(193,109)	(158,819)
Net	417,295	451,585
Production stage stream interests \| Andacollo
Cost	388,182	388,182
Accumulated Depletion	(107,501)	(86,675)
Net	280,681	301,507
Production stage stream interests \| Rainy River
Cost	175,727	175,727
Accumulated Depletion	(23,176)	(14,522)
Net	152,551	161,205
Production stage stream interests \| Wassa and Prestea
Cost	146,475	146,475
Accumulated Depletion	(65,746)	(56,919)
Net	80,729	89,556
Production stage royalty interests
Cost	907,413	847,610
Accumulated Depletion	(580,509)	(557,656)
Net	326,904	289,954
Production stage royalty interests \| Voisey's Bay
Cost	205,724	205,724
Accumulated Depletion	(100,140)	(95,564)
Net	105,584	110,160
Production stage royalty interests \| Penasquito
Cost	99,172	99,172
Accumulated Depletion	(43,744)	(40,659)
Net	55,428	58,513
Production stage royalty interests \| Holt
Cost	34,612	34,612
Accumulated Depletion	(23,796)	(22,570)
Net	10,816	12,042
Production stage royalty interests \| Cortez
Cost	80,681	20,878
Accumulated Depletion	(13,702)	(12,362)
Net	66,979	8,516
Production stage royalty interests \| Other
Cost	487,224	487,224
Accumulated Depletion	(399,127)	(386,501)
Net	88,097	100,723
Total development stage stream and royalty interests
Cost	171,630	142,793
Net	171,630	142,793
Development stage stream interests \| Khoemacau
Cost	88,641
Net	88,641
Development stage stream interests \| Other
Cost	12,037	12,038
Net	12,037	12,038
Development stage royalty interests
Cost		130,755
Net		130,755
Development stage royalty interests \| Cortez
Cost		59,803
Net		59,803
Development stage royalty interests \| Other
Cost	70,952	70,952
Net	70,952	70,952
Exploration stage royalty interests
Cost	315,366	296,172
Net	315,366	296,172
Exploration stage royalty interests \| Pascua-Lama
Cost	177,690	177,690
Net	177,690	177,690
Exploration stage royalty interests \| Other
Cost	137,676	118,482
Net	$ 137,676	$ 118,482

STREAM AND ROYALTY INTERESTS, NET (Details) $ in Thousands	9 Months Ended
STREAM AND ROYALTY INTERESTS, NET (Details) $ in Thousands	Mar. 31, 2020 USD ($) oz $ / oz $ / lb	Jun. 30, 2019 USD ($)
Stream and royalty interests, net \| $	$ 2,317,413	$ 2,339,316
Mount Milligan
Gold streaming interest (as a percent)	35.00%
Copper streaming interest (as a percent)	18.75%
Stream and royalty interests, net \| $	$ 572,300
Mount Milligan \| Gold
Depletion rate \| $ / oz	764
Mount Milligan \| Copper
Depletion rate \| $ / lb	1.48
Rainy River
Stream and royalty interests, net \| $	$ 152,600
Gold delivered (in ounces) \| oz	35,700
Silver delivered (in ounces) \| oz	373,100
Rainy River \| Initial Royalty
Gold streaming interest (as a percent)	6.50%
Silver production acquired (as a percent)	60.00%
Gold delivered (in ounces) \| oz	230,000
Silver delivered (in ounces) \| oz	3,100,000
Rainy River \| Subsequent Royalty
Gold streaming interest (as a percent)	3.25%
Silver production acquired (as a percent)	30.00%
Rainy River \| Gold
Depletion rate \| $ / oz	848
Rainy River \| Silver
Depletion rate \| $ / oz	11.27
El Toqui
Stream and royalty interests, net \| $	$ 1,300

MARKETABLE EQUITY SECURITIES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019
Marketable Securities
Fair value changes in equity securities	$ (3,819)	$ 1,781	$ (4,972)	$ (3,318)
Investment value	$ 11,500		$ 11,500		$ 16,000
Contango
Marketable Securities
Investment shares owned (in shares)	809,744		809,744
Rubicon
Marketable Securities
Investment shares owned (in shares)	3,949,575		3,949,575
TriStar
Marketable Securities
Common stock that can be purchased by warrants (in shares)	19,640,000		19,640,000

DEBT (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
DEBT (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Apr. 03, 2020	Jun. 30, 2019
Long-term debt disclosure
Principal	$ 105,000		$ 105,000			$ 220,000
Debt Issuance Costs	(4,846)		(4,846)			(5,446)
Total debt	100,154		100,154			214,554
Interest expense recognized		$ 300		$ 900
Repayment of debt			115,000
Credit Facility
Long-term debt disclosure
Principal	105,000		105,000			220,000
Debt Issuance Costs	(4,846)		(4,846)			(5,446)
Total debt	100,154		100,154			$ 214,554
Outstanding amount under credit facility	105,000		105,000		$ 305,000
Available under the revolving credit facility	$ 895,000		$ 895,000		$ 695,000
Effective interest rate (as percent)	1.87%		1.87%		2.54%
Interest expense recognized	$ 1,200		$ 5,000
Principal amount of debt issued					$ 200,000
LIBOR \| Credit Facility
Long-term debt disclosure
Basis spread on interest rate (as a percent)			1.10%
Interest rate on convertible senior notes (as a percent)					1.10%

REVENUE (Details)	9 Months Ended
REVENUE (Details)	Mar. 31, 2020 item
Number of revenue sources	2
Minimum
Average sale price determination period	10 days
Maximum
Average sale price determination period	3 months

REVENUE - Metal Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue
Revenue	$ 136,437	$ 109,778	$ 378,853	$ 307,362
Stream interests
Disaggregation of Revenue
Revenue	97,460	77,765	274,065	215,480
Stream interests \| Gold
Disaggregation of Revenue
Revenue	78,503	62,856	219,838	175,149
Stream interests \| Silver
Disaggregation of Revenue
Revenue	8,284	7,908	25,648	24,512
Stream interests \| Copper
Disaggregation of Revenue
Revenue	10,673	7,001	28,579	15,819
Royalty interests
Disaggregation of Revenue
Revenue	38,977	32,013	104,788	91,882
Royalty interests \| Gold
Disaggregation of Revenue
Revenue	28,792	22,041	72,617	60,251
Royalty interests \| Silver
Disaggregation of Revenue
Revenue	2,666	1,608	7,860	4,527
Royalty interests \| Copper
Disaggregation of Revenue
Revenue	3,340	3,056	10,427	11,030
Royalty interests \| Other
Disaggregation of Revenue
Revenue	$ 4,179	$ 5,308	$ 13,884	$ 16,074

REVENUE - Property Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue
Revenue	$ 136,437	$ 109,778	$ 378,853	$ 307,362
Stream interests
Disaggregation of Revenue
Revenue	97,460	77,765	274,065	215,480
Stream interests \| Mount Milligan
Disaggregation of Revenue
Revenue	32,298	26,938	93,423	63,954
Stream interests \| Pueblo Viejo
Disaggregation of Revenue
Revenue	28,302	20,787	73,534	58,504
Stream interests \| Andacollo
Disaggregation of Revenue
Revenue	22,055	15,638	63,324	51,016
Stream interests \| Wassa and Prestea
Disaggregation of Revenue
Revenue	8,647	5,773	18,760	17,557
Stream interests \| Rainy River
Disaggregation of Revenue
Revenue	4,838	7,074	19,566	17,067
Stream interests \| Other
Disaggregation of Revenue
Revenue	1,320	1,555	5,458	7,382
Royalty interests
Disaggregation of Revenue
Revenue	38,977	32,013	104,788	91,882
Royalty interests \| Other
Disaggregation of Revenue
Revenue	25,152	23,421	71,257	72,053
Royalty interests \| Penasquito
Disaggregation of Revenue
Revenue	7,425	4,465	19,422	12,763
Royalty interests \| Cortez
Disaggregation of Revenue
Revenue	$ 6,400	$ 4,127	$ 14,109	$ 7,066

REVENUE - Contract Receivables (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2020	Jun. 30, 2019
Contract Receivables
Royalty payments monthly due period	30 days
Royalty receivables	$ 32,322	$ 20,733
Minimum
Contract Receivables
Royalty payments quarterly due period	30 days
Maximum
Contract Receivables
Royalty payments quarterly due period	60 days

REVENUE - Practical expedients (Details)	9 Months Ended
REVENUE - Practical expedients (Details)	Mar. 31, 2020
Practical Expedients
Obligation period practical expedient	true
Transaction price allocated to remaining performance obligations	true

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Stock-based compensation
Stock-based compensation expense	$ 4,644	$ 1,440	$ 8,283	$ 5,510
Stock-based compensation awards granted (in shares)	13,220	7,100	114,086	182,570
Stock options
Stock-based compensation
Stock-based compensation expense	$ 94	$ 33	$ 151	$ 187
Stock options granted (in shares)			1,604	6,430
Unrecognized compensation expense	55		$ 55
Weighted-average vesting period (years)			1 year 7 months 6 days
Stock appreciation rights
Stock-based compensation
Stock-based compensation expense	$ 1,365	$ 417	$ 2,237	$ 1,592
Other than options granted (in shares)	6,890	3,500	53,616	72,860
Unrecognized compensation expense	$ 1,790		$ 1,790
Weighted-average vesting period (years)			2 years
Restricted stock
Stock-based compensation
Stock-based compensation expense	$ 2,659	$ 679	$ 4,599	$ 2,636
Other than options granted (in shares)	2,050	1,200	26,026	43,460
Unrecognized compensation expense	$ 3,736		$ 3,736
Weighted-average vesting period (years)			3 years 2 months 12 days
Performance stock
Stock-based compensation
Stock-based compensation expense	$ 526	$ 311	$ 1,296	$ 1,095
Other than options granted (in shares)	4,280	2,400	32,840	59,820
Unrecognized compensation expense	$ 1,795		$ 1,795
Weighted-average vesting period (years)			2 years 3 months 18 days
Performance stock \| Maximum
Stock-based compensation
Earn out basis if all goals are met (as a percent)	200.00%		200.00%

EARNINGS PER SHARE ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
EARNINGS PER SHARE ("EPS")
Net income (loss) available to Royal Gold common stockholders	$ 38,554	$ 28,772	$ 150,329	$ 67,368
Net income and comprehensive income available to Royal Gold common stockholders	$ 38,554	$ 28,772	$ 150,329	$ 67,368
Weighted-average shares for basic EPS	65,511,878	65,398,369	65,501,678	65,389,499
Effect of other dilutive securities (in shares)	88,892	116,865	124,722	105,403
Weighted-average shares for diluted EPS	65,600,770	65,515,234	65,626,400	65,494,902
Basic earnings per share (in dollars per share)	$ 0.59	$ 0.44	$ 2.30	$ 1.03
Diluted earnings per share (in dollars per share)	$ 0.59	$ 0.44	$ 2.29	$ 1.03

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
INCOME TAXES
Income tax (expense) benefit	$ (8,702)	$ (9,388)	$ 3,700	$ (11,355)
Effective tax rate (as a percent)	18.50%	24.70%	(2.60%)	15.10%

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
SEGMENT INFORMATION (Details) $ in Thousands	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2020 USD ($) segment	Mar. 31, 2019 USD ($)	Jun. 30, 2019 USD ($)
Long Lived Assets and Pre-Tax Income by Geographical Information
Number of reportable segments \| segment			2
Stream and royalty interests, net	$ 2,317,413		$ 2,317,413		$ 2,339,316
Revenue	136,437	$ 109,778	378,853	$ 307,362
Cost of sales	21,961	19,075	63,149	53,764
Production taxes	851	1,006	2,934	3,206
Depletion	51,115	39,316	129,758	120,580
Total segment gross profit	62,510	50,381	183,012	129,812
Canada
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	916,617		916,617		968,000
Dominican Republic
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	417,295		417,295		451,585
Chile
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	505,781		505,781		515,733
Africa
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	169,691		169,691		89,876
Mexico
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	77,694		77,694		83,748
United States
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	161,223		161,223		163,398
Australia
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	30,376		30,376		31,944
Rest of world
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	38,736		38,736		35,032
Stream interests
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	1,604,192		1,604,192		1,622,435
Revenue	97,460	77,765	274,065	215,480
Cost of sales	21,961	19,075	63,149	53,764
Depletion	43,240	31,061	106,883	91,794
Total segment gross profit	32,259	27,629	104,033	69,922
Stream interests \| Canada
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	724,808		724,808		767,749
Revenue	37,136	34,012	112,990	81,021
Stream interests \| Dominican Republic
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	417,295		417,295		451,585
Revenue	28,302	20,787	73,534	58,504
Stream interests \| Chile
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	280,681		280,681		301,507
Revenue	22,055	15,638	63,323	51,016
Stream interests \| Africa
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	169,370		169,370		89,555
Revenue	9,967	7,328	24,218	24,939
Stream interests \| Rest of world
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	12,038		12,038		12,039
Royalty interests
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	713,221		713,221		716,881
Revenue	38,977	32,013	104,788	91,882
Production taxes	851	1,006	2,934	3,206
Depletion	7,875	8,255	22,875	28,786
Total segment gross profit	30,251	22,752	78,979	59,890
Royalty interests \| Canada
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	191,809		191,809		200,251
Revenue	9,126	8,201	26,084	25,918
Royalty interests \| Chile
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	225,100		225,100		214,226
Royalty interests \| Africa
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	321		321		321
Revenue	925	161	2,531	1,185
Royalty interests \| Mexico
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	77,694		77,694		83,748
Revenue	9,160	8,719	24,923	24,551
Royalty interests \| United States
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	161,223		161,223		163,398
Revenue	13,199	9,813	33,813	24,153
Royalty interests \| Australia
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	30,376		30,376		31,944
Revenue	3,714	3,234	11,062	9,451
Royalty interests \| Rest of world
Long Lived Assets and Pre-Tax Income by Geographical Information
Stream and royalty interests, net	26,698		26,698		$ 22,993
Revenue	$ 2,853	$ 1,885	$ 6,375	$ 6,624

SEGMENT INFORMATION - Reconciliation of total segment gross profit (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
SEGMENT INFORMATION
Total segment gross profit	$ 62,510	$ 50,381	$ 183,012	$ 129,812
Costs and expenses
General and administrative expenses	9,551	6,798	23,658	24,147
Exploration costs	565	330	4,705	5,534
Depreciation and amortization	113	52	280	146
Operating income	52,281	43,201	154,369	99,985
Fair value changes in equity securities	(3,819)	1,781	(4,972)	(3,318)
Interest and other income	620	499	1,621	1,089
Interest and other expense	(2,088)	(7,499)	(7,139)	(22,786)
Income before income taxes	$ 46,994	$ 37,982	$ 143,879	$ 74,970

FAIR VALUE MEASUREMENTS (Details) - Recurring basis $ in Thousands	Mar. 31, 2020 USD ($)
Carrying Amount
Assets:
Marketable equity securities	$ 11,472
Fair Value
Assets:
Marketable equity securities	11,472
Level 1
Assets:
Marketable equity securities	8,345
Level 2
Assets:
Marketable equity securities	$ 3,127

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Apr. 03, 2020	Feb. 02, 2020	Nov. 05, 2019	Mar. 31, 2020
Khoemacau
Commitments and Contingencies
Commitment payment made	$ 47,900	$ 22,000	$ 65,800
Minimum future contingent payments				$ 124,200
Maximum future contingent payments				177,200
Ilovica
Commitments and Contingencies
Maximum future contingent payments				$ 163,750