UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 6, 2020

ROYAL GOLD, INC.
(Exact name of registrant as specified in its charter)

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

1144 15th Street, Suite 2500, Denver, CO		80202-2686	
(Address of principal executive offices)		(Zip Code)	

Registrant’s telephone number, including area code: 303-573-1660

(Former name or former address, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:

GLD					
Title of each class:	    	Trading Symbol	    	Name of each exchange on which registered:	
Common Stock $0.01 Par Value		RGLD		Nasdaq Global Select Market	

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02
Results of Operations and Financial Condition

On May 6, 2020, Royal Gold, Inc. (the “Company”) reported its third quarter fiscal 2020 results. Copies of the press release and an earnings presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K.

The information furnished under this Item 2.02, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by reference to such filing.

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits

Exhibit
No.	    	Description	
99.1		Press Release dated May 6, 2020 regarding Third Quarter 2020 Results.	
99.2		Royal Gold, Inc. May 7, 2020 Earnings Presentation.	
104		Cover Page Interactive Data File (formatted as inline XBRL).	

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Feb				
	Royal Gold, Inc.	
	(Registrant)	

Dated:  May 7, 2020	By:	/s/ Margaret E. McCandless	
		Name:	Margaret E. McCandless	
		Title:	Assistant General Counsel, Chief Compliance Officer and Corporate Secretary	

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Exhibit 99.1

Royal Gold Reports Third Quarter 2020 Results
DENVER, COLORADO. MAY 6, 2020: ROYAL GOLD, INC. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) reports net income of $38.6 million, or $0.59 per share, on revenue of $136.4 million in its fiscal third quarter ended March 31, 2020 (“third quarter”).  Adjusted net income1 was $44.3 million, or $0.68 per share, after excluding a loss on changes in the fair value of equity securities of $0.05 per share and a one-time non-cash employee stock compensation expense item of $0.04 per share. 
“Our business model, underpinned by a large, diverse and gold-based operating portfolio, has performed well and allowed us to deliver another solid quarter of operating and financial results as unprecedented challenges caused by COVID-19 began to develop,” commented Bill Heissenbuttel, President and CEO. 
“The health and safety of our employees is our top priority, and we are successfully managing our business remotely.  Although our high margin provided operating	 
Third Quarter Key Metrics Compared to Prior Year Quarter:
 
  Revenue of $136.4 million, an increase of 24.3%
  Operating cash flow of $99.7 million, an increase of 28.7%
  Volume of 86,200 GEOs2, an increase of 2.4%
  Dividends paid of $18.4 million, an increase of 5.7%
  Average price of $1,583 per gold ounce, an increase of 21.4%	
	                         	
cash flow of approximately $100 million during the quarter, we drew $200 million on our revolving credit facility after the end of the quarter as a precautionary liquidity measure in the event that production suspensions at assets within our portfolio arise, continue or are reinstated.  While the impact of COVID-19 has had a limited impact on our producing properties to date, it is difficult to confirm the potential revenue impact of future or ongoing suspensions and we will look to manage our credit facility balance accordingly as the environment evolves.”
The uncertain economic outlook facing the mining industry more generally may present new business development opportunities, and our strong balance sheet and continued access to liquidity position us well to take advantage of new opportunities that may become available.  While we are focused on these opportunities, we recognize the significant impact the COVID-19 pandemic is having on the communities where we live and work, and Royal Gold has made donations totaling $525,000 to charities working in Colorado, Toronto, Vancouver and Lucerne to help address a variety of needs including food, community programs, and medical supplies and equipment.  Working with our Peak Gold project partner, Contango ORE, Inc., we also increased community support to the Native Village of Tetlin.”	
 
Recent Developments
Khoemacau Project
According to Khoemacau Copper Mining (Pty.) Limited (“KCM”), progress continued at the Khoemacau Project (“Khoemacau”) in Botswana, and the project reached approximately 43% of construction completion at the end of the third quarter with 80% of the capital committed.  Also according to KCM,  activities are focused on underground development, boxcut construction, construction of accommodation, power and water infrastructure at Zone 5, completing construction of the haul road between Zone 5 and the Boseto mill, and refurbishment of the Boseto mill.  KCM also reported that underground development on two of the five planned declines started in early February and a further two started in early March. 
On April 3, Royal Gold made the third advance payment of $47.9 million, which brings the total contribution to $135.7 million.  Royal Gold expects to fund approximately $65 million during the remainder of calendar year 2020, and the total remaining commitment in calendar year 2021 is expected to range from approximately $11 million for the base stream of 80% of payable silver to approximately $64 million should KCM elect to increase the stream from 80% to 100% of payable silver.  Further payments are subject to certain conditions and are scheduled to be made on a quarterly basis using an agreed formula and certification process as project spending progresses.
According to KCM, although a six-month state of emergency has been declared by the Government of Botswana to help prevent the spread of COVID-19, mining has been designated an “essential service” and activity at Khoemacau is continuing.  Barring any potential delays caused by COVID-19 considerations, KCM continues to expect the first shipment of concentrate by the middle of calendar 2021.

1Adjusted net income is a non-GAAP financial measure.  See Schedule A of this press release for additional information.
2See Schedule A of this press release for additional information about gold equivalent ounces, or GEOs.

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Mount Milligan
On March 26, 2020, Centerra Gold Inc. (“Centerra”) published an updated Canadian National Instrument 43-101 (“NI 43-101”) technical report for the Mount Milligan mine, which provides a detailed update to the life of mine plan contained in the previous NI 43-101 report for Mount Milligan published by Centerra in February of 2017. 
Centerra reported a reduction in proven and probable reserves due to increased costs, lower expected productivities, and lower process plant throughput compared to the 2017 report, as well as an update to the resource model and re-estimation of metallurgical recoveries.  Details for the reserves and updated life of mine plan, which does not contemplate any growth capital or inclusion of additional mineralized material, were reported by Centerra as follows:

	·		Reserves as of December 31, 2019 containing 2.4 million ounces of gold and 959 million pounds of copper (comprised of 191.0 million tonnes grading 0.39 grams per tonne of gold and 0.23% of copper).  Reserves were calculated using a gold price of $1,250 per ounce, a copper price of $3.00 per pound, and an exchange rate of US$ 1.00 to C$ 1.25;	
	·		Production based on a 9-year reserve life through calendar 2028;	
	·		Average life of mine recoveries of 61.8% for gold and 80.6% for copper;	
	·		Life of mine payable gold production of 1.45 million ounces, or an average of 161,000 ounces per year;	
	·		Life of mine payable copper production of 735.6 million pounds, or an average of 81.7 million pounds per year; and,	
	·		Average life of mine all-in sustaining cost of $704 per ounce of gold sold on a by-product basis, which includes sustaining capital and copper revenue credits (assuming a copper price of $3.00 per pound and an exchange rate of US$ 1.00 to C$ 1.25).	
 
As of March 31, 2020, Royal Gold has recognized a total of $711.5 million in revenue, or $483.4 million of revenue net of cash payments for gold and copper received, which represents approximately 62% of the total $781.5 million investment in Mount Milligan.  The net book value of Royal Gold’s investment as of March 31, 2020, was $572.3 million.  Due to the reduction in gold and copper reserves, as reported by Centerra, the depletion rate of Royal Gold’s investment at Mount Milligan increased from $402 to $764 per ounce of gold and from $0.81 to $1.48 per pound of copper. 
On April 1, 2020, Centerra announced that reductions of manpower and throughput to 50,000 tonnes per day at Mount Milligan would occur as a result of actions implemented to combat the COVID-19 pandemic.  On May 1, Centerra announced that processing of surface ore stockpiles using only the primary crusher continued during this period of reduced operations, and a planned two-week maintenance shut-down occurred during mid-April.  Centerra further reported that process plant operations restarted in late April and mine operations are expected to ramp up production in mid-May, and the short-term decrease in activity is not expected to have a material impact on calendar 2020 production, or cause changes to calendar 2020 guidance.
Pueblo Viejo
Barrick Gold Corporation (“Barrick”) reported that it continues to advance engineering and evaluation work towards a feasibility study for the process plant expansion and proposed tailings storage facility that could extend the mine life at Pueblo Viejo to beyond calendar 2040.  Barrick estimates that the process plant and tailings expansion project could significantly increase throughput and allow the mine to maintain average annual gold production of approximately 800,000 ounces after calendar 2022 (on a 100% basis), and that the increase in tailings storage capacity has the potential to convert approximately 11 million ounces of mineralized material to reserves (on a 100% basis).
Peñasquito
On May 5, 2020, Newmont announced that operations at Peñasquito were placed on care and maintenance on April 12 due to a Mexican federal government decree to temporarily suspend all non-essential activities in Mexico as part of a nationwide effort to help slow the spread of COVID-19.  Newmont further stated that it has continued to engage with government at all levels on a restart plan, and the site is well positioned to ramp back up quickly and efficiently over a two-week period once operations are allowed to restart.
Rainy River
On February 13, 2020, New Gold Inc. (“New Gold”) announced the results of an updated life of mine plan for the Rainy River mine.  The corresponding NI 43-101 technical report was filed on March 27, 2020.  New Gold reported that the mine plan was based on proven and probable reserves estimated at a gold price of $1,275 per ounce and a silver price of $17.00 per ounce, and it expects there may remain potential to extend the underground mine life beyond calendar 2028 should the prevailing gold price support the development of additional underground mining areas during that period and/or exploration efforts increase the resource inventory.  Key highlights of the updated plan as reported by New Gold include:

	·		A mine plan covering the calendar 2020 to 2028 period, which considers mining from a smaller and higher-grade open pit through to early 2025, with concurrent mining from a smaller and more selective underground	

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operation from 2022 through 2027. Processing of stockpiled low-grade open pit material is expected to supplement underground mill feed during 2026 to 2028;	
	·		Overall gold grade of 1.10 grams per tonne mined and 1.06 grams per tonne milled;	
	·		Average gold recovery of 89%;	
	·		Average gold equivalent production of 289,000 ounces per year (including 3.6 million ounces of silver converted to gold equivalent using a gold price of $1,300 per ounce and silver price of $16.00 per ounce); and,	
	·		Proven and probable reserves of 2.636 million ounces of contained gold and 6.266 million ounces of contained silver as at December 31, 2019.	
 
As of March 31, 2020, Royal Gold has recognized revenue from gold and silver produced at Rainy River net of cash payments of approximately $38.0 million, which represents approximately 22% of the total $175 million advance payment for its investment at Rainy River.
As of March 31, 2020, the net book value of Royal Gold’s investment at Rainy River was $152.6 million.  Due to the reduction in gold and silver reserves at Rainy River, as reported by New Gold, Royal Gold’s depletion rates increased from $591 to $848 per ounce of gold and from $6.34 to $11.27 per ounce of silver.
As a result of measures to address the spread of COVID-19, Rainy River completed a voluntary two-week shutdown from March 20 to April 2, 2020 according to New Gold.  On April 29, 2020 New Gold reported that the mill facility is operating at full capacity with ore supplied from the open pit and medium-grade stockpile, and the mine is operating at approximately 70% of the productivity achieved before the shutdown.  New Gold announced that it has withdrawn its calendar 2020 guidance until the impact of COVID-19 is better understood. 
Wassa
On March 27, 2020, Golden Star Resources Ltd. (“Golden Star”) reported that deep drilling in calendar 2019 successfully extended the mineralization at Wassa by 200 meters to the south where the deposit remains open to the south and down dip.  Golden Star further reported that the exploration strategy during calendar 2020 would transition away from growth of the overall resource to infill drilling to help define the potential mine plans for the southern extension of the operation.  According to Golden Star, as of December 31, 2019 the total proven and probable mineral reserves at Wassa contained 1.4 million ounces of gold, and total mineralized material increased over the prior year to approximately 11.2 million contained ounces of gold.
Cortez
During the quarter, Barrick provided the Company with an updated reserve statement and life of mine plan for Cortez.  According to Barrick, as of December 31, 2019, total proven and probable reserves subject to the Company’s royalty interests contained 3.5 million ounces of gold (consisting of 87.0 million tonnes of ore at a grade of 1.26 grams per tonne).  Reserves were calculated at a gold price of $1,200 per ounce. 
Further according to Barrick, total gold production at Cortez from the regions subject to the Company’s interests is expected to be approximately 175,000 ounces in calendar 2020, increasing to an approximate average of 425,000 ounces from calendar 2021 through calendar 2026.  The expected production increase from calendar 2020 to calendar 2021 is primarily due to higher contribution from the Crossroads deposit, which is expected to ramp up through calendar 2023 and offset declining production from the other royalty regions.
Third Quarter 2020 Overview
Third quarter revenue was $136.4 million compared to $109.8 million in the prior year quarter, with stream revenue totaling $97.5 million and royalty revenue totaling $39.0 million.  The increase in total revenue for the third quarter compared to the prior year quarter was due to higher average gold and silver prices, as well as an increase in gold sales at Andacollo and Pueblo Viejo and higher copper sales at Mount Milligan.  These increases were partially offset by lower gold sales at Rainy River and Mount Milligan due to a decrease in deliveries.
Cost of sales, which excludes depreciation, depletion and amortization, increased to $22.0 million for the three months ended March 31, 2020 from $19.1 million for the three months ended March 31, 2019.  The increase was primarily due to increased gold sales from Pueblo Viejo and Andacollo and increased gold and silver prices when compared to the prior year quarter.  Cost of sales is specific to the Company’s stream agreements and is the result of the purchase of gold, silver and copper for a cash payment.
General and administrative costs increased to $9.6 million for the three months ended March 31, 2020 from $6.8 million for the three months ended March 31, 2019.  The increase was due to approximately $3.3 million in additional non-cash compensation in the March 2020 quarter primarily as a result of accelerated vesting of certain equity awards in connection with the retirement of the Company’s former President and Chief Executive Officer and former Vice President and General Counsel.
Depreciation, depletion and amortization increased to $51.2 million for the three months ended March 31, 2020 from $39.4 million for the three months ended March 31, 2019.  The increase was primarily due to higher copper sales at

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Mount Milligan and higher gold sales at Pueblo Viejo.  An increase in the depletion rates at Mount Milligan and Rainy River as a result of updated reserves, as discussed above, also contributed to the increase in depletion expense.
Interest and other expense decreased to $2.1 million for the three months ended March 31, 2020, from $7.5 million for the three months ended March 31, 2019.  The decrease was primarily attributable to lower interest expense as a result of a decrease in average debt amounts outstanding when compared to the prior year quarter.  As discussed in the Company’s Form 10-K for the fiscal year ended June 30, 2019,  in June 2019 the Company repaid at maturity the $370 million aggregate principal amount due under its 2.875% convertible senior notes. 
During the three months ended March 31, 2020, the Company recognized an income tax expense totaling $8.7 million, compared with an income tax expense of $9.4 million during the three months ended March 31, 2019.  The income tax expense resulted in an effective tax rate of 18.5% in the current period, compared with 24.7% in the prior year quarter.  The effective tax rate for the three months ended March 31, 2020 included income tax benefits resulting from foreign exchange rate movements compared to the U.S. dollar.
As of March 31, 2020, the Company had current assets of $150.6 million compared to current liabilities of $49.8 million resulting in working capital of $100.8 million.  This compares to current assets of $154.7 million and current liabilities of $33.6 million, or working capital of $121.1 million, at June 30, 2019. 
During the third quarter, liquidity needs were met from $99.7 million in net cash provided by operating activities and available cash resources. As of March 31, 2020, the Company had $105 million outstanding and $895 million available under its revolving credit facility.  Working capital, combined with the Company’s undrawn revolving credit facility, resulted in approximately $1 billion of total liquidity as of March 31, 2020.
In April 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 at certain operations where the Company holds a stream or royalty interest, management believes the drawdown is a prudent precautionary measure taken to help ensure cash is readily available to support continued business activities.
Property Highlights
A summary of third quarter and historical production reported by operators of the Company’s principal stream and royalty properties can be found on Tables 1 and 2.  Calendar year 2020 operator production estimates for these properties compared to actual production at these properties through March 31, 2020 can be found on Table 3.  Results of the streaming business for the third quarter, compared to the prior year quarter, can be found on Table 4.  Highlights at certain of the Company’s principal producing and development properties during the third quarter, compared to the prior year quarter, are detailed in the Quarterly Report on Form 10-Q.

 
CORPORATE PROFILE	
 
Royal Gold is a precious metals stream and royalty company engaged in the acquisition and management of precious metal streams, royalties and similar production-based interests.  As of March 31, 2020, the Company owned interests on 187 properties on five continents, including interests on 42 producing mines and 16 development stage projects.  Royal Gold is publicly traded on the Nasdaq Global Select Market under the symbol “RGLD.”  The Company’s website is located at www.royalgold.com.
 
For further information, please contact:	    	Third Quarter Earnings Call Information:	
 	 	 	
Alistair Baker	 	Dial-In	855-209-8260 (U.S.); toll free	
Vice President Investor Relations and Business Development	 	Numbers:	855-669-9657 (Canada); toll free
412-542-4106 (International)	
(720) 554-6995	 	Conference Title:	Royal Gold	
 	 	 	 	
Note: Management’s conference call reviewing the third quarter results will be held on Thursday, May 7, 2020, at noon Eastern Time (10:00 a.m. Mountain Time).  The call will be webcast and archived on the Company’s website for a limited time.	 	Webcast URL:	www.royalgold.com under Investors, Events & Presentations	

 
Forward-Looking Statements:  This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-

4

looking statements are not guarantees of future performance, and actual results may differ materially from these statements. Forward-looking statements are often identified by words like “will,” “may,” “could,” “should,” “would,” “believe,” “estimate,” “expect,” “anticipate,” “plan,” “forecast,” “potential,” “intend,” “continue,” “project,” or negatives of these words or similar expressions. Forward-looking statements include, among others, the following: statements about our expected financial performance, including revenue, expenses, earnings or cash flow; operators’ expected operating and financial performance, including production, deliveries, mine plans and reserves, development, cash flows and capital expenditures; planned and potential acquisitions or dispositions, including funding schedules and conditions; liquidity, financing and dividends; our overall investment portfolio; macroeconomic and market conditions including the impacts of COVID-19; prices for gold, silver, copper, nickel and other metals; potential impairments; or tax changes.
Factors that could cause actual results to differ materially from these forward-looking statements include, among others, the following: a low-price environment for gold, silver, copper, nickel or other metals; operating activities or financial performance of properties on which we hold stream or royalty interests, including variations between actual and forecasted performance, operators’ ability to complete projects on schedule and as planned, changes to mine plans and reserves, liquidity needs, mining and environmental hazards, labor disputes, distribution and supply chain disruptions, permitting and licensing issues, contractual issues involving our stream or royalty agreements; risks associated with doing business in foreign countries; our ability to identify, finance, value and complete acquisitions; adverse economic and market conditions; changes in laws or regulations governing us, operators or operating properties; changes in management and key employees; and other factors described in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended June 30, 2019, and subsequent Quarterly Reports on Form 10-Q. Most of these factors are beyond our ability to predict or control.
Forward-looking statements speak only as of the date on which they are made. We disclaim any obligation to update any forward-looking statements, except as required by law. Readers are cautioned not to put undue reliance on forward-looking statements.
Statement Regarding Third-Party Information: Certain information provided in this press release, including production estimates for calendar 2020, has been provided to us by the operators of the relevant properties or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of any such third-party information and refers the reader to the public reports filed by the operators for information regarding those properties.
Information in this press release concerning the Khoemacau Copper Project mine life, construction completion, current staffing levels and activity focus, underground development, cost information and initial deliveries of silver under the streaming agreement was provided to the Company by Cupric Canyon Capital L.P., the privately-held owner and developer of Khoemacau. Such information may not have been prepared in accordance with applicable laws, stock exchange rules or international standards governing preparation and public disclosure of technical data and information relating to mineral properties. Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of this third-party information, and investors are cautioned not to rely upon this information.

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TABLE 1
Third Quarter Fiscal 2020
 Revenue and Operators’ Reported Production for Principal Stream and Royalty Interests
(In thousands, except reported production in oz and lb)

 	 	 	 	Three Months Ended	 	Three Months Ended	
 	 	 	 	March 31, 2020	 	March 31, 2019	
Stream/Royalty	 	Metal(s)	 	Revenue	Reported Production(1)	 	 	Revenue	 	Reported Production(1)	
Stream:	 	 	 	 	 	 	 	 	 	 	
Mount Milligan	 	 	 	$	 	32,298	 	 	 	 	 	$	26,938	 	 	 	
 	 	Gold	 	 	 	 	 	
14,000	oz	 	 	 	 	 	
15,200	oz	
 	 	Copper	 	 	 	 	 	4.3	Mlb	 	 	 	 	 	2.4	Mlb	
Pueblo Viejo	 	 	 	$	 	28,302	 	 	 	 	 	$	20,787	 	 	 	
 	 	Gold	 	 	 	 	 	
13,100	oz	 	 	 	 	 	
10,400	oz	
 	 	Silver	 	 	 	 	 	
417,800	oz	 	 	 	 	 	
469,000	oz	
Andacollo	 	Gold	 	$	 	22,055	 	
13,900	oz	 	 	$	15,638	 	
12,000	oz	
Rainy River	 	 	 	$	 	4,838	 	 	 	 	 	$	7,074	 	 	 	
 	 	Gold	 	 	 	 	 	
2,600	oz	 	 	 	 	 	
5,000	oz	
 	 	Silver	 	 	 	 	 	
47,900	oz	 	 	 	 	 	
40,800	oz	
Wassa	 	Gold	 	$	 	8,647	 	
5,600	oz	 	 	$	5,773	 	
4,400	oz	
Other(2)	 	Gold	 	$	 	1,320	 	
800	oz	 	 	$	1,555	 	1,200	oz	
Total stream revenue	 	 	 	$	 	97,460	 	 	 	 	 	$	77,765	 	 	 	
Royalty:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Peñasquito	 	 	 	$	 	7,425	 	 	 	 	 	$	4,465	 	 	 	
 	 	Gold	 	 	 	 	 	
97,200	oz	 	 	 	 	 	
37,300	oz	
 	 	Silver	 	 	 	 	 	8.7	Moz	 	 	 	 	 	4.9	Moz	
 	 	Lead	 	 	 	 	 	60.5	Mlb	 	 	 	 	 	34.5	Mlb	
 	 	Zinc	 	 	 	 	 	124.5	Mlb	 	 	 	 	 	72.8	Mlb	
Cortez	 	Gold	 	$	 	6,400	 	57,700	oz	 	 	$	4,127	 	
32,700	oz	
Other(2)	 	Various	 	$	 	25,152	 	N/A	 	 	 	$	23,421	 	N/A	 	
Total royalty revenue	 	 	 	$	 	38,977	 	 	 	 	 	$	32,013	 	 	 	
Total revenue	 	 	 	$	 	136,437	 	 	 	 	 	$	109,778	 	 	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Nine Months Ended	 	Nine Months Ended	
 	 	 	 	March 31, 2020	 	March 31, 2019	
Stream/Royalty	    	Metal(s)	    	Revenue	Reported Production(1)	 	 	Revenue	 	Reported Production(1)	
Stream:	 	 	 	 	 	 	 	 	 	 	
Mount Milligan	 	 	 	$	 	93,423	 	 	 	 	 	$	63,954	 	 	 	
 	 	Gold	 	 	 	 	 	
43,500	oz	 	 	 	 	 	
38,500	oz	
 	 	Copper	 	 	 	 	 	10.9	Mlb	 	 	 	 	 	5.8	Mlb	
Pueblo Viejo	 	 	 	$	 	73,534	 	 	 	 	 	$	58,504	 	 	 	
 	 	Gold	 	 	 	 	 	
33,100	oz	 	 	 	 	 	
28,500	oz	
 	 	Silver	 	 	 	 	 	
1,355,800	oz	 	 	 	 	 	
1.5	Moz	
Andacollo	 	Gold	 	$	 	63,324	 	
41,800	oz	 	 	$	51,016	 	
40,900	oz	
Rainy River	 	 	 	$	 	19,566	 	 	 	 	 	$	17,067	 	 	 	
 	 	Gold	 	 	 	 	 	
11,700	oz	 	 	 	 	 	
12,300	oz	
 	 	Silver	 	 	 	 	 	
133,500	oz	 	 	 	 	 	
85,600	oz	
Wassa	 	Gold	 	$	 	18,760	 	
12,500	oz	 	 	$	17,557	 	
14,000	oz	
Other(2)	 	Gold	 	$	 	5,458	 	
3600	oz	 	 	$	7,382	 	6,000	oz	
Total stream revenue	 	 	 	$	 	274,065	 	 	 	 	 	$	215,480	 	 	 	
Royalty:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Peñasquito	 	 	 	$	 	19,422	 	 	 	 	 	$	12,763	 	 	 	
 	 	Gold	 	 	 	 	 	
228,500	oz	 	 	 	 	 	
141,000	oz	
 	 	Silver	 	 	 	 	 	22.6	Moz	 	 	 	 	 	14.1	Moz	
 	 	Lead	 	 	 	 	 	151.7	Mlb	 	 	 	 	 	100.4	Mlb	
 	 	Zinc	 	 	 	 	 	303.6	Mlb	 	 	 	 	 	220.1	Mlb	
Cortez	 	Gold	 	$	 	14,109	 	120,800	oz	 	 	$	7,066	 	
59,700	oz	
Other(2)	 	Various	 	$	 	71,257	 	N/A	 	 	 	$	72,053	 	N/A	 	
Total royalty revenue	 	 	 	$	 	104,788	 	 	 	 	 	$	91,882	 	 	 	
Total revenue	 	 	 	$	 	378,853	 	 	 	 	 	$	307,362	 	 	 	

	1		Reported production for stream interests relates to the Company’s actual metal sales, and for royalty interests relates to the amount of metal sales that are subject to the Company’s royalty interests for the stated period,  as reported to the Company by operators of the mines.	
	2		Individually, no stream or royalty included within the “Other” category contributed greater than 5% of the Company’s total revenue for either period.  The “Other” category for streams is the Prestea gold stream.	

 

6

TABLE 2
Operators’ Historical Production

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Reported Production For The Quarter Ended1	
Property	 	Operator	 	Stream/Royalty	 	Metal(s)	 	Mar. 31, 2020	 	Dec. 31, 2019	 	Sep. 30, 2019	 	Jun. 30, 2019	 	Mar. 31, 2019	
Stream:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mount Milligan	 	Centerra	 	35% of payable gold	 	Gold	 	
14,000	oz	 	
12,900	oz	 	
16,600	oz	 	
23,100	oz	 	
15,200	oz	
 	 	 	 	18.75% of payable copper	 	Copper	 	4.3	Mlb	 	4.3	Mlb	 	2.4	Mlb	 	2.5	Mlb	 	2.6	Mlb	
Pueblo Viejo	 	Barrick (60%)	 	7.5% of Barrick's interest in gold produced up to 990,000 ounces; 3.75% thereafter	 	Gold	 	13,200	oz	 	10,500	oz	 	9,500	oz	 	12,400	oz	 	10,400	oz	
 	 	 	 	75% of Barrick's interest in payable silver up to 50 million ounces; 37.5% thereafter(2)	 	Silver	 	417,800	oz	 	462,400	oz	 	475,600	oz	 	553,000	oz	 	469,000	oz	
Andacollo	 	Teck	 	100% of gold produced up to 900,000; 50% thereafter	 	Gold	 	13,900	oz	 	13,900	oz	 	14,000	oz	 	14,100	oz	 	12,000	oz	
Rainy River	 	New Gold	 	6.50% of gold produced up to 230,000 ounces; 3.25% thereafter	 	Gold	 	2,600	oz	 	4,500	oz	 	4,600	oz	 	3,500	oz	 	5,000	oz	
 	 	 	 	60% of payable silver up to 3.1 million ounces; 30% thereafter	 	Silver	 	47,900	oz	 	51,100	oz	 	34,500	oz	 	36,400	oz	 	40,900	oz	
Wassa	 	Golden Star	 	10.5% of gold produced up to 240,000 ounces; 5.5% thereafter(3)	 	Gold	 	5,600	oz	 	3,300	oz	 	3,600	oz	 	3,500	oz	 	4,400	oz	
Royalty:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Peñasquito	 	Newmont Corporation	 	2.0% NSR	 	Gold	 	97,200	oz	 	95,800	oz	 	35,500	oz	 	17,800	oz	 	37,300	oz	
 	 	 	 	 	 	Silver	 	8.7	Moz	 	9.3	Moz	 	4.6	Moz	 	2.3	Moz	 	4.9	Moz	
 	 	 	 	 	 	Lead	 	60.5	Mlb	 	61.5	Mlb	 	29.7	Mlb	 	17.0	Mlb	 	34.5	Mlb	
 	 	 	 	 	 	Zinc	 	124.5	Mlb	 	72.1	Mlb	 	107.1	Mlb	 	
(3.9)	Mlb	 	72.8	Mlb	
Cortez	 	Nevada Gold Mines
LLC	 	GSR1, GSR2, GSR3, NVR1, NVR1C	 	Gold	 	57,700	oz	 	28,000	oz	 	35,100	oz	 	37,000	oz	 	32,700	oz	

	1		Reported production for stream interests relates to the Company’s actual metal sales, and for royalty interests relates to the amount of metal sales that are subject to the Company’s royalty interests for the stated period, each as reported to the Company by operators of the mines and may differ from the operators’ public reporting.	
	2		The Pueblo Viejo silver stream is determined based on a fixed metallurgical recovery of 70% of silver in mill feed.	
	3		The 240,000 ounce threshold includes production from Golden Star’s Prestea mine.	

7

TABLE 3
Operator’s Estimated and Actual Production

 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Operator's Estimated Production for	 	Operator's Actual Calendar 2020	
 	 	Full Year Calendar 2020(1)	 	Production to Date(2)	
Stream/Royalty	 	Gold (oz)	 	Silver (oz)	 	Base Metals (lb)	 	Gold (oz)	 	Silver (oz)	 	Base Metals (lb)	
Stream:	    	 	 	 	 	 	 	 	 	 	 	 	
Andacollo(3)	 	53,000	  	 	  	 	  	14,800	  	 	  	 	
Mount Milligan(4)	  	140,000 - 160,000	 	 	 	 	 	33,700	 	 	 	 	
Copper	 	 	 	 	 	80 - 90 Million	 	 	 	 	 	20.1 Million	
Pueblo Viejo(5)	 	530,000 - 580,000	 	N/A	 	 	 	143,000	 	N/A	 	 	
Rainy River(6)	 	Withdrawn	 	Withdrawn	 	 	 	50,400	 	61,300	 	 	
Wassa(7)	 	155,000 - 165,000	 	 	 	 	 	N/A	 	 	 	 	
Royalty:	 	 	 	 	 	 	 	 	 	 	 	 	
Cortez GSR1	 	66,500	 	 	 	 	 	27,700	 	 	 	 	
Cortez GSR2	 	109,000	 	 	 	 	 	30,000	 	 	 	 	
Cortez GSR3	 	145,700	 	 	 	 	 	17,200	 	 	 	 	
Cortez NVR1	 	113,200	 	 	 	 	 	45,800	 	 	 	 	
Cortez NVR1C	 	29,900	 	 	 	 	 	200	 	 	 	 	
Peñasquito(8)	 	Withdrawn	 	Withdrawn	 	 	 	116,000	 	9.5 Million	 	 	
Lead	 	  	 	  	 	Withdrawn	 	 	 	 	 	62 Million	
Zinc	 	  	 	  	 	Withdrawn	 	 	 	 	 	135 Million	

	1		Production estimates received from the operators are for calendar 2020.   There can be no assurance that production estimates received from the operators will be achieved.  Please also refer to our cautionary language regarding forward-looking statements above, as well as the Risk Factors identified in Part I, Item 1A, of the Company’s Fiscal 2019 Form 10-K for information regarding factors that could affect actual results.	
	2		Actual production figures shown are from the operators and cover the period January 1, 2020 through March 31, 2020,  unless otherwise noted in footnotes to this table.	
	3		The estimated and actual production figures shown for Andacollo are contained gold in concentrate.	
	4		The estimated and actual production figures shown for Mount Milligan are payable gold and copper in concentrate.	
	5		The estimated and actual production figures shown for Pueblo Viejo are payable gold in doré and represent Barrick’s 60% interest in Pueblo Viejo. Barrick did not provide estimated or actual silver production. 	
	6		The actual production figures shown for Rainy River are produced gold and silver in doré.  Estimated production figures are not available as of the date of this press release.	
	7		The estimated production figures shown for Wassa are payable gold in doré.    Actual production figures are not available as of the date of this press release.	
	8		The actual gold production figures shown for Peñasquito are payable gold and silver in concentrate and doré.  The actual lead and zinc production figures shown are payable lead and zinc in concentrate. Estimated production figures are not available as of the date of this press release.	

8

TABLE 4
Stream Summary

 	 	 	Three Months Ended	 	Three Months Ended	 	 	As of	 	As of	
 	 	 	March 31, 2020	 	March 31, 2019	 	 	March 31, 2020	 	June 30, 2019	
Gold Stream	    	 	Purchases (oz)	    	Sales (oz)	    	Purchases (oz)	    	Sales (oz)	    	 	Inventory (oz)	    	Inventory (oz)	
Mount Milligan	 	 	12,100	 	14,000	 	23,100	 	15,200	 	 	8,500	 	7,100	
Pueblo Viejo	 	 	10,200	 	13,200	 	12,400	 	10,400	 	 	10,200	 	9,500	
Andacollo	 	 	9,400	 	13,900	 	9,900	 	12,000	 	 	300	 	4,300	
Wassa	 	 	3,800	 	5,600	 	4,600	 	4,400	 	 	600	 	1,500	
Rainy River	 	 	3,600	 	2,600	 	4,400	 	5,000	 	 	2,300	 	1,800	
Other	 	 	900	 	800	 	1,200	 	1,200	 	 	400	 	400	
Total	 	 	40,000	 	50,100	 	55,600	 	48,200	 	 	22,300	 	24,600	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	Three Months Ended	 	Three Months Ended	 	 	As of	 	As of	
 	 	 	March 31, 2020	 	March 31, 2019	 	 	March 31, 2020	 	June 30, 2019	
Silver Stream	    	 	Purchases (oz)	    	Sales (oz)	    	Purchases (oz)	    	Sales (oz)	    	 	Inventory (oz)	    	Inventory (oz)	
Pueblo Viejo	 	 	394,700	 	417,800	 	553,000	 	469,000	 	 	394,700	 	475,600	
Rainy River	 	 	40,800	 	47,900	 	35,700	 	40,800	 	 	41,300	 	36,500	
Total	 	 	435,500	 	465,700	 	588,700	 	509,800	 	 	436,000	 	512,100	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	Three Months Ended	 	Three Months Ended	 	 	As of	 	As of	
 	 	 	March 31, 2020	 	March 31, 2019	 	 	March 31, 2020	 	June 30, 2019	
Copper Stream	    	 	Purchases (Mlb)	    	Sales (Mlb)	    	Purchases (Mlb)	    	Sales (Mlb)	    	 	Inventory (Mlb)	    	Inventory (Mlb)	
Mount Milligan	 	 	3.4	 	4.3	 	2.5	 	2.6	 	 	 —	 	0.8	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	Nine Months Ended	 	Nine Months Ended	 	 	As of	 	As of	
 	 	 	March 31, 2020	 	March 31, 2019	 	 	March 31, 2020	 	June 30, 2019	
Gold Stream	    	 	Purchases (oz)	    	Sales (oz)	    	Purchases (oz)	    	Sales (oz)	    	 	Inventory (oz)	    	Inventory (oz)	
Mount Milligan	 	 	44,900	 	43,500	 	46,100	 	38,500	 	 	8,500	 	7,100	
Andacollo	 	 	37,700	 	41,800	 	35,900	 	41,000	 	 	300	 	4,300	
Pueblo Viejo	 	 	33,900	 	33,100	 	31,700	 	28,500	 	 	10,200	 	9,500	
Wassa	 	 	11,600	 	12,500	 	12,300	 	14,000	 	 	600	 	1,500	
Rainy River	 	 	12,200	 	11,700	 	12,500	 	12,300	 	 	2,300	 	1,800	
Other	 	 	3,700	 	3,600	 	4,700	 	6,000	 	 	400	 	400	
Total	 	 	144,000	 	146,200	 	143,200	 	140,300	 	 	22,300	 	24,600	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	Nine Months Ended	 	Nine Months Ended	 	 	As of	 	As of	
 	 	 	March 31, 2020	 	March 31, 2019	 	 	March 31, 2020	 	June 30, 2019	
Silver Stream	    	 	Purchases (oz)	    	Sales (oz)	    	Purchases (oz)	    	Sales (oz)	    	 	Inventory (oz)	    	Inventory (oz)	
Pueblo Viejo	 	 	1,274,900	 	1,355,800	 	880,200	 	938,000	 	 	394,700	 	475,600	
Rainy River	 	 	138,300	 	133,500	 	97,500	 	85,600	 	 	41,300	 	36,500	
Total	 	 	1,413,200	 	1,489,300	 	977,700	 	1,023,600	 	 	436,000	 	512,100	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	Nine Months Ended	 	Nine Months Ended	 	 	As of	 	As of	
 	 	 	March 31, 2020	 	March 31, 2019	 	 	March 31, 2020	 	June 30, 2019	
Copper Stream	    	 	Purchases (Mlb)	    	Sales (Mlb)	    	Purchases (Mlb)	    	Sales (Mlb)	    	 	Inventory (Mlb)	    	Inventory (Mlb)	
Mount Milligan	 	 	10.2	 	11.0	 	6.8	 	6.7	 	 	 —	 	0.8	

 

9

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

 	    	 	March 31, 2020	 	 	June 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	 	 	 	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	 	 	 	 	 	 	 	 	
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	

 

10

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

 	 	For The Three Months Ended	 	  	For The Nine Months Ended	
 	 	 	March 31, 2020	 	 	   	March 31, 2019	 	 	 	March 31, 2020	 	 	   	March 31, 2019	
Revenue	 	 	$	136,437	 	 	   	$	109,778	 	 	 	$	378,853	 	 	 	$	307,362	
Costs and expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost of sales (excludes depletion, depreciation 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 and comprehensive income	 	 	 	38,292	 	 	 	 	28,594	 	 	 	 	147,579	 	 	 	 	63,615	
Net loss and comprehensive loss attributable to non-controlling interests	 	 	 	262	 	 	 	 	178	 	 	 	 	2,750	 	 	 	 	3,753	
Net income and comprehensive income attributable 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	 	 	$	0.59	 	 	 	$	0.44	 	 	 	$	2.30	 	 	 	$	1.03	
Basic weighted average shares outstanding	 	 	 	65,511,878	 	 	 	 	65,398,369	 	 	 	 	65,501,678	 	 	 	 	65,389,499	
Diluted earnings per share	 	 	$	0.59	 	 	 	$	0.44	 	 	 	$	2.29	 	 	 	$	1.03	
Diluted weighted average shares outstanding	 	 	 	65,600,770	 	 	 	 	65,515,234	 	 	 	 	65,626,400	 	 	 	 	65,494,902	
Cash dividends declared per common share	 	 	$	0.59	 	 	 	$	0.265	 	 	 	$	0.825	 	 	 	$	0.78	

 

11

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

 	 	Three Months Ended	   	Nine Months Ended	
 	 	March 31, 2020	       	March 31, 2019	   	March 31, 2020	     	March 31, 2019	
Cash flows from operating activities:	 	 	 	   	   	 	 	 	 	   	   	 	
Net income and comprehensive income	 	$	38,292	 	$	28,594	 	$	147,579	 	$	63,615	
Adjustments to reconcile net income to net cash provided by operating activities:	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation, depletion and amortization	 	 	 51,228	 	 	39,368	 	 	 130,038	 	 	120,726	
Amortization of debt discount and issuance costs	 	 	 285	 	 	4,018	 	 	 851	 	 	11,882	
Non-cash employee stock compensation expense	 	 	 4,644	 	 	1,440	 	 	 8,283	 	 	5,510	
Fair value changes in equity securities	 	 	 3,819	 	 	(1,781)	 	 	 4,972	 	 	3,318	
Deferred tax (benefit) expense	 	 	(991)	 	 	(5,022)	 	 	(37,117)	 	 	(5,329)	
Other  	 	 	(148)	 	 	 —	 	 	(148)	 	 	 —	
Changes in assets and liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	
Royalty receivables	 	 	(3,875)	 	 	(1,895)	 	 	(11,589)	 	 	(1,198)	
Stream inventory	 	 	 3,389	 	 	(4,458)	 	 	(567)	 	 	(3,102)	
Income tax receivable	 	 	(1,690)	 	 	4,003	 	 	(8,658)	 	 	(8,750)	
Prepaid expenses and other assets	 	 	 1,249	 	 	169	 	 	(5,771)	 	 	2,474	
Accounts payable	 	 	(366)	 	 	2,700	 	 	(1,295)	 	 	(4,326)	
Income tax payable	 	 	 6,662	 	 	5,512	 	 	 14,054	 	 	(2,002)	
Uncertain tax positions	 	 	(3,362)	 	 	933	 	 	(132)	 	 	3,130	
Other liabilities	 	 	 563	 	 	3,860	 	 	 8,695	 	 	(5,039)	
Net cash provided by operating activities	 	$	99,699	 	$	77,441	 	$	249,195	 	$	180,909	
Cash flows from investing activities:	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisition of stream and royalty interests	 	 	(35,438)	 	 	(1,000)	 	 	(107,855)	 	 	(1,055)	
Purchase of equity securities	 	 	(50)	 	 	(4)	 	 	(461)	 	 	(3,573)	
Other	 	 	(1,547)	 	 	(70)	 	 	 3,227	 	 	(157)	
Net cash used in investing activities	 	$	(37,035)	 	$	(1,074)	 	$	(105,089)	 	$	(4,785)	
Cash flows from financing activities:	 	 	 	 	 	 	 	 	 	 	 	 	
Repayment of debt	 	 	(30,000)	 	 	 —	 	 	(115,000)	 	 	 —	
Net payments from issuance of common stock	 	 	(1,510)	 	 	235	 	 	(4,257)	 	 	(1,982)	
Common stock dividends	 	 	(18,356)	 	 	(17,360)	 	 	(53,111)	 	 	(50,114)	
Contributions from non-controlling interest	 	 	 600	 	 	420	 	 	 3,300	 	 	3,210	
Other	 	 	(187)	 	 	(202)	 	 	(798)	 	 	 8	
Net cash used in financing activities	 	$	(49,453)	 	$	(16,907)	 	$	(169,866)	 	$	(48,878)	
Net increase (decrease) in cash and equivalents	 	 	 13,211	 	 	59,460	 	 	(25,760)	 	 	127,246	
Cash and equivalents at beginning of period	 	 	 80,504	 	 	156,536	 	 	 119,475	 	 	88,750	
Cash and equivalents at end of period	 	$	93,715	 	$	215,996	 	$	93,715	 	$	215,996	

 

12

 
 
Schedule A – Non-GAAP Financial Measures and Certain Other Measures
 
Overview of non-GAAP financial measures:
Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by U.S. generally accepted accounting principles (“GAAP”). These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. In addition, because the presentation of these non-GAAP financial measures varies among companies, these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.
We have provided below reconciliations of our non-GAAP financial measures to the comparable GAAP measures. We believe these non-GAAP financial measures provide useful information to investors for analysis of our business. We use these non-GAAP financial measures to compare period-over-period performance on a consistent basis and when planning and forecasting for future periods. We believe these non-GAAP financial measures are used by professional research analysts and others in the valuation, comparison and investment recommendations of companies in our industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions. The adjustments made to calculate our non-GAAP financial measures are subjective and involve significant management judgement. Non-GAAP financial measures used by management in this report or elsewhere include the following:

	1.		Adjusted earnings before interest, taxes, depreciation, depletion and amortization, or adjusted EBITDA, is a non-GAAP financial measure that is calculated by the Company as net income adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. We consider adjusted EBITDA to be useful because the measure reflects our operating performance before the effects of certain non-cash items and other items that we believe are not indicative of our core operations.	
	2.		Adjusted net income and adjusted net income per share are non-GAAP financial measures that are calculated by the Company as net income and net income per share adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliations below. We consider these non-GAAP financial measures to be useful because they allow for period-to-period comparisons of our operating results excluding items that we believe are not indicative of our fundamental ongoing operations.	
	3.		Net debt is a non-GAAP financial measure that is calculated by the Company as debt (excluding debt issuance costs) at the end of a period minus cash and equivalents for that same date. Net debt to adjusted EBITDA is a non-GAAP financial measure that is calculated by the Company as net debt for a period divided by adjusted EBITDA (as defined above) for that same period. We believe that these measures are important to monitor leverage and evaluate the balance sheet. Cash and equivalents are subtracted from the GAAP measure because it could be used to reduce our debt obligations. A limitation associated with using net debt is that it subtracts cash and equivalents and therefore may imply that there is less Company debt than the most comparable GAAP measure indicates. We believe that investors may find these measures useful to monitor leverage and evaluate the balance sheet.	
	4.		Free cash flow is a non-GAAP financial measure that is calculated by the Company as net cash provided by operating activities for a period minus acquisition of stream and royalty interests for that same period. We believe that free cash flow represents an additional way of viewing liquidity as it is adjusted for contractual investments made during such period. Free cash flow does not represent the residual cash flow available for discretionary expenditures. We believe it is important to view free cash flow as a complement to our consolidated statements of cash flows.	
Reconciliation of non-GAAP financial measures to U.S. GAAP measures
Adjusted EBITDA:

 	 	Three Months Ended	 	Nine Months Ended	 	Twelve Months Ended	
 	 	March 31,	 	March 31,	 	March 31,	
(amounts in thousands)	 	2020	 	2019	 	2020	 	2019	 	2020	 	2019	
Net income and comprehensive income	 	$	38,292	 	$	28,594	 	$	147,579	 	$	63,615	 	$	173,045	 	$	87,622	
Depreciation, depletion and amortization	 	 	51,228	 	 	39,368	 	 	130,038	 	 	120,726	 	 	172,369	 	 	163,043	
Non-cash employee stock compensation	 	 	4,644	 	 	1,440	 	 	8,283	 	 	5,510	 	 	9,390	 	 	7,832	
Fair value changes in equity securities	 	 	3,819	 	 	(1,781)	 	 	4,972	 	 	3,318	 	 	8,454	 	 	3,318	
Interest and other, net	 	 	1,468	 	 	7,000	 	 	5,518	 	 	21,697	 	 	11,151	 	 	29,209	
Income tax expense (benefit)	 	 	8,702	 	 	9,388	 	 	(3,700)	 	 	11,355	 	 	2,443	 	 	16,083	
Non-controlling interests in operating loss of consolidated subsidiaries	 	 	410	 	 	178	 	 	2,898	 	 	3,753	 	 	3,891	 	 	6,396	
Adjusted EBITDA	 	$	108,563	 	$	84,187	 	$	295,588	 	$	229,974	 	$	380,743	 	$	313,503	

13

Adjusted net income and adjusted net income per share:

 	 	Three Months Ended	 	Nine Months Ended	
 	 	March 31,	 	March 31,	
(amounts in thousands, except per share data)	 	2020	 	2019	 	2020	 	2019	
Net income and comprehensive income attributable to Royal Gold common stockholders	 	$	38,554	 	$	28,772	 	$	150,329	 	$	67,368	
Fair value changes in equity securities	 	 	3,819	 	 	(1,781)	 	 	4,972	 	 	3,318	
Non-recurring non-cash employee stock compensation	 	 	3,338	 	 	 —	 	 	3,338	 	 	 —	
Tax effect of adjustments	 	 	(1,403)	 	 	475	 	 	(1,634)	 	 	(710)	
Adjusted net income attributable to Royal Gold common stockholders	 	 	44,308	 	 	27,466	 	$	157,005	 	$	69,976	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Royal Gold common stockholders per diluted share	 	$	0.59	 	$	0.44	 	 	2.29	 	 	1.03	
Fair value changes in equity securities	 	 	0.06	 	 	(0.03)	 	 	0.08	 	 	0.05	
Non-recurring non-cash employee stock compensation	 	 	0.05	 	 	 —	 	 	0.05	 	 	 —	
Tax effect of adjustments	 	 	(0.02)	 	 	0.01	 	 	(0.02)	 	 	(0.01)	
Adjusted net income attributable to Royal Gold common stockholders per diluted share	 	$	
0.68	 	$	
0.42	 	$	
2.40	 	$	
1.07	

Net debt and net debt to adjusted EBITDA:

 	 	March 31,	
(amounts in thousands)	 	2020	
Debt	 	$	100,154	
Debt issuance costs	 	 	4,846	
Cash and equivalents	 	 	(93,715)	
Net debt	 	$	11,285	
 	 	 	 	
Twelve months ended March 31, 2020 adjusted EBITDA	 	$	380,743	
Net debt to adjusted EBITDA	 	 	.03x	
 
Free cash flow:

 	 	Three Months Ended	 	Nine Months Ended	
 	 	March 31,	 	March 31,	
(amounts in thousands)	 	2020	 	2019	 	2020	 	2019	
Net cash provided by operating activities	 	$	99,699	 	$	77,441	 	$	249,195	 	$	180,909	
Acquisition of stream and royalty interests	 	 	(35,438)	 	 	(1,000)	 	 	(107,855)	 	 	(1,055)	
Free cash flow	 	$	64,261	 	$	76,441	 	$	141,340	 	$	179,854	
 
Other measures
We use certain other measures in managing and evaluating our business. We believe these measures may provide useful information to investors for analysis of our business. We use these measures to compare period-over-period performance and liquidity on a consistent basis and when planning and forecasting for future periods. We believe these measures are used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in our industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions. Other measures used by management in this report and elsewhere include the following:

	1.		Gold equivalent ounces, or GEOs, is calculated by the Company as revenue (in total or by reportable segment) for a period divided by the average gold price for that same period.	
	2.		Depreciation, depletion, and amortization, or DD&A, per GEO is calculated by the Company as depreciation, depletion, and amortization for a period divided by GEOs (as defined above) for that same period.	
	3.		Working capital is calculated by the Company as current assets as of a date minus current liabilities as of that same date.	
	4.		Dividend payout ratio is calculated by the Company as dividends paid during a period divided by net cash provided by operating activities for that same period.	
	5.		Operating margin is calculated by the Company as operating income for a period divided by revenue for that same period.	

 

14

Exhibit 99.2
	NASDAQ: RGLD May 7, 2020 Fiscal Q3 2020 Results	

	2 Cautionary Statement Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: This presentation includes “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from these statements. Forward-looking statements are often identified by words like “will,” “may,” “could,” “should,” “would,” “believe,” “estimate,” “expect,” “anticipate,” “plan,” “forecast,” “potential,” “intend,” “continue,” “project,” or negatives of these words or similar expressions. Forward-looking statements include, among others, the following: statements about our expected financial performance, including revenue, expenses, earnings or cash flow; operators’ expected operating and financial performance, including production, deliveries, mine plans and reserves, development, cash flows and capital expenditures; planned and potential acquisitions or dispositions, including funding schedules and conditions; liquidity, financing and dividends; our overall investment portfolio; macroeconomic and market conditions including the impacts of COVID-19; prices for gold, silver, copper, nickel and other metals; potential impairments; or tax changes. Factors that could cause actual results to differ materially from these forward-looking statements include, among others, the following: a low-price environment for gold, silver, copper, nickel or other metals; operating activities or financial performance of properties on which we hold stream or royalty interests, including variations between actual and forecasted performance, operators’ ability to complete projects on schedule and as planned, changes to mine plans and reserves, liquidity needs, mining and environmental hazards, labor disputes, distribution and supply chain disruptions, permitting and licensing issues, contractual issues involving our stream or royalty agreements; risks associated with doing business in foreign countries; our ability to identify, finance, value and complete acquisitions; adverse economic and market conditions; changes in laws or regulations governing us, operators or operating properties; changes in management and key employees; and other factors described in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended June 30, 2019, and subsequent Quarterly Reports on Form 10-Q. Most of these factors are beyond our ability to predict or control. Forward-looking statements speak only as of the date on which they are made. We disclaim any obligation to update any forward-looking statements, except as required by law. Readers are cautioned not to put undue reliance on forward-looking statements. Statement Regarding Third-party Information: Certain information provided in this presentation, including production estimates for calendar 2020, has been provided to us by the operators of the relevant properties or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of any such third-party information and refers the reader to the public reports filed by the operators for information regarding those properties. Information in this presentation concerning the Khoemacau Copper Project mine life, construction completion, current staffing levels and activity focus, underground development, cost information and initial deliveries of silver under the streaming agreement was provided to the Company by Cupric Canyon Capital L.P., the privately-held owner and developer of Khoemacau. Such information may not have been prepared in accordance with applicable laws, stock exchange rules or international standards governing preparation and public disclosure of technical data and information relating to mineral properties. Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of this third-party information, and investors are cautioned not to rely upon this information.	

	Today’s Speakers 3 Bill Heissenbuttel President and CEO Paul Libner CFO and Treasurer Mark Isto Executive VP and COO	

	Q3 2020 Overview Highlights Revenue of $136.4M Volume of 86,200 GEOs1 $38.6M net income, or $0.59/share • $0.68/share, adjusted to exclude2: – $0.05/share loss on equity securities – $0.04/share one-time equity compensation expense $99.7M cash flow from operations $18.4M in dividends Balance sheet continues to strengthen Revolver balance reduced by $30.0M ~$1B of liquidity at March 31, 2020 (see slide 11) COVID-19 considerations • $200M drawn on revolver April 3 as precautionary measure • Revolver balance to be managed; focus remains on debt repayment 4	

	Recent Developments Khoemacau progress3 Construction activities advancing well • Overall progress ~43% • Capital committed ~80% $47.9M contribution made April 3 • $135.7M total contribution to date • Remaining commitment of $76.3M to $129.3M 5 Site overview – April, 2020	

	Recent Developments Khoemacau progress3 6 Central boxcut access Central boxcut portal	

	Recent Developments Khoemacau progress3 7 Central boxcut portals Central boxcut fans	

	Recent Developments Mount Milligan, Rainy River as reported by the operators4 8 Updated 43-101 report filed March 26 • Reserve life of 9 years • Average production: 161k oz/yr gold, 81.7M lb/yr copper Royal Gold depletion: $764/oz gold, $1.48/lb copper 2020 calendar guidance maintained: 140-160k oz gold, 80-90M lb copper Updated 43-101 report filed March 27 • Mine life of 9 years • Average production: 289k oz/yr gold equivalent (includes 3.6M oz silver at $1,300/oz gold, $16.00/oz silver) • Potential to extend underground operations Royal Gold depletion: $848/oz gold, $11.27/oz silver Mount Milligan Rainy River	

	Recent Developments Pueblo Viejo, Cortez as reported by the operators4 9 Plant expansion study continuing • Process flowsheet design underway Concept study for tailings study well advanced • EIS baseline and studies ongoing Potential gold production of 800k oz/yr after 2022 (100% basis) Updated LOM plan and reserve statement received Dec. 31, 2019 proven and probable reserves • 3.5M oz contained gold (87Mt at 1.26g/t) Expected gold production profile • ~175k oz in CY 2020 • ~425k oz/yr CY 2021 through 2026 Pueblo Viejo Cortez	

	Fiscal Q3 Financial Results 10 $136.4M revenue $38.6M net income ($0.59/share) G&A of $9.6M DD&A of $51.2M, or $594/GEO1 Adjusted net income of $44.3M ($0.68/share) after excluding2: • $3.8M loss on fair value changes of equity securities • $3.3M non-cash compensation expense $99.7M operating cash flow Guidance: Fiscal Q4: • Stream segment: • 50,000-55,000 GEO sales • 18,000-23,000 GEO ending inventory • $650-675/GEO DD&A Full year fiscal 2020: • 19-23% effective tax rate	

	Fiscal Q3 Liquidity ~$1B of liquidity available at March 31, 2020 Revolving Credit Facility: repaid $30M during FQ3 / drew $200M April 3 11 March 31, 2020 Amount (US$ M) Undrawn Revolving Credit Facility 895 Working capital 101 Total available liquidity $996 Khoemacau stream commitments: Completed 88 Remaining: CY 2020* 113 CY 2021 11 – 64 Total remaining commitments $124 – 177 * $48M contribution made Apr. 3, 2020; $65M expected remaining commitment for CY 2020	

	Disciplined Strategy, Successful Results Solid operating and financial performance Strong balance sheet Excellent liquidity position Positioned to act on new business opportunities 12	

	Endnotes	

	Endnotes 1. Gold Equivalent Ounces (“GEOs”) are calculated as reported revenue (in total or by reportable segment) for a period divided by the average gold price for that same period. DD&A per GEO is calculated as reported depreciation, depletion and amortization for a period divided by GEOs for that same period. 2. Adjusted net income and adjusted net income per share are non-GAAP financial measures. See Schedule A to the accompanying press release dated May 6, 2020 for more information. 3. Certain information on this slide was provided to the Company by Khoemacau Copper Mining (Pty.) Limited, the majority owner and developer of the Khoemacau Project. The production, design, engineering, construction and equipment information, and other technical and economic information provided to the Company and presented here, or forming the basis of information presented here, is not publicly available. This information may not have been prepared in accordance with applicable laws, stock exchange rules or international standards governing preparation and public disclosure of technical data and information relating to mineral properties. The Company has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness, or fairness of this third- party information, and investors are cautioned not to rely on this information. 4. Except as noted with an asterisk, all information on this slide has been provided by the operators of these properties or is publicly available information disclosed by the operators. 14	

	1144 15th St, #2500 Denver, Colorado 80202 303.573.1660 www.royalgold.com NASDAQ: RGLD