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 2, 2018
 
ROYAL GOLD, INC.
(Exact name of registrant as specified in its charter)

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

1660 Wynkoop Street, Suite 1000, Denver, CO	 	80202-1132	
(Address of principal executive offices)	 	(Zip Code)	
 
Registrant’s telephone number, including area code:  303-573-1660

(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o       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 o
 
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. o

 

 
Item 2.02
 
On May 2, 2018, Royal Gold, Inc. (the “Company”) reported its third quarter fiscal 2018 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 2, 2018 regarding Third Fiscal Quarter 2018 Results.	
99.2	 	Royal Gold, Inc. May 3, 2018 Earnings Presentation.	
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	Royal Gold, Inc.	
 	(Registrant)	
 	 	 	
Dated:  May 3, 2018	By:	/s/ Bruce C. Kirchhoff	
 	 	Name:	Bruce C. Kirchhoff	
 	 	Title:	Vice President, General Counsel and Secretary	
 
2 

EXHIBIT 99.1 

 
Royal Gold Reports Third Quarter 2018 Results
 
DENVER, COLORADO.  MAY 2, 2018: ROYAL GOLD, INC. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) reports a net loss of $153.7 million, or ($2.35) per share, on revenue of $116.0 million in its fiscal third quarter ended  March 31, 2018 (“third quarter”).  Third quarter reported earnings include non-cash charges of $184.9 million, net of tax.  Absent these impacts, adjusted net income(1) was $31.3 million, or $0.48 per share, up 32% from the prior year quarter.
 
Third Quarter Highlights Compared to Prior Year Quarter:
 
·       Revenue of $116 million, an increase of 8%
·       Operating cash flow of $105 million, an increase of 37%
·       Volume of 87,300 GEOs,(2) in line with the prior year quarter
·       Dividends paid of $16 million, an increase of 5%
·       Additional $75 million repaid on revolving credit facility
·       Average gold price of $1,329 per ounce, an increase of 9%
 
“We delivered another quarter of solid operating performance, which included our first full quarter sales of gold and silver from Rainy River,” commented Tony Jensen, President and CEO.  “While a non-cash impairment from Pascua-Lama impacted our reported earnings, we continue to believe that the project presents significant option value for Royal Gold shareholders.  In the near term, we look forward to improved production from Rainy River as it continues to mature, as well as growth from the Peñasquito Pyrite Leach Project and Cortez Crossroads, which are both expected to begin production late this calendar year.”
 
Recent Developments
 
Peak Gold Joint Venture
 
As of April 24, 2018, Royal Gold, through its wholly owned subsidiary, Royal Alaska, LLC, owns a 40% interest in and manages the Peak Gold Joint Venture (“Peak Gold JV”), for exploration and development of the Peak Gold Project located near Tok, Alaska.  CORE Alaska, LLC, a wholly

(1)     Adjusted Net Income is a non-GAAP measure.  Please see page 15 for reconciliation.
 
(2)     Gold Equivalent Ounces, (“GEOs”) are calculated as revenue divided by the average gold price for the same period. GEOs net of stream payments were 71,200 in the third quarter, compared to 69,400 in the prior year quarter.
 
1 

 
owned subsidiary of Contango ORE, Inc. (“CORE”), owns a 60% interest in the Peak Gold JV.  The approved exploration budget for 2018 is $9.1 million on a consolidated basis.
 
Royal Gold also owns net smelter return (“NSR”) royalties of 2.0% and 3.0% over separate areas comprising the Peak Gold Project, which has a maiden resource of 11.3 million tonnes grading  3.46 grams per tonne gold.(3)
 
In a separate transaction on April 5, 2018, Royal Gold entered into a purchase agreement with a private seller to purchase 809,744 shares of CORE common stock, equating to an approximately 13.6% equity interest in CORE.
 
Pascua-Lama
 
The Company owns a 0.78% to 5.45% sliding-scale NSR gold royalty and a 1.09% NSR copper royalty on the Pascua-Lama project, owned by Barrick Gold Corporation (“Barrick”).  The project straddles the border of Chile and Argentina.  Our royalty interests are applicable to all gold and copper production from the portion of the Pascua-Lama project lying on the Chilean side of the border.
 
On February 6, 2018, Barrick announced it reclassified Pascua-Lama’s proven and probable gold reserves(4) of approximately 14 million ounces as measured and indicated resources.(3)   A significant reduction in reserves or mineralized material is an indicator of potential impairment.
 
On April 23, 2018, Barrick announced that work performed to date on the prefeasibility study for a potential underground project at Pascua-Lama was suspended.  Barrick will continue to evaluate opportunities to de-risk the project while maintaining Pascua-Lama as an option for development in the future if economics improve and related risks can be mitigated.
 
An impairment charge of $239.4 million ($178.9 million net of taxes) was taken during the third quarter, resulting in a carrying value of $177.7 million as of March 31, 2018. As part of our impairment determination, the fair value for Pascua-Lama was estimated by calculating the net present value of future cash flows expected to be generated from mining the Pascua-Lama deposits subject to our royalty interest.

(3)     The U.S. Securities and Exchange Commission does not recognize the term “resource.”  “Resources” are not reserves under the SEC’s regulations, but are categorized under the securities law regulations of certain foreign jurisdictions in order of increasing geological confidence into “inferred resources,” “indicated resources” and “measured resources.”  Investors are cautioned that resources cannot be classified as reserves unless and until it is demonstrated that they may be legally and economically extracted and produced and, as a result, they should not assume that all or any part of mineralized material in any of these categories will ever be converted into reserves.
 
(4)     Cautionary Note to U.S. Investors Concerning Estimates of Proven and Probable Mineral Reserves and Measured and Indicated Mineral Resources: The mineral reserve and resource estimates reported by Barrick were prepared in accordance with Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves. Royal Gold has not reconciled the reserve and resource estimates provided by Barrick with definitions of reserves used by the U.S. Securities and Exchange Commission.
 
2 

 
Wassa and Prestea
 
On April 12, 2018, Golden Star announced that it more than doubled its inferred mineral resource(3) estimate for its Wassa underground mine in Ghana, to 5.2 million ounces of gold from 2.1 million ounces at year-end 2017.
 
Mount Milligan
 
As previously reported, Centerra Gold(“Centerra”) temporarily suspended mill operations at Mount Milligan on December 27, 2017 due to insufficient fresh water.  Mill operations restarted on February 5, 2018 with a single ball mill, and the second ball mill restarted on March 23, 2018.  Centerra reported on May 1, 2018 that Mount Milligan was operating at an average throughput of approximately 40,000 tonnes per day, and that once the spring snow melt is underway, throughput is expected to increase to a targeted average of 55,000 tonnes per day for the second half of the calendar year.
 
Centerra is pursuing more permanent permitting solutions to allow higher levels of pumping from current water sources and is developing additional ground water sources for Mount Milligan to proactively mitigate potential future water shortages during winter months.
 
Our third quarter results were not impacted by the temporary shutdown of the mill processing facility. Due to the timing of shipments and deliveries of gold and copper, we expect the impact of the temporary shutdown to be reflected in Royal Gold’s mid-calendar 2018 results, as some of the deliveries of gold and copper that were expected in the June through August 2018 period will be deferred to a later date.
 
Attributable Reserves
 
Royal Gold also announces updated estimates of ore reserves and mineralized material(5) attributable to the Company’s stream, royalty and similar interests as of December 31, 2017.  These figures are provided by the operators of properties on which the Company holds these interests, or are obtained by Royal Gold through publicly available information.
 
On a gold equivalent basis(6), metals reserves attributable to Royal Gold were 6.3 million ounces, on a net reserve basis, at year end 2017, compared with 7.2 million ounces for the same period

(5)     The U.S. Securities and Exchange Commission does not recognize this term.  Mineralized material is that part of a mineral system that has potential economic significance but cannot be included in the proven and probable ore reserve estimates until further drilling and metallurgical work is completed, and until other economic and technical feasibility factors based upon such work have been resolved.  Investors are cautioned not to assume that any part or all of the mineral deposits in this category will ever be converted into reserves.
 
(6)     Gold equivalent basis is calculated as total attributable gold ounces plus non-gold metals calculated with the following ratios per ounce of gold for 2017, using a year-end gold price of $1,291 per ounce: 76 ounces of silver, 397 pounds of copper, 1,143 pounds of lead, 861 pounds of zinc, and 232 pounds of nickel.  For 2016, non-gold metals were calculated using a year-end gold price of $1,146: 71 ounces of silver, 458 pounds of copper, 1,273 pounds of lead, 988 pounds of zinc, and 252 pounds of nickel.
 
3 

 
ended 2016. The reduction in reserves was principally due to the reclassification of reserves to resources at Pascua-Lama, as well as net depletion.
 
Third Quarter Overview
 
Third quarter revenue was $116.0 million compared to $107.0 million in the prior year quarter. Stream and royalty revenue totaled $83.0 million and $33.0 million, respectively, for the third quarter.  Revenue increased due to higher gold and copper prices as well as increased stream sales from Wassa and Prestea, copper at Mount Milligan, and new production from Rainy River, partially offset by lower metal sales at Pueblo Viejo and Andacollo.
 
Third quarter ending inventory was comprised of 26,000 gold ounces and 659,000 silver ounces, an increase over the prior quarter due to deliveries received in late March.  We expect our fiscal fourth quarter 2018 sales related to our streaming agreements to be in line with the third quarter as inventory is expected to be reduced according to our routine sales procedures, offsetting lower expected deliveries from Mount Milligan.
 
Third quarter cost of sales of $21.3 million was below the $22.4 million recorded in the prior year quarter, driven by lower portfolio gold and silver sales.
 
General and administrative expenses increased to $8.1 million in the third quarter, compared to $5.4 million in the prior year quarter.  The increase was primarily related to an increase in legal costs of $1.3 million and an increase in non-cash compensation of $1.2 million.
 
Exploration costs, which are related to our Peak Gold JV, were $536,000 in the third quarter, a decrease from $2.7 million the prior year quarter, due to reduced field work during the winter months.
 
We recognized an income tax benefit totaling $45.9 million in the third quarter, compared with an income tax expense of $6.5 million in the prior year quarter.  This resulted in an effective tax rate of 22.9% in the current period, compared with 23.2% in the prior year quarter.  The third quarter tax benefit was related to the Pascua-Lama impairment and was somewhat offset by a $6 million increase to uncertain tax liabilities.
 
At March 31, 2018, we had current assets of $151.9 million compared to current liabilities of $43.5 million, resulting in working capital of $108.4 million.  This compares to current assets of $165.5 million and current liabilities of $41.6 million at December 31, 2017, resulting in working capital of $123.9 million.
 
During the third quarter, liquidity needs were met from our available cash resources and $94.7 million in revenue net of our streaming payments.  The Company repaid $75 million of the outstanding revolving credit facility during the quarter resulting in $925 million available and $75 million outstanding under the revolving credit facility as of March 31, 2018. Working capital, combined with the Company’s undrawn revolving credit facility, totaled approximately $1 billion of liquidity at March 31, 2018.
 
4 

 
PROPERTY HIGHLIGHTS
 
A summary of third quarter and historical production reported by operators of our stream and royalty properties can be found on Tables 1 and 2.  Calendar year 2018 operator production estimates of certain properties in which we have interests compared to actual production through March 31, 2018 can be found on Table 3.  Results of our 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 our Annual Report on Form 10-K.
 
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.  The Company owns interests on 192 properties on six continents, including interests on 39 producing mines and 22 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:
 
Karli Anderson
Vice President Investor Relations
(303) 575-6517
 
Note:   Management’s conference call reviewing the third quarter results will be held on Thursday, May 3, 2018, 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.
 
Third Quarter Earnings Call Information:

Dial-In Numbers:	 	855-209-8260 (U.S.); toll free	
 	 	855-669-9657 (Canada); toll free	
 	 	412-542-4106 (International)	
Conference Title:	 	Royal Gold	
Webcast URL:	 	www.royalgold.com under Investors, Events & Presentations	
 
Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995:  With the exception of historical matters, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein.  Such forward-looking statements include statements about Barrick’s reclassification of gold reserves to mineralized material at Pascua-Lama and suspension of work on the underground project pre-feasibility study, the impact of the Company’s non-cash impairment of the Pascua-Lama royalty, and the option value of the Pascua-Lama project for the Company’s shareholders; improved production at Rainy River; growth from production at the Peñasquito Pyrite Leach Project and at Cortez Crossroads, and
 
5 

 
expected commencement of production at each; anticipated exploration spending at the Peak Gold Project and mineral resources reported for the Project; the agreement to purchase shares of CORE; the increase in estimated inferred mineral resource for Wassa underground; the impact of the temporary shutdown and subsequent restart of mill processing operations at Mount Milligan; and operators’ production estimates for calendar year 2018.  Net gold and metal reserves attributable to Royal Gold’s stream, royalty and other interests are subject to certain assumptions and, like reserves, do not reflect actual ounces that will be produced.  Like any stream, royalty or similar interest on a non-producing or not-yet-in-development project, our interests on development projects are subject to certain risks, such as the ability of the operators to bring the projects into production and operate in accordance with their feasibility studies and mine plans, and the ability of Royal Gold to make accurate assumptions regarding valuation and timing and amount of payments.  In addition, many of our interests are subject to risks associated with conducting business in a foreign country, including application of foreign laws to contract and other disputes, foreign environmental laws and enforcement and uncertain political and economic environments. Factors that could cause actual results to differ materially from the projections include, among others, precious metals, copper and nickel prices; performance of and production at the Company’s stream and royalty properties, including gold and copper production at Mount Milligan and gold and silver production at Pueblo Viejo; the ability of operators to finance project construction to completion and bring projects into production as expected, including development stage mining properties, mine and mill expansion projects and other development and construction projects; operators’ delays in securing or inability to secure or maintain necessary governmental permits; decisions and activities of the operators of the Company’s stream and royalty properties; unanticipated grade, environmental, geological, seismic, metallurgical, processing, liquidity or other problems the operators of the Company’s stream and royalty properties may encounter; operators’ inability to access sufficient raw materials, water or power; changes in operators’ project parameters as plans continue to be refined; changes in estimates of reserves and mineralization by the operators of the Company’s stream and royalty properties; contests to the Company’s stream and royalty interests and title and other defects in the properties where the Company holds stream and royalty interests; errors or disputes in calculating stream deliveries and royalty payments, or deliveries or payments not made in accordance with stream and royalty agreements; economic and market conditions; changes in laws governing the Company and its stream and royalty interests or the operators of the properties subject to such interests, and other subsequent events; as well as other factors described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission.  Most of these factors are beyond the Company’s ability to predict or control.  The Company disclaims any obligation to update any forward-looking statement made herein.  Readers are cautioned not to put undue reliance on forward-looking statements.
 
Statement Regarding Third-Party Information:   Certain information provided in this press release, including production estimates for calendar 2018, has been provided to us by the operators of the relevant properties or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission.  Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for, the accuracy, completeness or fairness of such third-party information and refers the reader to the public reports filed by the operators for information regarding those properties.
 
6 

 
TABLE 1
Third Quarter Fiscal 2018
Revenue and Operators’ Reported Production for Principal Stream and Royalty Interests
(In thousands, except reported production in oz. and lbs.)

 	 	 	 	Three Months Ended	 	Three Months Ended	 	
 	 	 	 	March 31, 2018	 	March 31, 2017	 	
 	 	 	 	 	 	Reported	 	 	 	Reported	 	
Stream/Royalty	 	Metal(s)	 	Revenue	 	Production(1)	 	Revenue	 	Production(1)	 	
Stream:	 	 	 	 	 	 	 	 	 	 	 	
Mount Milligan	 	 	 	$	47,807	 	 	 	$	35,112	 	 	 	
 	 	Gold	 	 	 	25,800	 oz.	 	 	28,900	 oz.	
 	 	Copper	 	 	 	4.3	 Mlbs.	 	 	N/A	 	
Pueblo Viejo(2)	 	 	 	$	15,734	 	 	 	$	24,524	 	 	 	
 	 	Gold	 	 	 	8,500	 oz.	 	 	15,600	 oz.	
 	 	Silver	 	 	 	260,800	 oz.	 	 	322,000	 oz.	
Wassa and Prestea	 	Gold	 	$	8,350	 	6,300	 oz.	$	6,563	 	5,400	 oz.	
Andacollo	 	Gold	 	$	7,186	 	5,400	 oz.	$	10,398	 	8,500	 oz.	
Rainy River	 	 	 	$	3,902	 	 	 	$	N/A	 	 	 	
 	 	Gold	 	 	 	2,800	 oz.	 	 	N/A	 	
 	 	Silver	 	 	 	11,100	 oz.	 	 	N/A	 	
Total stream revenue	 	 	 	$	82,979	 	 	 	$	76,597	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Royalty:	 	 	 	 	 	 	 	 	 	 	 	
Peñasquito	 	 	 	$	6,452	 	 	 	$	6,981	 	 	 	
 	 	Gold	 	 	 	91,200	 oz.	 	 	137,500	 oz.	
 	 	Silver	 	 	 	5.0	 Moz.	 	 	4.8	 Moz.	
 	 	Lead	 	 	 	26.0	 Mlbs.	 	 	31.3	 Mlbs.	
 	 	Zinc	 	 	 	88.0	 Mlbs.	 	 	88.5	 Mlbs.	
Cortez	 	Gold	 	$	1,901	 	18,900	 oz.	$	1,068	 	11,300	 oz.	
Other(3)	 	Various	 	$	24,651	 	N/A	 	$	22,326	 	N/A	 	
Total royalty revenue	 	 	 	$	33,004	 	 	 	$	30,375	 	 	 	
Total Revenue	 	 	 	$	115,983	 	 	 	$	106,972	 	 	 	
 
7 

 
TABLE 1
Third Quarter Fiscal 2018
Revenue and Operators’ Reported Production for Principal Stream and Royalty Interests
(In thousands, except reported production in oz. and lbs.)

 	 	 	 	Nine Months Ended	 	Nine Months Ended	 	
 	 	 	 	March 31, 2018	 	March 31, 2017	 	
 	 	 	 	 	 	Reported	 	 	 	Reported	 	
Stream/Royalty	 	Metal(s)	 	Revenue	 	Production(1)	 	Revenue	 	Production(1)	 	
Stream:	 	 	 	 	 	 	 	 	 	 	 	
Mount Milligan	 	 	 	$	101,390	 	 	 	$	105,161	 	 	 	
 	 	Gold	 	 	 	57,100	 oz.	 	 	83,500	 oz.	
 	 	Copper	 	 	 	8.7	 Mlbs.	 	 	N/A	 	
Pueblo Viejo(2)	 	 	 	$	67,492	 	 	 	$	71,911	 	 	 	
 	 	Gold	 	 	 	35,900	 oz.	 	 	40,200	 oz.	
 	 	Silver	 	 	 	1.3	 Moz.	 	 	1.2	 Moz.	
Andacollo	 	Gold	 	$	41,124	 	32,100	 oz.	$	41,552	 	32,900	 oz.	
Wassa and Prestea	 	Gold	 	$	26,049	 	20,200	 oz.	$	17,484	 	14,000	 oz.	
Rainy River	 	 	 	$	4,973	 	 	 	$	N/A	 	 	 	
 	 	Gold	 	 	 	3,600	 oz.	 	 	N/A	 	
 	 	Silver	 	 	 	11,100	 oz.	 	 	N/A	 	
Total stream revenue	 	 	 	$	241,028	 	 	 	$	236,108	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Royalty:	 	 	 	 	 	 	 	 	 	 	 	
Peñasquito	 	 	 	$	20,439	 	 	 	$	19,935	 	 	 	
 	 	Gold	 	 	 	296,200	 oz.	 	 	423,000	 oz.	
 	 	Silver	 	 	 	15.9	 Moz.	 	 	15.1	 Moz.	
 	 	Lead	 	 	 	95.5	 Mlbs.	 	 	97.8	 Mlbs.	
 	 	Zinc	 	 	 	274.8	 Mlbs.	 	 	232.1	 Mlbs.	
Cortez	 	Gold	 	$	7,823	 	73,800	 oz.	$	4,942	 	47,600	 oz.	
Other(3)	 	Various	 	$	73,517	 	N/A	 	$	70,895	 	N/A	 	
Total royalty revenue	 	 	 	$	101,779	 	 	 	$	95,772	 	 	 	
Total revenue	 	 	 	$	342,807	 	 	 	$	331,880	 	 	 	
 
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TABLE 2
Operators’ Historical Production

 	 	 	 	 	 	 	 	Reported Production For The Quarter Ended(1)	 	
Property	 	Operator	 	Stream/Royalty	 	Metal(s)	 	Mar. 31, 2018	 	Dec. 31, 2017	 	Sep. 30, 2017	 	Jun. 30, 2017	 	Mar. 31, 2017	 	
Stream:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mount Milligan(4)	 	Centerra	 	35% of payable gold	 	Gold	 	25,800	 oz.	12,600	 oz.	18,600	 oz.	19,800	 oz.	28,900	 oz.	
 	 	 	 	18.75% of payable copper	 	Copper	 	4.3	 Mlbs.	1.8	 Mlbs.	2.6	 Mlbs.	2.6	 Mlbs.	N/A	 	
Pueblo Viejo	 	Barrick (60)%	 	7.5% of gold produced up to 990,000 ounces; 3.75% therafter	 	Gold	 	8,500	 oz.	14,500	 oz.	12,900	 oz.	10,500	 oz.	15,600	 oz.	
 	 	 	 	75% of payable silver up to 50 million ounces; 37.5% therafter	 	Silver	 	260,800	 oz.	469,600	 oz.	536,600	 oz.	374,500	 oz.	322,000	 oz.	
Andacollo	 	Teck	 	100% of gold produced	 	Gold	 	5,400	 oz.	17,000	 oz.	9,700	 oz.	14,900	 oz.	8,500	 oz.	
Rainy River	 	New Gold	 	6.5% of gold produced up to 230,000 ounces; 3.25% therafter	 	Gold	 	2,800	 oz.	800	 oz.	N/A	 	N/A	 	N/A	 	
 	 	 	 	60% of silver produced up to 3.1 millions ounces delivered; 30% thereafter	 	Silver	 	11,100	 oz.	N/A	 	N/A	 	N/A	 	N/A	 	
Wassa and Prestea(5)	 	Golden Star	 	10.5% of gold produced up to 240,000 ounces; 5.5% therafter	 	Gold	 	6,300	 oz.	6,800	 oz.	7,100	 oz.	6,300	 oz.	5,400	 oz.	
Royalty:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Peñasquito	 	Goldcorp	 	2.0% NSR	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Gold	 	91,200	 oz.	71,100	 oz.	134,000	 oz.	133,300	 oz.	137,500	 oz.	
 	 	 	 	 	 	Silver	 	5.0	 Moz.	5.1	 Moz.	5.9	 Moz.	5.6	 Moz.	4.8	 Moz.	
 	 	 	 	 	 	Lead	 	26.0	 Mlbs.	33.4	 Mlbs.	36.2	 Mlbs.	27.4	 Mlbs.	31.3	 Mlbs.	
 	 	 	 	 	 	Zinc	 	88.0	 Mlbs.	94.4	 Mlbs.	92.4	 Mlbs.	85.7	 Mlbs.	88.5	 Mlbs.	
Cortez	 	Barrick	 	GSR1 and GSR2, GSR3, NVR1	 	Gold	 	18,900	 oz.	25,000	 oz.	29,900	 oz.	16,600	 oz.	11,300	 oz.	
 
FOOTNOTES
Tables 1 and 2
 
(1)          Reported production relates to the amount of metal sales that are subject to our stream and royalty interests for the stated period, as reported to us by operators of the mines.
 
(2)          The first silver stream deliveries were in March 2016, with the first silver sales made during the June 2016 quarter.
 
(3)          Individually, no stream or royalty included within the “Other” category contributed greater than 5% of our total revenue for the entire period.
 
(4)          Reflects the October 20, 2016 amendment to our Mount Milligan streaming agreement. Prior to the amendment, Royal Gold held a 52.25% gold stream.  Gold concentrate that was in transit at October 20, 2016 was delivered to us under the 52.25% gold stream.  Royal Gold began receiving gold and copper deliveries reflecting the amended stream agreement in April 2017.
 
(5)          The gold stream percentage at Wassa and Prestea increased to 10.5% from 9.25%, effective January 1, 2018.
 
9 

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

 	 	Calendar 2018 Operator’s Production	 	Calendar 2018 Operator’s Production	 	
 	 	Estimate(1)	 	Actual(2),(3)	 	
 	 	Gold	 	Silver	 	Base Metals	 	Gold	 	Silver	 	Base Metals	 	
Stream/Royalty	 	(oz.)	 	(oz.)	 	(lbs.)	 	(oz.)	 	(oz.)	 	(lbs.)	 	
Stream:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Andacollo(4)	 	66,700	 	 	 	 	 	14,000	 	 	 	 	 	
Mount Milligan(5)	 	195,000-215,000	 	 	 	47 - 52 million	 	29,500	 	 	 	6.1 million	 	
Pueblo Viejo(6)	 	585,000-615,000	 	Not provided	 	 	 	141,000	 	Not provided	 	 	 	
Rainy River(7)	 	310,000-350,000	 	Not provided	 	 	 	39,300	 	0.1 million	 	 	 	
Wassa and Prestea	 	230,000-255,000	 	 	 	 	 	57,600	 	 	 	 	 	
Royalty:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cortez GSR1	 	48,300	 	 	 	 	 	18,500	 	 	 	 	 	
Cortez GSR2	 	2,200	 	 	 	 	 	400	 	 	 	 	 	
Cortez GSR3	 	50,500	 	 	 	 	 	18,900	 	 	 	 	 	
Cortez NVR1	 	31,600	 	 	 	 	 	11,900	 	 	 	 	 	
Peñasquito(8)	 	310,000	 	Not provided	 	 	 	98,000	 	5.2 million	 	 	 	
Lead	 	 	 	 	 	160 million	 	 	 	 	 	26.0 million	 	
Zinc	 	 	 	 	 	300 million	 	 	 	 	 	88.7 million	 	

(1)          Production estimates received from our operators are for calendar 2018.  There can be no assurance that production estimates received from our operators will be achieved.  Please refer to our cautionary language regarding forward-looking statements and the statement regarding third party information contained in this press release, as well as the Risk Factors identified in Part I, Item 1A, of our Fiscal 2017 Form 10-K for information regarding factors that could affect actual results.
 
(2)          Actual production figures shown are from our operators and cover the period January 1, 2018 through March 31, 2018.
 
(3)          Actual production figures for Cortez are based on information provided to us by Barrick Gold Corporation, and actual production figures for Andacollo, Mount Milligan, Pueblo Viejo, Peñasquito (gold) and Wassa and Prestea are the publicly reported figures of the operators of those properties.
 
(4)          The estimated and actual production figures shown for Andacollo are contained gold in concentrate.
 
(5)          The estimated and actual production figures shown for Mount Milligan are payable gold and copper in concentrate.
 
(6)          The estimated and actual production figures shown for Pueblo Viejo are payable gold in doré and represent Barrick’s 60% interest in Pueblo Viejo.
 
(7)          The estimated gold production figures shown for Wassa and Prestea are payable gold in concentrate and doré.
 
(8)          The estimated and actual gold production figures shown for Peñasquito are payable gold in concentrate.  The operator did not provide estimated silver production.
 
10 

 
TABLE 4
Stream Summary

 	 	Three Months Ended	 	Three Months Ended	 	As of	 	As of	 	
 	 	March 31, 2018	 	March 31, 2017	 	March 31, 2018	 	June 30, 2017	 	
Gold Stream	 	Purchases (oz.)	 	Sales (oz.)	 	Purchases (oz.)	 	Sales (oz.)	 	Inventory (oz.)	 	Inventory (oz.)	 	
Mount Milligan	 	27,400	 	25,800	 	22,700	 	28,900	 	6,800	 	100	 	
Pueblo Viejo	 	13,200	 	8,500	 	10,400	 	15,600	 	13,200	 	12,900	 	
Andacollo	 	10,000	 	5,400	 	10,900	 	8,500	 	4,600	 	100	 	
Wassa and Prestea	 	6,800	 	6,300	 	5,700	 	5,400	 	900	 	1,000	 	
Rainy River	 	2,900	 	2,800	 	—	 	—	 	300	 	—	 	
Total	 	60,300	 	48,800	 	49,700	 	58,400	 	25,800	 	14,100	 	

 	 	Three Months Ended	 	Three Months Ended	 	As of	 	As of	 	
 	 	March 31, 2018	 	March 31, 2017	 	March 31, 2018	 	June 30, 2017	 	
Silver Stream	 	Purchases (oz.)	 	Sales (oz.)	 	Purchases (oz.)	 	Sales (oz.)	 	Inventory (oz.)	 	Inventory (oz.)	 	
Pueblo Viejo	 	616,300	 	260,800	 	373,600	 	322,000	 	616,300	 	536,800	 	
Rainy River	 	41,800	 	11,100	 	—	 	—	 	42,600	 	—	 	
Total	 	658,100	 	271,900	 	373,600	 	322,000	 	658,900	 	536,800	 	

 	 	Three Months Ended	 	Three Months Ended	 	As of	 	As of	 	
 	 	March 31, 2018	 	March 31, 2017	 	March 31, 2018	 	June 30, 2017	 	
Copper Stream	 	Purchases (tonnes)	 	Sales (tonnes)	 	Purchases (tonnes)	 	Sales (tonnes)	 	Inventory (tonnes)	 	Inventory (tonnes)	 	
Mount Milligan	 	1,540	 	1,966	 	N/A	 	N/A	 	—	 	—	 	

 	 	Nine Months Ended	 	Nine Months Ended	 	As of	 	As of	 	
 	 	March 31, 2018	 	March 31, 2017	 	March 31, 2018	 	June 30, 2017	 	
Gold Stream	 	Purchases (oz.)	 	Sales (oz.)	 	Purchases (oz.)	 	Sales (oz.)	 	Inventory (oz.)	 	Inventory (oz.)	 	
Mount Milligan	 	63,800	 	57,100	 	76,100	 	83,500	 	6,800	 	100	 	
Andacollo	 	36,500	 	32,100	 	35,400	 	32,900	 	4,600	 	100	 	
Pueblo Viejo	 	36,300	 	35,900	 	39,700	 	40,200	 	13,200	 	12,900	 	
Wassa and Prestea	 	20,200	 	20,200	 	14,500	 	14,000	 	900	 	1,000	 	
Rainy River	 	3,900	 	3,600	 	—	 	—	 	300	 	—	 	
Total	 	160,700	 	148,900	 	165,700	 	170,600	 	25,800	 	14,100	 	

 	 	Nine Months Ended	 	Nine Months Ended	 	As of	 	As of	 	
 	 	March 31, 2018	 	March 31, 2017	 	March 31, 2018	 	June 30, 2017	 	
Silver Stream	 	Purchases (oz.)	 	Sales (oz.)	 	Purchases (oz.)	 	Sales (oz.)	 	Inventory (oz.)	 	Inventory (oz.)	 	
Pueblo Viejo	 	1,346,500	 	1,267,000	 	1,239,400	 	1,188,600	 	616,300	 	536,800	 	
Rainy River	 	53,700	 	11,100	 	—	 	—	 	42,600	 	—	 	
Total	 	1,400,200	 	1,278,100	 	1,239,400	 	1,188,600	 	658,900	 	536,800	 	

 	 	Nine Months Ended	 	Nine Months Ended	 	As of	 	As of	 	
 	 	March 31, 2018	 	March 31, 2017	 	March 31, 2018	 	June 30, 2017	 	
Copper Stream	 	Purchases (tonnes)	 	Sales (tonnes)	 	Purchases (tonnes)	 	Sales (tonnes)	 	Inventory (tonnes)	 	Inventory (tonnes)	 	
Mount Milligan	 	2,414	 	1,988	 	N/A	 	N/A	 	—	 	—	 	
 
11 

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

 	 	March 31, 2018	 	June 30, 2017	 	
ASSETS	 	 	 	 	 	
Cash and equivalents	 	$	109,376	 	$	85,847	 	
Royalty receivables	 	27,795	 	26,886	 	
Income tax receivable	 	1,149	 	22,169	 	
Stream inventory	 	12,699	 	7,883	 	
Prepaid expenses and other	 	826	 	822	 	
Total current assets	 	151,845	 	143,607	 	
Stream and royalty interests, net	 	2,532,603	 	2,892,256	 	
Other assets	 	68,999	 	58,202	 	
Total assets	 	$	2,753,447	 	$	3,094,065	 	
LIABILITIES	 	 	 	 	 	
Accounts Payable	 	$	3,008	 	$	3,908	 	
Dividends payable	 	16,361	 	15,682	 	
Income tax payable	 	12,431	 	5,651	 	
Withholding taxes payable	 	3,652	 	3,425	 	
Other current liabilities	 	8,045	 	5,617	 	
Total current liabilities	 	43,497	 	34,283	 	
Debt	 	422,273	 	586,170	 	
Deferred tax liabilities	 	103,221	 	121,330	 	
Uncertain tax positions	 	36,616	 	25,627	 	
Other long-term liabilities	 	17,435	 	6,391	 	
Total liabilities	 	623,042	 	773,801	 	
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 65,309,018 and 65,179,527 shares outstanding, respectively	 	653	 	652	 	
Additional paid-in capital	 	2,188,251	 	2,185,796	 	
Accumulated other comprehensive income	 	21	 	879	 	
Accumulated (losses) earnings	 	(100,173	)	88,050	 	
Total Royal Gold stockholders’ equity	 	2,088,752	 	2,275,377	 	
Non-controlling interests	 	41,653	 	44,887	 	
Total equity	 	2,130,405	 	2,320,264	 	
Total liabilities and equity	 	$	2,753,447	 	$	3,094,065	 	
 
12 

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

 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	March 31,	 	March 31,	 	March 31,	 	March 31,	 	
 	 	2018	 	2017	 	2018	 	2017	 	
Revenue	 	$	115,983	 	$	106,972	 	$	342,807	 	$	331,880	 	
 	 	 	 	 	 	 	 	 	 	
Costs and expenses	 	 	 	 	 	 	 	 	 	
Cost of sales	 	21,345	 	22,419	 	61,627	 	67,582	 	
General and administrative	 	8,100	 	5,402	 	24,555	 	23,447	 	
Production taxes	 	423	 	389	 	1,568	 	1,331	 	
Exploration costs	 	536	 	2,647	 	5,098	 	8,411	 	
Depreciation, depletion and amortization	 	39,679	 	40,164	 	121,380	 	119,785	 	
Impairments of royalty interests	 	239,364	 	—	 	239,364	 	—	 	
Total costs and expenses	 	309,447	 	71,021	 	453,592	 	220,556	 	
 	 	 	 	 	 	 	 	 	 	
Operating (loss) income	 	(193,464	)	35,951	 	(110,785	)	111,324	 	
 	 	 	 	 	 	 	 	 	 	
Interest and other income	 	1,781	 	1,326	 	3,416	 	10,056	 	
Interest and other expense	 	(8,294	)	(9,254	)	(25,946	)	(27,068	)	
(Loss) income before income taxes	 	(199,977	)	28,023	 	(133,315	)	94,312	 	
 	 	 	 	 	 	 	 	 	 	
Income tax benefit (expense)	 	45,859	 	(6,492	)	(10,044	)	(18,724	)	
Net (loss) income	 	(154,118	)	21,531	 	(143,359	)	75,588	 	
Net loss attributable to non-controlling interests	 	468	 	2,130	 	3,573	 	5,921	 	
Net (loss) income attributable to Royal Gold common stockholders	 	$	(153,650	)	$	23,661	 	$	(139,786	)	$	81,509	 	
 	 	 	 	 	 	 	 	 	 	
Net (loss) income	 	$	(154,118	)	$	21,531	 	$	(143,359	)	$	75,588	 	
Adjustments to comprehensive (loss) income, net of tax	 	 	 	 	 	 	 	 	 	
Unrealized change in market value of available-for-sale securities	 	(666	)	360	 	(858	)	1,182	 	
Comprehensive (loss) income	 	(154,784	)	21,891	 	(144,217	)	76,770	 	
Comprehensive loss attributable to non-controlling interests	 	468	 	2,130	 	3,573	 	5,921	 	
Comprehensive (loss) income attributable to Royal Gold stockholders	 	$	(154,316	)	$	24,021	 	$	(140,644	)	$	82,691	 	
 	 	 	 	 	 	 	 	 	 	
Net (loss) income per share available to Royal Gold common stockholders:	 	 	 	 	 	 	 	 	 	
Basic (loss) earnings per share	 	$	(2.35	)	$	0.36	 	$	(2.14	)	$	1.25	 	
Basic weighted average shares outstanding	 	65,307,324	 	65,169,883	 	65,283,019	 	65,145,183	 	
Diluted (loss) earnings per share	 	$	(2.35	)	$	0.36	 	$	(2.14	)	$	1.25	 	
Diluted weighted average shares outstanding	 	65,307,324	 	65,274,926	 	65,283,019	 	65,267,201	 	
Cash dividends declared per common share	 	$	0.25	 	$	0.24	 	$	0.74	 	$	0.71	 	
 
13 

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

 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	March 31,	 	March 31,	 	March 31,	 	March 31,	 	
 	 	2018	 	2017	 	2018	 	2017	 	
Cash flows from operating activities:	 	 	 	 	 	 	 	 	 	
Net (loss) income	 	$	(154,118	)	$	21,531	 	$	(143,359	)	$	75,588	 	
Adjustments to reconcile net (loss) income to net cash provided by operating activities:	 	 	 	 	 	 	 	 	 	
Depreciation, depletion and amortization	 	39,679	 	40,164	 	121,380	 	119,785	 	
Amortization of debt discount and issuance costs	 	3,787	 	3,451	 	11,200	 	10,202	 	
Non-cash employee stock compensation expense	 	1,563	 	314	 	5,958	 	6,758	 	
Impairments of royalty interests	 	239,364	 	—	 	239,364	 	—	 	
Deferred tax benefit	 	(60,541	)	(3,055	)	(31,583	)	(6,266	)	
Other	 	(41	)	—	 	(199	)	(4,638	)	
Changes in assets and liabilities:	 	 	 	 	 	 	 	 	 	
Royalty receivables	 	1,490	 	5,768	 	(909	)	(1,367	)	
Stream inventory	 	(5,340	)	3,554	 	(4,816	)	2,865	 	
Income tax receivable	 	26,217	 	(6,065	)	21,020	 	(6,117	)	
Prepaid expenses and other assets	 	3,552	 	92	 	3,224	 	(743	)	
Accounts payable	 	719	 	191	 	(939	)	(1,641	)	
Income tax payable	 	(2,666	)	11,698	 	6,779	 	(422	)	
Withholding taxes payable	 	201	 	(7,085	)	227	 	(5,449	)	
Uncertain tax positions	 	6,429	 	1,289	 	10,989	 	7,341	 	
Other liabilities	 	4,280	 	4,213	 	13,473	 	5,036	 	
Net cash provided by operating activities	 	$	104,575	 	$	76,060	 	$	251,809	 	$	200,932	 	
 	 	 	 	 	 	 	 	 	 	
Cash flows from investing activities:	 	 	 	 	 	 	 	 	 	
Acquisition of stream and royalty interests	 	(1,012	)	(10,903	)	(1,012	)	(203,721	)	
Other	 	(1,157	)	(271	)	(1,251	)	1,503	 	
Net cash used in investing activities	 	$	(2,169	)	$	(11,174	)	$	(2,263	)	$	(202,218	)	
 	 	 	 	 	 	 	 	 	 	
Cash flows from financing activities:	 	 	 	 	 	 	 	 	 	
Borrowings from revolving credit facility	 	—	 	—	 	—	 	70,000	 	
Repayment of revolving credit facility	 	(75,000	)	(45,000	)	(175,000	)	(45,000	)	
Net payments from issuance of common stock	 	39	 	(298	)	(3,502	)	(2,618	)	
Common stock dividends	 	(16,364	)	(15,680	)	(47,755	)	(45,715	)	
Purchase of additional royalty interest from non-controlling interest	 	—	 	(24	)	—	 	(1,462	)	
Other	 	163	 	218	 	240	 	(2,462	)	
Net cash used in financing activities	 	$	(91,162	)	$	(60,784	)	$	(226,017	)	$	(27,257	)	
Net increase (decrease) in cash and equivalents	 	11,244	 	4,102	 	23,529	 	(28,543	)	
Cash and equivalents at beginning of period	 	98,132	 	83,988	 	85,847	 	116,633	 	
Cash and equivalents at end of period	 	$	109,376	 	$	88,090	 	$	109,376	 	$	88,090	 	
 
14 

 
SCHEDULE A
 
Non-GAAP Financial Measures
 
Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
 
Adjusted Net (Loss) Income Reconciliation
 
Management of the Company uses adjusted net income (loss) to evaluate the Company’s operating performance, and for planning and forecasting future business operations.  The Company believes the use of adjusted net income (loss) allows investors and analysts to understand the results relating to receipt of revenue from its royalty interests and purchase and sale of gold from its streaming interests by excluding certain items that have a disproportionate impact on our results for a particular period.  The net income (loss) adjustments are presented net of tax generally at the Company’s statutory effective tax rate.  Management’s determination of the components of adjusted net income (loss) are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts.  Net income (loss) attributable to Royal Gold stockholders is reconciled to adjusted net income (loss) as follows:

 	 	Three Months Ended	 	Nine Months Ended	 	
 	 	March 31,	 	March 31,	 	
 	 	(Unaudited, in thousands)	 	(Unaudited, in thousands)	 	
 	 	2018	 	2017	 	2018	 	2017	 	
 	 	 	 	 	 	 	 	 	 	
Net (loss) income attributable to Royal Gold common stockholders	 	$	(153,650	)	$	23,661	 	$	(139,786	)	$	81,509	 	
 	 	 	 	 	 	 	 	 	 	
Preliminary impacts of U.S. tax legislation	 	—	 	—	 	26,400	 	—	 	
Income tax foreign currency election	 	132	 	—	 	16,032	 	—	 	
Increase in uncertain tax positions	 	5,925	 	—	 	5,925	 	—	 	
Impairments royalty interests, net of tax	 	178,856	 	—	 	178,856	 	—	 	
 	 	 	 	 	 	 	 	 	 	
Adjusted net income attributable to Royal Gold common stockholders	 	$	31,263	 	$	23,661	 	$	87,427	 	$	81,509	 	
 	 	 	 	 	 	 	 	 	 	
Net (loss) income attributable to Royal Gold common stockholders per basic share	 	$	(2.35	)	$	0.36	 	$	(2.14	)	$	1.25	 	
 	 	 	 	 	 	 	 	 	 	
Preliminary impacts of U.S. tax legislation	 	—	 	—	 	0.40	 	—	 	
Income tax foreign currency election	 	—	 	—	 	0.25	 	—	 	
Increase in uncertain tax positions	 	0.09	 	—	 	0.09	 	—	 	
Impairments royalty interests, net of tax	 	2.74	 	—	 	2.74	 	—	 	
 	 	 	 	 	 	 	 	 	 	
Adjusted net income attributable to Royal Gold common stockholders per basic share	 	$	0.48	 	$	0.36	 	$	1.34	 	$	1.25	 	
 	 	 	 	 	 	 	 	 	 	
Net (loss) income attributable to Royal Gold common stockholders per diluted share	 	$	(2.35	)	$	0.36	 	$	(2.14	)	$	1.25	 	
 	 	 	 	 	 	 	 	 	 	
Preliminary impacts of U.S. tax legislation	 	—	 	—	 	0.40	 	—	 	
Income tax foreign currency election	 	—	 	—	 	0.25	 	—	 	
Increase in uncertain tax positions	 	0.09	 	—	 	0.09	 	—	 	
Impairments royalty interests, net of tax	 	2.74	 	—	 	2.74	 	—	 	
 	 	 	 	 	 	 	 	 	 	
Adjusted net income attributable to Royal Gold common stockholders per diluted share	 	$	0.48	 	$	0.36	 	$	1.34	 	$	1.25	 	
 
15 

EXHIBIT 99.2 
Third Fiscal Quarter 2018 Results May 3, 2018 Royal Gold, Inc.

2 Forward-Looking Statements: This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from the projections and estimates contained herein and include, but are not limited to: expected and actual production at Rainy River, Wassa and Prestea and Mount Milligan; near-term growth from potential increased production at Rainy River and new production from Cortez Crossroads and Peñasquito Leach expected in calendar 2018; throughput, recovery and grade improvement at Rainy River; revenue generation at Rainy River organic growth from a diverse portfolio, including recent development and permitting activity, production start-up activity and reserve and production updates at certain properties; the preliminary resource estimate, planned exploration investment and the metallurgical testing and preliminary economic assessment work underway at the Peak Gold JV; long-term optionality associated with potential resource to reserve conversion at Pueblo Viejo, potential development of La Fortuna and successful resolution of Voisey’s Bay royalty litigation; continued delevering through use of cash flow to reduce debt, repayment of the Company’s revolver before June 30, 2018, repayment of convertible bonds maturing in June 2019 using the revolver and cash, liquidity, and positioning for new opportunities; expected stream sales and inventory levels for the fiscal fourth quarter; effective tax rate and depreciation, depletion and amortization forecasts; and statements concerning strong cash flow generation, solid balance sheet, organic growth, robust liquidity, amount and payment of dividends, financial performance and efficient capital structure, and mine life and reserves estimates and forecasts of throughput, recoveries and production from the operators of our stream and royalty interests. Factors that could cause actual results to differ materially from these forward-looking statements include, among others: the risks inherent in the operation of mining properties; a decreased price environment for gold and other metals on which our stream and royalty interests are determined; performance of and production at properties, and variation of actual production from the production estimates and forecasts made by the operators of those stream and royalty properties; decisions and activities of the Company’s management affecting margins, use of capital and changes in strategy; unexpected operating costs, decisions and activities of the operators of the Company’s stream and royalty properties; changes in operators’ mining and processing techniques or stream or royalty calculation methodologies; resolution of regulatory and legal proceedings; unanticipated grade, geological, metallurgical, environmental, processing or other problems at the properties; operators’ inability to access sufficient raw materials, water or power; inability of operators to bring projects into production as expected, including development stage mining properties, mine and mill expansion projects and other development and construction projects; revisions or inaccuracies in technical reports, reserve, resources and production estimates; changes in project parameters as plans of the operators are refined; the results of current or planned exploration activities; errors or disputes in calculating stream deliveries and royalty payments, or deliveries or payments under stream or royalty agreements; the liquidity and future financial needs of the Company; economic and market conditions; the impact of future acquisitions and stream and royalty financing transactions; the impact of issuances of additional common stock; and risks associated with conducting business in foreign countries, including application of foreign laws to contract and other disputes, environmental laws, enforcement and uncertain political and economic environments. These risks and other factors are discussed in more detail in the Company’s public filings with the Securities and Exchange Commission. Statements made herein are as of the date hereof and should not be relied upon as of any subsequent date. The Company’s past performance is not necessarily indicative of its future performance. The Company disclaims any obligation to update any forward-looking statements. Third-party information: Certain information provided in this presentation has been provided to the Company by the operators of properties subject to our stream and royalty interests, or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. The Company has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of such third-party information and refers readers to the public reports filed by the operators for information regarding those properties. Cautionary Statement

Today’s Speakers Tony Jensen President and CEO Stefan Wenger CFO and Treasurer 3

Revenue of $116 million, up 8% First sales from Rainy River, higher gold price Reported loss of ($2.35) per share Reflects non-cash charges of $184.9 million, net of tax, primarily related to Pascua-Lama charge Adjusted earnings1 of $0.48 per share, up 32% Cash flow from operations of $105 million, up 37% Volume of 87,300 GEOs2, in line with last year Dividends of $16 million, up 5% Repayment of another $75 million of debt ~$1 billion of liquidity Another solid quarter 4 All period comparisons are to prior year quarter.

Rainy River, Wassa & Prestea, Mount Milligan Recent Portfolio Updates 5 Wassa UG inferred resource more than doubled to 5.2Moz3,7 Wassa UG grade of 4.5 grams per tonne, up 12% in CQ13 Reiterated: 230koz-255koz 2018 gold production expected3,4 Mount Milligan 17.5kptd average throughput in second quarter of operation3 87% average gold recovery achieved April 1-233 Throughput, grade and recovery expected to increase3,4 Rainy River Currently operating at 40ktpd3 Production resumed at both ball mills in March3 2018 guidance: 195-215koz gold, 47-52lbs copper3,4 Mount Milligan Wassa and Prestea

6 Cortez Crossroads Stripping continues, production expected to build in CY193 4.5% NVR & 5% GSR royalty 3.2Moz gold in reserves3,4 Mount Milligan Peñasquito Leach Commissioning carbon pre-flotation has begun3 Progress at 4/25/18: 86% complete3 Expected to add 1Moz gold, 44Moz silver to mine life3,4 Peñasquito Leach Focused on increasing and stabilizing process availability3 Study to increase throughput to 24ktpd from 21kptd3 Expected to become a Top 10 revenue generator for RGLD3,4 Rainy River Near-term growth

Development/permitting activity at: Back River (1.95% and 2.35% NSR after threshold production achieved) Production startup activity at: LaRonde Zone 5 (2% NSR) to begin CQ3 2018 Reserve & production updates include: Wharf (0-2% NSR) reserves up 36% South Laverton (1.5% NSR) reserves up 39% Marigold (2% NSR) reserves up 3.6% on our area of interest Dolores (3.25% NSR gold, 2% NSR silver) CY18 gold production guidance up 35%, silver up 6% Gwalia (1.5% NSR) reserves up 24% Leeville (1.8% NSR) reserves up 23% on our area of interest Twin Creeks (2% GPR6- gold) reserves up 45% on our area of interest Organic Growth from our Diverse Portfolio 7 Updates from our portfolio3 of 192 total assets (39 operating & 22 development)

Peak Gold Joint Venture Gold-silver-copper skarn deposit with a strong grade profile, near surface and near existing infrastructure Royal Gold holds 2% and 3% NSR royalties over certain areas and is managing partner of the Peak Gold JV Preliminary M&I resource estimate7,8 of 11.3 million tonnes grading 3.46 g/t ~$9.1m JV exploration investment planned for calendar 2018 Metallurgical testing underway PEA in process 8 Royal Gold holds a 3.0% net smelter return (“NSR”) royalty over the area of the Tetlin lease and certain State of Alaska mining claims and a 2.0% NSR royalty over certain other State of Alaska mining claims held by Peak Gold. Peak Gold JV holds a 675,000 acre lease with the Native Village of Tetlin and approximately 174,900 acres of state mining claims.

Long-Term Optionality 9 Pre-oxidation heap leach & flotation concentrate3 Potential ~7Moz resource to reserve conversion(100%)3 2017 scoping study followed by 2018 PFS3,4 Voisey’s Bay Pueblo Viejo NuevaUnión 1.4% NSR on gold and copper on ~30% of La Fortuna3 PFS recently completed, feasibility expected in H2 20193 La Fortuna expected to produce in years 4-183 2.7% NSR on all metals Reported 2017 production of 52kt Ni, 34kt Cu, 1.8kt Co3 Trial set to begin in September 2018 in St. John’s Voisey’s Bay

$75m Repaid Mar, 2018 10 Net Debt/EBITDA9 1.0x at 3-31-18 Focus on using cash flow to reduce debt, paid another $75m in March At current metals prices and assuming no changes to portfolio, we expect to: Repay the $75 million outstanding on our revolver before June 30, 2018 Repay principal of our $370 million bonds maturing June 2019 using RCF & cash Be positioned to pursue new opportunities Date Item ($USD millions) March 31, 2018 Undrawn Revolver $925m March 31, 2018 Working Capital $108m March 31, 2018 Total Liquidity $1,033m $45m Repaid Mar, 2017 $50m Repaid June, 2017 $50m Repaid Dec, 2017 $50m Repaid Sept, 2017 Delevering continues

FQ3 effective tax rate was 22.9% FQ3 ending inventory 26,000 gold ounces and 659,000 silver ounces Reflects deliveries received in late March FQ4 stream sales expected to be to be in-line with FQ3, as inventory is expected to be reduced according to our routine sales procedures and offsetting lower expected deliveries from Mount Milligan FY18 effective tax rate forecast range is 17-23% (down from 20% - 25%) Subject to any final revisions to our preliminary calculations on tax return FY18 DD&A forecast range is $450 - $470 per GEO Q3FY18 Results and Outlook 11

Strong cash flow generation Solid balance sheet Organic growth Robust liquidity

Streams (at April 30, 2018) Operator Mine Metal RGLD interest until RGLD interest until RGLD interest until RGLD pays (per unit) until RGLD pays (per ounce) until Reserve Remaining Mine Life (Years) CY2018 Operator Production Guidance (oz/lbs)2 Centerra Gold Mount Milligan Gold 35% LOM (life of mine) - - - - $435 LOM - - 20 195,000-215,000 Centerra Gold Mount Milligan Copper 18.75% LOM - - - - 15% of spot LOM - - 20 47,000-52,000 Barrick Pueblo Viejo Gold 7.50% 990koz 3.75% remaining LOM - - 30% of spot 550koz 60% of spot remaining LOM 25+ 585,000-615,000 Barrick Pueblo Viejo Silver 75% at fixed 70% recovery 50Moz 37.50% remaining LOM - - 30% of spot 23.1Moz 60% of spot - 25+ Not provided New Gold5 Rainy River Gold 6.50% 230koz 3.25% remaining LOM - - 25% of spot - - - 14 310,000-350.000 New Gold Rainy River Silver 60% 3.1Moz 30% remaining LOM - - 25% of spot - - - 14 Not provided Teck Andacollo Gold 100% 900koz 50% remaining LOM - - 15% of spot - - - 17 Not provided Golden Star Wassa/ Prestea Gold 10.5% 240koz 5.50% Remaining LOM - - 20% of spot 240koz 30% of spot thereafter 10 230,000-255,000 Key Royalties1 (at January 1, 2018) RGLD interest Until Goldcorp Peñasquito Gold Silver Lead Zinc 2.00% LOM 10 310,000 (gold) Barrick Cortez Gold Various LOM 12 TBA Agnico-Eagle & Yamana Malartic Gold 1-1.5% LOM 10 650,000 Newmont Leeville Gold 1.80% LOM 11 Not available KGHM Robinson Gold Copper 3.00% LOM 5 Not available Kirkland Lake Holt Gold 0.00013 x the gold price LOM 8 Not available Alamos Gold Mulatos Gold 1-5% capped; expect to reach in ~2019 2 150,000-160,000 Portfolio of Assets Diverse, Long Lived Properties 1 Includes largest royalties by revenue. An additional 28 royalties from producing mines in Royal Gold’s portfolio not shown. 2 Production estimates are received from our operators and there can be no assurance that production estimates received from our operators will be achieved. Please refer to our cautionary language regarding forward-looking statements on slide 2, as well as the Risk Factors identified in Part I, Item 1A, of our Fiscal 2017 10-K for information regarding factors that could affect actual results. 13

Adjusted EPS is a non-GAAP measure. Please see slide 15 for reconciliation. Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. Information has been provided to the Company by the operators of those properties or is publicly available information filed by those operators. Reserves information shown is as of December 31, 2017. References to portfolio reflect total property interests at May 2, 2018. Please see slide 2. Please see slide 13 for further information on Royal Gold’s royalty and streaming interests. New Gold expects to deliver 21.5koz gold and 185koz silver to Royal Gold from calendar 2018 production (January 16, 2018). GPR is a gross proceeds royalty, which is a royalty paid on contained ounces, rather than recovered ounces. The U.S. Securities and Exchange Commission does not recognize the term “resource.” “Resources” are not reserves under the SEC’s regulations, but are categorized under the securities law regulations of certain foreign jurisdictions in order of increasing geological confidence into “inferred resources,” “indicated resources” and “measured resources.” Investors are cautioned that resources cannot be classified as reserves unless and until it is demonstrated that they may be legally and economically extracted and produced and, as a result, they should not assume that all or any part of mineralized material in any of these categories will ever be converted into reserves. Peak Gold resource of 1.3Moz was calculated at $1,400/oz. Adjusted EBITDA is a non-GAAP measure. Please see page 16 for reconciliation. Endnotes 14

Adjusted Net Income (Loss) Reconciliation 15 Non-GAAP Financial Measures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Adjusted Net (Loss) Income Reconciliation Management of the Company uses adjusted net income (loss) to evaluate the Company’s operating performance, and for planning and forecasting future business operations. The Company believes the use of adjusted net income (loss) allows investors and analysts to understand the results relating to receipt of revenue from its royalty interests and purchase and sale of gold from its streaming interests by excluding certain items that have a disproportionate impact on our results for a particular period. The net income (loss) adjustments are presented net of tax generally at the Company’s statutory effective tax rate. Management’s determination of the components of adjusted net income (loss) are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Royal Gold stockholders is reconciled to adjusted net income (loss) as follows: Adjusted Net Income (Loss) Reconciliation: Three Months Ended Nine Months Ended March 31, March 31, (Unaudited, in thousands) (Unaudited, in thousands) 2018 2017 2018 2017 Net (loss) income attributable to Royal Gold common stockholders (153,650) $ 23,661 $ (139,786) $ 81,509 $ Preliminary impacts of U.S. tax legislation — — 26,400 — Income tax foreign currency election 132 — 16,032 — Increase in uncertain tax positions 5,925 — 5,925 — Impairments royalty interests, net of tax 178,856 — 178,856 — Adjusted net income attributable to Royal Gold common stockholders 31,263 $ 23,661 $ 87,427 $ 81,509 $ Net (loss) income attributable to Royal Gold common stockholders per basic share (2.35) $ 0.36 $ (2.14) $ 1.25 $ Preliminary impacts of U.S. tax legislation — — 0.40 — Income tax foreign currency election — — 0.25 — Increase in uncertain tax positions 0.09 — 0.09 — Impairments royalty interests, net of tax 2.74 — 2.74 — Adjusted net income attributable to Royal Gold common stockholders per basic share 0.48 $ 0.36 $ 1.34 $ 1.25 $ Net (loss) income attributable to Royal Gold common stockholders per diluted share (2.35) $ 0.36 $ (2.14) $ 1.25 $ Preliminary impacts of U.S. tax legislation — — 0.40 — Income tax foreign currency election — — 0.25 — Increase in uncertain tax positions 0.09 — 0.09 — Impairments royalty interests, net of tax 2.74 — 2.74 — Adjusted net income attributable to Royal Gold common stockholders per diluted share 0.48 $ 0.36 $ 1.34 $ 1.25 $

Adjusted EBITDA Reconciliation 16 Adjusted EBITDA is defined by the Company as net income (loss) plus depreciation, depletion and amortization, non-cash charges, income tax expense, interest and other expense, and any impairment of mining assets, less non-controlling interests in operating loss (income) of consolidated subsidiaries, interest and other income, and any royalty portfolio restructuring gains or losses. Other companies may define and calculate this measure differently. Adjusted EBITDA identifies the cash generated in a given period that will be available to fund the Company's future operations, growth opportunities, shareholder dividends and to service the Company's debt obligations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. See the table below for a reconciliation of net income to Adjusted EBITDA. Three Months Ended Nine Months Ended March 31, March 31, (Unaudited, in thousands) (Unaudited, in thousands) 2018 2017 2018 2017 Net (loss) income (154,118) $ 21,531 $ (143,359) $ 75,588 $ Depreciation, depletion and amortization 39,679 40,164 121,380 119,785 Non-cash employee stock compensation 1,563 314 5,958 6,758 Impairments of royalty interests 239,364 — 239,364 — Interest and other, net 6,513 7,928 22,530 17,012 Income tax (benefit) expense (45,859) 6,492 10,044 18,724 Non-controlling interests in operating loss of consolidated subsidiaries 468 2,130 3,573 7,205 Adjusted EBITDA 87,610 $ 78,559 $ 259,490 $ 245,072 $

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