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Zawya
5 days ago
- Business
- Zawya
South Africa: Mining performance contracts in Q1 2025
Amongst the sectors that contracted in Q1 2025, mining performed the worst in the first quarter. In real terms, mining GDP declined by a notable 4.1% quarter-on-quarter (q-o-q). This decline subtracted 0.2 percentage points from overall real GDP. Amongst the sectors that contracted in Q1 2025, mining performed the worst in the first quarter Factors placing strain on industry The strain experienced in the mining industry is emphasised by the following: - The sector is in a technical recession. After also recording a (small) quarterly contraction of 0.1% in Q4 2024, the mining sector now meets the recession definition. This is characterised by two consecutive quarters of declining mining GDP. - Mining GDP has experienced a quarterly decline in four of the last five quarters. As an aside, the demand-side GDP data indicates that real private sector investment has also declined in four of the last five quarters. This speaks to low business morale and is an important factor that explains the sluggish GDP growth in recent quarters. - Compared to Q1 2024, real mining GDP declined by 4.2% y-o-y. - Poor mining sector profitability in the first quarter. This is reflected in Stats SA's gross operating surplus numbers, a broad measure of profitability. The poor profitability was despite a 1.3% q-o-q increase in the SA Reserve Bank's export commodity price index in Q1. This was driven by the sustained rise in the gold price. At least in part, the weak profitability can be explained by the poor production figures at the start of the year. - The compensation of mining sector employees increased by 2.6% y-o-y in the first quarter, below an increase of 3.9% in the non-mining sectors of the economy. PGM performed the worst Regarding the weak mining production in Q1, Stats SA mentioned that the production of platinum group metals (PGM) performed the worst. Disruptions to PGM mining activity due to heavy rain in the northern provinces in January and February largely accounts for the underperformance. The weather-related disruptions were not limited to the PGM sector, with production also curtailed in the chrome, gold and building materials industries. Because weather was the major driver of the poor mining sector performance in Q1, we should see some recovery in the second quarter. Outlook For a durable recovery, mining requires an improved regulatory environment. In the near term (next several months), mining production should recover from the Q1 weather-induced weakness. However, uncompetitive electricity pricing, ongoing constraints in rail and port logistics as well as global trade tensions, are likely to cap the pace of the recovery in mining output and profitability. Therefore, it remains essential that the domestic mining policy environment is supportive of a growing mining sector. The Minerals Council continues to review the draft Mineral Resources Development Bill and will further engage the Department of Mineral and Petroleum Resources to co-create a regulatory environment that will attract and support investment in exploration, new mine development and the sustainability of existing mines. This is to unlock the potential of South Africa's mineral resources to support higher rates of economic growth and job creation. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Times
02-06-2025
- Business
- Times
Pound and gold rise as dollar falls on increased trade tensions
The pound rose to a fresh three-year high against the dollar, and gold headed back toward an all-time high on Monday after President Trump went back on the offensive in his trade war. Sterling strengthened 0.73 per cent to $1.355, its highest since the middle of 2022 and taking its gains against the dollar since the start of the year to more than 8 per cent. The pound also strengthened 0.08 per cent against the euro to €1.18, but is down 1.76 per cent against the currency since the start of the year. Safe-haven buying pushed the gold price up 1.75 per cent to $3,349.65 per ounce. Geopolitical and trade tensions saw gold hit an all-time intraday high of $3,500.05 on April 22. Investors ditched the dollar following an escalation in tensions between Washington and Beijing as a pause in the tit-for-tat tariffs between the countries looked to have ended. The dollar fell 0.66 per cent against a basket of currencies and is down by nearly 9 per cent over the past six months. On Monday, China accused the United States of 'seriously violating' a trade truce after Trump last week, in a post on Truth Social, said that 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US'. Last month, after talks in Geneva, China and the US agreed to lower tariffs on each other's imported goods by 115 percentage points for 90 days. The intention behind the temporary tariff climbdown was to cool relations to open up space for trade talks. Analysts at Deutsche Bank, the German investment bank, said: 'It is really hard to keep up or predict what's going to happen on trade at the moment, and that's before we factor in the full ramifications from the court ruling last Thursday night, and then subsequent brief stay of execution for them on appeal.' Last week, a US trade court ruled that Trump's 'reciprocal tariffs' were illegal, before an appeals court temporarily reinstated them. The White House has said it intends to overturn the original ruling. 'For now it seems likely that the tariff uncertainty will linger for a long time ahead, even if we're still likely past the peak aggressiveness of US policy', Deutsche Bank said. Trump has sharpened his commitment to protectionist policies after gradually walking back their most onerous elements in recent weeks. Late last week, the President announced that charges on imported steel and aluminium would double to 50 per cent from 25 per cent. Oil rose sharply, with the price of Brent crude, the international benchmark, up 3.27 per cent to $64.81 a barrel after OPEC+, the oil cartel, decided to increase output in July by the same amount as it did in each of the prior two months. Traders said that was a relief to those who had expected a bigger increase. The FTSE 100 rose by 0.06 per cent and the mid-cap FTSE 250 edged up 0.06 per cent. The yield on the ten-year UK government bond rose 4 basis points to 4.69 per cent.
Yahoo
01-06-2025
- Business
- Yahoo
Gold Is Sending Markets a Big Warning Signal
It has been a far different story for industrial metals such as copper, aluminum, and zinc. 'The highest-ever gold price vs. the Bloomberg Industrial Metals Spot Subindex at the end of May, based on our database going back to 1991, isn't a good sign for the global economy,' he wrote. U.S. stock prices remain high, and yields on Treasury bonds have been rising recently, not falling, as one would expect if nervous investors were dumping risky assets and buying the debt in a flight to safety. Sign in to access your portfolio
National Post
07-05-2025
- Business
- National Post
Royal Gold Reports Record Earnings for the First Quarter and a Strong Start to 2025
Article content DENVER — Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, 'Royal Gold,' the 'Company,' 'we,' 'us,' or 'our') reports net income of $113.5 million, or $1.72 per share, for the quarter ended March 31, 2025, ('first quarter') on revenue of $193.4 million and operating cash flow of $136.4 million. Adjusted net income 1 was $99.8 million, or $1.51 per share. Article content Article content First Quarter 2025 Highlights: Article content 'Our first quarter results were strong and provided an excellent start to 2025,' commented Bill Heissenbuttel, President and CEO of Royal Gold. 'Underlying performance from our portfolio interests was in line with our expectations for relatively soft production, but this was more than offset by a very strong and steadily-rising gold price through the first quarter. Although the outlook for economic conditions remains uncertain with generally elevated volatility in the markets, our diversified portfolio, strong balance sheet and ample liquidity provide a stable foundation for us to continue delivering solid results for shareholders.' Article content 1 Adjusted net income, adjusted net income per share and adjusted EBITDA margin are non-GAAP financial measures. See Schedule A of this press release for additional information, including a detailed description of adjustments to net income. 2 See Schedule A of this press release for additional information about gold equivalent ounces, or GEOs. Article content Notable recent updates as reported by the operators of our Principal Properties include: Article content On May 6, 2025, Centerra Gold Inc. ('Centerra') reported that the site-wide optimization program continues to progress and it is maintaining 2025 production guidance at the Mount Milligan mine in British Columbia. Centerra expects 2025 gold production to range between 165,000 and 185,000 ounces, and copper production to range between 50 and 60 million pounds, with production of both metals to be weighted toward the second half of the year. 2024 gold and copper production was 167,600 ounces and 54.3 million pounds, respectively. Article content Centerra also reported that a Pre-feasibility Study ('PFS') to evaluate the substantial mineral resources to unlock additional value beyond the current mine life is on track to be completed in the third quarter of 2025. According to Centerra, it is optimistic that the mine life can be extended beyond the current mine life of approximately 2036, which is based on the available space in the existing tailings storage facility. Centerra also reported that it is evaluating options for additional tailings capacity and expects that the PFS will incorporate an increase in annual mill throughput in the range of 10% through ball mill motor upgrades and additional downstream flowsheet improvements, which may also improve overall metal recovery. Article content On May 7, 2025, Barrick Mining Corporation ('Barrick') reported that 2025 gold production guidance of approximately 680,000 to 765,000 ounces (100% basis) is unchanged at the Cortez Complex in Nevada. This guidance compares to 2024 gold production of 722,000 ounces. We estimate our overall average royalty rate on this production to be approximately 3.1% for 2025. Article content Additionally, Barrick reported continued progress at the various projects underway at Cortez. At Goldrush, the sinking of the first of eight ventilation shafts and the installation of underground primary fans were completed, which enable increased mining rates. At the Fourmile project, the exploration drilling campaign to define the orebody and delineate the overall footprint commenced, and the pre-feasibility study is expected to start in 2025. At the Hanson project, exploration drilling is focused on the Birch target for 2025, and at the Swift project, exploration results have extended the footprint of anomalous gold mineralization 900 meters to the south. Article content For the first quarter, Teck Resources Limited ('Teck') reported gold production of 7,400 ounces, compared to 3,400 ounces in the prior year period, at the Andacollo mine in Chile. Teck expects gold production for 2025 to range between 35,000 and 39,000 ounces compared to actual gold production of 20,800 ounces in 2024. The expected increase is primarily driven by higher mill throughput due to increased water availability, which was impacted by drought conditions throughout much of 2024. Royal Gold typically receives stream deliveries approximately 5 months after mine production. Article content 2025 Guidance Unchanged and Mine Life Extension Project Advancing at Pueblo Viejo Article content On May 7, 2025, Barrick reported that 2025 gold production guidance of 370,000 to 410,000 ounces for its 60% share of Pueblo Viejo in the Dominican Republic is unchanged after completing a 35-day shutdown for debottlenecking work on the expanded plant in the first quarter of the year. This guidance compares to 2024 gold production of 352,000 ounces. Article content Barrick also provided a progress update on the mine life extension project, where activity is focused on housing, resettlement and the El Naranjo tailings storage facility. The housing project continues with 220 homes constructed and 18 families resettled. Engineering work is ongoing for the tailings storage facility and the overall schedule remains on track to have the starter dam completed ahead of the existing El Llagal dam reaching capacity. Article content Other Property Updates Article content Notable recent updates as reported by the operators of other select portfolio assets include: Article content Granite Creek (3% NSR and 2.94% NSR royalties): In March, 2025, i-80 Gold Corp. ('i-80') announced the results of separate preliminary economic assessments ('PEAs') on the Granite Creek open pit and underground projects in Nevada. According to i-80, the underground operation is currently producing and is ramping up to full production of 60,000 ounces per year over an eight-year mine life, and a feasibility study is expected to be released in the fourth quarter of 2025 that includes an updated operational plan and results from new drilling in the South Pacific Zone. Also according to i-80, the open pit is targeted to produce approximately 130,000 ounces per year over a ten-year mine life with an updated feasibility study targeted for completion in the fourth quarter of 2025. Article content Khoemac au (100% silver stream): MMG Limited ('MMG') provided guidance to Royal Gold that 2025 silver production is expected to range from 1.3 to 1.5 million ounces at the Khoemacau mine in Botswana, which compares to 2024 actual production of approximately 1.3 million ounces. Further, on April 24, 2025, MMG provided an update on the expansion project, and disclosed that early works (including camp and road construction, land acquisition and personnel recruitment) have commenced, with construction anticipated to begin in 2026 subject to the outcomes of a feasibility study currently underway. Article content Peñasquito (2% NSR royalty): On April 24, 2025, Newmont Corporation ('Newmont') reported a new daily production record at the Peñasquito mine in Mexico, with 10,000 gold equivalent ounces produced in a single day. Newmont further reported that high grades in the Peñasco pit resulted in strong gold production and steady co-product production in the first quarter. Newmont expects gold production levels to remain relatively steady through the second quarter before beginning to shift to a higher proportion of silver, lead and zinc content, and a lower proportion of gold, through the third and fourth quarters. Article content Rainy River (6.5% gold stream, 60% silver stream): On February 13, 2025, New Gold Inc. ('New Gold') provided 2025 gold production guidance for the Rainy River mine in Ontario of 265,000 to 295,000 ounces, with the first half of 2025 expected to represent approximately 37% of the annual production due to waste stripping in the first quarter. This compares to 2024 gold production of approximately 225,700 ounces. New Gold also filed an updated National Instrument 43-101 ('NI 43-101') technical report for Rainy River, which indicates a gold production profile averaging approximately 300,000 ounces per year over the next three years, an extension of the open pit to 2028, steady state production from the underground by 2027, and a nine-year mine life. Article content Red Chris (1% NSR royalty): On April 24, 2025, Newmont, 70% owner and operator of the Red Chris mine in British Columbia, confirmed that the block cave development project is a priority within the Newmont portfolio. According to Newmont, feasibility study work is underway this year, and underground development to support the block cave is ongoing in addition to engagement with First Nations communities. Article content Ruby Hill (3% NSR royalty): In February, 2025, i-80 announced the results of separate PEAs on the Archimedes and Mineral Point projects on the Ruby Hill property in Nevada. The Archimedes PEA outlines a high-grade underground gold mine producing approximately 100,000 ounces per year over a ten-year mine life. i-80 disclosed that it is preparing to begin underground development work at Archimedes in the second quarter of 2025 while continuing exploration, and is expecting to complete a feasibility study in 2028. With respect to Mineral Point, the PEA envisions a large open pit heap leach gold mine producing approximately 280,000 gold equivalent ounces per year with a 16.5-year mine life. i-80 reported that it is advancing baseline studies and drilling at Mineral Point to complete a feasibility study in 2029 with first production targeted in 2031. Article content Wharf (2% GSR royalty): On February 19, 2025, Coeur Mining, Inc. ('Coeur') provided 2025 gold production guidance for the Wharf mine in South Dakota of 90,000 to 100,000 ounces, which compares to 2024 production of 98,000 ounces. Additionally, on February 18, 2025, Coeur announced that year-end 2024 measured and indicated gold resources more than doubled and inferred gold resources more than tripled over the prior year, which Coeur believes will position Wharf for significant mine life extensions as infill drilling accelerates in 2025. Article content Back River (equivalent ~3.3% GSR royalty on the Goose Project): On March 27, 2025, B2Gold Corp. ('B2Gold') announced the results of an updated NI 43-101 report for the Back River project in Nunavut. According to B2Gold, the mineral reserve mine life is expected to be 9 years, and gold production is targeted at approximately 300,000 ounces per year for the first six years of production from 2026 through 2031. Additionally, B2Gold is expecting to finalize a study in late 2025 or early 2026 to evaluate an increase in mill throughput from 4,000 tonnes per day to potentially 6,000 tonnes per day. According to B2Gold, the existing mineral resource inventory combined with gold mineralization prospectivity across the project land package could sustain a mill throughput of over 6,000 tonnes per day over a mine life in excess of the existing reserve mine life. Article content Great Bear (2% NSR royalty): On February 13, 2025, Kinross Gold Corporation ('Kinross') provided an update on the Great Bear project in Ontario. Kinross reported that the early works for the Advanced Exploration Program had commenced and construction of the exploration decline is expected to start in late 2025. Additionally, permitting, engineering and engagement with First Nations communities is underway. Kinross also disclosed that the exploration focus in 2025 has shifted from deep underground resource drilling to regional exploration work with the goal of identifying new open pit and underground deposits. Article content On March 28, 2025, our wholly-owned subsidiary, RGLD Gold AG, entered into an additional precious metals purchase agreement ('Additional Stream') with Ero Gold Corporation, a wholly owned subsidiary of Ero Copper Corp., and certain of its affiliates, for gold produced from the Xavantina mine for an advance payment of $50 million. The Additional Stream is incremental to the existing precious metals purchase agreement between the parties dated June 29, 2021 ('Base Stream'), and significantly extends the area of interest. Article content As of March 31, 2025, 46,544 ounces of gold have been delivered under the Base Stream at a cash purchase price of 20% of the spot gold price for each ounce delivered, which will increase to 40% of the spot gold price for each ounce delivered upon the delivery of 49,000 ounces. Article content When considered with the Base Stream, the Additional Stream effectively increases the threshold for stream deliveries at the current 25% stream rate from 93,000 ounces to 160,000 ounces, with the additional deliveries to be payable at a cash price of 40% of the spot gold price. Article content The purchase price was funded with available cash on hand. Article content For the first quarter, we recorded record net income and comprehensive income of $113.5 million, or $1.72 per basic and diluted share, as compared to net income of $47.2 million, or $0.72 per basic and diluted share, for the three months ended March 31, 2024. The increase in net income was primarily attributable to higher revenue and lower tax expense, as discussed below. Article content For the three months ended March 31, 2025, we recognized total revenue of $193.4 million, comprised of stream revenue of $122.5 million and royalty revenue of $71.0 million at an average gold price of $2,860 per ounce, an average silver price of $31.88 per ounce and an average copper price of $4.24 per pound. This is compared to total revenue of $148.9 million for the three months ended March 31, 2024, comprised of stream revenue of $102.5 million and royalty revenue of $46.4 million, at an average gold price of $2,070 per ounce, an average silver price of $23.34 per ounce and an average copper price of $3.83 per pound. Article content The increase in our total revenue resulted primarily from higher average gold, silver and copper prices compared to the prior period. Higher gold sales from Pueblo Viejo and higher gold and zinc production from Peñasquito also contributed to the increase. These increases were partially offset by lower production from Cortez and lower gold sales from Xavantina when compared to the prior year period. Article content Cost of sales, which excludes depreciation, depletion and amortization ('DD&A'), increased to $24.5 million for the first quarter, from $21.8 million for the three months ended March 31, 2024. The increase, when compared to the prior year period, was primarily due to higher gold, silver and copper prices and higher gold sales from Pueblo Viejo. Cost of sales is specific to our stream agreements and, except for Mount Milligan, is the result of our purchase of metal for a cash payment that is a set contractual percentage of the spot price for that metal near the date of metal delivery. For Mount Milligan, the cash payments under the stream agreement are the lesser of $435 per ounce or the prevailing market price of gold when purchased and 15% of the spot price for copper near the date of metal delivery. Separately, and in addition to the cash payments under the stream agreement, the Mount Milligan Cost Support Agreement provides for cash payments on gold and copper deliveries that are expected to begin after certain thresholds are met or earlier, if metal prices are below certain thresholds and if requested by Centerra. For further detail on the Mount Milligan Cost Support Agreement refer to our 2024 10-K. Article content General and administrative costs decreased to $11.1 million for the first quarter, from $11.4 million for the three months ended March 31, 2024. The decrease was primarily due to lower consulting costs offset by higher non-cash stock compensation expense compared to the prior year period. Article content DD&A decreased to $33.0 million for the first quarter, from $38.8 million for the three months ended March 31, 2024. The decrease was primarily due to lower stream depletion rates as a result of proven and probable mineral reserve increases by our operators, lower gold sales from Xavantina and lower gold production at Cortez compared to the prior year period. Article content Interest and other expense decreased to $1.2 million for the first quarter, from $4.6 million for the three months ended March 31, 2024. The decrease was primarily due to lower interest expense as a result of lower average amounts outstanding under our revolving credit facility compared to the prior year period. For the three months ended March 31, 2025, there was no outstanding debt compared to average amounts outstanding of $221 million at an average all-in borrowing rate of 6.6% for the prior year period. Article content For the first quarter, we recorded income tax expense of $10.4 million, compared to $27.0 million for the three months ended March 31, 2024. The income tax expense resulted in an effective tax rate of 8.4% in the current period, compared with 36.4% for the three months ended March 31, 2024. The lower income tax expense for the first quarter included a $12.0 million discrete benefit, net of valuation allowance, for additional recoverable basis in foreign jurisdictions and a $1.7 million discrete benefit related to a withholding tax refund on a foreign royalty. The higher income tax expense for the three months ended March 31, 2024, was primarily attributable to a $13.0 million discrete income tax expense related to the consideration from the Mount Milligan Cost Support Agreement. Article content Net cash provided by operating activities totaled $136.4 million for the first quarter compared to $138.3 million for the three months ended March 31, 2024. The decrease was primarily due to cash proceeds of $24.5 million received for the Mount Milligan Cost Support Agreement and $12.0 million of interest from the repayment of the Khoemac au debt facility in the prior year period and higher income taxes paid in the current period of $8.4 million. This decrease was partially offset by higher net cash proceeds received from our stream and royalty interests of $37.2 million and lower debt cash interest payments of $4.1 million when compared to the prior year period. Article content Net cash used in investing activities totaled $58.3 million for the first quarter compared to net cash provided by investing activities of $23.6 million for the three months ended March 31, 2024. The period over period change was primarily due to the $50 million payment for the acquisition of the additional Xavantina stream in the current period, whereas the prior year included the receipt of $25 million from the repayment of principal on the Khoemac au subordinated debt facility. Article content Net cash used in financing activities totaled $32.8 million for the first quarter compared to $128.1 million for the three months ended March 31, 2024. The decrease was primarily due to lower debt repayments when compared to the prior year period. This decrease was partially offset by higher dividend payments compared to the prior year period. Article content Other Corporate Updates Article content Total liquidity at the end of the first quarter was approximately $1.25 billion, which consisted of $250 million of working capital and $1 billion undrawn and available under the revolving credit facility. Article content Property Highlights Article content A breakdown of revenue for the Company's stream and royalty portfolio can be found on Table 1 for the quarters ended March 31, 2025 and March 31, 2024. Table 2 shows stream metal sales and metal sales attributable to the Company's royalty interests for the Company's principal stream and royalty properties. Table 3 shows Royal Gold's 2025 sales volume guidance and year to date sales volume achieved. Table 4 shows stream segment purchases and sales for the quarters ended March 31, 2025 and March 31, 2024 and inventories at March 31, 2025 and December 31, 2024. Highlights at certain of the Company's principal producing and development properties during the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, are detailed in the Quarterly Report on Form 10-Q. Article content Royal Gold is a high margin, mid-capitalization company that generates strong cash flows from a large and well-diversified portfolio of precious metal streams, royalties and similar production-based interests located in mining-friendly jurisdictions. Royal Gold shares trade under the symbol 'RGLD' and provide growth, value, and income investors exposure to the metals & mining industry. The Company's website is located at Article content Note: Management's conference call reviewing the first quarter results will be held on Thursday, May 8, 2025, at 12:00 pm Eastern Time (10:00 am Mountain Time). The call will be webcast and archived on the Company's website for a limited time. Article content Additional Investor Information: Royal Gold routinely posts important information, including information about upcoming investor presentations and press releases, on its website under the Investor Resources tab. Investors and other interested parties are encouraged to enroll at to receive automatic email alerts for new postings. Article content 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-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, statements regarding the following: our expected financial performance and outlook, including our 2025 guidance; operators' expected operating and financial performance and other anticipated developments relating to their properties and operations, including production, deliveries, estimates of mineral resources and mineral reserves, environmental and feasibility studies, technical reports, mine plans, capital requirements, liquidity and capital expenditures; anticipated benefits from investments, acquisitions and other transactions; the receipt and timing of future metal deliveries, including deferred amounts at Pueblo Viejo; the timing and amount of future benefits and obligations in connection with the Mount Milligan Cost Support Agreement; anticipated liquidity, capital resources, financing, and stockholder returns; borrowings and repayments under our revolving credit facility; and prices for gold, silver, copper and other metals. Article content Factors that could cause actual results to differ materially from these forward-looking statements include, among others, the following: changes in the price of gold, silver, copper 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, operators' changes to mine plans and mineral reserves and mineral resources (including updated mineral reserve and mineral resource information), liquidity needs, mining and environmental hazards, labor disputes, distribution and supply chain disruptions, permitting and licensing issues, other adverse government or court actions, or operational disruptions; changes of control of properties or operators; contractual issues involving our stream or royalty agreements; the timing of deliveries of metals from operators and our subsequent sales of metal; risks associated with doing business in foreign countries; increased competition for stream and royalty interests; environmental risks, including those caused by climate change; potential cyber-attacks, including ransomware; our ability to identify, finance, value, and complete investments, acquisitions or other transactions; adverse economic and market conditions; effects of health epidemics and pandemics; 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 Item 1A, Risk Factors of our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Most of these factors are beyond our ability to predict or control. Other unpredictable or unknown factors not discussed in this release could also have material adverse effects on forward-looking statements. Article content 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. Article content Statement Regarding Third-Party Information: Certain information provided in this press release, including information about historical production, production estimates, property descriptions, and property developments, was 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. Article content Three Months Ended March 31, Stream/Royalty Metal(s) Current Stream/Royalty Interest 1 2025 2024 Stream: Canada Mount Milligan Gold, copper 35% of payable gold and 18.75% of payable copper $ 42,808 $ 34,995 Rainy River Gold, silver 6.5% of gold produced and 60% of silver produced 10,422 9,709 Latin America Pueblo Viejo Gold, silver 7.5% of Barrick's interest in payable gold and 75% of Barrick's interest in payable silver $ 28,751 $ 17,760 Andacollo Gold 100% of payable gold 12,744 11,689 Xavantina Gold 25% of gold produced 5,376 9,274 Africa Wassa Gold 10.5% of payable gold $ 12,419 $ 11,343 Khoemac au Silver 100% of payable silver 9,962 7,758 Total stream revenue $ 122,482 $ 102,528 Royalty: Canada Voisey's Bay Copper, nickel, cobalt 2.7% NVR $ 2,499 $ 1,139 Red Chris Gold, copper 1.0% NSR 4,477 2,617 Côté Gold Gold 1.0% NSR 1,314 — LaRonde Zone 5 Gold 2.0% NSR 1,173 808 Williams Gold 0.97% NSR 852 351 Other-Canada Various Various 397 216 United States Cortez Legacy Zone Gold Approx. 9.4% GSR Equivalent $ 11,143 $ 13,365 CC Zone Gold Approx. 0.45%-2.2% GSR Equivalent 3,554 4,411 Robinson Gold, copper 3.0% NSR 4,397 1,783 Manh Choh Gold, silver 3.0% NSR, 28% NSR (silver) 5,623 — Marigold Gold 2.0% NSR 2,157 1,406 Leeville Gold 1.8% NSR 1,627 1,485 Wharf Gold 0.0%-2.0% sliding-scale GSR 1,171 821 Goldstrike Gold 0.9% NSR 244 496 Other-United States Various Various 1,090 312 Latin America Peñasquito Gold, silver, lead, zinc 2.0% NSR $ 15,409 9,229 El Limon Gold 3.0% NSR 3,279 1,310 Dolores Gold, silver 3.25% NSR (gold), 2.0% NSR (silver) 1,662 1,539 Mara Rosa Gold, silver 2.75% NSR 930 — Other-Latin America Various Various — 111 Australia South Laverton Gold 1.5% NSR, 4.0% NPI $ 2,492 $ 1,899 King of the Hills Gold 1.5% NSR 1,585 1,190 Bellevue Gold 2.0% NSR 1,339 578 Gwalia Gold 1.5% NSR 1,087 771 Wonder Gold, silver 1.5% NSR 488 — Other-Australia Various Various 965 536 Total royalty revenue $ 70,954 $ 46,374 Total revenue $ 193,436 $ 148,902 For a full description of the Company's stream and royalty interests, refer to the 2024 Asset Handbook, published on April, 22, 2025 and available on our website. Article content TABLE 2 Stream Metal and Royalty Sales for Principal Properties Reported Production For The Quarter Ended 2 Property Operator Current Stream/ Royalty Interest 1 Metal(s) Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Stream: Mount Milligan Centerra 35% of payable gold Gold 11,800 oz 11,300 oz 17,600 oz 16,100 oz 12,500 oz 18.75% of payable copper Copper 2.2 Mlb 2.8 Mlb 3.1 Mlb 3.4 Mlb 2.5 Mlb Pueblo Viejo Barrick (60%) 7.5% of Barrick's interest in payable gold Gold 7,700 oz 5,900 oz 7,000 oz 5,800 oz 6,200 oz 75% of Barrick's interest in payable silver 3 Silver 219,400 oz 89,500 oz 332,700 oz 218,200 oz 223,000 oz Andacollo Teck 100% of payable gold Gold 4,400 oz 5,800 oz 4,000 oz 4,500 oz 5,700 oz Royalty: Cortez Nevada Gold Mines LLC 9.4% GSR on Legacy Zone 4 Gold 31,100 oz 52,600 oz 45,300 oz 42,600 oz 69,200 oz 0.45%-2.2% GSR on CC Zone 4 Gold 119,700 oz 149,800 oz 116,500 oz 119,800 oz 125,000 oz For a full description of the Company's stream and royalty interests, refer to the 2024 Asset Handbook, published on April, 22, 2025 and available on our website. Reported production relates to the amount of stream metal sales and the metal sales attributable to the Company's royalty interests for the stated periods and may differ from the operators' public reporting. The Pueblo Viejo silver stream is determined based on a fixed metallurgical recovery of 70% of silver in mill feed. Approximate blended royalty rates as described in the press release 'Royal Gold Announces Acquisition of Additional Royalty Interests on the World-Class Cortez Gold Complex in Nevada and Outlines Simplified Approach to Describing Royal Gold's Multiple Royalty Interests at Cortez' issued January 5, 2023. Article content TABLE 3 2025 Sales Volume Guidance and Year to Date Sales Volume Achieved 2025 Guidance Metal Sales by Segment for the Three Months Ended March 31, 2025 Stream Sales 1 Royalty Sales 2 Total Sales Gold (oz) 210,000 – 230,000 33,300 17,892 51,192 Silver (M oz) 2.7-3.3 0.6 0.2 0.8 Copper (M lb) 13.5 – 16.0 2.2 1.8 4.0 Other Metals (M) $18.0 – $21.0 N/A $7.3 $7.3 1 Stream Sales represents physical metal sold. 2 Royalty Sales represents royalty revenue divided by the average metal price for the period. Article content TABLE 4 Stream Segment Summary Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 As of March 31, 2025 As of December 31, 2024 Gold Stream Purchases (oz) Sales (oz) Purchases (oz) Sales (oz) Inventory (oz) Inventory (oz) Mount Milligan 16,100 11,800 15,200 12,500 8,800 4,500 Pueblo Viejo 5,800 7,700 5,800 6,200 5,800 7,700 Andacollo 5,500 4,400 4,900 5,700 1,100 — Other 8,800 9,400 13,800 13,700 2,700 3,300 Total 36,200 33,300 39,700 38,100 18,400 15,500 Silver Stream Purchases (oz) Sales (oz) Purchases (oz) Sales (oz) Inventory (oz) Inventory (oz) Pueblo Viejo 1 204,700 219,400 218,200 223,000 204,700 219,400 Other 367,500 378,000 383,100 412,000 108,500 119,000 Total 572,200 597,400 601,300 635,000 313,200 338,400 Copper Stream Purchases (Mlb) Sales (Mlb) Purchases (Mlb) Sales (Mlb) Inventory (Mlb) Inventory (Mlb) Mount Milligan 3.1 2.2 3.4 2.5 0.9 — 1 Silver stream purchases do not include 300,200 ounces of silver permitted to be deferred in the first quarter based on the terms of the Pueblo Viejo stream agreement. Total deferred deliveries were approximately 2.0 million ounces at March 31, 2025, and the timing for the delivery of the entire deferred amount is uncertain. Article content ROYAL GOLD, INC. Consolidated Balance Sheets (Unaudited, in thousands except share data) March 31, 2025 December 31, 2024 ASSETS Cash and equivalents $ 240,760 $ 195,498 Royalty receivables 57,729 63,460 Income tax receivable 1,370 1,139 Stream inventory 14,556 12,973 Prepaid expenses and other 2,084 2,217 Total current assets 316,499 275,287 Stream and royalty interests, net 3,059,885 3,042,804 Other assets 81,934 74,039 Total assets $ 3,458,318 $ 3,392,130 LIABILITIES Accounts payable $ 2,464 $ 10,578 Dividends payable 29,634 29,611 Income tax payable 15,345 23,177 Other current liabilities 19,329 21,785 Total current liabilities 66,772 85,151 Deferred tax liabilities 131,879 132,308 Mount Milligan deferred liability 25,000 25,000 Other liabilities 19,521 18,465 Total liabilities 243,172 260,924 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 65,735,304 and 65,691,151 shares outstanding, respectively 657 657 Additional paid-in capital 2,228,497 2,228,311 Accumulated earnings 973,853 889,989 Total Royal Gold stockholders' equity 3,203,007 3,118,957 Non-controlling interests 12,139 12,249 Total equity 3,215,146 3,131,206 Total liabilities and equity $ 3,458,318 $ 3,392,130 Article content ROYAL GOLD, INC. Consolidated Statements of Operations and Comprehensive Income (Unaudited, in thousands except share data) Three Months Ended March 31, 2025 March 31, 2024 Revenue $ 193,436 $ 148,902 Costs and expenses Cost of sales (excludes depreciation, depletion and amortization) 24,506 21,751 General and administrative 11,063 11,412 Production taxes 1,761 1,449 Depreciation, depletion and amortization 32,995 38,765 Total costs and expenses 70,325 73,377 Operating income 123,111 75,525 Fair value changes in equity securities (37 ) 447 Interest and other income 2,049 2,977 Interest and other expense (1,156 ) (4,607 ) Income before income taxes 123,967 74,342 Income tax expense (10,389 ) (27,033 ) Net income and comprehensive income 113,578 47,309 Net income and comprehensive income attributable to non-controlling interests (80 ) (143 ) Net income and comprehensive income attributable to Royal Gold common stockholders $ 113,498 $ 47,166 Net income per share attributable to Royal Gold common stockholders: Basic earnings per share $ 1.72 $ 0.72 Basic weighted average shares outstanding 65,705,157 65,637,428 Diluted earnings per share $ 1.72 $ 0.72 Diluted weighted average shares outstanding 65,791,551 65,740,260 Cash dividends declared per common share $ 0.45 $ 0.40 Article content ROYAL GOLD, INC. Consolidated Statements of Cash Flows (Unaudited, in thousands) Three Months Ended March 31, 2025 March 31, 2024 Cash flows from operating activities: Net income and comprehensive income $ 113,578 $ 47,309 Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities: Depreciation, depletion and amortization 32,995 38,765 Non-cash employee stock compensation expense 3,198 2,988 Fair value changes in equity securities 37 (447 ) Deferred tax (benefit) expense (8,828 ) 648 Other 224 222 Changes in assets and liabilities: Royalty receivables 5,731 10,127 Stream inventory (1,583 ) (1,629 ) Income tax receivable (231 ) (433 ) Prepaid expenses and other assets 345 10,763 Accounts payable 135 158 Income tax payable (7,832 ) 6,465 Mount Milligan deferred liability — 25,000 Other liabilities (1,400 ) (1,652 ) Net cash provided by operating activities $ 136,369 $ 138,284 Cash flows from investing activities: Acquisition of stream and royalty interests (58,246 ) (1,104 ) Proceeds from Khoemacau debt facility — 25,000 Other (49 ) (305 ) Net cash (used in) provided by investing activities $ (58,295 ) $ 23,591 Cash flows from financing activities: Repayment of debt — (100,000 ) Net payments from issuance of common stock (3,011 ) (1,369 ) Common stock dividends (29,611 ) (26,292 ) Other (190 ) (431 ) Net cash used in financing activities $ (32,812 ) $ (128,092 ) Net increase in cash and equivalents 45,262 33,783 Cash and equivalents at beginning of period 195,498 104,167 Cash and equivalents at end of period $ 240,760 $ 137,950 Article content Schedule A – Non-GAAP Financial Measures and Certain Other Measures Article content Overview of non-GAAP financial measures: Article content 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. Article content 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 release or elsewhere include the following: Article content 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. The net income and adjusted EBITDA margins represent net income or adjusted EBITDA divided by total revenue. 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. Net debt (or net cash) is a non-GAAP financial measure that is calculated by the Company as debt (excluding debt issuance costs) as of a date minus cash and equivalents for that same date. Net debt (or net cash) to trailing twelve months (TTM) adjusted EBITDA is a non-GAAP financial measure that is calculated by the Company as net debt (or net cash) as of a date divided by the TTM adjusted EBITDA (as defined above) ending on that date. 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 they could be used to reduce our debt obligations. A limitation associated with using net debt (or net cash) 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. 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. The tax effect of adjustments is computed by applying the statutory tax rate in the applicable jurisdictions to the income or expense items that are adjusted in the period presented. If a valuation allowance exists, the rate applied is zero. 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. Cash general and administrative expense, or cash G&A, is a non-GAAP financial measure that is calculated by the Company as general and administrative expenses for a period minus non-cash employee stock compensation expense for the same period. We believe that cash G&A is useful as an indicator of overhead efficiency without regard to non-cash expenses associated with employee stock compensation. Article content Three Months Ended March 31, December 31, September 30, June 30, (amounts in thousands) 2025 2024 2024 2024 Net income and comprehensive income $ 113,578 $ 107,521 $ 96,330 $ 81,320 Depreciation, depletion and amortization 32,995 33,737 36,177 35,747 Non-cash employee stock compensation 3,198 2,579 2,977 3,348 Fair value changes in equity securities 37 24 425 63 Interest and other, net (893 ) (179 ) 581 1,709 Income tax expense 10,389 26,078 21,510 18,991 Non-controlling interests in operating income of consolidated subsidiaries (80 ) (113 ) (88 ) (112 ) Adjusted EBITDA $ 159,224 $ 169,647 $ 157,912 $ 141,066 Net income margin 59 % 53 % 50 % 47 % Adjusted EBITDA margin 82 % 84 % 81 % 81 % TTM adjusted EBITDA $ 627,849 Debt $ — Cash and equivalents (240,760 ) Net debt / (cash) $ (240,760 ) Net debt / (cash) to TTM adjusted EBITDA (0.38)x Article content Three Months Ended March 31, December 31, September 30, June 30, (amounts in thousands) 2025 2024 2024 2024 General and administrative expense $ 11,063 $ 8,909 $ 10,102 $ 10,511 Non-cash employee stock compensation (3,198 ) (2,579 ) (2,977 ) (3,348 ) Cash G&A $ 7,865 $ 6,330 $ 7,125 $ 7,163 TTM cash G&A $ 28,483 Article content Adjusted net income and adjusted net income per share: Three Months Ended March 31, (amounts in thousands, except per share data) 2025 2024 Net income and comprehensive income attributable to Royal Gold common stockholders $ 113,498 $ 47,166 Fair value changes in equity securities 37 (447 ) Discrete tax expense related to Mount Milligan Cost Support Agreement — 12,978 Discrete tax benefit for basis adjustment, net of valuation allowance (12,008 ) — Withholding tax refund (1,715 ) — Tax effect of adjustments (10 ) 118 Adjusted net income and comprehensive income attributable to Royal Gold common stockholders $ 99,802 $ 59,815 Net income attributable to Royal Gold common stockholders per diluted share $ 1.72 $ 0.72 Fair value changes in equity securities — (0.01 ) Discrete tax expense related to Mount Milligan Cost Support Agreement — 0.20 Discrete tax benefit for basis adjustment, net of valuation allowance (0.18 ) — Withholding tax refund (0.03 ) — Tax effect of adjustments — $ — Adjusted net income attributable to Royal Gold common stockholders per diluted share $ 1.51 $ 0.91 Article content Other measures Article content 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 release and elsewhere include the following: Article content 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 LBMA PM fixing price for gold for that same period. 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. Working capital is calculated by the Company as current assets as of a date minus current liabilities as of that same date. Liquidity is calculated by the Company as working capital plus available capacity under the Company's revolving credit facility. 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. Article content Article content Article content Article content Article content Article content
