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Royal Gold Inc NASDAQ: RGLD-Q

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Royal Gold Reports Record Revenue in the Second Quarter of Fiscal 2021

BusinessWire - Wed Feb 3, 3:05PM CST

ROYAL GOLD, INC. (NASDAQ:RGLD) (together with its subsidiaries, "Royal Gold" or the "Company," "we," "us," or "our") reports net income of $59.9 million, or $0.91 per share, on record revenue of $158.4 million in its second quarter of fiscal 2021 ended December 31, 2020 ("second quarter"). Adjusted net income (1) was $60.1 million, or $0.92 per share, after excluding a $0.01 loss on the change in fair value of equity securities.

Second Quarter 2021 Highlights:

Record revenue of $158.4 million, an increase of 28% over the prior year quarter76% of revenue from gold at an average price of $1,874 per ounceOperating cash flow of $99.9 million, an increase of 28% over the prior year quarterVolume of 84,500 GEOs(1) $200 million of debt, net cash(2) of $182 million, with $1.2 billion of liquidity availableAnnual dividend increased to $1.20 per share, a 7% increase over the prior year, and the 20th consecutive annual increaseKhoemacau construction 85% complete, and 80% base silver stream fully fundedContinued Board renewal with election of Fabiana Chubbs

"Excellent performance from our operating portfolio combined with continued robust metal prices led to another quarter of record revenue and strong operating cash flow," commented Bill Heissenbuttel, President and CEO of Royal Gold. "The positive price environment continues to support organic growth from within the portfolio including new revenue contributions from Relief Canyon and South Laverton. Solid operating cash flow of almost $100 million allowed us to further strengthen the balance sheet, increase our annual dividend for the 20th consecutive year, and complete our funding of the advance payment for the 80% base silver stream at Khoemacau. We are pleased to see progress at Khoemacau remain on track for first shipment of concentrate in the third calendar quarter of 2021."

"Finally," continued Mr. Heissenbuttel, "we continued our long-standing practice of maintaining an independent and highly qualified Board of Directors with the election of Fabiana Chubbs following the retirement of Chris Thompson in November. I would like to welcome Fabiana to the Board and thank Chris for his invaluable contribution to Royal Gold over the past several years."

_________________________________________

[1] Adjusted net income is a non-GAAP financial measure. See Schedule A of this press release for additional information.

[2] See Schedule A of this press release for additional information about gold equivalent ounces, or GEOs.

[3] Net debt (and net cash) is a non-GAAP financial measure. See Schedule A of this press release for additional information.

Recent Developments

Khoemacau Project

According to Khoemacau Copper Mining (Pty.) Limited ("KCM"), progress continued at the Khoemacau Project ("Khoemacau") during the quarter, and the project reached approximately 85% of construction completion as of December 31, 2020. According to KCM, activities are focused on refurbishment and upgrading of the Boseto mill, underground development, completion of accommodation, power and water infrastructure at Zone 5 and completion of haul road surfacing between Zone 5 and the Boseto mill. Also, according to KCM, underground development had cumulatively advanced 8,311 meters in the three mines and approximately 70,000 tonnes of ore were stockpiled on surface at the end of December 2020.

The six-month state of emergency declared by the Government of Botswana in March 2020 to help prevent the spread of COVID-19 was extended on September 28, 2020, for an additional six months through March 2021. Mining remains designated as an "essential service" and KCM reports that general development activity at Khoemacau is continuing without significant impact. In line with previous reporting, and barring any potential further impacts caused by COVID-19 considerations, KCM is targeting to begin commissioning activities late in the second calendar quarter of 2021 with first shipment of concentrate to occur late in the third calendar quarter of 2021.

On January 6, 2021, Royal Gold made the sixth advance payment of $32.6 million, which brings the total contribution to $212 million and completes the advance payment required to earn the full base silver stream. For any remaining funding required to complete construction, KCM may elect under the stream agreement to draw up to $53 million in additional stream financing, earning Royal Gold up to an additional 20% option silver stream, draw up to $25 million under a subordinated debt facility provided by Royal Gold, and/or seek at least $25 million in equity from project sponsors. The subordinated debt facility has a term of seven years, carries interest at a rate of LIBOR +11%, and requires mandatory repayment upon certain events.

KCM currently anticipates that up to $50 million of this additional funding is required to complete construction and ramp up of Khoemacau to commercial production, largely a result of previously reported schedule impacts caused by COVID-19 considerations. The added funding mechanisms built into the stream agreement allow KCM to seamlessly access the additional capital required. KCM is currently reviewing its funding options in advance of the next funding draw, which may occur as early as April 2021, and does not anticipate requiring any further funding after this draw to reach commercial production.

Continued Progress on Pueblo Viejo Expansion

Barrick Gold Corporation ("Barrick") reported continued progress at Pueblo Viejo during the quarter to expand the process plant and tailings storage facilities. Barrick estimates that the expansion project could significantly increase throughput and allow the mine to maintain average annual gold production of approximately 800,000 ounces after calendar 2022 (on a 100% basis), and that the increase in tailings storage capacity has the potential to convert approximately 11 million ounces of mineralized material to reserves (on a 100% basis).

As reported by Barrick, the Environmental Impact Assessment for the process plant expansion has been approved and an amended environmental license has been issued, and progress continued with engineering, procurement of long lead equipment packages, earthworks and tendering of contracts for construction activities. Barrick also reported that studies and permitting discussions to support additional tailings capacity continued to progress.

Further Strengthening of Balance Sheet

The Company maintains a disciplined approach to capital allocation and repaid $75 million of the amount outstanding on its revolving credit facility during the second quarter, ending the quarter with an outstanding balance of $200 million and a net cash position of $182 million. The interest rate on borrowings under the revolving credit facility is LIBOR +1.10% for an all-in rate of 1.33% as of December 31, 2020.

On January 4, 2021, the Company repaid a further $50 million of the outstanding borrowings under the credit facility, reducing the amount outstanding to $150 million. After this repayment, the amount available under the revolving credit facility was $850 million.

Dividend Increase to $1.20 per Share

As previously announced on November 17, 2020, the Board of Directors increased the annual calendar year common stock dividend from $1.12 to $1.20 per share, a 7% increase over the prior calendar year, payable on a quarterly basis of $0.30 per share.

The return of capital to shareholders through payment of a growing and sustainable dividend is a core component of Royal Gold's capital allocation strategy. Royal Gold has paid a dividend since 2000 and this increase represents the 20th consecutive annual increase to the dividend.

Board Renewal

The Royal Gold Board of Directors ("Board") undertook a process to identify, assess and nominate a new Board member upon receiving notice from Christopher Thompson of his intention to retire from the Board effective November 18, 2020. Mr. Thompson was elected to the Board in 2014 and served as a member of the Audit and Finance Committee ("AFC").

After a thorough search process, Fabiana Chubbs was nominated and elected as a Class III director at the Annual Meeting of Stockholders on November 18, 2020. Ms. Chubbs has extensive experience in the mining industry and currently serves as a director of Lithium Americas Corporation, and prior to retirement from executive management roles, held the position of Chief Financial Officer of Eldorado Gold Corporation from 2011 to 2018. Prior to 2011, Ms. Chubbs had responsibility for treasury and risk management functions at Eldorado Gold Corporation, and worked in auditing roles with PwC Canada, PwC Argentina and IBM. Ms. Chubbs' experience with finance, financial reporting and internal controls provides her with excellent credentials to join the AFC and fill the vacancy resulting from the retirement of Mr. Thompson.

Royal Gold follows corporate practices designed to protect and promote long-term value, including robust processes for selection of new directors. The Royal Gold Board has nominated, and shareholders have elected, six new independent directors in the past eight years with wide and diverse backgrounds and experience, leading to meaningful Board renewal.

Second Quarter 2021 Overview

Second quarter revenue was $158.4 million, compared to revenue of $123.6 million for the prior year quarter, comprised of stream revenue of $107.7 million and royalty revenue of $50.7 million. The increase in total revenue for the second quarter compared to the prior year quarter was primarily due to increased gold, silver and copper prices and an increase in production within the royalty segment.

Cost of sales, which excludes depreciation, depletion and amortization, increased to $24.9 million for the second quarter from $21.1 million for the prior year quarter. The increase was primarily due to an increase in gold, silver and copper prices when compared to the prior period. Cost of sales is specific to stream agreements and is the result of the purchase of gold, silver and copper for a cash payment.

Exploration costs, which were specific only to the exploration and advancement of the Peak Gold Project, decreased to zero for the second quarter from $1.5 million for the prior year period. On September 30, 2020, the Company sold its interest in the Peak Gold Joint Venture and no further exploration costs are expected to be incurred.

Depreciation, depletion and amortization increased to $47.9 million for the second quarter from $40.1 million for the prior year quarter. The increase was primarily due to higher gold sales at Mount Milligan and an increase in depletion rates at Mount Milligan, as previously discussed in the Company's fiscal year 2020 10-K. These increases were partially offset by a decrease in gold sales at Andacollo when compared to the prior period.

Interest and other expense decreased to $1.6 million for the second quarter, from $2.2 million for the prior year quarter. The decrease was primarily attributable to lower interest expense as a result of lower interest rates on outstanding debt when compared to the prior period.

During the second quarter, the Company recorded income tax expense totaling $16.0 million, compared with income tax expense of $11.1 million for the prior year quarter. The income tax expense resulted in an effective tax rate of 21.1% in the current period, compared with 21.6% in the quarter ended December 31, 2019.

As of December 31, 2020, the Company had current assets of $450.5 million compared to current liabilities of $57.2 million, which resulted in working capital of $393.3 million. This compares to current assets of $362.2 million and current liabilities of $43.6 million as of June 30, 2020, resulting in working capital of $318.6 million. The increase in working capital was primarily due to increased revenue and proceeds from the sale of the Peak Gold Joint Venture interest.

As of December 31, 2020, the Company had $800 million available and $200 million outstanding under the revolving credit facility. Working capital, combined with available capacity under the revolving credit facility, resulted in approximately $1.2 billion of total liquidity as of December 31, 2020.

On January 4, 2021, the Company repaid $50 million of the outstanding borrowings under the revolving credit facility, which increased the amount available to $850 million and decreased the amount outstanding to $150 million.

Outlook

For the third quarter of fiscal 2021 Royal Gold expects stream segment sales to range between 48,000 and 53,000 GEOs with quarter-end inventory ranging between 26,000 and 31,000 GEOs.

For the full fiscal year 2021, depreciation, depletion and amortization expense is expected to range between $590 and $640 per GEO, and the effective tax rate is expected to range between 19% and 23%.

Other than potential remaining conditional funding at the Khoemacau Project as discussed above, Royal Gold has no other project capital commitments or financing obligations.

Property Highlights

A summary of second quarter and historical production reported by operators of the Company's principal stream and royalty properties can be found on Tables 1 and 2. Calendar year 2020 operator production estimates for these properties compared to actual production at these properties through December 31, 2020 can be found on Table 3. Results of the streaming business for the second quarter, compared to the prior year quarter, can be found on Table 4. Highlights at certain of the Company's principal producing and development properties during the second quarter, compared to the prior year quarter, are detailed in the Quarterly Report on Form 10-Q.

CORPORATE PROFILE

Royal Gold is a precious metals stream and royalty company engaged in the acquisition and management of precious metal streams, royalties and similar production-based interests. As of December 31, 2020, the Company owned interests on 189 properties on five continents, including interests on 41 producing mines and 17 development stage projects. Royal Gold is publicly traded on the Nasdaq Global Select Market under the symbol "RGLD." The Company's website is located at www.royalgold.com.

Second Quarter Call Information:
 
Dial-In              855-209-8260 (U.S.); toll free
Numbers:             855-669-9657 (Canada); toll free
                     412-542-4106 (International)
Conference Title:    Royal Gold

Note: Management's conference call reviewing the second quarter results will be held on Thursday, February 4, 2021, 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.

Additional Investor Information: Royal Gold routinely posts important information, including information about upcoming investor presentations and press releases, on its website under the Investors tab. Investors and other interested parties are encouraged to enroll at www.royalgold.com to receive automatic email alerts for new postings.

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, the following: statements about our expected financial performance, including revenue, expenses, earnings or cash flow; operators' expected operating and financial performance, including production, deliveries, mine plans and reserves, development, cash flows and capital expenditures; planned and potential acquisitions or dispositions, including funding schedules and conditions; liquidity, financing and dividends; our overall investment portfolio; macroeconomic and market conditions including the impacts of COVID-19; prices for gold, silver, copper, nickel and other metals; potential impairments; or tax changes.

Factors that could cause actual results to differ materially from these forward-looking statements include, among others, the following: a low-price environment for gold, silver, copper, nickel or other metals; operating activities or financial performance of properties on which we hold stream or royalty interests, including variations between actual and forecasted performance, operators' ability to complete projects on schedule and as planned, changes to mine plans and reserves, liquidity needs, mining and environmental hazards, labor disputes, distribution and supply chain disruptions, permitting and licensing issues, contractual issues involving our stream or royalty agreements, or operational disruptions due to COVID-19; risks associated with doing business in foreign countries; our ability to identify, finance, value and complete acquisitions; adverse economic and market conditions; changes in laws or regulations governing us, operators or operating properties; changes in management and key employees; and other factors described in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended June 30, 2020. Most of these factors are beyond our ability to predict or control.

Forward-looking statements speak only as of the date on which they are made. We disclaim any obligation to update any forward-looking statements, except as required by law. Readers are cautioned not to put undue reliance on forward-looking statements.

Statement Regarding Third-Party Information: Certain information provided in this press release, including production estimates for calendar 2020, has been provided to us by the operators of the relevant properties or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of any such third-party information and refers the reader to the public reports filed by the operators for information regarding those properties.

Information in this press release concerning the Khoemacau Copper Project was provided to the Company by Cupric Canyon Capital L.P., the privately-held owner and developer of Khoemacau. Such information may not have been prepared in accordance with applicable laws, stock exchange rules or international standards governing preparation and public disclosure of technical data and information relating to mineral properties. Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of this third-party information, and investors are cautioned not to rely upon this information.

TABLE 1

Second Quarter Fiscal 2021

Revenue and Operators' Reported Production for Principal Stream and Royalty Interests

(In thousands, except reported production in oz and lb)

Three Months Ended                                                                                                                                   Three Months Ended
                                                                                                December 31, 2020                                                                                                                                    December 31, 2019
                                                                                                ----------------------------------------------------------------------------------------------------------------------------------------------------------------        -------------------- ------------------------------------------------------------------------------------------------------------------------
Stream/Royalty                           Metal(s)                                                Revenue                                                                     Reported Production(1)                                          Revenue                             Reported Production(1)
-------------------------------- -------------------- -------------------- -------------------- --------------------------------------------------------------------------------    --------------------------------------------------------------------------------    -------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------
Stream:                                                                                                                                                                                                
                                       $                                    44,713             $                                  30,629        
   Mount Milligan
                Gold                                         16,900   oz                                           12,900   oz
                Copper                                          4.1   Mlb                                             4.3   Mlb
                                       $                                    27,554             $                                  23,614        
   Pueblo Viejo
                Gold                                          9,400   oz                                           10,500   oz
                Silver                                      408,600   oz                                          462,400   oz
                                   Gold                   $                                    17,766                  9,500   oz                       $                                  20,665                 13,900   oz
   Andacollo
                                   Gold                   $                                     6,761                  3,600   oz                       $                                   4,794                  3,300   oz
   Wassa
                                       $                                    10,925             $                                   9,923        
   Other(2)
                Gold                                          5,100   oz                                            6,100   oz
                Silver                                       52,000   oz                                           20,500   oz
-------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total stream revenue                   $                                   107,719             $                                  89,625        
-------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Royalty:                                                            
                                       $                                    12,952             $                                   7,577        
         Penasquito
                Gold                                        210,600   oz                                           95,800   oz
                Silver                                          8.7   Moz                                             9.3   Moz
                Lead                                           52.1   Mlb                                            61.5   Mlb
                Zinc                                           93.8   Mlb                                            72.1   Mlb
                                   Gold                   $                                     8,128                 57,600   oz                       $                                   3,292                 28,000   oz
         Cortez
                                   Various                $                                    29,561                    N/A         $                                  23,149                    N/A    
         Other(2)
-------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total royalty revenue                  $                                    50,641             $                                  34,018        
-------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Six Months Ended                                                                                                                                     Six Months Ended
                                                                                             December 31, 2020                                                                                                                                    December 31, 2019
                                                                                             ----------------------------------------------------------------------------------------------------------------------------------------------------------------        -------------------- ------------------------------------------------------------------------------------------------------------------------
Stream/Royalty                        Metal(s)                                                Revenue                                                                     Reported Production(1)                                          Revenue                             Reported Production(1)
----------------------------- -------------------- -------------------- -------------------- --------------------------------------------------------------------------------    --------------------------------------------------------------------------------    -------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------
Stream:                                                                                                                                                                                             
                                    $                                    79,332             $                                  61,126        
      Mount Milligan
             Gold                                         28,800   oz                                           29,500   oz
             Copper                                          8.2   Mlb                                             6.7   Mlb
                                    $                                    58,824             $                                  45,232        
      Pueblo Viejo
             Gold                                         20,500   oz                                           20,000   oz
             Silver                                      859,800   Moz                                         938,000   Moz
                                Gold                   $                                    41,275                 21,600   oz                       $                                  41,269                 27,900   oz
      Andacollo
                                Gold                   $                                    15,870                  8,500   oz                       $                                  10,113                  6,900   oz
      Wassa
                                    $                                    18,921             $                                  18,866        
      Other(2)
             Gold                                          9,200   oz                                           11,900   oz
             Silver                                       75,100   oz                                           85,600   oz
----------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total stream revenue                $                                   214,222             $                                 176,606        
----------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Royalty:                                                         
                                    $                                    23,161             $                                  11,997        
      Penasquito
             Gold                                        341,300   oz                                          131,300   oz
             Silver                                         15.1   Moz                                            13.9   Moz
             Lead                                           93.7   Mlb                                            91.2   Mlb
             Zinc                                          191.8   Mlb                                           179.2   Mlb
                                Gold                   $                                    13,812                 95,300   oz                       $                                   7,709                 63,100   oz
      Cortez
                                Various                $                                    54,045                    N/A         $                                  46,105                    N/A    
      Other(2)
----------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total royalty revenue               $                                    91,018             $                                  65,811        
----------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Reported production relates to the amount of metal sales subject to our stream and royalty interests for the stated periods and may differ from the operators' public reporting.Individually, except for Rainy River which contributed 6% of revenue for the three and six months ended December 31, 2020 and 2019, no stream or royalty included within the "Other" category contributed greater than 5% of the Company's total revenue for either period.

TABLE 2

Operators' Historical Production

Reported Production For The Quarter Ended(1)
                                                                                                                                                                                                                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Property                            Operator                                              Stream/Royalty                                              Metal(s)                                  Dec. 31, 2020                                                    Sep. 30, 2020                                                    Jun. 30, 2020                                                    Mar. 31, 2020                                                    Dec. 31, 2019
-------------------------- -------------------- --------------------- -------------------- ---------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------
Stream:                                                                                                                                            
-------------------------- -------------------- --------------------- -------------------- ---------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                             Centerra                35% of payable gold                                                                        Gold                                 16,900   oz                                   11,800   oz                                   20,200   oz                                   14,000   oz                                   12,900   oz
   Mount Milligan
               18.75% of payable copper                                                                   Copper                                  4.1   Mlb                                     4.1   Mlb                                     1.7   Mlb                                     4.3   Mlb                                     4.3   Mlb
-------------------------- -------------------- --------------------- -------------------- ---------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                             Barrick (60%)           7.5% of Barrick's interest in gold produced up to 990,000 ounces; 3.75% thereafter         Gold                                  9,400   oz                                   11,100   oz                                   10,200   oz                                   13,200   oz                                   10,500   oz
   Pueblo Viejo
               75% of Barrick's interest in payable silver up to 50 million ounces; 37.5% thereafter(2)   Silver                              408,600   oz                                  451,200   oz                                  394,700   oz                                  417,800   oz                                  462,400   oz
-------------------------- -------------------- --------------------- -------------------- ---------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                             Teck                    100% of gold produced up to 900,000 ounces; 50% thereafter                                 Gold                                  9,500   oz                                   12,200   oz                                    6,300   oz                                   13,900   oz                                   13,900   oz
   Andacollo
-------------------------- -------------------- --------------------- -------------------- ---------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                             Golden Star             10.5% of gold produced up to 240,000 ounces; 5.5% thereafter                               Gold                                  3,600   oz                                    4,900   oz                                    2,600   oz                                    5,600   oz                                    3,300   oz
   Wassa
-------------------------- -------------------- --------------------- -------------------- ---------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Royalty:                                                                                                                                           
-------------------------- -------------------- --------------------- -------------------- ---------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                             Newmont Corporation     2.0% NSR                                                                                   Gold                                210,600   oz                                  130,700   oz                                   83,700   oz                                   97,200   oz                                   95,800   oz
   Penasquito
                                                                                       Silver                                  8.7   Moz                                     6.4   Moz                                     5.2   Moz                                     8.7   Moz                                     9.3   Moz
                                                                                       Lead                                   52.1   Mlb                                    41.7   Mlb                                    30.6   Mlb                                    60.5   Mlb                                    61.5   Mlb
                                                                                       Zinc                                   93.8   Mlb                                    98.0   Mlb                                    90.2   Mlb                                   124.5   Mlb                                    72.1   Mlb
-------------------------- -------------------- --------------------- -------------------- ---------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                             Nevada Gold Mines LLC   GSR1, GSR2, GSR3, NVR1, NVR1C(3)                                                           Gold                                 57,600   oz                                   37,600   oz                                   52,500   oz                                   57,700   oz                                   28,000   oz
   Cortez
-------------------------- -------------------- --------------------- -------------------- ---------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Reported production relates to the amount of metal sales subject to our stream and 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.Please refer to Part I, Item 2, of the Company's Fiscal 2020 Form 10-K for a full description of the Company's royalty interests at Cortez.

TABLE 3

Operator's Estimated and Actual Production

Operator's Estimated Production for                                                                          Operator's Actual Calendar 2020
                                                       Full Year Calendar 2020(1)                                                                                        Production(2)
                                                      ----------------------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------------------
Stream/Royalty                           Gold (oz)             Silver (oz)         Base Metals (lb)           Gold (oz)             Silver (oz)         Base Metals (lb)
-------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
Stream:                                                 
                                                 53,000                         49,200        
   Andacollo(3)
                                      140,000 - 160,000                        161,900        
   Mount Milligan(4)
                                                      80 - 90 M                         82.8 M
      Copper
                                      530,000 - 580,000                    N/A                    542,000                    N/A    
   Pueblo Viejo(5)
                                      165,000 - 170,000                        168,000        
   Wassa(6)
Royalty:                                                
                                                 66,900                        101,700        
   Cortez GSR1
                                                109,600                        103,900        
   Cortez GSR2
                                                146,300                        161,100        
   Cortez GSR3
                                                113,500                        121,600        
   Cortez NVR1
                                                 30,100                         44,500        
   Cortez NVR1C
                                                510,000                   28 M                    343,000                 20.4 M    
      Penasquito(7)
                                                          190 M                          130 M
      Lead
                                                          360 M                          281 M
      Zinc
-------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------

Production estimates received from the operators are for calendar 2020. There can be no assurance that production estimates received from the operators will be achieved. Please also refer to our cautionary language regarding forward-looking statements above, as well as the Risk Factors identified in Part I, Item 1A, of the Company's Fiscal 2020 Form 10-K for information regarding factors that could affect actual results.Actual production figures shown are from the operators and cover the period January 1, 2020 through December 31, 2020, unless otherwise noted in footnotes to this table.The estimated and actual production figures shown for Andacollo are contained gold in concentrate.The estimated and actual production figures shown for Mount Milligan are payable gold and copper in concentrate.The estimated and actual production figures shown for Pueblo Viejo are payable gold in dore and represent Barrick's 60% interest in Pueblo Viejo. Barrick did not provide estimated or actual silver production.The estimated and actual production figures shown for Wassa are payable gold in dore.The estimated and actual gold production figures shown for Penasquito are payable gold and silver in concentrate and dore. The estimated and actual lead and zinc production figures shown are payable lead and zinc in concentrate. The estimated production figures shown are for the period January 1, 2020, through December 31, 2020, while actual production figures shown are for the period January 1, 2020, through September 30, 2020, per the operator. Full calendar year 2020 information was not available from the operator as of the date of this release.

TABLE 4

Stream Summary

Three Months Ended                                               Three Months Ended                                   As of                  As of
                             December 31, 2020                                                December 31, 2019                             December 31, 2020        June 30, 2020
                                          -------------------- ------------------------------------------------------------                        ------------------------------------------------------------                        -------------------- --------------------                      --------------------
Gold Stream                 Purchases (oz)           Sales (oz)           Purchases (oz)           Sales (oz)             Inventory (oz)         Inventory (oz)
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Mount Milligan                          9,700                 16,900                 18,800                 12,900                    3,800                  3,300
Pueblo Viejo                           10,500                  9,400                 13,200                 10,500                   10,500                    100
Andacollo                              10,700                  9,500                 18,600                 13,900                    2,900                 11,100
Wassa                                   4,700                  3,600                  4,900                  3,300                    3,100                  2,900
Other                                   4,500                  5,100                  5,600                  6,100                    1,200                  1,500
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total                                  40,100                 44,500                 61,100                 46,700                   21,500                 18,900
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                             
                            Three Months Ended                                               Three Months Ended                                   As of                  As of
                             December 31, 2020                                                December 31, 2019                             December 31, 2020        June 30, 2020
                                          -------------------- ------------------------------------------------------------                        ------------------------------------------------------------                        -------------------- --------------------                      --------------------
Silver Stream               Purchases (oz)           Sales (oz)           Purchases (oz)           Sales (oz)             Inventory (oz)         Inventory (oz)
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Pueblo Viejo                          418,200                408,600                417,700                462,400                  418,200                451,200
Other                                  65,400                 52,000                 48,100                 51,100                   66,300                 23,400
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total                                 483,600                460,600                465,800                513,500                  484,500                474,600
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                             
                            Three Months Ended                                               Three Months Ended                                   As of                  As of
                             December 31, 2020                                                December 31, 2019                             December 31, 2020        June 30, 2020
                                          -------------------- ------------------------------------------------------------                        ------------------------------------------------------------                        -------------------- --------------------                      --------------------
Copper Stream               Purchases (Mlb)          Sales (Mlb)          Purchases (Mlb)          Sales (Mlb)            Inventory (Mlb)        Inventory (Mlb)
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Mount Milligan                            2.5                    4.1                    4.4                    4.3                      1.0                    0.8
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Six Months Ended                                                 Six Months Ended                                    As of                  As of
                             December 31, 2020                                                December 31, 2019                             December 31, 2020        June 30, 2019
                                          -------------------- ------------------------------------------------------------                        ------------------------------------------------------------                        -------------------- --------------------                      --------------------
Gold Stream                 Purchases (oz)           Sales (oz)           Purchases (oz)           Sales (oz)             Inventory (oz)         Inventory (oz)
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Mount Milligan                         29,300                 28,800                 32,800                 29,500                    3,800                  3,300
Andacollo                              24,400                 21,600                 28,300                 27,900                    2,900                    100
Pueblo Viejo                           19,900                 20,500                 23,700                 20,000                   10,500                 11,100
Wassa                                   8,700                  8,500                  7,800                  6,900                    3,100                  2,900
Other                                   8,900                  9,200                 11,400                 11,900                    1,200                  1,500
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total                                  91,200                 88,600                104,000                 96,200                   21,500                 18,900
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                             
                             Six Months Ended                                                 Six Months Ended                                    As of                  As of
                             December 31, 2020                                                December 31, 2019                             December 31, 2020        June 30, 2019
                                          -------------------- ------------------------------------------------------------                        ------------------------------------------------------------                        -------------------- --------------------                      --------------------
Silver Stream               Purchases (oz)           Sales (oz)           Purchases (oz)           Sales (oz)             Inventory (oz)         Inventory (oz)
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Pueblo Viejo                          826,800                859,800                880,200                938,000                  418,200                451,200
Other                                 118,000                 75,100                 97,500                 85,600                   66,300                 23,400
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total                                 944,800                934,900                977,700              1,023,600                  484,500                474,600
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                             
                             Six Months Ended                                                 Six Months Ended                                    As of                  As of
                             December 31, 2020                                                December 31, 2019                             December 31, 2020        June 30, 2019
                                          -------------------- ------------------------------------------------------------                        ------------------------------------------------------------                        -------------------- --------------------                      --------------------
Copper Stream               Purchases (Mlb)          Sales (Mlb)          Purchases (Mlb)          Sales (Mlb)            Inventory (Mlb)        Inventory (Mlb)
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

ROYAL GOLD, INC.

Consolidated Balance Sheets

(Unaudited, in thousands except share data)

December 31, 2020                               June 30, 2020
--------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------  -------------------- -------------------- ----------------------------------------
ASSETS                                                                                                                                     
Cash and equivalents                                                                                                                               $              381,859                        $              319,128
Royalty receivables                                                                                                                             44,316                     27,689
Income tax receivable                                                                                                                            8,939                      2,435
Stream inventory                                                                                                                                13,900                     11,671
Prepaid expenses and other                                                                                                                       1,477                      1,227
--------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                               450,491                    362,150
   Total current assets
Stream and royalty interests, net                                                                                                            2,231,980                  2,318,913
Other assets                                                                                                                                    81,263                     85,224
--------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                   $            2,763,734                        $            2,766,287
   Total assets
--------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
LIABILITIES                                                                                                                                
Accounts payable                                                                                                                                   $                2,587                        $                2,484
Dividends payable                                                                                                                               19,680                     18,364
Income tax payable                                                                                                                              23,318                     13,323
Other current liabilities                                                                                                                       11,569                      9,384
--------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                57,154                     43,555
   Total current liabilities
Debt                                                                                                                                           195,983                    300,439
Deferred tax liabilities                                                                                                                        85,017                     86,439
Uncertain tax positions                                                                                                                         13,267                     25,427
Other liabilities                                                                                                                                7,634                      8,308
--------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                               359,055                    464,168
   Total liabilities
--------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
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 65,548,415 and 65,531,288 shares outstanding, respectively                        656                        655
Additional paid-in capital                                                                                                                   2,201,076                  2,210,429
Accumulated earnings                                                                                                                           189,910                     61,133
--------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Royal Gold stockholders' equity                                                                             2,391,642                  2,272,217
--------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Non-controlling interests                                                                                                                       13,037                     29,902
--------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                             2,404,679                  2,302,119
   Total equity
--------------------------------------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

ROYAL GOLD, INC.

Consolidated Statements of Operations and Comprehensive Income

(Unaudited, in thousands except for per share data)

For The Three Months Ended                                                                                                                                                   For The Six Months Ended
                                                                                            -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------                                                  ----------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     December 31, 2020                               December 31, 2019                               December 31, 2020                               December 31, 2019
------------------------------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------  -------------------- -------------------- -------------------- ----------------------------------------                                            -------------------- ----------------------------------------  -------------------- -------------------- -------------------- ----------------------------------------
Revenue                                                                                                            $              158,360                          $              123,643                          $              305,240                          $              242,417
Costs and expenses                                                                                                               
                                                                                                                24,859                       21,077                       46,760                       41,188
   Cost of sales (excludes depletion, depreciation and amortization)
                                                                                                                 6,789                        6,665                       14,244                       14,108
   General and administrative
                                                                                                                 1,401                          984                        2,756                        2,083
   Production taxes
                                                                                                        --                        1,514                          563                        4,140
   Exploration costs
                                                                                                                47,945                       40,096                       94,245                       78,810
   Depreciation, depletion and amortization
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total costs and expenses                                                                                        80,994                       70,336                      158,568                      140,329
Gain on sale of Peak Gold JV interest                                                                   --               --                       33,906               --
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating income                                                                                                77,366                       53,307                      180,578                      102,088
Fair value changes in equity securities                                                                          (382)                          222                        2,158                      (1,153)
Interest and other income                                                                                          613                          226                        1,034                        1,001
Interest and other expense                                                                                     (1,578)                      (2,217)                      (3,454)                      (5,051)
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Income before income taxes                                                                                      76,019                       51,538                      180,316                       96,885
Income tax (expense) benefit                                                                                  (16,031)                     (11,124)                     (13,654)                       12,401
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net income and comprehensive income                                                                             59,988                       40,414                      166,662                      109,286
Net (income) loss and comprehensive (income) loss attributable to non-controlling interests                       (99)                          907                          166                        2,488
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net income and comprehensive income attributable to Royal Gold common stockholders                                 $               59,889                          $               41,321                          $              166,828                          $              111,774
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net income per share attributable to Royal Gold common stockholders:                                                             
Basic earnings per share                                                                                           $                 0.91                          $                 0.63                          $                 2.55                          $                 1.70
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Basic weighted average shares outstanding                                                                   65,546,938                   65,495,907                   65,542,326                   65,480,759
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Diluted earnings per share                                                                                         $                 0.91                          $                 0.63                          $                 2.54                          $                 1.70
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Diluted weighted average shares outstanding                                                                 65,619,241                   65,611,567                   65,625,965                   65,613,406
------------------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

ROYAL GOLD, INC.

Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Three Months Ended                                                                                             Six Months Ended
                                                                                                                                ----------------------------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------------------
                                                                                                                                                         December 31, 2019                           December 31, 2020                           December 31, 2019
                                                                                                                                                 December 31, 2020
---------------------------------------------------------------------------------------------------------- -------------------- ----------------------------------------------  -------------------- ----------------------------------------                       ----------------------------------------  -------------------- ----------------------------------------
Cash flows from operating activities:                                                                                                                                         
                                                                                                                                         
                                                                                                                                                               $                                  40,414   $                                 166,662   $                                 109,286
   Net income and comprehensive income                                                                                             $                                     59,988
---------------------------------------------------------------------------------------------------------- -------------------- ----------------------- ----------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities:                                                                    
                                                                                                                                         
                                                                                                                                                                               40,096                   94,245                   78,810
   Depreciation, depletion and amortization                                                                                                           47,945
                                                                                                                                                                       --                 (33,906)           --
   Gain on sale of Peak Gold JV interest                                                                                                      --
                                                                                                                                                                                1,538                    2,892                    3,639
   Non-cash employee stock compensation expense                                                                                                        1,398
                                                                                                                                                                                (222)                  (2,158)                    1,153
   Fair value changes in equity securities                                                                                                               381
                                                                                                                                                                              (2,987)                  (8,405)                 (36,126)
   Deferred tax (benefit) expense                                                                                                                      2,140
                                                                                                                                                                                  286                      398                      566
   Other                                                                                                                                                 287
Changes in assets and liabilities:                                                                                                                                            
                                                                                                                                         
                                                                                                                                                                              (1,812)                 (16,627)                  (7,714)
   Royalty receivables                                                                                                                              (10,743)
                                                                                                                                                                              (4,564)                  (2,229)                  (3,956)
   Stream inventory                                                                                                                                    3,259
                                                                                                                                                                              (5,973)                  (6,504)                  (6,968)
   Income tax receivable                                                                                                                             (4,640)
                                                                                                                                                                              (3,823)                      900                  (7,020)
   Prepaid expenses and other assets                                                                                                                     640
                                                                                                                                                                              (1,446)                    (549)                    (929)
   Accounts payable                                                                                                                                    (314)
                                                                                                                                                                                8,818                    9,995                    7,392
   Income tax payable                                                                                                                                (2,413)
                                                                                                                                                                                1,482                 (12,160)                    3,230
   Uncertain tax positions                                                                                                                                36
                                                                                                                                                                                6,450                    1,510                    8,133
   Other liabilities                                                                                                                                   1,948
---------------------------------------------------------------------------------------------------------- -------------------- ----------------------- ----------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
Net cash provided by operating activities                                                                                                                      $                                  78,257                      $              194,064   $                                 149,496
                                                                                                                                                      $                  99,912
---------------------------------------------------------------------------------------------------------- -------------------- ----------------------- ----------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
Cash flows from investing activities:                                                                                                                                         
                                                                                                                                         
                                                                                                                                                                             (68,055)                 (48,832)                 (72,417)
   Acquisition of stream and royalty interests                                                                                                      (37,528)
                                                                                                                                                                                (411)                   49,154           --
   Proceeds from sale of Peak Gold JV interest                                                                                                --
                                                                                                                                                                       --                   12,146           --
   Proceeds from sale of Contango shares                                                                                                      --
                                                                                                                                                                                 (84)                    (364)                    4,363
   Other                                                                                                                                                (25)
---------------------------------------------------------------------------------------------------------- -------------------- ----------------------- ----------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
Net cash (used in) provided by investing activities                                                                                                            $                                (68,550)                      $               12,104   $                                (68,054)
                                                                                                                                                      $                (37,553)
---------------------------------------------------------------------------------------------------------- -------------------- ----------------------- ----------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
Cash flows from financing activities:                                                                                                                                         
                                                                                                                                         
                                                                                                                                                                             (35,000)                (105,000)                 (85,000)
   Repayment of debt                                                                                                                                (75,000)
                                                                                                                                                                                (324)                  (1,415)                  (2,747)
   Net payments from issuance of common stock                                                                                                           (26)
                                                                                                                                                                             (17,382)                 (36,735)                 (34,755)
   Common stock dividends                                                                                                                           (18,370)
                                                                                                                                                                                1,533                    (287)                    2,089
   Other                                                                                                                                               (220)
---------------------------------------------------------------------------------------------------------- -------------------- ----------------------- ----------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
Net cash used in financing activities                                                                                                                          $                                (51,173)                      $            (143,437)   $                               (120,413)
                                                                                                                                                      $                (93,616)
---------------------------------------------------------------------------------------------------------- -------------------- ----------------------- ----------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
Net (decrease) increase in cash and equivalents                                                                                                                              (41,466)                   62,731                 (38,971)
                                                                                                                                                    (31,257)
Cash and equivalents at beginning of period                                                                                                                                   121,970                  319,128                  119,475
                                                                                                                                                     413,116
---------------------------------------------------------------------------------------------------------- -------------------- ----------------------- ----------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------

Schedule A - Non-GAAP Financial Measures and Certain Other Measures

Overview of non-GAAP financial measures:

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by U.S. generally accepted accounting principles ("GAAP"). These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. In addition, because the presentation of these non-GAAP financial measures varies among companies, these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

We have provided below reconciliations of our non-GAAP financial measures to the comparable GAAP measures. We believe these non-GAAP financial measures provide useful information to investors for analysis of our business. We use these non-GAAP financial measures to compare period-over-period performance on a consistent basis and when planning and forecasting for future periods. We believe these non-GAAP financial measures are used by professional research analysts and others in the valuation, comparison and investment recommendations of companies in our industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions. The adjustments made to calculate our non-GAAP financial measures are subjective and involve significant management judgement. Non-GAAP financial measures used by management in this report or elsewhere include the following:

Adjusted earnings before interest, taxes, depreciation, depletion and amortization, or adjusted EBITDA, is a non-GAAP financial measure that is calculated by the Company as net income adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. We consider adjusted EBITDA to be useful because the measure reflects our operating performance before the effects of certain non-cash items and other items that we believe are not indicative of our core operations.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.

Reconciliation of non-GAAP financial measures to U.S. GAAP measures

Adjusted EBITDA, net cash, and net cash to TTM adjusted EBITDA:

Three Months Ended
                                                                                   December 31,                                September 30,                                 June 30,                                    March 31,
                                                                                                          ----------------------------------------                       ----------------------------------------                       ----------------------------------------                       ----------------------------------------
(amounts in thousands)                                                                                                      2020                                        2020                                        2020                                        2020
------------------------------------------------------------------------------------ -------------------- ----------------------------------------  -------------------- ----------------------------------------  -------------------- ----------------------------------------  -------------------- ----------------------------------------
Net income and comprehensive income                                                    $                                  59,988   $                                 106,674   $                                  48,672   $                                  38,292
                                                                                                       47,945                   46,300                   45,396                   51,228
   Depreciation, depletion and amortization
                                                                                                        1,398                    1,493                      833                    4,644
   Non-cash employee stock compensation
                                                                                               --           --                    1,341           --
   Impairment of royalty interests
                                                                                               --                 (33,906)           --           --
   Gain on sale of Peak Gold JV interest
                                                                                                          382                  (2,539)                  (6,390)                    3,819
   Fair value changes in equity securities
                                                                                                          965                    1,454                    2,249                    1,468
   Interest and other, net
                                                                                                       16,031                  (2,377)                       45                    8,702
   Income tax expense (benefit)
                                                                                                         (99)                      265                      343                      410
   Non-controlling interests in operating (income) loss of consolidated subsidiaries
------------------------------------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted EBITDA                                                                        $                                 126,610   $                                 117,364   $                                  92,489   $                                 108,563
------------------------------------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                         
TTM adjusted EBITDA                                                                    $                                 445,026                  
------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
                                                                                         
Debt                                                                                   $                                 195,983                  
                                                                                                        4,017                  
   Debt issuance costs
                                                                                                    (381,859)                  
   Cash and equivalents
------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
Net cash                                                                               $                               (181,859)                  
------------------------------------------------------------------------------------ -------------------- -------------------- --------------------

Cash G&A:

Three Months Ended
                                      December 31,                                September 30,                                 June 30,                                    March 31,
                                                             ----------------------------------------                       ----------------------------------------                       ----------------------------------------                       ----------------------------------------
(amounts in thousands)                                                         2020                                        2020                                        2020                                        2020
--------------------------------------- -------------------- ----------------------------------------  -------------------- ----------------------------------------  -------------------- ----------------------------------------  -------------------- ----------------------------------------
General and administrative expense        $                                   6,789   $                                   7,454   $                                   6,537   $                                   9,551
                                                         (1,398)                  (1,493)                    (833)                  (4,644)
   Non-cash employee stock compensation
--------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Cash G&A                                  $                                   5,391   $                                   5,961   $                                   5,704   $                                   4,907
--------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Adjusted net income and adjusted net income per share:

Three Months Ended                                                                                          Six Months Ended
                                                                                                                December 31,                                                                                               December 31,
                                                                                                        ----------------------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------------------
(amounts in thousands, except per share data)                                                                             2020                                        2019                                        2020                                        2019
---------------------------------------------------------------------------------- -------------------- ----------------------------------------  -------------------- ----------------------------------------                       ----------------------------------------  -------------------- ----------------------------------------
Net income and comprehensive income attributable to Royal Gold common stockholders   $                                  59,889   $                                  41,321   $                                 166,828   $                                 111,774
                                                                                                        382                    (222)                  (2,158)                    1,153
   Fair value changes in equity securities
                                                                                             --           --                 (33,906)           --
   Gain on sale of Peak Gold JV interest
                                                                                             --           --                 (25,799)                 (29,407)
   Discrete tax benefits
                                                                                                      (147)                       23                    7,595                    (231)
   Tax effect of adjustments
---------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted net income attributable to Royal Gold common stockholders                                   60,124                   41,122   $                                 112,560   $                                  83,289
---------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                       
Net income attributable to Royal Gold common stockholders per diluted share          $                                    0.91   $                                    0.63                     2.54                     1.70
                                                                                                       0.01           --                   (0.03)                     0.02
   Fair value changes in equity securities
                                                                                             --           --                   (0.52)           --
   Gain on sale of Peak Gold JV interest
                                                                                             --           --                   (0.39)                   (0.45)
   Discrete tax benefits
                                                                                             --           --                     0.12           --
   Tax effect of adjustments
---------------------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------

Free cash flow:

Three Months Ended                                                                                          Six Months Ended
                                                                                 December 31,                                                                                               December 31,
                                                                         ----------------------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------------------
(amounts in thousands)                                                   2020                                        2019                                        2020                                        2019
--------------------------------------------------- -------------------- ----------------------------------------  -------------------- ----------------------------------------                       ----------------------------------------  -------------------- ----------------------------------------
Net cash provided by operating activities             $                                  99,912   $                                  78,257   $                                 194,064   $                                 149,496
                                                                    (37,528)                 (68,055)                 (48,832)                 (72,417)
   Acquisition of stream and royalty interests
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
Free cash flow                                        $                                  62,384   $                                  10,202   $                                 145,232   $                                  77,079
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
                                                        
Net cash (used in) provided by investing activities   $                                (37,553)   $                                (68,550)   $                                  12,104   $                                (68,054)

Other measures

We use certain other measures in managing and evaluating our business. We believe these measures may provide useful information to investors for analysis of our business. We use these measures to compare period-over-period performance and liquidity on a consistent basis and when planning and forecasting for future periods. We believe these measures are used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in our industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions. Other measures used by management in this report and elsewhere include the following:

Gold equivalent ounces, or GEOs, is calculated by the Company as revenue (in total or by reportable segment) for a period divided by the average gold price for that same period.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.Operating margin is calculated by the Company as operating income for a period divided by revenue for that same period.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210203005875/en/

SOURCE: Royal Gold, Inc.

For further information, please contact: 
Alistair Baker
Vice President Investor Relations and Business Development
(720) 554-6995
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