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Summary of Royal Gold Conference Call Company Overview - **Company**: Royal Gold - **Industry**: Precious metals royalty and streaming - **Portfolio**: 364 properties across 30 countries at various stages of development [1] Core Insights and Arguments - **Transformational Year**: 2025 is described as a transformational year for Royal Gold, highlighted by significant acquisitions such as Sandstorm and Horizon [1] - **Portfolio Strength**: The merger with Sandstorm has combined a strong producing portfolio (e.g., Milligan, Pueblo Viejo, Cortez) with a robust development portfolio (e.g., Platreef, Mara, Hod Maden), effectively doubling the number of growth assets [2][3] - **Diversification Focus**: The company emphasizes diversification to mitigate event risk associated with concentration in specific assets. Milligan is the only asset exceeding 10% of the portfolio on a NAV basis, which is considered a strong position [3][4] - **Political Risk Management**: The addition of countries like South Africa, Turkey, and Zambia is seen as beneficial for diversification. The company assesses political risk based on the importance of the mining industry to the respective governments [5] - **Asset Longevity**: Key assets like Mount Milligan have extended mine lives, with projections extending to 2045, which enhances the portfolio's long-term value [6][8] Key Assets and Developments - **Mount Milligan**: Ongoing optimization efforts focus on understanding grade issues through infill drilling. The market may not fully appreciate the potential of this asset [8][9] - **Pueblo Viejo**: Recent performance has been disappointing due to recovery issues, attributed to the weathered nature of stockpiles. Solutions are being explored, but improvements are not expected in the short term [10] - **Kansanshi**: A cornerstone asset with a 20-year mine plan, showing potential for gold production alongside copper. The company is well-positioned to benefit from future developments [11][12] - **Cortez**: The Four Mile project has exceeded expectations in terms of speed of development, with a long runway for future growth anticipated [14][15] - **Hod Maden**: The company aims to convert its 30% equity stake into a more conventional royalty or stream structure, prioritizing this conversion to mitigate cost overrun risks [24][26] Market Environment and Deal Dynamics - **Deal Size Evolution**: The typical deal size has shifted from the $100 million-$300 million range to $200 million-$500 million, driven by rising metal prices [31] - **M&A Activity**: There is a renewed interest in M&A, with the company optimistic about the potential for more transactions in the industry, particularly as larger companies engage in streaming products [33][35] - **Competition**: The competitive landscape is described as stable, with the company focused on integrating its recent acquisitions rather than pursuing new deals in the short term [40][41] Regulatory and Growth Potential - **Regulatory Support**: Efforts in North America to streamline permitting processes are seen as beneficial for the company's assets, particularly in Canada and the U.S. [43] - **Long-term Growth Assets**: Cortez, Zaventem, and Milligan are highlighted as having significant organic growth potential that may be underappreciated by the market [45][46][47] Additional Insights - **Equity Positions**: The company has been rationalizing non-core equity positions, such as the sale of the Versament block, which generated nearly $150 million to pay down debt [28][29] - **Operational Partnership**: The company positions itself as an operational partner, not just a financial one, emphasizing collaboration with asset operators to unlock value [50] This summary encapsulates the key points discussed during the Royal Gold conference call, providing insights into the company's strategy, asset performance, and market dynamics.

Armor Advisors L.L.C. lessened its holdings in shares of Royal Gold, Inc. (NASDAQ:RGLD – Free Report) (TSE:RGL) by 7.5% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 58,805 shares of the basic materials company’s stock after selling 4,800 shares during the quarter. Royal Gold accounts for approximately 6.6% of Armor Advisors L.L.C.’s holdings, making the stock its 4th largest holding. Armor Advisors L.L.C. owned 0.09% of Royal Gold wo ...

Core Insights - Royal Gold achieved record financial results in fiscal 2025, with significant increases in revenue, operating cash flow, and earnings, driven by a strong gold price environment and strategic acquisitions [3][6][2] Financial Performance - Total revenue for fiscal 2025 was reported at $1.0 billion, representing a 43% increase compared to 2024 [2] - Operating cash flow reached $705 million, up 33% year over year [2] - Earnings for the year were $466 million, a 40% increase from the previous year, with adjusted net income hitting a record $510 million, up 47% year over year [2][6] Dividend and Shareholder Returns - Gold accounted for 78% of total revenue, and the company maintained an adjusted EBITDA margin of 82% [1] - Royal Gold paid over $118 million in dividends during 2025 and raised its annual dividend to $1.90 per share for 2026, marking the 25th consecutive annual increase [1][6] - Since initiating a dividend in 2000, the company has returned approximately $1.2 billion to shareholders [1] Acquisitions and Portfolio Growth - The company completed several key acquisitions in 2025, including Sandstorm Gold and Horizon Copper, which significantly boosted cash flow and revenue [5][6] - Integration of the acquired portfolios is largely complete, with further work underway to streamline assets [7][5] - Royal Gold expects to fully repay its revolver by early 2027, following a reduction in debt from $1.225 billion to $725 million [14] Fourth Quarter Highlights - In Q4, Royal Gold delivered 90,800 GEOs and achieved record quarterly revenue of $375 million, with stream revenue increasing by 110% to $265 million [4][9] - Royalty revenue rose 42% year over year to $111 million, driven by higher sales from key assets [9] - The company noted significant price increases for metals, with gold prices up 55%, silver up 74%, and copper up 21% compared to the prior year [9] Future Guidance and Market Outlook - The company plans to provide 2026 guidance and long-term direction at an Investor Day on March 31 [7] - Management indicated that the deal pipeline remains strong, with ongoing opportunities in third-party royalties and development-stage projects [15] - Royal Gold expects 2026 attributable gold sales from the Kansanshi mine to be between 26,000 and 31,000 ounces [11]

High-rolling investors have positioned themselves bearish on Royal Gold (NASDAQ:RGLD), and it's important for retail traders to take note.\This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in RGLD often signals that someone has privileged information.Today, Benzinga's options scanner spotted 9 options trades for Royal Gold. This is not a typical pattern.The sentiment among the ...

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $1 billion, operating cash flow of $705 million, and earnings of $466 million, representing increases of 43%, 33%, and 40% respectively compared to 2024 [5] - Adjusted net income reached a record $510 million, a 47% increase over 2024 [5][6] - The adjusted EBITDA margin was maintained at 82% for the year, supported by strong gold prices and stable cash G&A [6] Business Line Data and Key Metrics Changes - Gold contributed 78% of total revenue for the year, with significant revenue growth from the stream segment, which increased over 110% year-over-year to $265 million [11][19] - Royalty revenue for the quarter was up 42% year-over-year to $111 million, driven by strong performance from the Cortez CC zone and Peñasquito [11] Market Data and Key Metrics Changes - Metal prices significantly impacted revenue, with gold prices up 55%, silver up 74%, and copper up 21% compared to the prior year [19] - The company expects its revenue mix to remain consistent post-acquisition, maintaining the highest gold revenue percentage among large-cap peers in the royalty and streaming sector [19] Company Strategy and Development Direction - The company made several acquisitions, including Sandstorm Gold and Horizon Copper, to diversify and strengthen its portfolio [7][8] - The integration of the Sandstorm and Horizon portfolios is largely complete, with a focus on rationalizing and simplifying operations [9] - The company plans to host an investor day on March 31st to provide context for 2025 activities and guidance for 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position following a record year, emphasizing the strength of the underlying portfolio [32] - The company anticipates a steady state moving forward, with expectations for continued strong performance in 2026 [27][28] Other Important Information - The company paid over $118 million in dividends to shareholders and raised its annual dividend to $1.90 per share for 2026, marking the 25th consecutive annual dividend increase [6] - The company ended the year with outstanding debt of $900 million, with plans to reduce this to $725 million early in 2026 [28][29] Q&A Session Summary Question: What does the deal pipeline look like currently? - Management indicated that the deal pipeline remains strong, with ongoing activity despite market volatility [34][36] Question: Regarding Hod Maden, what is the company's involvement in discussions about the construction decision? - Management confirmed satisfaction with the technical report and stated that they are involved in discussions with SSR regarding development strategy and spending [43][46] Question: Can you elaborate on the mechanics behind the potential conversion of the Mara option into a gold stream? - The company can convert a small royalty into a 20% gold stream by investing approximately $225 million over the construction period [49][50] Question: What is the company's strategy regarding debt repayment versus new investments? - Management emphasized that finding good investments remains a priority, and they are not prioritizing debt repayment over new opportunities [85][88] Question: Why doesn't the company provide preliminary royalty revenue expectations? - The company explained that information rights limit their ability to provide estimates until after operators report their results [60][62]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $1 billion, operating cash flow of $705 million, and earnings of $466 million, representing increases of 43%, 33%, and 40% respectively compared to 2024 [5] - Adjusted net income reached a record $510 million, a 47% increase over 2024 [5][6] - The adjusted EBITDA margin was maintained at 82% for the year, supported by strong gold prices and stable cash G&A [6] Business Line Data and Key Metrics Changes - Gold contributed 78% of total revenue for the year, with significant revenue growth from the stream segment, which increased over 110% year-over-year [6][11] - Royalty revenue for the fourth quarter was up 42% year-over-year to $111 million, driven by strong performance from the Cortez CC zone in Peñasquito [11] Market Data and Key Metrics Changes - Metal prices significantly impacted revenue, with gold prices up 55%, silver up 74%, and copper up 21% compared to the prior year [19] - The company expects its revenue mix to remain consistent post-acquisition, maintaining the highest gold revenue percentage among large-cap peers in the royalty and streaming sector [19] Company Strategy and Development Direction - The company completed several acquisitions, including Sandstorm Gold and Horizon Copper, to diversify and strengthen its portfolio [7][8] - The integration of the acquired portfolios is largely complete, with a focus on rationalizing and simplifying operations to enhance value [9] - The company plans to host an investor day to provide context for 2025 activities and guidance for 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position following a record year, emphasizing the strength of the underlying portfolio [32] - The company anticipates a steady state moving forward, with expectations for continued strong performance in 2026 [28] Other Important Information - The company paid over $118 million in dividends and raised its annual dividend to $1.90 per share for 2026, marking the 25th consecutive annual dividend increase [6] - The company ended the year with outstanding debt of $900 million, with plans to reduce it further to $725 million early in 2026 [29] Q&A Session Summary Question: What does the deal pipeline look like currently? - Management indicated that the deal pipeline remains strong, with ongoing activity despite market volatility [34][36] Question: Regarding Hod Maden, were the recent technical report numbers satisfactory? - Management expressed satisfaction with the technical report and noted that a delay in construction decisions could provide more time for strategic planning [43][46] Question: Can you elaborate on the potential conversion of the Mara option into a gold stream? - The company can convert a small royalty into a 20% gold stream by investing approximately $225 million during the construction period [49][50] Question: What drove the outperformance in other metals revenue? - The outperformance was primarily attributed to higher metal prices [51][53] Question: What is the strategy for the Pueblo Viejo silver stream? - Management does not perceive a lack of incentive for the operator to prioritize silver recovery and believes ongoing efforts are being made to improve both gold and silver recovery [57][80] Question: What is the company's focus regarding transaction sizes? - The company is still focused on transactions in the $100 million to $500 million range, while remaining open to larger opportunities if they arise [82][84]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $1 billion, operating cash flow of $705 million, and earnings of $466 million, representing increases of 43%, 33%, and 40% respectively compared to 2024 [4] - Adjusted net income reached a record $510 million, a 47% increase over 2024 [4] - The adjusted EBITDA margin was maintained at 82% for the year, supported by strong gold prices and stable cash G&A [5] Business Line Data and Key Metrics Changes - Gold contributed 78% of total revenue for the year, with significant revenue growth from the stream segment, which increased over 110% year-over-year to $265 million [10][18] - Royalty revenue for the fourth quarter was up 42% year-over-year to $111 million, driven by strong performance from the Cortez CC zone and Peñasquito [10] Market Data and Key Metrics Changes - Metal prices significantly impacted revenue, with gold prices up 55%, silver up 74%, and copper up 21% compared to the prior year [18] - The company expects its revenue mix to remain consistent post-acquisition, maintaining the highest gold revenue percentage among large-cap peers in the royalty and streaming sector [18] Company Strategy and Development Direction - The company completed several acquisitions, including Sandstorm Gold and Horizon Copper, to diversify and strengthen its portfolio [5][6] - The integration of the Sandstorm and Horizon portfolios is largely complete, with a focus on rationalizing and simplifying operations [7] - The company plans to host an investor day on March 31st to provide context for 2025 activities and guidance for 2026 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying portfolio's performance and indicated that the unusual items affecting financial results are now behind them [29] - The company anticipates a steady state beginning with the first quarter results of 2026, with expectations for continued strong performance [26][29] Other Important Information - The company paid over $118 million in dividends during the year and raised its annual dividend to $1.90 per share for 2026, marking the 25th consecutive annual dividend increase [5] - The company ended 2025 with outstanding debt of $900 million, which is expected to be fully repaid by early 2027, earlier than previously forecasted [27] Q&A Session Summary Question: What does the deal pipeline look like currently? - Management indicated that the deal pipeline remains strong, with ongoing activity despite market volatility, and noted that there are opportunities in both base metal projects and primary gold assets [31][34] Question: Regarding Hod Maden, what is the company's involvement in discussions about the construction decision? - Management confirmed satisfaction with the technical report and indicated active involvement in discussions with SSR Mining regarding development strategy and spending [41][46] Question: Can you elaborate on the potential conversion of the Mara option into a gold stream? - The company can convert a small royalty into a 20% gold stream by investing approximately $225 million over the construction period, with strong economic incentives to proceed [47] Question: Why doesn't the company provide preliminary royalty revenue expectations? - Management explained that information rights limit their ability to provide estimates until after operators report their results, which can be 15 to 45 days post-quarter end [56][59] Question: What is the company's strategy regarding capital allocation and potential transactions? - Management stated that finding good investments remains a priority, and they are open to transactions in the $100 million to $500 million range, while also considering larger opportunities [78][81]

Fourth Quarter and Full Year 2025 Results February 19, 2026 Cautionary Statements Forward-Looking Statements: This presentation and the accompanying webcast include "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 identif ...

Core Insights - Royal Gold, Inc. (RGLD) reported adjusted earnings per share of $1.92 in Q4 2025, missing the Zacks Consensus Estimate of $2.68, but showing an 18% year-over-year increase [1] - The company generated record revenues of $375 million in Q4, representing an 85% increase year-over-year [2] - RGLD's adjusted EBITDA margin was 82% in Q4, slightly down from 84% in the prior year [3] Financial Performance - RGLD's total revenues for 2025 reached $1.03 billion, up 43.2% year-over-year, driven by higher metal prices and contributions from various streams and assets [6] - Stream revenues for 2025 were $686.5 million, a 42% increase from 2024, while royalty revenues rose to $344 million from $236 million in the previous year [7] - The company's net cash from operating activities in Q4 was $242 million, up from $141 million in the same quarter last year, ending the year with cash and cash equivalents of $234 million [4][9] Cost and Margin Analysis - The cost of sales in Q4 was $50.8 million, a significant increase of 109.1% year-over-year, while general and administrative expenses surged 97.8% to $17.6 million [3] - Adjusted EBITDA for Q4 was $307 million, an 81.3% increase year-over-year, reflecting strong operational performance despite rising costs [3] Stock Performance - Over the past year, RGLD shares have increased by 84.3%, although this is lower than the industry's growth of 134.2% [8]