Summary of the Conference Call Industry Overview - The conference is the 29th Annual CIBC Western Institutional Investor Conference, focusing on the royalty and streaming sector within the precious metals industry [1][2] - The current market environment is characterized by significant appreciation in commodity prices, with gold reaching $5,000 and silver at $100 [3] Company Highlights OR Royalties - OR Royalties is a relatively new entrant in the royalty and streaming space, established over 11 years ago, with a cornerstone asset at Canadian Malartic, one of the most profitable mines globally [4][5] - The company has a market cap exceeding $8 billion and achieved cash flow per share guidance for 2024, with a 40% growth expected over the next five years [5][8] - 80% of OR Royalties' net asset value (NAV) and cash flow comes from Tier One jurisdictions: Canada, Australia, and the U.S., providing stability amid rising nationalism and potential expropriation risks in other regions [6][7] - The company maintains a 97% cash margin due to its royalty-centric model, which benefits shareholders in a rising gold and silver environment [7] - OR Royalties participated in approximately 10% of the aggregate deal volume in the royalty and streaming market, totaling around $3 billion in 2023-2024 [11] - The company remains disciplined in capital allocation, focusing on secured deals and avoiding unsecured transactions, which constituted 26% of the market in 2025 [12][13] Royal Gold - Royal Gold experienced substantial growth in 2025, highlighted by a $3.5 billion acquisition of Sandstorm and Horizon Copper, enhancing portfolio diversification and growth prospects [18] - The company has reduced its debt by $400 million since October and is rationalizing non-core investments to improve financial health [20][21] - Royal Gold's strategy includes maintaining a strong operating asset portfolio and focusing on long-term projects with significant growth potential [19][20] - The company emphasizes the importance of security in investments, with a history of making secured investments [50][51] Triple Flag Precious Metals - Triple Flag was formed in 2016 and has a market cap of approximately $8 billion, with a strong track record of increasing annual gold production [23][24] - The company achieved 113,000 ounces of gold production in 2025, near the top end of its guidance range, and expects production to grow to 135-145,000 ounces by 2029 [24][25] - Triple Flag focuses on a diversified portfolio, with 239 assets, of which only 33 are cash-flowing, indicating significant upside potential [25] - The company has consistently increased its dividend since going public and is debt-free, with available capacity for new investments [26][31] Market Dynamics - The royalty and streaming companies underperformed compared to the gold index in 2025, with Royal Gold up 67%, OR Royalties up 71%, and Triple Flag up 98%, while the gold index rose 141% [33] - The panelists discussed the need for better education of investors regarding the value proposition of royalty and streaming companies, particularly in a bullish commodity price environment [34][39] - The discussion highlighted the importance of long-term performance and the unique risk profile of royalty companies compared to operators and explorers [41][43] Investment Strategies - The panelists emphasized the importance of disciplined capital allocation and the need to avoid unsecured deals, focusing on investments that are accretive to shareholders [12][13][63] - There was a discussion on the potential for holding gold bullion as a strategic asset, with varying opinions on its desirability compared to deploying capital into new investments [68][72] - The panelists acknowledged the competitive landscape, with Tether entering the royalty space, but expressed confidence in their established business models and the value they provide to shareholders [84][86] Conclusion - The conference provided insights into the current state of the royalty and streaming sector, highlighting the growth potential and strategic approaches of OR Royalties, Royal Gold, and Triple Flag Precious Metals in a dynamic market environment.

Company Overview - Royal Gold, Inc. (NASDAQ:RGLD) specializes in the acquisition and management of precious metal streams and royalties to finance various mining projects [2] - The company's portfolio primarily includes interests in gold, silver, and industrial metals [2] Financial Performance - For the fourth quarter ended December 31, 2025, Royal Gold reported consolidated stream segment sales of approximately 64,000 gold equivalent ounces (GEOs) [2] - Total stream segment sales for the 2025 calendar year reached approximately 195,400 GEOs [2] Market Sentiment - The stock has seen a significant increase, up 40%, and reached an all-time high [1] - Analyst Jim Cramer suggests taking some profits off the table due to the rapid price increase [1]

Core Viewpoint - The article highlights three companies known as "Dividend Champions," which have a long history of increasing dividends, making them attractive for income investors as interest rates are expected to decline in the future [3]. Group 1: Royal Gold - Royal Gold, based in Denver, Colorado, has a dividend yield of 0.77% and has raised its dividend every year since July 2000, with a total increase of 58.3% since 2021, outpacing the 19% inflation during the same period [4][5][6]. - The company has maintained its dividend growth even during periods of declining gold prices, such as from 2012 to 2020, when its dividend increased by 87% despite gold prices falling [6][8]. - Royal Gold's business model involves acquiring royalty interests in various metals, allowing it to sustain dividend increases regardless of gold price fluctuations [7][8]. Group 2: York Water - York Water, a Pennsylvania-based water utility, has announced its 29th annual dividend hike, maintaining a record of 620 consecutive payouts since 1816, which is believed to be a record for American companies [9][10]. - The company's recent dividend increase of 4% in 2025 is above the 2.7% inflation rate, and since 2021, it has raised its dividend by 22%, demonstrating its ability to keep pace with inflation [10]. - With a payout ratio of just 63%, York Water's dividend appears sustainable, as its earnings are growing faster than its payouts [12]. Group 3: Caterpillar - Caterpillar, a leading manufacturer of construction and mining equipment, has increased its dividend for 31 consecutive years, including a 7% increase announced last June [13][14]. - The company's dividend has grown by 46.6% since 2021, significantly outpacing inflation, and its long-term track record shows that payouts have tripled over the last 25 years [14][16]. - Caterpillar's resilience is evident as it continued to increase dividends during economic downturns, such as the Financial Crisis and the pandemic, showcasing management's commitment to rewarding shareholders [16][17].

Industry Overview - Gold and gold mining stocks are expected to continue strong performance due to structural shifts in global markets, with central banks and institutional investors increasing their positions [2][4] - The rally is characterized by shallow corrections, with aggressive buying limiting downside risks and allowing for quick reassertion of the uptrend [3] Gold Mining Stocks - Gold mining stocks provide leverage to gold prices, with fixed costs allowing incremental gains in gold prices to significantly boost miners' cash flow and earnings [5] - Leading miners have prioritized balance sheet discipline, focusing on capital returns, debt reduction, and operational efficiency, which reduces downside risk while preserving upside potential [6][8] Specific Companies - Kinross Gold (KGC) is projected to grow earnings at an annual rate of 36.5% over the next three to five years, trading at a forward earnings multiple of 14.5x, with a PEG ratio below 1 indicating undervaluation [9][10] - Agnico Eagle Mines (AEM) is expected to grow earnings at 33.6% annually, with a forward earnings multiple of 20.2x, supported by a strong portfolio of low-cost mines [11] - Royal Gold (RGLD) operates on a royalty and streaming model, offering lower operating risk and higher margins, with a forward earnings multiple of 23.4x and projected earnings growth of 30.9% [12][13] Investment Outlook - Kinross, Agnico Eagle, and Royal Gold are well-positioned for investors seeking exposure to gold, combining strong earnings growth, reasonable valuations, and favorable Zacks Ranks [14]

Sales Performance - Royal Gold's consolidated stream segment sales for Q4 2025 were approximately 64,000 gold equivalent ounces (GEOs), with 58,200 GEOs from RGLD Gold AG and 5,800 GEOs from the Sandstorm portfolio[2][3]. - Total stream segment sales for the year 2025 reached approximately 195,400 GEOs[3]. Pricing Information - The average realized price for gold in Q4 2025 was $4,071 per ounce for RGLD Gold AG and $4,240 per ounce for the Sandstorm portfolio, while silver averaged $50.90 per ounce and $66.79 per ounce respectively[2]. Financial Position - Royal Gold reduced outstanding borrowings by $400 million since the Sandstorm transaction, with an outstanding balance of $900 million as of December 31, 2025, and further reduced to $825 million after an additional repayment[4][5]. Asset Management - The company is rationalizing non-core assets acquired from the Sandstorm transaction, including restructuring agreements with Bear Creek Mining Corporation to increase royalty exposure[7][8]. - Royal Gold will receive $6.2 million in cash and an incremental 1.75% net smelter return royalty on the Corani Project in Peru as part of the Bear Creek restructuring[8]. Future Outlook - The anticipated closing of the Highlander/Bear Creek transaction is expected to create a larger, well-capitalized company better positioned for future growth[9]. - Royal Gold's Q4 2025 financial results will be released on February 18, 2026, followed by a conference call on February 19, 2026[10].

Core Insights - Gold and silver prices have reached record highs, with gold at approximately $4,600 per ounce and silver at $83.96 per ounce, driven by safe-haven demand amid geopolitical tensions and economic uncertainty [2][11] - The rally in precious metals is supported by expectations of interest rate cuts by the Federal Reserve, which typically benefits non-yielding assets like gold and silver [3][6] Market Drivers - Geopolitical tensions, particularly unrest in Iran and strained U.S.-Europe relations, have heightened safe-haven buying [4] - Political pressure on the Federal Reserve and controversies surrounding its leadership have contributed to increased demand for precious metals [5] Investment Opportunities - Agnico Eagle Mines Limited (AEM) is a leading gold producer with strong growth prospects, reporting record adjusted net income and a Zacks Rank 1 (Strong Buy) [8][10] - Royal Gold Inc. (RGLD) has diversified its portfolio and reported record revenues, with a Zacks Rank 1, indicating strong growth potential [12][13] - Pan American Silver Corp. (PAAS) has expanded its silver reserves and reported significant revenue growth, also holding a Zacks Rank 1 [14][16] - Hecla Mining (HL), the largest silver producer in the U.S. and Canada, is advancing its projects and has a Zacks Rank 2 (Buy), indicating solid growth prospects [17][19]

Core Insights - Royal Gold is participating in the 29th Annual CIBC Western Institutional Conference, indicating its ongoing engagement with institutional investors and the broader market [1] Company Overview - Royal Gold is a prominent player in the precious metals sector, focusing on acquiring and managing royalties and streams in the mining industry [1] Industry Context - The participation in the conference highlights the importance of investor relations and market visibility for companies in the mining and precious metals industry [1]

Core Viewpoint - The acquisition of Sandstorm Gold by Royal Gold is characterized as a "highway robbery," indicating a strong negative sentiment towards the deal, which is valued at $3.5 billion in an all-stock transaction [1]. Group 1: Acquisition Details - The acquisition adds approximately 75,000 annual gold equivalent ounces (GEOs) to Royal Gold's portfolio, suggesting a significant increase in production capacity [1]. Group 2: Investment Philosophy - Mountain Valley Value Investments focuses on identifying undervalued companies with strong growth potential across various sectors, emphasizing long-term value and disciplined research [1]. - The firm aims to uncover investment opportunities that can deliver strong returns while highlighting potential risks that may impact investment theses [1].

Group 1 - Spot gold prices fell below $4450 per ounce, decreasing by 0.78% on the day [1] - Spot silver prices dropped over $1, currently at $70.42 per ounce, with a decline of 1.45% [1] - Mining stocks for gold and silver experienced widespread declines, with Harmony Gold (HMY.US) down over 2.6%, Barrick Mining (B.US) down over 1%, and Royal Gold (RGLD.US) down 0.95% [1] Group 2 - Paramount Gold Nevada (PZG.US) decreased by 0.85%, while Hecla Mining (HL.US) fell by 3.5% [1] - First Majestic Silver Corp (AG.US) saw a decline of over 2.8%, and Pan American Silver Corp (PAAS.US) dropped by 1.9% [1]

Core Insights - Royal Gold, Inc. (RGLD) shares reached a new 52-week high of $224.77, closing at $218.75, driven by near-record gold prices [1][11] - The company has a market capitalization of $18.5 billion and holds a Zacks Rank 1 (Strong Buy) [1] Financial Performance - In Q3 2025, RGLD reported adjusted earnings per share (EPS) of $2.06, up from $1.47 in the same quarter last year [2] - The company generated record revenues of $252 million, reflecting a 30% year-over-year increase, attributed to higher average metal prices and increased production [2] - Stream revenues were $166 million, a 24.8% increase year-over-year, while royalty revenues rose to $86 million, up 41.5% [3] Financial Position - Royal Gold's total liquidity exceeded $813 million as of September 30, 2025, comprising $188 million in working capital and $625 million available under a revolving credit facility [4] - The company has a total debt of $750 million [4] Strategic Moves - In November 2025, Royal Gold's subsidiary, International Royalty Corporation, sold shares of Versamet Royalties Corporation, aiding in debt repayment [5] - On October 20, 2025, Royal Gold acquired Sandstorm Gold Ltd. and Horizon Copper Corp., adding 40 producing assets to its portfolio [6][7] - The acquisitions are expected to increase gold equivalent ounces (GEO) production by 26% in 2025, with anticipated GEO production of 65,000-80,000 [7] Market Conditions - Gold prices have surged 63.9% year-to-date, currently trending near a record $4,345 per ounce, supported by geopolitical tensions and central bank purchases [8] - Silver prices have increased by 90.8% year-to-date, driven by strong demand and supply deficits, currently trading above $63 [9] - The rise in gold and silver prices is expected to positively impact Royal Gold's results in upcoming quarters [9]