Royal Gold Reports Continued Strong Financial Performance for the Third Quarter of 2023

Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, "Royal Gold," the "Company," "we," "us," or "our") reports net income of $49.3 million, or $0.75 per share, for the quarter ended September 30, 2023, ("third quarter") on revenue of $138.6 million and operating cash flow of $98.1 million. Adjusted net income¹ was $49.7 million, or $0.76 per share.

Third Quarter 2023 Highlights:

• Solid financial results with revenue of $138.6 million, operating cash flow of $98.1 million and earnings of $49.3 million, increases of 5%, 3% and 8%, respectively, compared to the prior year period
• Revenue split: 78% gold, 11% silver, 10% copper
• Production volume of 71,900 GEOs²
• Sustained high adjusted EBITDA margin¹ of 78%
• Debt reduced to $325 million after $75 million repayment
• Total available liquidity increased to $768 million
• Paid quarterly dividend of $0.375 per share, a 7% increase over the prior year period

"We turned in another quarter of strong financial results with year-over-year increases in revenue, earnings and operating cash flow," commented Bill Heissenbuttel, President and CEO of Royal Gold. "The cash flow produced by our portfolio allowed us to pay down a further $75 million of the amount drawn on our revolving credit facility, and we ended the quarter with increased liquidity of approximately $770 million. While cash flow was strong and the portfolio generally performed well, short-term production delays and interruptions at a couple of our major revenue drivers may mean that sales for the year will come in at the low end of, or slightly below, the guidance range we provided in April."

"In a short nine-month period, we have more than fully repaid the debt we borrowed to fund the acquisition of the second of two royalties on the world-class Cortez Complex," continued Mr. Heissenbuttel. "The use of short-term borrowings to finance the acquisition of long-life assets provides shareholders full exposure to those assets without dilution."

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¹ Adjusted net income, adjusted net income per share and adjusted EBITDA margin are non-GAAP financial measures. See Schedule A of this press release for additional information, including a detailed description of adjustments to net income.

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

Recent Portfolio Developments

Principal Property Updates

Optimization Review Underway and Updated Gold Production Guidance Provided at Mount Milligan

On October 31, 2023, Centerra Gold Inc. ("Centerra") reported that a full asset optimization review of the Mount Milligan mine in British Columbia has been launched, which includes assessments of productivity and cost efficiency opportunities in concert with mine plan optimization. Centerra expects this review to identify and drive incremental operational improvements and is expected to be completed in 2024.

Centerra also reported that production during the third quarter was impacted by mine sequencing and lower recoveries caused by blending of ores mined from different phases of the pit. Centerra expects that medium-term recoveries for gold and copper will be similar to those achieved in 2023, and metallurgical reviews to increase recoveries from current levels are underway.

Centerra now expects full year 2023 gold production at Mount Milligan to be 150,000 to 160,000 ounces, down from the previous guidance range of 160,000 to 170,000 ounces, and copper production to be near the low end of the previously-provided guidance range of 60 to 70 million pounds. Centerra also expects higher levels of gold production and similar levels of copper production in 2024 compared to 2023 production guidance levels.

Delayed Ramp-Up of Plant Expansion with Further Deferral of Silver Deliveries at Pueblo Viejo

On October 12, 2023, Barrick Gold Corporation ("Barrick") provided a brief update on production at Pueblo Viejo in the Dominican Republic. According to Barrick, ramp-up of the expansion project was delayed due to equipment design deficiencies, and Barrick's share of gold production at Pueblo Viejo was approximately 79,000 ounces in the third quarter. Gold production in the third quarter was impacted by lower ore grades processed due to mine sequencing, as well as lower mill throughput and lower mill recovery associated with the commissioning of the mill expansion.

Silver stream deliveries were approximately 171,100 ounces for the third quarter compared to 319,100 ounces for the prior year quarter, and an additional 80,600 ounces of silver deliveries were deferred during the current period. As of September 30, 2023, approximately 688,300 ounces remain deferred, and the timing for the delivery of the entire deferred amount is uncertain. We expect that silver recoveries could remain highly variable and material deliveries of deferred silver ounces are not expected until the plant expansion is complete and is running at full production levels.

Conceptual Preliminary Economic Assessment Provided for the Fourmile Project at Cortez

On September 12, 2023, Barrick provided an update on its 100%-owned Fourmile Project within the Cortez Complex in Nevada, which is covered by royalty interests held by Royal Gold. According to Barrick, ongoing drilling demonstrates the significant potential to increase the grade and size of the Fourmile Project, and work is underway to assess options for an independent exploration decline access in support of a pre-feasibility study. Barrick expects this decline would also be used for development and production complementing the current development at the Goldrush Project. Barrick's preliminary economic assessment indicates that the Fourmile Project could support a potential gold production profile of 300,000 to 400,000 ounces per year in addition to the existing Cortez Complex production profile of 950,000 to 1,200,000 ounces per year over 10 years.

Definitive Agreement Reached to End the Strike at Peñasquito

During the three months ended September 30, 2023, no royalty production from Peñasquito was reported due to the suspension of operations resulting from a strike action on June 7, 2023 by the National Union of Mine and Metal Workers of the Mexican Republic (the "Union"). According to Newmont Corporation ("Newmont"), on October 13, 2023, a definitive agreement was reached between Newmont and the Union that also received approval from the Mexican Labor Court, ramp-up of operations has since commenced, and operations at Peñasquito are expected to reach full operating capacity by the end of the fourth quarter of 2023.

Other Property Updates

Recent notable updates as reported by the operators of other select portfolio assets include:

Producing Properties

King of the Hills (1.5% NSR royalty): On September 7, 2023, Red 5 Limited ("Red 5") reported an updated mineral resource and ore reserve as of June 30, 2023, at the King of the Hills mine in Western Australia. According to Red 5, contained gold in proven and probable reserves increased to 2.5 million ounces, with contained gold in total measured, indicated and inferred resources increasing significantly to 4.5 million ounces. According to Red 5, significant emphasis has been placed on grade control and resource conversion with a focus on de-risking stoping areas within the fiscal year 2024 and 2025 mine plans, and surface and underground drilling is expected to continue throughout the year to continue increasing the definition, understanding and size of the orebody, which remains open in all directions.

Rainy River (6.5% gold stream, 60% silver stream): New Gold Inc. ("New Gold") reported strong third quarter production of 66,374 GEOs from the Rainy River mine in Ontario, which was attributed to higher gold grades. According to New Gold, development of the connection ramp from Intrepid to the underground Main Zone is on track for first ore production from the underground Main Zone in the second half of 2024, and production at Rainy River is tracking towards the top end of the 2023 guidance range of 235,000 to 265,000 GEOs.

Red Chris (1% NSR royalty): Newcrest Mining Limited ("Newcrest) reported continued development of the block cave during the quarter at the Red Chris mine in British Columbia, with the exploration decline advanced to 3,580 meters and the conveyor decline advanced to 548 meters as of October 8, 2023. Newcrest also reported progress on the block cave feasibility study with completion expected in the second half of 2023, and further exploration at the Gully Zone, Far West and recently-recognized White Rock Canyon targets.

Robinson (3.0% NSR Royalty): KGHM International Ltd. ("KGHM") reported on August 17, 2023, that lower production in the first half of 2023 from the Robinson mine in Nevada was due to the mining of lower grade transition ore, with the expectation that production will improve when higher-grade ore in the main part of the Ruth West 5 deposit is reached in the fourth quarter of 2023. Further, according to KGHM, the remaining expected mine life at Robinson is 14 years.

Development and Evaluation Properties

Back River (1.95% GSR royalty on the Goose Project): B2Gold Corp. ("B2Gold") provided a construction update on September 18, 2023, and confirmed that the Goose Project in the Back River Gold District in Nunavut remains on schedule to pour first gold in the first quarter of 2025. According to B2Gold, mining of the Echo open pit is progressing, underground mining has exceeded 1,300 meters of horizontal development, and erection of structural steel in the mill area has commenced. B2Gold also reported that 11,000 meters of drilling in 44 drill holes has been completed, with a focus on resource confirmation and resource expansion in the Umwelt and Llama deposits, as well as the testing of various regional targets. B2Gold expects to complete an updated Goose Project life of mine plan in the second half of 2023.

Bellevue (2% NSR royalty): Bellevue Gold Limited ("Bellevue") announced on October 26, 2023, that first gold had been poured at the Bellevue Gold Project in Western Australia. Bellevue reported that the project is now in the commissioning phase, with plant throughput forecast to ramp up to consistent production at the nameplate processing capacity of 1 million tonnes per year.

Côté Gold (1% NSR royalty): IAMGOLD Corporation reported that construction completion at the Côté Gold Project had reached approximately 92% as of September 30, 2023, with production expected to commence in early 2024.

Granite Creek (3.0% NSR and 2.94% NSR royalties): On October 11, 2023, i-80 Gold Corp. ("i-80") provided a development and exploration update on the Granite Creek Project in Nevada. According to i-80, record monthly tonnage and gold mineralization was mined from the Ogee Zone in August 2023, and a drill program targeting the South Pacific Zone ("SPZ") has defined high grade mineralization over a significant strike length. i-80 is targeting the SPZ as a priority for development and is extending a decline with a target to bring the SPZ into the Granite Creek mine plan in 2024. i-80 further reported that the Granite Creek deposit remains open at depth and along strike from the existing underground workings.

Great Bear (2% NSR royalty): Kinross Gold Corporation ("Kinross") provided an update on activity at the Great Bear Project in Ontario on August 2, 2023. Kinross reported that it had signed an Advanced Exploration Agreement with the Wabauskang and Lac Seul First Nations as the Company moves from surface exploration to underground exploration. Kinross further reported that its focus for 2023 is on inferred drilling in the area half a kilometre to one kilometre below surface, and that it continues to advance studies and plans to release a preliminary economic assessment in 2024.

Mara Rosa (1.0% NSR and 1.75% NSR royalties): Hochschild Mining PLC announced on September 6, 2023, that the Mara Rosa Project in Brazil is advancing on schedule and on budget with total project progress at 92%, and production remains on track for the first half of 2024.

Third Quarter 2023 Overview

In the third quarter, we recorded net income and comprehensive income attributable to Royal Gold stockholders ("net income") of $49.3 million, or $0.75 per basic and diluted share, as compared to net income of $45.8 million, or $0.70 per basic and diluted share, for the quarter ended September 30, 2022. The increase in net income was primarily attributable to higher revenue, as discussed below.

For the third quarter, we recognized total revenue of $138.6 million, comprised of stream revenue of $99.0 million and royalty revenue of $39.6 million at an average gold price of $1,928 per ounce, an average silver price of $23.57 per ounce and an average copper price of $3.79 per pound. This is compared to total revenue of $131.4 million for the prior year period, comprised of stream revenue of $98.7 million and royalty revenue of $32.7 million, at an average gold price of $1,729 per ounce, an average silver price of $19.23 per ounce and an average copper price of $3.51 per pound.

The increase in our total revenue resulted primarily from higher gold production at the Cortez Legacy Zone, the new Cortez royalties acquired in 2022 and higher gold, silver and copper prices when compared to the prior year period. This increase was partially offset by the suspension of operations at Peñasquito on June 7, 2023 due to a strike by the Union which resulted in no royalty revenue recognized for the three months ended September 30, 2023.

Cost of sales, which excludes depreciation, depletion and amortization ("DD&A"), decreased to $21.4 million for the third quarter, from $23.2 million for the prior year period. The decrease, when compared to the prior year quarter, was primarily due to lower gold sales at Mount Milligan and lower gold and silver sales at Pueblo Viejo, partially offset by higher silver sales at Khoemacau. Cost of sales is specific to our stream agreements and is the result of our purchase of gold, silver and copper for a cash payment. The cash payment for gold from Mount Milligan is the lesser of $435 per ounce or the prevailing market price of gold when purchased, while the cash payment for our other streams is a set contractual percentage of the gold, silver or copper (Mount Milligan) spot price near the date of metal delivery.

General and administrative costs increased to $9.9 million for the third quarter, from $7.6 million for the prior year period. The increase was primarily due to higher corporate costs and an increase in non-cash stock compensation expense.

Depreciation, depletion and amortization increased to $40.1 million for the third quarter, from $37.8 million for the three months ended September 30, 2022. The increase was primarily due to higher depletion expense at Khoemacau due to the ramp-up of production and additional depletion expense from the new royalties acquired at Cortez in 2022, when compared to the prior year quarter. The increase was partially offset by lower depletion expense at Mount Milligan and Pueblo Viejo, which was due to lower depletion rates as a result of proven and probable mineral reserve increases when compared to the prior year period.

Interest and other expense decreased to $7.3 million for the third quarter, from $8.8 million for the three months ended September 30, 2022. The decrease was primarily due to lower interest expense as a result of lower average amounts outstanding under our revolving credit facility when compared to the prior year quarter. We had $325 million outstanding under our revolving credit facility as of September 30, 2023, compared to $450 million outstanding as of September 30, 2022. The current all-in borrowing rate under our revolving credit facility was 6.7% as of September 30, 2023, compared to 4.2% in the prior year period.

For the third quarter, we recorded income tax expense of $10.8 million, compared with income tax expense of $11.0 million for the three months ended September 30, 2022. The income tax expense resulted in an effective tax rate of 17.8% in the current period, compared with 19.3% for the three months ended September 30, 2022.

Net cash provided by operating activities totaled $98.1 million for the third quarter, compared to $95.0 million for the prior year period. The increase was primarily due to higher royalty revenue during the current period.

Net cash used in investing activities was approximately $0 for the third quarter, compared to $678.6 million for the prior year period. The decrease was primarily due to fewer acquisitions of royalty and stream interests compared to the prior year period.

Net cash used in financing activities totaled $101.4 million for the third quarter, compared to net cash provided by financing activities of $425.3 million for the prior year period. The decrease was primarily due to reduced borrowings and repayments of $75 million on our revolving credit facility during the current year period.

At September 30, 2023, we had current assets of $163.8 million compared to current liabilities of $70.9 million, which resulted in working capital of $92.9 million and a current ratio of 2 to 1. This compares to current assets of $185.8 million and current liabilities of $63.6 million at December 31, 2022, resulting in working capital of $122.2 million and a current ratio of approximately 3 to 1. The decrease in working capital was primarily due to a decrease in our available cash, which resulted from increased debt repayments during the current period.

Other Corporate Updates

Total Available Liquidity Increases to Approximately $768 Million

On September 6, 2023, Royal Gold repaid $75 million of outstanding borrowings on the $1 billion revolving credit facility, resulting in $325 million outstanding and $675 million available as of September 30, 2023. Total liquidity at the end of the third quarter increased to approximately $768 million, which consisted of $92.9 million of working capital and the $675 million undrawn amount available under the revolving credit facility.

Outlook for 2023

We are currently forecasting that sales for 2023 may be at the low end of, or slightly below, the previously issued guidance range of 320,000 to 345,000 GEOs. We expect that there will be no changes to previously issued guidance for DD&A expense of $490 to $540 per GEO and an effective tax rate of 17% to 22% for 2023.

Royal Gold has no material additional financing commitments.

Property Highlights

A breakdown of revenue for the Company's stream and royalty portfolio can be found on Table 1 for the three and nine month periods ended September 30, 2023 and September 30, 2022. Historical production reported by operators of the Company's principal stream and royalty properties can be found on Table 2. Calendar year 2023 operator production estimates for the Company's principal stream and royalty properties compared to actual production reported through September 30, 2023 by the operators at these properties can be found on Table 3. Stream segment purchases and sales for the three and nine month periods ended September 30, 2023 and September 30, 2022 and inventories for December 31, 2022 and September 30, 2023 can be found on Table 4. Highlights at certain of the Company's principal producing and development properties during the quarter ended September 30, 2023, compared to the quarter ended September 30, 2022, are detailed in the Company's Quarterly Report on Form 10-Q, which is expected to be filed with the Securities and Exchange Commission on November 2, 2023.

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 September 30, 2023, the Company owned interests on 181 properties on five continents, including interests on 39 producing mines and 22 development stage projects. Royal Gold is publicly traded on the Nasdaq Global Select Market under the symbol "RGLD." The Company's website is located at www.royalgold.com.

Note: Management's conference call reviewing the third quarter will be held on Thursday, November 2, 2023, at 1:00 pm Eastern Time (11:00 am 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, statements about the following: our expected financial performance and outlook, including our 2023 guidance for GEOs, DD&A expense per GEO, and effective tax rate; operators' expected operating and financial performance, including production, deliveries, mine plans, environmental and feasibility studies, technical reports, mine facilities, mineral resources and reserves, development, and asset assessments (including Barrick's preliminary economic assessment at the Fourmile Project and Centerra's full asset optimization review); our strategy of using short-term borrowings to finance acquisitions without dilution; the timing of royalty payments and metal deliveries, including deferred amounts at Pueblo Viejo; and the usefulness and importance of non-GAAP financial measures.

Factors that could cause actual results to differ materially from these forward-looking statements include, among others, the following: a lower-price environment for gold, silver, copper or other metals; operating activities or financial performance of properties on which we hold stream or royalty interests, including inaccuracies in operators' disclosures, variations between actual and forecasted performance, operators' ability to complete projects on schedule and as planned, operators' changes to mine plans and reserves and resources, liquidity needs, mining and environmental hazards and risks (including as a result of climate change), labor disputes, distribution and supply chain disruptions, permitting and licensing issues, or operational disruptions; contractual issues involving our stream or royalty agreements; delays in the completion of the plant expansion at Pueblo Viejo; adverse results of Centerra's Mount Milligan asset optimization studies and Barrick's assessment of the Four Mile project; contractual issues involving our stream or royalty agreements; timing of metal deliveries from operators and our subsequent sales of metal; risks associated with doing business in foreign countries; increased competition for stream and royalty interests; potential cyber-attacks, including ransomware; our ability to identify, finance and complete acquisitions; adverse economic and market conditions, including as a result of government policies, war, natural disasters, and public health issues; changes in laws or regulations governing us, operators or operating properties; changes in management and key employees; pandemics and epidemics, and any related government policies and actions; scrutiny and increased regulation of non-GAAP financial measures; and other factors described in our reports filed with the Securities and Exchange Commission, including Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2022. Most of these factors are beyond our ability to predict or control. Other unpredictable or unknown factors not discussed in this release could also have material adverse effects on forward looking statements.

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, 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.