Royal Gold Inc Mining Forum Americas 2026

Yeah. I think last year was so transformational for the company as a whole. The Sandstorm transaction and the Kansanshi transaction allowed us to do a few things that have been strategic goals on our end for a number of years. The first one is diversification of the portfolio. Those of you who have followed us for a long time have followed Mount Milligan and our NAV, and that posed challenges at some point. With the transactions last year, for the first six months of this year, we only had two assets that generated more than 10% of revenue, and the largest was 12.5%. So what we're talking to investors about at this point is relative to all the other royalty and streaming companies you may talk to, we believe we have reduced the event risk in our portfolio better than anybody else in the sector.

I think everybody else has a concentration risk that far exceeds the concentration risk that we now have in our portfolio. Secondly, growth. If you followed us for a while, there was a question about the growth profile of the company. By adding Sandstorm, which was a very development asset-rich portfolio, we were actually able to take our producing asset portfolio, which was quite strong, and put it together with the development assets. That's MARA, that's Platreef, that's Hod Maden. So we have this nice balance. We've got a diversified revenue base currently. We have a nice growth profile, which we highlighted at our investor day in March. So I think we have a much more balanced portfolio. I think the third thing about the portfolio that's different is the duration.

We've increased the average reserve life from 14 years to 18 years, and it's not just the Sandstorm acquisition. If you'll recall last year, Centerra announced a Mount Milligan life of mine plan extension that took that reserve life to 20 years. It's nice to have our biggest asset have 20 years of life in front of it. So I would say from a portfolio perspective, those are the things that we're stressing. I'd also like to stress that notwithstanding the equity we've issued for Sandstorm, we're still the leader in our industry in terms of per-share metrics, looking backwards. I think one of the particular strengths is our management team, which has been around, I think, on average between 10 and 15 years. One of the things this management team has certainly demonstrated is the ability to identify resource upside.

When you look at a particular transaction, it might have a 10 or a 15-year reserve life. Our team is able to look at that and say, "It's not 10 or 15 years, it's probably 20, 25, 30 years." You see a growing IRR in that portfolio, and that skill base is still in the company.

Yeah, I think the only complex thing that we really inherited was the intercompany relationship between Sandstorm and Horizon Copper. I don't think investors understood it. I think some investors said, "I don't really want to spend the time to understand it." That was actually the easy part. We just brought the two companies together and collapsed it. That complexity is gone. I would say we inherited a number of non-core assets when we acquired Sandstorm and Horizon. By that I mean public equity, debt, joint venture equity. It was a priority of ours, when we closed the transaction, to try to simplify those things because they take time, especially if you've got a debt investment and the company needs a waiver, they need something else done with the agreement. You're not focused on buying royalties and streams, you're focused on something else.

We've done a number of things. We sold the Versamet shares probably within a month of acquiring Sandstorm. We have rationalized the Americas Gold and Silver investment. We rationalized the very complex Bear Creek situation and really turned that into a very simple royalty, an increased royalty on Corani, which looks like it's now moving forward. Hod Maden, we took that joint venture interest from 30% to 15%, and we took a royalty back. I think we've done a very good job. We generated over $200 million in revenue from those transactions, and we were able to use that to repay debt. In terms of what's left, we do have a 24% interest in Entrée Resources, and we still have the 15% at Hod Maden.

Ideally, those things will also be rationalized. I think we have a bit of flexibility in terms of time to resolve those situations.

Well, in the next few years, I think the decisions by the operators have been made, which is great. I would say if you are going to look at what might be the most impactful, probably Platreef ramp up. Next year, Kansanshi grades or throughput are supposed to increase, which will actually bring our gold stream up as copper production comes up and towards the end of 2028 is sort of our expectation for Hod Maden. I would say those probably would have the most material impact. That sort of overlooks things like Robertson at Cortez or the ramp-up of our royalty at Goose. I would say the thing about the growth portfolio is that it is as diverse as the producing portfolio, which is nice. We are not reliant on one big asset coming into production at a particular time that people are counting on.

I'm not too worried from our current portfolio perspective. As I look at where these assets sit on the cost curve, I just have a hard time imagining inflation getting to the point where a mine closes or suspends its operation, because that's really the issue here. As long as they're operating, the vast majority of our interests are revenue-based. That's good. I think the only NPI of any note is Antamina, and I think in the first 6 months of our total revenue. As far as inflation's impact on our current portfolio, I'm not that concerned about it. Where you do have to pay attention to it is on the capital cost side for new projects. The projects that I noted for growth, I think one of the nice things is they're sort of already in ramp-up or it's an expansion and they're relatively far along.

As I look in the portfolio, if there were a couple assets that I think you might want to pay attention to inflation, it is something like MARA, it is something like Great Bear, maybe Red Chris, where they're in the sort of the earlier stages of those projects. You did mention opportunity. Anytime this industry needs capital, we're ready. If there are cost increases that a particular operator, developer cannot cover, we welcome the call, because we can be You go back to Mount Milligan. Mount Milligan was originally supposed to be a $314 million investment, and it became a $780 million investment because of cost overruns. We were able to cover it, and we've had a very successful investment. We do have a history of helping when costs increase.