Royal Gold Inc Jefferies Global Industrials Conference 2026

Yeah. Actually, we're very happy with the first six months of this fiscal year. You actually stole some of my talking points with the introduction because when we announced the acquisition of Sandstorm, there were a couple of things that we really pointed to. Number one is diversification. As you just noted, the largest asset producing revenue for the first six months of this year was only 12.5%. There was one other one at 11%. So we only have two assets that represent more than 10% of our revenue. When you compare us to some of our competitors, all of whom have some sort of concentration risk in the portfolio, what we're trying to do is reduce event risk at any one particular mine, because things happen at mines. If we can diversify the portfolio, that certainly reduces the event risk. So I'm very happy. If you went back to the first six months of 2025, I think the top five assets represented over 60% of the revenue.

For the first six months of this year, it was 44%. On that basis, it has been a real success. When we bought Sandstorm, we talked about diversification of NAV, not necessarily short-term revenue. I actually think we are ahead of ourselves in terms of diversification. The other part of the Sandstorm story or strategy had to do with growth. We certainly readily admit that the old Royal Gold growth portfolio was a bit limited. Sandstorm actually had the opposite issue. Their operating assets were okay, but not that notable. Their growth assets were quite strong. You look at Hod Maden, you look at Mara, you look at Platreef, those were the three key assets that we identified at the time.

Let's look at where they were when we closed on the acquisition in October of last year and where they are now. Platreef was in construction. It has now delivered its first metal. Hod Maden didn't even have an updated technical report and had an operator that we clearly found out later did not have the social license to develop that project. That project is now in construction. With respect to Mara, we really didn't have a timeline. Glencore hadn't really talked about it. It had been on a few lists of potential projects. In December, they came out and said, "No, 2027 started construction, 2031 first production." They announced at the end of the second quarter that in fact they have started mining the old Alumbrera pit earlier than expected.

When I look at the whole of the portfolio, and I will even throw in there Antamina, which through the first six months generated $26 million or so of revenue, the record year for that royalty was $40 million. We are sort of on a record pace on one of the biggest producing assets in that portfolio. I am extremely happy with the way the first six months have gone with the acquisition.

Yeah. As you said, we have made great progress. I think a lot of institutional investors looked at the Sandstorm portfolio and said, "Boy, that is really complicated." There is just too much going on. It is not a pure royalty and streaming. You have the intercompany relationship with Horizon Copper, and then you have these, I will call, non-core equity investments and debt investments. Since we purchased Sandstorm, we sold Diversimet shares, we restructured the Bear Creek investments, turning it into cash and additional royalty. We have simplified Americas Gold and Silver. We have done other things that are not that notable, but all those things take time away from the management team that is not focused on royalties and streaming, and we have gotten rid of so much of that. I think we have generated over $200 million in revenue from those actions, which has allowed us to pay down debt a bit faster.

What work do we still have to do? I think number one, we still do have that 20%-plus interest in Entrée Resources. What we have said to the market is we think there may be a value-enhancing moment if Rio Tinto and the government of Mongolia can sort of resolve the issues with the mining licenses. We are sort of holding onto it right now. We are a little patient, but if we find the right opportunity, we do want to dispose of it. It remains non-core in our portfolio. The other one obviously is Hod Maden. We did take the step with the restructuring with SSR's exit to take some risk off the table. I will say the offer to get out fully would have been at a significant discount to value. We did not think that was the appropriate thing to do.

What we are now trying to talk to investors about really is, okay, it is a 15% interest on a $900 million project. We have already funded over half of our equity capital, and the rest is not very large relative to the cash flow. With respect to Hod Maden, the ideal optimized portfolio is we do not own it. We do not own the 15%. We just have a royalty interest. But if that takes some time, maybe get it through construction where we can generate more value, we may do that. If someone is interested in buying it today, call us up. We are certainly interested in having that discussion. But we are going to be a little more flexible with that investment.

Yeah, early stages. I think Lidya Madencilik has done an excellent job from an engineering, procurement, construction. I think we're probably 25% overall progress into the project. We're probably still looking at a 2028, around there, production timeline. One of the things about that project is it's very much a civil works project, right? Tunneling and Lidya Madencilik being part of the Çalık Group, the Çalık Group having all of that expertise, they were going to be the contractors anyway for much of the civil works contract. It's not as though we stepped into a project with somebody who doesn't have the experience to bring this thing into production. They've made a couple of changes with respect to the project that our technical team certainly agrees with. So far so good, very happy with it.

Yeah, I find it interesting. We got a lot of pressure at the end of last year about a share buyback program and in retrospect, the feedback we were getting was probably correct. Earlier this year, we did move forward with the first buyback program in the company's history. We were active in the first quarter at a price relative to where it is today that it was very attractive. But it's not a math problem. By that I mean, we have people say, "Well, your free cash flow yield is X and your cost of debt is Y. You should only be buying back shares. Buying back shares is a higher return than making a new investment." But when I look at it and I say, okay, the cost of debt may be lower than the free cash flow yield, but you know what?