Royal Gold Inc Renmark Financial Communications Virtual Non-Deal Roadshow Series

Well, thanks very much, Noella, and thanks, everybody, for your attention today. It's great to be here and give you an update on Royal Gold. We've been very busy over the past year or so, and it's been a while since I've spoken to you in New York, so very happy to give you an update. As always, I will be making forward-looking statements during this presentation. There are risks and uncertainties that could cause actual results to differ materially from these statements. All of these risks and uncertainties are discussed in our most recent form 10-K filing with the SEC. So during today's presentation, I'm going to give you the investment thesis for Royal Gold, and we are, in a very short sentence, we're a high margin business that generates consistent cash flows from precious metals. We're not a mining company.

This presentation covers the various key attributes of Royal Gold as we see them. So the first is our focus on precious metals and gold in particular. The second is our high margin business with a consistent commitment, longstanding commitment of returning capital to shareholders in the form of a dividend. Our diversified portfolio, which is the most diversified amongst peers in terms of assets, operators, and jurisdictions. Limited operating risks in our business model, as well as steady margins without direct exposure to inflation. Being the right size in a small sector where we can compete for the largest transactions and the smallest transactions can be meaningful to us. Then finally, the optionality embedded within our portfolio where we don't have to pay for organic growth from mine expansions or extensions.

But before we get into that, I just want to give you an overview or highlight a little bit our 2025 activity. 2025 was a transformative year for us at Royal Gold. We completed two corporate transactions, Sandstorm and Horizon, that added significant growth and diversification to our portfolio. But we weren't just active on the corporate front. We added two significant gold streams to our portfolio. Kansanshi, a tier 1 operating asset in Zambia. We have a gold stream there that provides immediate cash flow. And Lorenzo, an emerging excuse me, an emerging tier 1 asset in Ecuador. We have exposure to a very attractive gold and copper development project. But it wasn't just acquisitions in 2025 where we saw very positive news. We saw some very significant optionality surface from within the portfolio at Mount Milligan and Fourmile.

Since we closed those transactions, we've had two very strong quarters of positive results. The first quarter of this year, we had record revenue, cash flow, and earnings. In the second quarter this year, we followed it up with, excuse me, record operating cash flow in the second quarter. We've repaid $1 billion of debt since this time last year, since closing the Sandstorm and Horizon transactions, and we've repurchased and canceled about $30 million of shares. We've also raised our dividend for the 25th consecutive year, and we increased our portfolio reserve life by about 25% to 18 years. In summary, we added scale, diversification, and growth to the portfolio, but we did not change our strategy. I want you to keep that in mind as I get towards the end of the presentation and talking about valuation.

When it comes to Sandstorm and Horizon, we've seen some very positive developments over the past several months that we've been owners of these assets. We've seen significant revenue and operating cash flow come from these portfolios of these two corporate transactions. But we've also done a lot of work to try and simplify some of the parts of the transactions that weren't very popular with the market. The very first thing we did when we closed these transactions was we collapsed the intercompany arrangements between Sandstorm and Horizon. Simplified the story in a pretty meaningful way. We've also divested about $200 million worth of non-core equity positions that were held by those companies. We've restructured some of the more complex arrangements, Bear Creek, Relief Canyon being two of those. We've reduced our direct equity ownership of the Hod Maden project from about 30% to 15%.

We've also seen some very positive developments from within the operating side of the portfolio. We've seen at MARA in Argentina, we've seen the approval of the RIGI application, and Glencore's actually started mining of the Alumbrera pit six months ahead of schedule. At Platreef, we've received our first delivery under the stream agreement, and that asset continues to ramp up. Hod Maden, the development is about 25% complete. At Fruta Del Norte, we've seen some very strong exploration results. We've also seen some very attractive or interesting news at Omai and Volante as those projects continue to advance. On top of that, we're seeing good revenue from Antamina, Caserones, and Chapada to name three.

It's been a very positive experience for us over the past several months with the Sandstorm and Horizon transactions within our portfolio, and we're very pleased with the developments in a short period of time. What does this all mean? We provided our five-year guidance outlook for the first time in March of this year at Investor Day, and we have a pretty strong growth runway ahead of us. Compared to last year, we're expecting the midpoint of guidance to be about 30% higher than where we were last year. Then if you look ahead five years, we expect the midpoint of guidance to be about 17% ahead of where we are this year. Very nice growth. We're seeing growth beyond that from some pretty material assets like MARA and Fourmile.

The good thing about our growth profile is that it is diversified and it is not dependent upon one single asset to get us there. Now, in this next section, I am just going to touch on gold and our focus on gold. We have been around for over 40 years with a very gold-heavy focus. The company started in the mid-1980s. This year is our 45th anniversary on the Nasdaq, and our strategy has been pretty consistent over that time. We are focused on gold revenue from good assets in good jurisdictions run by good operators. Our revenue has grown consistently and the metal mix has not changed. We try to provide our shareholders with gold exposure in a conservatively managed vehicle. This next slide shows you why we think we are a good alternative for those who are looking for conservative exposure to gold.

On the left-hand side, you can see our beta of 1.6, very strong leverage to the gold price. On the right-hand side, you can see our share price performance over time since the beginning of the GDX index in 2006. Since that time, we have actually outperformed the gold price, we have outperformed the GDX index itself, and we have also outperformed the S&P 500. So we have been a very good long-term investment in a very volatile commodity. I am going to spend a few minutes here just talking about our business model, and we have a very high operating margin in our business. The model is unique. It is, as I said, high margin, pardon me, but it is also very scalable. Our trailing 12-month EBITDA margin is about 83%, so that is like a software company.

Our cash G&A, the cost we have to incur to run this business, is about 3% of our revenue. Our costs are low and they are fixed, and cost inflation should not be something that causes significant risk to our margins. Our business model is also very efficient. We have a pretty low headcount for the scale of our business. We have 39 employees working for Royal Gold today, and our market cap is about $20 billion. So on a per-employee basis, we compare well to any company in any sector. Return of capital is something that is a key strategic objective for us at Royal Gold, and it is an attribute that makes us unique amongst all the other ways you can invest in gold. We have paid a growing and sustainable dividend since 2000, and we have increased the dividend every year since 2001, despite volatility in the gold price.

We have increased the dividend for 25 consecutive years and now paid out well over $1 billion in dividends to our shareholders. We are the only company in the GDX that has paid an increasing dividend every year since the index was formed in 2006. We are the only precious metals company in the S&P High Yield Dividend Aristocrats Index. So that should show you how we are committed to our dividend and returning capital to shareholders. I am going to talk in this next section about our portfolio, and this really underpins the performance of our business. We have a global portfolio that is weighted towards lower risk and mining-friendly jurisdictions. Our portfolio spans the various stages of mining project development. We have over 360 assets in the portfolio, 80 of which produce revenue today.

About 30 are in development, so that means that they should start producing revenue in the near term. Beyond that, we have over 250 that are earlier stage exploration or evaluation. Organic growth comes to us from within the portfolio as assets move through that pipeline from development and exploration stage into revenue producing and operations. Having a diversified portfolio is very important. It reduces single asset and counterparty risks. Our portfolio is very gold focused, but we do have some important silver and copper. Our gold revenue percentage is actually the highest of our large cap peers. When you think about geographically, our portfolio is also very well diversified. We do have a North American focus, but we do have a spread in other mining-friendly jurisdictions.

On a net asset value basis, we have the most diversified portfolio in our sector, in the royalty streaming sector. Nine of our top 10 assets are producing revenue today, and we have expansion and extension projects underway at about five of those assets. Our operators are best in class. They're, generally speaking, large, well-capitalized, and experienced. We've recently added First Quantum, Glencore, and Rio Tinto to our counterparty list. So, very strong operators. Portfolio diversification is very important because it reduces our exposure to single asset or operator or jurisdictional risks. That's a very important feature when it comes to a generalist investor who doesn't want to spend the time understanding the assets underpinning the portfolio because we've got such a diversity of those assets.