Caledonia Mining Corporation Plc press release

Royal Gold Reports Strong Financial Results with Record Revenue and Cash Flow for the Third Quarter of 2025

2025-11-05

NYSE - New York Stock Exchange · Jersey · Corporate Finance

Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold,” the “Company,” “we,” “us,” or “our”) reports net income of $126.8 million, or $1.92 per share, for the quarter ended September 30, 2025 ("third quarter"), on revenue of $252.1 million and operating cash flow of $174.0 million. Adjusted net income 1 was a record $136.2 million, or $2.06 per share.

Third Quarter 2025 Highlights:

Records for revenue of $252.1 million and operating cash flow of $174.0 million , and strong earnings of $126.8 million Revenue split: 78% gold , 12% silver , 7% copper Sales volume of 72,900 GEOs 2 Adjusted EBITDA margin 1 of 82% Drew $825 million on revolving credit facility and repaid $50 million Paid quarterly dividend of $0.45 per share , a 12.5% increase over the prior year period Acquired gold stream on the Kansanshi mine

Post Quarter Events:

Closed acquisitions of Sandstorm Gold and Horizon Copper 11,111 ounces of gold received for Mount Milligan Cost Support Agreement

_“Royal Gold reported another very solid quarter and we achieved record revenue and cash flow,” commented Bill Heissenbuttel, President and CEO of Royal Gold . "Our portfolio performed very well and allowed us to take full advantage of the materially higher gold and silver prices in the quarter, and the record gold price directly benefited our results." _

_“In addition to the strong financial performance, over the last few months we have significantly enhanced the scale, duration and diversification of our portfolio," _continued Mr. Heissenbuttel. "Our underlying business continues to produce excellent results, we have seen meaningful value additions from the Mount Milligan mine life extension and Fourmile exploration success, we have acquired the large and long life Kansanshi stream, and have added further scale, diversification and growth with the Sandstorm and Horizon portfolios. We will work hard over the coming months to ensure that the market understands and appreciates the cash flow, growth potential and gold leverage of our expanded business."

| 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

Notable recent updates as reported by the operators of our Principal Properties include:

Mount Milligan Pre-Feasibility Study Results Indicate Significant Mine Life Extension; First Tranche of Deferred Gold Consideration Received

On September 11, 2025, Centerra Gold Inc. (“Centerra”) announced the results of a pre-feasibility study (“PFS”) on the potential to extend the mine life at the Mount Milligan mine in British Columbia. Centerra filed the National Instrument 43-101 report supporting the PFS results on October 17, 2025.

The PFS indicates an extension to the life of mine (“LOM”) of approximately 10 years to 2045, supported by an optimized mine plan delivering average annual production of 150,000 ounces of gold and 69 million pounds of copper from 2026 to 2042, followed by the processing of low-grade stockpiles from 2043 to 2045. The PFS includes the construction of a second tailings storage facility that is expected to provide the potential for future raises which could add multiple decades of storage capacity beyond the 2045 LOM, and ball mill motor upgrades and flotation cells in 2028 to increase process plant throughput by about 10% (to 66,300 tonnes per day) and increase recovery by approximately 1%. Proven and probable reserves increased significantly to 4.4 million ounces of gold and 1.7 billion pounds of copper, representing increases of 56% and 52%, respectively, from year-end 2024.

Centerra further reported that recent drilling confirms mineralization remains open to the west of the current resource pit. Centerra continues to advance exploration aimed at expanding the mineral resource and assessing opportunities to extend the mine life beyond the updated plan.

Centerra also disclosed that year-to-date production remains in line with the recently announced PFS results, and 2025 full-year gold and copper production is expected to be near the lower end of the guidance ranges of 145,000 to 160,000 ounces of gold and 50 to 60 million pounds of copper.

Additionally, subsequent to the end of the quarter on October 3, 2025, we received 11,111 ounces of gold from the Deferred Gold Consideration related to the Mount Milligan Cost Support Agreement, leaving 38,889 gold ounces remaining. Proceeds of $44.2 million from the sale of the 11,111 ounces of gold will be recorded to the Mount Milligan Deferred Liability on our consolidated balance sheets and does not impact revenue or GEO production.

S3 Expansion Transitioning to Operation and First Gold Delivery Received from Kansanshi

On October 28, 2025, First Quantum Minerals Ltd. (“First Quantum”) provided an update on production and the commissioning of the S3 Expansion at the Kansanshi copper-gold mine in Zambia, which is operated and 80% owned by a subsidiary of First Quantum. According to First Quantum, the S3 Expansion project has been delivered and first concentrate was produced in August. First Quantum expects copper production at Kansanshi to increase in the fourth quarter of 2025 and exceed third quarter production driven by a faster than anticipated ramp up of the S3 Expansion throughput and recoveries, and 2025 copper production guidance was revised to a narrower range of 175,000 to 185,000 tonnes, from the previous range of 160,000 to 190,000 tonnes.

We received the first delivery of approximately 2,300 ounces of gold from Kansanshi on October 3, 2025. As previously announced on August 5, 2025, our wholly-owned subsidiary RGLD Gold AG, entered into a precious metals purchase agreement for gold deliveries referenced to copper production from Kansanshi. The first delivery includes production for the month of August starting from the transaction effective date of August 5, 2025. Deliveries at Kansanshi lag mine production by approximately one month and are expected to be received monthly. We are expecting 2025 stream deliveries of approximately 7,500 ounces, which is lower than our initial expectation of 12,500 ounces solely due to initializing delivery mechanics for the new contract and not a shortfall in production relative to expectations.

Fourmile Preliminary Economic Assessment Indicates Potential for a Large and Long-Life Operation

On September 16, 2025, Barrick Mining Corporation ("Barrick") released the results of a preliminary economic assessment ("PEA”) on the Fourmile Project, which is included in Royal Gold’s royalty interests covering the Cortez Complex in Nevada.

According to Barrick, the PEA indicates the potential to achieve average annual gold production levels of approximately 600,000 to 750,000 ounces over a mine life exceeding 25 years. Barrick reported that further exploration is underway and it expects to continue exploration drilling from surface in 2026 and complete 370 kilometers of surface drilling and 80 kilometers of underground drilling by the end of 2028. Barrick also reported that it plans to have 34 kilometers of underground development in place by 2029, which will set the mine up for initial test stoping shortly thereafter.

Royal Gold’s royalty interests over the Fourmile Project are equivalent to an approximate 1.6% gross smelter return royalty rate.

Other Property Updates

Notable recent updates as reported by the operators of other select portfolio assets include:

Producing Properties

Bellevue (2% NSR royalty): On October 23, 2025, Bellevue Gold Limited ("Bellevue") reported gold production for the quarter ended September 30, 2025, of 29,120 ounces at the Bellevue Gold Mine in Western Australia. Bellevue expects production to increase in the fiscal year ending June 30, 2026, as the mining sequence moves to higher grade stoping areas, and maintained production guidance for the year in the range of 130,000 and 150,000 ounces.

Khoemac a u (100% silver stream): On October 21, 2025, MMG Limited ("MMG") confirmed previously-provided timing for the expansion project at the Khoemac a u mine in Botswana, which includes completion of the feasibility study by the end of 2025 and production of first concentrate in 2028. MMG also reported that mined ore volumes in the third quarter were affected by the transition to a new mining contractor, with ramp-up efforts expected to boost production in the fourth quarter.

Manh Choh (3% NSR royalty and 28% NSR royalty on silver): On October 2, 2025, Contango Ore Inc. ("Contango"), 30% owner of the Manh Choh mine in Alaska, reported gold production of approximately 56,800 ounces (100% basis) for the ore processing campaign running from August 12 through September 15, 2025. Additionally, Contango disclosed that a test campaign of blended low-grade Manh Choh ore and standard mill feed grade Fort Knox ore is underway in order to evaluate the possibility of delivering more Manh Choh ounces to the Fort Knox mill.

Mara Rosa (1.0% NSR and 1.75% NSR royalties): On October 22, 2025, Hochschild Mining PLC ("Hochschild") provided a third quarter production update for the Mara Rosa operation in Brazil. Hochschild reported that it has largely completed a full reorganization of its operations in Brazil, and after resuming production at Mara Rosa in July, 2025, the mine is on track to achieve the previously-revised production target of 35,000 to 45,000 ounces for 2025.

Peñasquito (2% NSR royalty): On October 23, 2025, Newmont Corporation ("Newmont") reported a lower proportion of gold and steady silver, lead and zinc production during the third quarter at the Peñasquito mine in Mexico. Newmont expects a lower proportion of gold production in 2026 due to the transition into the next scheduled phase of mining at the Peñasco pit, with a slight increase in silver, lead and zinc production.

Rainy River (6.5% gold stream, 60% silver stream): On October 28, 2025, New Gold Inc. ("New Gold") reported third quarter results for the Rainy River mine in Ontario. According to New Gold, gold production of 100,301 ounces was 63% higher than the previous quarter as the mill processed higher grade open pit ore, and the mill demonstrated the ability to process the required gold production to achieve the 2026 production target outlined in the Technical Report earlier this year without compromising on recovery. New Gold also reported that the underground continues to advance well and it expects development and stope production will continue to increase through the fourth quarter. New Gold expects 2025 production to be above the midpoint of the 265,000 to 295,000 ounce guidance range.

Red Chris (1% NSR royalty): On October 23, 2025, Newmont, 70% owner and operator of the Red Chris mine in British Columbia, provided an update on the feasibility study for the block cave development project. According to Newmont, progress remains on track to deliver a development proposal to the Newmont Board of Directors towards the middle of 2026. Additionally, the Government of Canada designated the Red Chris expansion as a project of national importance on September 11, 2025, which places the expansion on the list of projects to be fast-tracked by the Major Projects Office.

Voisey's Bay (2.7% net value royalty): On October 21, 2025, Vale S.A. ("Vale") reported that finished nickel production for the third quarter increased by 4,600 tonnes over the prior year quarter at the Voisey's Bay mine in Newfoundland and Labrador, underpinned by the continued ramp up of the Eastern Deeps and Reid Brook underground mines. Vale reported that these mines achieved an annual run rate of approximately 2.5 million tonnes in July and August before scheduled maintenance in September, which supported a new all-time production record at the Long Harbour Refinery.

Xavantina (25% gold stream): On November 4, 2025, Ero Copper Corp. ("Ero") announced an update to gold reserves and resources at the Xavantina mine in Brazil. According to Ero, compared to the previous estimates published in December 2024, contained gold in measured and indicated resources (inclusive of reserves) increased to approximately 664,000 ounces, and contained gold in inferred resources increased to approximately 365,000 ounces. Ero reported that the updated estimates include a high-grade and marketable stockpiled gold concentrate, as well as extensions to the known limits of mineralization. Ero intends to complete sampling, shipment and sales of the gold concentrate over the next 12 to 18 months. Ero also commenced infill drilling and additional engineering studies in the fourth quarter of 2025 to further upgrade new extensions of mineralization identified within the mine and support a planned expansion of underground operations. Ero further reported that gold production for 2025 is expected to be toward the lower end of the 40,000 to 50,000 ounce guidance range.

Development Properties

Back River (equivalent ~3.3% GSR royalty on the Goose Project): On October 6, 2025, B2Gold Corp. (“B2Gold”) announced that commercial production at the Goose Project in the Back River Gold District in Nunavut, was achieved on October 2, 2025. B2Gold also reiterated near-term and long-term gold production estimates, which includes 80,000 to 110,000 ounces in 2025, approximately 250,000 ounces in 2026, approximately 330,000 ounces in 2027, and average production for the initial full six years of operations (2026 to 2031 inclusive) of approximately 300,000 ounces per year, based only on existing Mineral Reserves. Our royalty rate increases as gold production thresholds are reached and we expect a rate of approximately 0.35-0.7% NSR on the production of the first 400,000 ounces, 2.5% GSR for the next 380,000 ounces, and 3.3% GSR thereafter.

Cactus (2.0% NSR royalty): On October 20, 2025, Arizona Sonoran Copper Company Inc. ("ASCU") announced the results of a PFS for the Cactus Project in Arizona. According to ASCU, the PFS indicates a 22 year mine life with average LOM copper production of 198 million pounds per year, with 226 million pounds per year in the first 10 years. The PFS established an initial reserve for the project and a continued increase in resources. ASCU expects to complete a definitive feasibility study in the second half of 2026, leading to a final investment decision as early as the fourth quarter of 2026 and first production of copper cathodes in the second half of 2029.

Corporate Acquisitions

Closing of Sandstorm Gold and Horizon Copper Acquisitions

Subsequent to the end of the third quarter, on October 20, 2025, we closed the previously announced acquisitions of Sandstorm Gold Ltd. (“Sandstorm” and the “Sandstorm Transaction”) and Horizon Copper Corp. (“Horizon” and the “Horizon Transaction”).

With respect to the Sandstorm Transaction, Royal Gold issued 18.6 million shares of common stock to Sandstorm shareholders and assumed stock options exercisable for 0.7 million shares of common stock to complete the transaction and paid $380.9 million in cash to fully repay the outstanding balance drawn on the Sandstorm credit facility. Upon completion of the Sandstorm Transaction, Royal Gold's outstanding share count increased to 84.4 million shares.

With respect to the Horizon Transaction, Royal Gold paid C$127.1 million in cash consideration to the shareholders of Horizon (excluding Sandstorm) and funded Horizon's purchase of its outstanding warrants for C$40.6 million.

Sandstorm Gold and Horizon Copper Financial Results

Due to the timing of the transaction closings, Sandstorm and Horizon will not publish financial results for the third quarter of 2025. Full consolidated results for Royal Gold including Sandstorm and Horizon will be provided from the date of closing, October 20, 2025, which will be available with Royal Gold's financial results for the year ended December 31, 2025. However, we are providing certain limited financial information for Sandstorm and Horizon in order to provide transparency in the absence of full financial results.

For the third quarter, Sandstorm recorded revenue of $57.5 million (resulting in approximately 16,600 GEOs 2 ) and operating cash flow of $36.6 million, and Horizon recorded revenue of $6.0 million (resulting in approximately 1,700 GEOs 2 ) and operating cash flow of $2.8 million. It must be noted that the unaudited Sandstorm and Horizon information provided has not been reviewed by the independent registered accounting firms for Royal Gold, Sandstorm or Horizon and was prepared in accordance with IFRS accounting standards, and is not directly comparable to Royal Gold financial information prepared in accordance with US GAAP accounting standards.

Accounting Considerations

We are in the process of finalizing the accounting treatment for both the Sandstorm Transaction and the Horizon Transaction. We currently anticipate both transactions to qualify as business combinations under US GAAP. As such, approximately $12.8 million of acquisition related costs have been expensed as of September 30, 2025, and we expect additional acquisition related costs to be expensed in the quarter ended December 31, 2025.

Third Quarter 2025 Overview

For the third quarter, we recorded net income and comprehensive income attributable to Royal Gold stockholders (“net income”) of $126.8 million, or $1.92 per basic and diluted share, as compared to net income of $96.2 million, or $1.46 per basic and diluted share, for the three months ended September 30, 2024. The increase in net income was primarily attributable to higher revenue offset by acquisition related costs and higher interest expense and income taxes, each discussed below.

For the third quarter, we recognized total revenue of $252.1 million, comprised of stream revenue of $166.1 million and royalty revenue of $86.0 million at an average gold price of $3,457 per ounce, an average silver price of $39.40 per ounce and an average copper price of $4.44 per pound. This is compared to total revenue of $193.8 million for the three months ended September 30, 2024, comprised of stream revenue of $133.1 million and royalty revenue of $60.8 million, at an average gold price of $2,474 per ounce, an average silver price of $29.43 per ounce and an average copper price of $4.18 per pound.

The increase in our total revenue resulted primarily from higher average gold, silver and copper prices compared to the prior period. Higher gold sales at Andacollo and Rainy River and higher production from Peñasquito also contributed to the increase. These increases were partially offset by lower gold sales from Xavantina when compared to the prior year period.

Cost of sales, which excludes depreciation, depletion and amortization ("DD&A"), increased to $31.4 million for the three months ended September 30, 2025, from $27.2 million for the three months ended September 30, 2024. The increase compared to the prior year period was primarily due to higher payments for stream deliveries resulting from higher metal prices (except for gold at Mount Milligan), higher gold sales at Andacollo and Rainy River, and higher silver sales at Khoemac a u. These increases were partially offset by lower gold sales at Xavantina when compared to the prior year period. Cost of sales is specific to our stream agreements and, except for Mount Milligan, is the result of our purchase of metal for a cash payment that is a set contractual percentage of the spot price for that metal near the date of metal delivery. For Mount Milligan, the cash payments under the stream agreement are the lesser of $435 per ounce or the prevailing market price of gold when purchased and 15% of the spot price for copper near the date of metal delivery. Separately, and in addition to the cash payments under the stream agreement, the Mount Milligan Cost Support Agreement provides for cash payments on gold and copper deliveries that are expected to begin after certain thresholds are met or earlier, if metal prices are below certain thresholds and if requested by Centerra. For further detail on the Mount Milligan Cost Support Agreement refer to our 2024 10-K.