Salazar Resources Limited press release

Royal Gold Reports Strong Second Quarter Financial Results Including Record Operating Cash Flow, Repurchase of Shares and Further Repayment of Debt

2026-08-05

TSXV - TSX Venture Exchange · Copper · Gold · Silver · Zinc · Canada · Corporate Finance

Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold,” the “Company,” “we,” “us,” or “our”) released financial results for the quarter ended June 30, 2026 ("second quarter").

“Financial results for the second quarter were strong and we made meaningful progress on executing our priorities,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “We continued our disciplined approach to capital allocation. We repaid debt, repurchased and cancelled shares, and invested capital toward our Warintza and Hod Maden portfolio interests. We also continued progress on simplifying the Sandstorm portfolio with the restructuring of the Hod Maden joint venture interest and the settlement of the fixed delivery obligations at the Relief Canyon mine. After a solid first half of the year driven by our large and diversified portfolio, our outlook for the second half remains positive, and we will maintain our discipline and long term focus as we consider alternatives to accretively deploy capital in an active environment for new business development opportunities."

Second Quarter Highlights

Financial/Operating

Revenue of $450.5 million (compared to $209.6 million in the prior year period) Revenue split by commodity: 76% gold, 12% silver, 8% copper Record operating cash flow of $335.2 million (compared to $152.8 million in the prior year period) Net income of $236.4 million ($2.78 per share), and adjusted net income 1 of $218.2 million ($2.56 per share) (compared to $132.3 million and $118.8 million, respectively, in the prior year period) Sales volume of 100,000 GEOs 2 (compared to 63,900 in the prior year period) Adjusted EBITDA margin 1 of 83% (compared to 84% in the prior year period)

Corporate

Repaid $200 million on the revolving credit facility Increased total available liquidity to approximately $1.2 billion Paid quarterly dividend of $0.475 per share, a 6% increase over the prior year period Repurchased 147,205 shares at an average price of $203.80 per share, for total consideration of $30 million Sold 5,000 ounces of gold received from the settlement of remaining fixed delivery obligations with Americas Gold and Silver Corporation ("Americas") related to the Relief Canyon mine Advanced a further $50 million under the stream agreement to Solaris Resources Inc. ("Solaris") following technical approval of the environmental impact assessment ("EIA") and publication of a pre-feasibility study ("PFS") for the Warintza Project Restructured ownership of the Hod Maden Project interests and funded $70 million in project costs Added a new $600 million uncommitted accordion facility to the $1.4 billion revolving credit facility

Post Quarter Events

Repaid $75 million on the revolving credit facility on July 15, 2026, reducing the amount currently drawn to $325 million and increasing the amount available and undrawn to $1.075 billion Closed the Hod Maden ownership restructuring and received a new 2.5% net smelter return ("NSR") royalty on the Hod Maden Project

Revenue Summary

| | Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | | | | | | Revenue (millions) | | 2026 | | 2025 | % Change | | 2026 | | 2025 | % Change | | | | Gold | $ | 343.9 | $ | 164.3 | 109.3 | % | $ | 677.8 | $ | 310.0 | 118.6 | % | | Silver | | 55.6 | | 24.1 | 131.0 | % | | 128.6 | | 47.7 | 169.8 | % | | Copper | | 37.9 | | 14.8 | 156.4 | % | | 84.5 | | 31.6 | 167.7 | % | | Other Metals | | 13.2 | | 6.5 | 103.7 | % | | 28.8 | | 13.8 | 108.5 | % | | Total revenue | $ | 450.5 | $ | 209.6 | 114.9 | % | $ | 919.7 | $ | 403.1 | 128.2 | % | | GEOs 2 | | 100,000 | | 63,900 | 56.5 | % | | 196,000 | | 131,500 | 49.0 | % | | Revenue split stream / royalty | 69% / 31% | 64% / 36% | | 68% / 32% | 63% / 37% | | | | | | | |

| _ | | 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 reconciliations to the most directly comparable GAAP measures. | | 2 See Schedule A of this press release for additional information about gold equivalent ounces, or GEOs. |

Outlook for 2026

Royal Gold provided guidance for 2026 metal sales volumes, depreciation, depletion and amortization ("DD&A") expense and effective tax rate in March, 2026. We are currently forecasting that performance against these metrics will be within the ranges provided with the exceptions of sales of copper and other metals, which are trending to be around or above the top end of the respective guidance ranges.

| | | 2026 Guidance Ranges | Actual Performance Through June 30, 2026 | | Total Sales | | | | | Gold | (oz) | 290,000–320,000 | 143,968 | | Silver | (M oz) | 3.0–3.5 | 1.6 | | Copper | (M lb) | 21.0–25.0 | 14.2 | | Other Metals | (M) | $34–$38 | $29 | | DD&A | (M) | $339–379 | $187 | | Effective Tax Rate | | 17–22% | 19.9%* | | * Year to date effective tax rate excluding discrete tax items. | | | |

Corporate Activity

Buyback and Cancellation of Shares

During the second quarter, and in accordance with the previously-announced $500 million share repurchase program approved by the Board of Directors on May 4, 2026, we repurchased 147,205 shares at an average price of $203.80 per share, for total consideration of $30 million. The repurchased shares were cancelled and 84,673,027 shares remain outstanding as of June 30, 2026.

The manner, timing, pricing and amount of any repurchases under the program will be subject to management's discretion and may be based upon market conditions and alternative opportunities for the use or investment of capital.

Settlement of Fixed Delivery Obligations for the Relief Canyon Mine

On June 11, 2026, Royal Gold and Americas closed an agreement to settle the remaining fixed delivery obligations owed to Royal Gold related to the Relief Canyon mine. Under the agreement, Americas' obligation to deliver 8,861 ounces of gold over the period between June 2026 and December 2027 was settled in exchange for immediate delivery of 5,000 ounces of gold, which were sold during the second quarter, and 2,652,532 common shares of Americas. The common shares are subject to a four-month hold period after closing.

We recognized a $2.6 million gain due to the agreement in the second quarter, and the proceeds from the sale of the gold delivery were recognized as stream revenue and resulted in the recognition of approximately $12 million of additional DD&A expense. Royal Gold's royalty and stream interest on Relief Canyon remain in place and the net book value of the stream interest was reduced to $0.

Payment to Solaris Resources Upon EIA Approval

As previously announced, on April 14, 2026, after technical approval of the EIA and publication of a PFS for the Warintza project, we advanced Solaris $50 million of the total $100 million outstanding conditional funding under the stream agreement dated May 21, 2025. The remaining $50 million payable to Solaris is subject to the completion of all filings necessary to perfect security in Ecuador, which is underway, and payment is anticipated in the third or fourth quarter of 2026.

Completion of Restructured Ownership Interests in the Hod Maden Project

On May 18, 2026, we announced the restructuring of our ownership in Artmin Madençilik (“Artmin”), the joint venture company that owns 100% of the Hod Maden Project (the “Project”). The restructuring included a 50% reduction in Royal Gold’s direct equity ownership in Artmin (from 30% to 15%), the grant to Royal Gold of a new effective 2.5% NSR royalty interest over the Project (the “New RG Royalty”), and certain rights pertaining to a new effective 4.0% NSR royalty interest over the Project (the “SSR Royalty”) granted to SSR Mining, Inc. (“SSR”). Additionally, as part of this restructuring, Lidya Madençilik (“Lidya”), the additional partner in the ownership of Artmin, acquired SSR's interests in Artmin and assumed operatorship of the Project. Closing of the transactions required to complete this restructuring occurred on July 17, 2026.

Artmin is now owned 15% by Royal Gold and 85% by Lidya, and Royal Gold holds acquisition and certain other rights over the SSR Royalty. Royal Gold retains a perpetual right of first refusal (“ROFR”) over the sale of the SSR Royalty to a third party, and SSR will not be permitted to sell the royalty without Royal Gold’s consent prior to January 1, 2028. SSR also granted Royal Gold the option to acquire half of the SSR Royalty (an equivalent 2.0% NSR royalty interest) for $160 million, exercisable from closing through the period that ends 12 months after the achievement of commercial production at the Project.

As part of the restructuring, Royal Gold further agreed to fund $70 million of Project costs, which was completed in May, 2026. Lidya will complete the funding of the next $397 million of Project costs and further funding will be split pro rata between Royal Gold and Lidya according to their 15%/85% ownership in Artmin. Equity funding requirements may be reduced should Artmin secure debt financing for Project development.

Added $600 Million Accordion Feature to the $1.4 Billion Revolving Credit Facility

As previously announced, on May 5, 2026, we entered into a seventh amendment to the revolving credit facility that added a new $600 million uncommitted accordion feature to the revolving credit facility. The new accordion feature permits the Company to request additional commitments from the credit facility bank syndicate that would increase aggregate commitments under the revolving credit facility to up to $2.0 billion, subject to customary conditions, including the consent of each lender providing an additional commitment.

Portfolio Revenue and Developments

Overall Revenue and Realized Metal Prices

| | Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | | | | | | | | | | Revenue by Region (millions) | 2026 | 2025 | 2026 | 2025 | | | | | | | | | | | | | | North America | $ | 250.4 | 56 | % | $ | 160.3 | 76 | % | $ | 508.4 | 55 | % | $ | 301.1 | 75 | % | | South and Central America | | 99.5 | 22 | % | | 19.1 | 9 | % | | 209.8 | 23 | % | | 41.5 | 10 | % | | Europe, Middle East, Africa (EMEA) | | 85.4 | 19 | % | | 20.4 | 10 | % | | 170.1 | 18 | % | | 42.8 | 11 | % | | Australia Pacific | | 15.3 | 3 | % | | 9.8 | 5 | % | | 31.4 | 3 | % | | 17.8 | 4 | % | | Total revenue | $ | 450.5 | | $ | 209.6 | | $ | 919.7 | | $ | 403.1 | | | | | | | * Percentages may not sum to 100% due to rounding | | | | | | | | | | | | | | | | |

| | | Three Months Ended June 30, | Six Months Ended June 30, | | | | | | Average Metal Prices | 2026 | 2025 | Change | 2026 | 2025 | Change | | | Gold | ($/oz) | $4,506 | $3,280 | 37% | $4,693 | $3,067 | 53% | | Silver | ($/oz) | $73.15 | $33.68 | 117% | $78.83 | $32.76 | 141% | | Copper | ($/lb) | $6.05 | $4.32 | 40% | $5.93 | $4.28 | 39% |

North America

Revenue by Stream/Royalty Interest (thousands)

| | | | Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | | Stream/Royalty | Metal(s) | Current Stream/Royalty Interest * | | 2026 | | 2025 | | 2026 | | 2025 | | Mount Milligan | Gold, copper | 35% of payable gold and 18.75% of payable copper | $ | 57,576 | $ | 63,655 | $ | 114,898 | $ | 106,463 | | Pueblo Viejo | Gold, silver | 7.5% of Barrick's interest in payable gold and 75% of Barrick's interest in payable silver | | 44,904 | | 25,618 | | 100,773 | | 54,369 | | Cortez | | | | | | | | | | | | Legacy Zone | Gold | Approx. 9.0% GSR Equivalent | | 16,312 | | 8,508 | | 32,738 | | 19,650 | | CC Zone | Gold | Approx. 1.6%–2.6% GSR Equivalent | | 9,651 | | 8,088 | | 18,444 | | 11,642 | | Rainy River | Gold, silver | 6.5% of gold produced and 60% of silver produced | | 25,777 | | 9,095 | | 56,992 | | 19,517 | | Relief Canyon | Gold, silver | 2.0% NSR, 1.4% to 2.8% NSR, 4% of payable gold and silver | | 24,752 | | – | | 27,340 | | – | | Peñasquito | Gold, silver, lead, zinc | 2.0% NSR | | 14,373 | | 16,306 | | 40,776 | | 31,715 | | Voisey's Bay | Copper, nickel, cobalt | 2.7% NVR | | 6,293 | | 3,165 | | 12,359 | | 5,665 | | Greenstone | Gold | 2.375% of payable gold | | 6,059 | | – | | 14,244 | | – | | Manh Choh | Gold, silver | 3.0% NSR, 28% NSR (silver) | | 4,616 | | 6,306 | | 9,769 | | 11,930 | | Robinson | Gold, copper | 3.0% NSR | | 4,414 | | 4,697 | | 9,792 | | 9,094 | | Leeville | Gold | 1.8% NSR | | 3,873 | | 2,533 | | 7,515 | | 4,160 | | South Arturo | Silver | 40% of silver produced | | 2,784 | | – | | 6,019 | | – | | Côté Gold | Gold | 1.0% NSR | | 2,671 | | 1,746 | | 4,552 | | 3,061 | | Granite Creek | Gold | 3.0% NSR and 2.94% NSR | | 2,560 | | 2,368 | | 4,064 | | 2,368 | | LaRonde Zone 5 | Gold | 2.0% NSR | | 2,454 | | 929 | | 5,961 | | 2,102 | | Other -

North America | Various | Various | | 21,312 | | 7,296 | | 42,141 | | 19,344 | | Total revenue - North America | $ | 250,381 | $ | 160,310 | $ | 508,377 | $ | 301,080 | | | | | | | | | | | | | | | | * For a full description of the Company’s stream and royalty interests, refer to our 2025/2026 Asset Handbook, published on March 31, 2026, and available on our website. | | | | | | | | | | | | Principal Property | | | | | | | | | | |

NOTABLE PRODUCING PROPERTY DEVELOPMENTS

Mount Milligan: On July 28, 2026, Centerra Gold Inc. (“Centerra”) reported production of 38,175 ounces of gold and 13.1 million pounds of copper in the second quarter of 2026. Centerra further reported that year-to-date gold and copper production through June 30, 2026, is in line with the PFS mine plan and that production remains on track to achieve the previously provided guidance of between 140,000 and 155,000 ounces of gold and 50 to 60 million pounds of copper for 2026. As previously disclosed, Centerra expects gold production to be higher in the third quarter of 2026, reflecting planned mine sequencing, which we expect to be reflected in our results in 2027 based on the delivery lag between production and deliveries.

Pueblo Viejo: On July 23, 2026, Newmont Corporation ("Newmont") (40% non-operating joint venture partner) reported that gold production increased 17% in the second quarter over the prior year period primarily due to higher mill throughput and higher drawdown of in-circuit inventory, partially offset by lower mill recovery and lower ore grade milled.

Cortez: Production attributable to our royalty interests at the Cortez Complex was approximately 169,200 ounces of gold for the three months ended June 30, 2026, of which 38,400 ounces were attributable to the Legacy Zone, and 130,800 ounces were attributable to the CC Zone, compared to approximately 176,900 ounces of gold for the three months ended June 30, 2025, of which 27,900 ounces were attributable to the Legacy Zone, and 149,000 ounces were attributable to the CC Zone.

Rainy River: After completing the acquisition of New Gold Inc. on March 20, 2026, Coeur Mining Inc. ("Coeur”) has disclosed that it commenced a more aggressive exploration program in May focused on near-mine drill testing and exploration of the large land package in the Rainy River district, which extends over 50 kilometers. Additionally, Coeur has reported that it expects annual gold and silver production at Rainy River to average 287,000 ounces and 527,000 ounces, respectively, through 2028.

Peñasquito: On July 23, 2026, Newmont reported that second quarter gold and other metals production was lower due to lower ore grade milled and lower mill recovery, and planned maintenance was completed in the second quarter with higher throughput expected in the third quarter. Newmont confirmed that 2026 production guidance of 185,000 ounces of gold, 32 million ounces of silver, 90,000 tonnes of lead and 220,000 tonnes of zinc is unchanged.

Greenstone: On July 9, 2026, Equinox Gold Corp. (“Equinox”) reported that mining rates averaged more than 199,000 tonnes per day following the winter months and mill throughput averaged 26,856 tonnes per day, and 69% of days exceeded the nameplate capacity of 27,000 tonnes per day in the second quarter compared to 51% in the first quarter. Equinox expects that this trend will continue into the second half of the year resulting in expected higher production quarter over quarter for the balance of the year.

Red Chris: On July 2, 2026, the Government of Canada and the Province of British Columbia signed the new Canada-British Columbia Cooperative Prosperity Agreement, which is intended to accelerate the construction of major energy and trade corridors throughout the province, and includes a C$500 million investment in the block cave project to expand the Red Chris mine. On July 23, 2026, Newmont provided a progress update on the project, which included the receipt of key regulatory approvals from the province of British Columbia, including an amended Environmental Assessment Certificate, the continuation of the feasibility study and advancement of the project toward Board approval toward the end of the year.

Voisey's Bay: On June 9, 2026, Vale S.A. ("Vale") hosted an investor tour of Voisey's Bay and Long Harbour and reported that ramp-up at the underground mines is largely complete, and nickel production at Long Harbour is expected to increase to over 45,000 tonnes in 2026. Vale also reported the expansion of annual mill capacity from the current year-to-date 2.8 million tonnes to 3.8 million tonnes by 2030, with the potential for mine life extension from orebodies that are open at depth and along strike. On July 21, 2026, Vale further reported finished nickel production of 10,400 tonnes in the second quarter.

NOTABLE DEVELOPMENT PROPERTY ACTIVITY

Great Bear (2.0% NSR royalty): On July 29, 2026, Kinross Gold Corporation ("Kinross") provided an update on activity at the Great Bear Project in Ontario. According to Kinross, detailed engineering of the Main Project is 50% complete, and the Advanced Exploration program surface construction is approximately 93% complete and the first blast of the exploration decline was completed on July 27, 2026. Kinross also reported that permitting and procurement progressing as planned for the Main Project.

Cactus (2.0% NSR royalty): On June 24, 2026, Hudbay Minerals Inc. ("Hudbay") announced completion of the acquisition of Arizona Sonoran Copper Company Inc., the owner and operator of the Cactus Project in Arizona. According to Hudbay, the Cactus Project will be integrated into its Arizona portfolio where there are opportunities to realize development, operational and regional synergies with its Copper World Project and create a copper district in Arizona. On July 29, 2026, Hudbay reported that it expects to spend approximately $30 million at the Cactus Project in the second half of 2026 to advance an updated PFS, perform site de-risking activities, conduct exploration activities and for other ongoing site costs. Hudbay expects the updated Cactus Project PFS to be completed in the second half of 2027.

South and Central America

Revenue by Stream/Royalty Interest (thousands)

| | | | Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | | Stream/Royalty | Metal(s) | Current Stream/Royalty Interest* | | 2026 | | 2025 | | 2026 | | 2025 | | Andacollo | Gold | 100% of payable gold | | 49,107 | | 9,489 | | 76,258 | | 22,234 | | Antamina | Copper, zinc, molybdenum | 1.66% NPI | | 13,665 | | – | | 26,675 | | – | | Xavantina | Gold | 25% of gold produced | | 8,256 | | 4,945 | | 36,529 | | 10,322 | | Caserones | Copper, molybdenum | 0.63% NSR | | 4,956 | | – | | 11,107 | | – | | Fruta del Norte | Gold, silver | 0.9% NSR (precious metals) | | 4,150 | | – | | 8,851 | | – | | Cerro Moro | Silver | 9% of silver produced | | 3,381 | | – | | 7,506 | | – | | Chapada | Copper | 4.2% of payable copper | | 3,124 | | – | | 12,529 | | – | | El Limón | Gold, silver | 3.0% NSR | | 2,938 | | 3,024 | | 7,678 | | 6,302 | | Other -

South and Central America | Various | Various | | 9,969 | | 1,671 | | 22,646 | | 2,601 | | Total revenue - South and Central America | $ | 99,546 | $ | 19,129 | $ | 209,779 | $ | 41,459 | | | | | | | | | | | | | | | | * For a full description of the Company’s stream and royalty interests, refer to our 2025/2026 Asset Handbook, published on March 31, 2026, and available on our website. | | | | | | | | | | | | Principal Property | | | | | | | | | | |