UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended ~~December~~March 31, ~~2017~~2022


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-13357

Royal Gold, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware		84-0835164
(State or Other Jurisdiction of		(I.R.S. Employer
Incorporation)		Identification No.)

~~1660 Wynkoop~~1144 15^th Street, Suite ~~1000~~2500
Denver, Colorado		80202
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code ~~(303)~~ (303) 573-1660

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of the Exchange on which Registered
Common Stock, $0.01 par value	RGLD	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒	Accelerated filer ☐
~~Large accelerated~~Non-accelerated filer ☒☐	~~Accelerated filer~~ Smaller reporting company ☐
~~Non-accelerated filer~~ ☐~~(Do not check if a smaller reporting company)~~	~~Smaller reporting company~~ ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were ~~65,455,293~~65,639,022 shares of ~~the Company’s~~Royal Gold common stock ~~par value $0.01 per share,~~ outstanding as of ~~February 1, 2018~~. April 28, 2022.

ITEM 1. FINANCIAL STATEMENTS

ROYAL GOLD, INC.

Consolidated Balance Sheets

(Unaudited, amounts in thousands except share data)

December 31, 2017

June 30, 2017
ASSETS

Cash and equivalents

$
98,132

$
85,847
Royalty receivables

29,285

26,886
Income tax receivable

27,366

22,169
Stream inventory

7,359

7,883
Prepaid expenses and other

3,337

822
Total current assets

165,479

143,607
Stream and royalty interests, net (Note 2)

2,810,616

2,892,256
Other assets

53,305

58,202
Total assets

$
3,029,400

$
3,094,065
LIABILITIES

Accounts payable

$
2,251

$
3,908
Dividends payable

16,363

15,682
Income tax payable

15,097

5,651
Foreign withholding taxes payable

3,451

3,425
Other current liabilities

4,413

5,617
Total current liabilities

41,575

34,283
Debt (Note 3)

493,486

586,170
Deferred tax liabilities

147,548

121,330
Uncertain tax positions

30,187

25,627
Other long-term liabilities

16,787

6,391
Total liabilities

729,583

773,801
Commitments and contingencies (Note 10)

EQUITY

Preferred stock, $.01 par value, 10,000,000 shares authorized; and 0 shares issued

—

—
Common stock, $.01 par value, 200,000,000 shares authorized; and 65,307,285 and 65,179,527 shares outstanding, respectively

653

652
Additional paid-in capital

2,186,648

2,185,796
Accumulated other comprehensive income

687

879
Accumulated earnings

69,842

88,050
Total Royal Gold stockholders’ equity

2,257,830

2,275,377
Non-controlling interests

41,987

44,887
Total equity

2,299,817

2,320,264
Total liabilities and equity

$
3,029,400

$
3,094,065


	March 31,		December 31,
	2022		2021
ASSETS
Cash and equivalents	$	183,707	$	143,551
Royalty receivables		53,518		54,088
Income tax receivable		4,397		4,915
Stream inventory		8,490		11,607
Prepaid expenses and other		8,533		1,835
Total current assets		258,645		215,996
Stream and royalty interests, net (Note 3)		2,433,689		2,443,752
Other assets		97,518		97,284
Total assets	$	2,789,852	$	2,757,032
LIABILITIES
Accounts payable	$	6,267	$	6,475
Dividends payable		22,984		22,966
Income tax payable		8,160		19,070
Other current liabilities		12,132		12,917
Total current liabilities		49,543		61,428

Deferred tax liabilities		87,760		87,705
Other liabilities		6,435		6,688
Total liabilities		143,738		155,821
Commitments and contingencies (Note 12)
EQUITY
Preferred stock, $.01 par value, 10,000,000 shares authorized; and 0 shares issued		—		—
Common stock, $.01 par value, 200,000,000 shares authorized; and 65,568,799 and 65,564,364 shares outstanding, respectively		656		656
Additional paid-in capital		2,208,425		2,206,159
Accumulated earnings		424,608		381,929
Total Royal Gold stockholders’ equity		2,633,689		2,588,744
Non-controlling interests		12,425		12,467
Total equity		2,646,114		2,601,211
Total liabilities and equity	$	2,789,852	$	2,757,032

The accompanying notes are an integral part of these consolidated financial statements.

ROYAL GOLD, INC.

Consolidated Statements of Operations and Comprehensive ~~(Loss)~~ Income

(Unaudited, amounts in thousands except share data)

For The Three Months Ended

For The Six Months Ended

December 31,

December 31,

December 31,

December 31,


2017

2016

2017

2016
Revenue

$
114,348

$
106,961

$
226,824

$
224,909

Costs and expenses

Cost of sales

19,863

22,502

40,282

45,163
General and administrative

9,555

7,538

16,455

18,045
Production taxes

602

445

1,145

942
Exploration costs

1,358

2,476

4,561

5,764
Depreciation, depletion and amortization

42,008

39,519

81,701

79,621
Total costs and expenses

73,386

72,480

144,144

149,535

Operating income

40,962

34,481

82,680

75,374

Interest and other income

645

7,488

1,634

9,045
Interest and other expense

(9,034)

(9,823)

(17,651)

(18,128)
Income before income taxes

32,573

32,146

66,663

66,291

Income tax expense

(48,360)

(5,044)

(55,904)

(12,232)
Net (loss) income

(15,787)

27,102

10,759

54,059
Net loss attributable to non-controlling interests

1,022

960

3,105

3,791
Net (loss) income attributable to Royal Gold common stockholders

$
(14,765)

$
28,062

$
13,864

$
57,850

Net (loss) income

$
(15,787)

$
27,102

$
10,759

$
54,059
Adjustments to comprehensive (loss) income, net of tax

Unrealized change in market value of available-for-sale securities

(390)

822

(193)

822
Comprehensive (loss) income

(16,177)

27,924

10,566

54,881
Comprehensive loss attributable to non-controlling interests

1,022

960

3,105

3,791
Comprehensive (loss) income attributable to Royal Gold stockholders

$
(15,155)

$
28,884

$
13,671

$
58,672

Net (loss) income per share available to Royal Gold common stockholders:

Basic (loss) earnings per share

$
(0.23)

$
0.43

$
0.21

$
0.89
Basic weighted average shares outstanding

65,306,766

65,149,518

65,271,131

65,133,102
Diluted (loss) earnings per share

$
(0.23)

$
0.43

$
0.21

$
0.88
Diluted weighted average shares outstanding

65,306,766

65,253,209

65,460,430

65,264,137
Cash dividends declared per common share

$
0.25

$
0.24

$
0.49

$
0.47


	Three Months Ended
	March 31,		March 31,
	2022		2021
Revenue (Note 6)	$	162,355	$	142,589

Costs and expenses
Cost of sales (excludes depreciation, depletion and amortization)		22,639		21,469
General and administrative		8,931		6,932
Production taxes		2,221		1,835
Depreciation, depletion and amortization		47,988		41,296
Total costs and expenses		81,779		71,532

Operating income		80,576		71,057

Fair value changes in equity securities		613		1,902
Interest and other income		975		733
Interest and other expense		(898)		(1,820)
Income before income taxes		81,266		71,872

Income tax expense		(15,304)		(17,679)
Net income and comprehensive income		65,962		54,193
Net income and comprehensive income attributable to non-controlling interests		(287)		(167)
Net income and comprehensive income attributable to Royal Gold common stockholders	$	65,675	$	54,026
Net income per share attributable to Royal Gold common stockholders:
Basic earnings per share	$	1.00	$	0.82
Basic weighted average shares outstanding		65,565,735		65,550,400
Diluted earnings per share	$	1.00	$	0.82
Diluted weighted average shares outstanding		65,644,668		65,621,603
Cash dividends declared per common share	$	0.35	$	0.30

The accompanying notes are an integral part of these consolidated financial statements.

ROYAL GOLD, INC.

Consolidated Statements of ~~Cash Flows~~Changes in Stockholders’ Equity

Three months ended March 31, 2022, and 2021

(~~Unaudited,~~unaudited, amounts in ~~thousands)~~thousands except share data)

For The Six Months Ended

December 31,

December 31,


2017

2016
Cash flows from operating activities:

Net income

$
10,759

$
54,059
Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, depletion and amortization

81,701

79,621
Amortization of debt discount and issuance costs

7,413

6,751
Non-cash employee stock compensation expense

4,395

6,443
Deferred tax expense (benefit)

28,958

(3,211)
Other

(158)

(4,638)
Changes in assets and liabilities:

Royalty receivables

(2,399)

(7,135)
Stream inventory

524

(689)
Income tax receivable

(5,197)

(52)
Prepaid expenses and other assets

(328)

(835)
Accounts payable

(1,658)

(1,832)
Income tax payable

9,445

(12,120)
Foreign withholding taxes payable

26

1,636
Uncertain tax positions

4,560

6,052
Other liabilities

9,193

822
Net cash provided by operating activities

$
147,234

$
124,872

Cash flows from investing activities:

Acquisition of stream and royalty interests

—

(192,818)
Other

(94)

1,774
Net cash used in investing activities

$
(94)

$
(191,044)

Cash flows from financing activities:

Borrowings from revolving credit facility

—

70,000
Repayment of revolving credit facility

(100,000)

—
Net payments from issuance of common stock

(3,541)

(2,320)
Common stock dividends

(31,391)

(30,035)
Purchase of additional royalty interest from non-controlling interest

—

(1,438)
Other

77

(2,680)
Net cash (used in) provided by financing activities

$
(134,855)

$
33,527
Net increase (decrease) in cash and equivalents

12,285

(32,645)
Cash and equivalents at beginning of period

85,847

116,633
Cash and equivalents at end of period

$
98,132

$
83,988


	Royal Gold Stockholders

				Additional
	Common Shares			Paid-In		Accumulated		Non-controlling		Total
	Shares	Amount		Capital		Earnings		Interests		Equity
Balance at December 31, 2021	65,564,364	$	656	$	2,206,159	$	381,929	$	12,467	$	2,601,211
Stock-based compensation and related share issuances	4,435		—		2,266		—		—		2,266
Distributions to non-controlling interests	—		—		—		—		(329)		(329)
Net income and comprehensive income	—		—		—		65,675		287		65,962
Dividends declared	—		—		—		(22,996)		—		(22,996)
Balance at March 31, 2022	65,568,799	$	656	$	2,208,425	$	424,608	$	12,425	$	2,646,114

	Royal Gold Stockholders

				Additional
	Common Shares			Paid-In		Accumulated		Non-controlling		Total
	Shares	Amount		Capital		Earnings		Interests		Equity
Balance at December 31, 2020	65,548,415	$	656	$	2,201,076	$	189,910	$	13,037	$	2,404,679
Stock-based compensation and related share issuances	2,030		—		1,334		—		—		1,334
Distributions to non-controlling interests	—		—		—		—		(399)		(399)
Net income and comprehensive income	—		—		—		54,026		167		54,193
Dividends declared	—		—		—		(19,682)		—		(19,682)
Balance at March 31, 2021	65,550,445	$	656	$	2,202,410	$	224,254	$	12,805	$	2,440,125

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

ROYAL GOLD, INC.

Consolidated Statements of Cash Flows

(Unaudited, amounts in thousands)


	Three Months Ended
	March 31,		March 31,
	2022		2021
Cash flows from operating activities:
Net income and comprehensive income	$	65,962	$	54,193
Adjustments to reconcile net income and comprehensive income to net cash provided by operating activities:

Depreciation, depletion and amortization		47,988		41,296
Non-cash employee stock compensation expense		2,124		1,344
Fair value changes in equity securities		(613)		(1,902)
Deferred tax expense (benefit)		688		(645)
Other		245		286
Changes in assets and liabilities:
Royalty receivables		569		(1,111)
Stream inventory		3,118		(591)
Income tax receivable		518		(5,731)
Prepaid expenses and other assets		(7,309)		98
Accounts payable		(208)		1,793
Income tax payable		(10,910)		2,342
Uncertain tax positions		—		(310)
Other liabilities		(1,039)		1,171
Net cash provided by operating activities	$	101,133	$	92,233

Cash flows from investing activities:
Acquisition of stream and royalty interests		(37,800)		(33,656)
Other		(11)		(87)
Net cash used in investing activities	$	(37,811)	$	(33,743)

Cash flows from financing activities:
Repayment of debt		—		(50,000)
Net payments from issuance of common stock		141		(10)
Common stock dividends		(22,978)		(19,682)
Other		(329)		(397)
Net cash used in financing activities	$	(23,166)	$	(70,089)
Net increase (decrease) in cash and equivalents		40,156		(11,599)
Cash and equivalents at beginning of period		143,551		381,859
Cash and equivalents at end of period	$	183,707	$	370,260

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

(Unaudited)

1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ~~RECENTLY ISSUED AND RECENTLY ADOPTED~~RECENT ACCOUNTING STANDARDS

Royal Gold Inc. ~~(“Royal Gold”, the “Company”, “we”, “us”, or “our”)~~, together with its subsidiaries (“Royal Gold,” the “Company,” “we,” “us,” or “our”), is engaged in the business of acquiring and managing precious metals streams, royalties and similar interests. We seek to acquire existing stream and royalty interests or to finance projects that are in production or in the development stage in exchange for stream or royalty interests. A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced from a mine at a price determined for the life of the transaction by the purchase agreement. Royalties are non-operating interests in a mining ~~projects~~project that provide the right to revenue or metals produced from the project after deducting contractually specified costs, if any.

Summary of Significant Accounting Policies

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in this Form 10-Q. Operating results for the three ~~and six~~ months ended ~~December~~March 31, ~~2017,~~2022 are not necessarily indicative of the results that may be expected for the ~~fiscal~~calendar year ending ~~June 30, 2018.~~December 31, 2022. These interim unaudited consolidated financial statements should be read in conjunction with ~~the Company’s Annual~~our Transition Report on Form 10-K for the ~~fiscal year~~six months ended ~~June 30, 2017~~December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on ~~August 10, 2017~~February 17, 2022 (“~~Fiscal 2017 10-K”~~Transition Report”).

~~Certain amounts in~~Recent Accounting Standards

We have evaluated all the ~~prior period financial statements~~recently issued, but not yet effective, accounting standards that have been ~~reclassified for comparative purposes to conform with the presentation in the current period financial statements. Reclassified amounts were not material to the financial statements.~~

~~Recently Issued and Adopted Accounting Standards~~

~~Recently Issued~~

~~In May 2014,~~issued or proposed by the Financial Accounting Standards Board or other standards-setting bodies through the filing date of these unaudited consolidated financial statements and do not believe the future adoption of any such standards will have a material impact on our consolidated financial statements.

2. ACQUISITIONS

Lawyers Royalty Acquisition

On March 24, 2022, we acquired a 0.5% net smelter returns royalty (“~~FASB”~~NSR”) ~~issued Accounting Standards Update~~on production from the Lawyers Project, currently operated by Benchmark Metals Inc., which is located in British Columbia, Canada. As part of this transaction, we also acquired a right of first offer (“~~ASU”~~ROFO”) ~~guidance~~for an existing 2.0% NSR royalty over the Ranch Project that is located adjacent to the Lawyers Project. We paid $8.0 million in cash consideration for the ~~recognition~~royalty and ROFO to Guardsmen Resources Inc. The Lawyers Project acquisition has been accounted for as an asset acquisition. The $8.0 million cash consideration, plus direct acquisition costs, have been recorded as an exploration stage royalty interest (Note 3) within Stream and royalty interests, net on our consolidated balance sheets.

Khoemacau Silver Stream

On February 23, 2022, we made an advance payment of ~~revenue~~$10.0 million toward the option stream which increased our right to receive payable silver produced from ~~contracts with customers. This ASU superseded virtually all~~Khoemacau from 90% to 93%, and on March 14, 2022, we made our final advance payment of $16.5 million toward the option stream which increased our right to receive payable silver produced from 93% to 100%. The $265 million of advance payments, plus direct acquisition costs, have been recorded as a production stage stream interest within Stream and royalty interests, net on our consolidated balance sheets.

As of March 31, 2022, $25.0 million of the ~~existing revenue recognition guidance under U.S. GAAP. The core principle~~subordinated debt facility, and $2.6 million of the five step model is that an entity will recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Entities can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. The standard is effective for the Company’s fiscal year beginning July 1, 2018. Early adoption is permitted.

~~We plan to implement the new ASU revenue recognition guidance as of July 1, 2018, using the modified retrospective method with the cumulative effect, if any, of initial adoption to be recognized in~~ ~~Accumulated earnings~~ ~~at the date of initial application. We are in the initial stages of our evaluation of the impact of the new standard on our accounting policies, processes, and financial reporting. Based~~accrued interest remains outstanding on the ~~evaluation performed to-date, we expect to identify similar performance obligations as compared with deliverables~~Khoemacau subordinated debt facility, and ~~separate units of account previously identified. We will continue to assess the impact of adopting this ASU throughout the remainder of fiscal year 2018.~~

~~Recently Adopted~~

In March 2016, the FASB issued ASU guidance related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, statement of cash flows presentation, estimating forfeitures when calculating compensation expense, and classification of awards as either equity or liabilities.

these amounts are included in Other assets in our

Table of Contents

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements ~~(Continued)~~

(Unaudited)

~~The new standard requires all excess tax benefits and tax deficiencies~~consolidated balance sheets. Refer to ~~be recognized as income tax benefit (expense) in the income statement. The new guidance also requires presentation of excess tax benefits as an operating activity~~our Transition Report for further details on the ~~statement of cash flows rather than~~ Khoemaca ~~financing activity~~u silver stream acquisition and requires presentation of cash paid to a tax authority when shares are withheld to satisfy the employer’s statutory income tax withholding obligation as a financing activity. The new guidance also provides for an election to account for forfeitures of stock-based compensation. subordinated debt facility.

The Company adopted the ASU guidance effective July 1, 2017. With respect to the forfeiture election, the Company will continue its current practice of estimating forfeitures when calculating compensation expense. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements or related disclosures.

2.3. STREAM AND ROYALTY INTERESTS, NET

The following tables summarize ~~the Company’s~~our stream and royalty interests, net as of March 31, 2022 and December 31, ~~2017 and June 30, 2017.~~2021.


As of December 31, 2017 (Amounts in thousands):	Cost		Accumulated Depletion		Net
Click or tap here to enter text.
As of March 31, 2022 (Amounts in thousands):							Cost		Accumulated Depletion		Net
Production stage stream interests:
Mount Milligan	$	790,635	$	(129,652)	$	660,983	$	790,635	$	(352,165)	$	438,470
Pueblo Viejo		610,404		(93,202)		517,202		610,405		(267,872)		342,533
Andacollo		388,182		(51,328)		336,854		388,182		(143,144)		245,038
Wassa and Prestea		146,475		(34,446)		112,029
Khoemacau								265,911		(4,963)		260,948
Rainy River		175,727		(581)		175,146		175,727		(53,285)		122,442
Wassa								146,475		(87,597)		58,878
Other								69,100		(6,254)		62,846
Total production stage stream interests		2,111,423		(309,209)		1,802,214		2,446,435		(915,280)		1,531,155

Production stage royalty interests:
Voisey's Bay		205,724		(85,671)		120,053		205,724		(115,738)		89,986
Red Chris								116,187		(1,797)		114,390
Peñasquito		99,172		(36,730)		62,442		99,172		(54,243)		44,929
Holt		34,612		(20,490)		14,122
Cortez		20,878		(11,094)		9,784		80,681		(26,693)		53,988
Other		483,795		(350,690)		133,105		447,014		(390,227)		56,787
Total production stage royalty interests		844,181		(504,675)		339,506		948,778		(588,698)		360,080
Total production stage stream and royalty interests		2,955,604		(813,884)		2,141,720		3,395,213		(1,503,978)		1,891,235


Development stage stream interests:
Other		12,031		—		12,031		12,038		—		12,038

Development stage royalty interests:
Côté								45,421		—		45,421
Other								62,797		—		62,797
Total development stage stream and royalty interests								120,256		—		120,256

Exploration stage stream interests:
NX Gold								34,213		—		34,213
Exploration stage royalty interests:
Pascua-Lama		380,657		—		380,657		177,690		—		177,690
Cortez		59,803		—		59,803
Red Chris								48,895		—		48,895
Côté								29,610				29,610
Other		63,811		—		63,811		131,790		—		131,790
Total development stage royalty interests		504,271		—		504,271
Total development stage stream and royalty interests		516,302		—		516,302
Total exploration stage royalty interests		152,594		—		152,594
Total stream and royalty interests	$	3,624,500	$	(813,884)	$	2,810,616
Total exploration stage stream and royalty interests								422,198		—		422,198
Total stream and royalty interests, net							$	3,937,667	$	(1,503,978)	$	2,433,689

Table of Contents

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements ~~(Continued)~~

(Unaudited)

As of June 30, 2017 (Amounts in thousands):

Cost

Accumulated Depletion

Net
Production stage stream interests:

Mount Milligan

$
790,635

$
(114,327)

$
676,308
Pueblo Viejo

610,404

(67,149)

543,255
Andacollo

388,182

(39,404)

348,778
Wassa and Prestea

146,475

(22,715)

123,760
Total production stage stream interests

1,935,696

(243,595)

1,692,101
Production stage royalty interests:

Voisey's Bay

205,724

(85,671)

120,053
Peñasquito

99,172

(34,713)

64,459
Holt

34,612

(19,669)

14,943
Cortez

20,873

(10,633)

10,240
Other

483,643

(337,958)

145,685
Total production stage royalty interests

844,024

(488,644)

355,380
Total production stage stream and royalty interests

2,779,720

(732,239)

2,047,481
Development stage stream interests:

Rainy River

175,727

—

175,727
Other

12,031

—

12,031
Total development stage stream interests

187,758

—

187,758
Development stage royalty interests:

Pascua-Lama

380,657

—

380,657
Cortez

59,803

—

59,803
Other

63,811

—

63,811
Total development stage royalty interests

504,271

—

504,271
Total development stage stream and royalty interests

692,029

—

692,029
Total exploration stage royalty interests

152,746

—

152,746
Total stream and royalty interests

$
3,624,495

$
(732,239)

$
2,892,256


As of December 31, 2021 (Amounts in thousands):	Cost		Accumulated Depletion		Net
Production stage stream interests:
Mount Milligan	$	790,635	$	(336,921)	$	453,714
Pueblo Viejo		610,405		(260,321)		350,084
Andacollo		388,182		(139,035)		249,147
Khoemacau		239,411		(3,402)		236,009
Rainy River		175,727		(50,115)		125,612
Wassa		146,475		(84,915)		61,560
Other		69,101		(4,193)		64,908
Total production stage stream interests		2,419,936		(878,902)		1,541,034

Production stage royalty interests:
Voisey's Bay		205,724		(113,602)		92,122
Red Chris		116,187		—		116,187
Peñasquito		99,172		(53,022)		46,150
Cortez		80,681		(23,225)		57,456
Other		447,799		(387,364)		60,435
Total production stage royalty interests		949,563		(577,213)		372,350
Total production stage stream and royalty interests		3,369,499		(1,456,115)		1,913,384

Development stage stream interests:
Other		12,037		—		12,037
Development stage royalty interests:
Côté		45,421		—		45,421
Other		54,755		—		54,755
Total development stage stream and royalty interests		112,213		—		112,213

Exploration stage stream interests:
NX Gold		30,974		—		30,974
Exploration stage royalty interests:
Pascua-Lama		177,690		—		177,690
Red Chris		48,895		—		48,895
Côté		29,610		—		29,610
Other		130,986		—		130,986
Total exploration stage royalty interests		418,155		—		418,155
Total stream and royalty interests, net	$	3,899,867	$	(1,456,115)	$	2,443,752

~~3. DEBT~~

4. MARKETABLE EQUITY SECURITIES

As of March 31, 2022, our marketable equity securities include warrants to purchase up to 19,640,000 common shares of TriStar Gold Inc. Our marketable equity securities are measured at fair value (Note 11) each reporting period with any changes in fair value recognized in net income.

The ~~Company’s non-current debt~~fair value of our marketable equity securities increased $0.6 million and $1.9 million for the three months ended March 31, 2022, and 2021, respectively, and these changes are included in Fair value changes in equity securities on our consolidated statements of operations and comprehensive income. The carrying value of our marketable equity securities as of March 31, 2022 and December 31, 2021, was $2.3 million and $1.7 million, respectively, and is included in Other assets on our consolidated balance sheets.

Table of Contents

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

(Unaudited)

5. DEBT

Revolving credit facility

As of March 31, 2022, we had 0 amounts outstanding under our revolving credit facility dated June 2, 2017, and ~~June 30, 2017 consists of the following:~~

As of December 31, 2017

As of June 30, 2017


Principal

Unamortized Discount

Debt Issuance Costs

Total

Principal

Unamortized Discount

Debt Issuance Costs

Total

(Amounts in thousands)

(Amounts in thousands)
Convertible notes due 2019

$
370,000

$
(19,110)

$
(1,986)

$
348,904

$
370,000

$
(25,251)

$
(2,646)

$
342,103
Revolving credit facility

150,000

—

(5,418)

144,582

250,000

—

(5,933)

244,067
Total debt

$
520,000

$
(19,110)

$
(7,404)

$
493,486

$
620,000

$
(25,251)

$
(8,579)

$
586,170

~~Convertible Senior Notes Due 2019~~

In June 2012, the Company completed an offering of $370 million aggregate principal amount of 2.875% convertible senior notes due 2019 (“2019 Notes”). The 2019 Notes bear interest at the rate of 2.875% per annum, and the Company is required to make semi-annual interest payments on the outstanding principal balance of the 2019 Notes on June 15 and December 15 of each year, beginning December 15, 2012. The 2019 Notes mature on June 15, 2019.as amended. Interest expense recognized on the ~~2019 Notes~~revolving credit facility for the three ~~and six~~ months ended ~~December~~March 31, ~~2017,~~2022, and 2021, was ~~$6.1~~approximately $0.2 million and ~~$12.1~~$0.8 million, respectively, ~~compared to $5.9 million and $11.7 million, respectively, for the three and six months ended December 31, 2016,~~ and included the ~~contractual coupon interest, the accretion of the debt discount and~~ amortization of the debt issuance ~~costs.~~

~~Table of Contents~~

~~ROYAL GOLD, INC.~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

~~Revolving credit facility~~

~~The Company maintains a $1 billion revolving credit facility. As of December 31, 2017,~~costs and interest on the ~~Company had $150 million~~ outstanding borrowings. We were in compliance with each financial covenant (leverage ratio and ~~$850 million available~~interest coverage ratio) under the revolving credit facility ~~with an interest rate on borrowings~~as of ~~LIBOR plus 1.75% for an all-in rate of 3.24%. During the three and six months ended December~~March 31, ~~2017, the Company repaid $50 million, respectively, of the outstanding borrowings under the revolving credit facility. Royal Gold~~2022.

We may repay any borrowings under the revolving credit facility at any time without premium or penalty. ~~Interest expense~~

6. REVENUE

Revenue Recognition

A performance obligation is a promise in a contract to transfer control of a distinct good or service (or integrated package of goods and/or services) to a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, a performance obligation is satisfied. In accordance with this guidance, revenue attributable to our stream interests and royalty interests is generally recognized at the point in time that control of the related metal production transfers to our customers. The amount of revenue we recognize further reflects the consideration to which we are entitled under the respective stream or royalty agreement. A more detailed summary of our revenue recognition policies for our stream and royalty interests is discussed below.

Stream Interests

A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more of the metals produced from a mine, at a price determined for the life of the transaction by the purchase agreement. Gold, silver and copper received under our metal streaming agreements are taken into inventory, and then sold primarily using average spot rate gold, silver and copper forward contracts. The sales price for these average spot rate forward contracts is determined by the average daily gold, silver or copper spot prices during the term of the contract, typically a consecutive number of trading days between ten days and three months (depending on the frequency of deliveries under the respective streaming agreement and our sales policy in effect at the time) commencing shortly after receipt and purchase of the metal. We settle our forward sales contracts via physical delivery of the metal to the purchaser (our customer) on the settlement date specified in the contract. Under our forward sales contracts, there is a single performance obligation to sell a contractually specified volume of metal to the purchaser, and we satisfy this obligation at the point in time of physical delivery. Accordingly, revenue from our metal sales is recognized on the ~~revolving credit facility~~date of settlement, which is the date that control, custody and title to the metal transfer to the purchaser.

Royalty Interests

Royalties are non-operating interests in mining projects that provide the right to a percentage of revenue or metals produced from the project after deducting specified costs, if any. We are entitled to payment for our royalty interest in a mining project based on a contractually specified commodity price (for example, a monthly or quarterly average spot price) for the ~~three~~period in which metal production occurs. As a royalty holder, we act as a passive entity in the production and ~~six~~operations of the mining project, and the third-party operator of the mining project is responsible for all mining activities, including subsequent marketing and delivery of all metal production to their ultimate customer. In all of our material royalty interest arrangements, we have concluded that we transfer control of our interest in the metal production to the operator at the point at which production occurs, and thus, the operator is our customer. We have further determined that the transfer of each unit of metal production comprising our royalty interest to the operator represents a separate performance obligation under the contract, and each performance obligation is satisfied at the point in time of metal production by the operator. Accordingly, we recognize revenue attributable to our royalty interests in the period in which metal production occurs at the specified commodity price per the agreement, net of any contractually allowable costs.

Table of Contents

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

(Unaudited)

Royalty Revenue Estimates

For a small number of our royalty interests, we may not receive, or be entitled to receive, payment information, including production information from the operator, for the period in which metal production occurred prior to issuance of our financial statements for that period. As a result, we may estimate revenue for these royalties based on available information, including public information, from the operator. If adequate information is not available from the operator or from other public sources before we issue our financial statements, we will recognize royalty revenue during the period in which the necessary payment information is received. Differences between estimates and actual amounts could differ significantly and are recorded in the period that the actual amounts are known. Please also refer to our “Use of Estimates” accounting policy discussed in our Transition Report. For the three months ended ~~December~~March 31, ~~2017~~2022, royalty revenue that was ~~$1.8 million~~estimated or was attributable to metal production for a period prior to March 31, 2022, was not material.

Disaggregation of Revenue

We have identified 2 material revenue sources in our business: stream interests and $3.6 million, respectively, and $2.3 million and $4.3 million for the three and six months ended December 31, 2016, and included interest on the outstanding borrowings and the amortization of the debt issuance costs.

Asroyalty interests. These identified revenue sources are consistent with our reportable segments as discussed in Note 5 to the notes to consolidated financial statements in the Company’s Fiscal 2017 10-K, the Company has financial covenants associated with its revolving credit facility. As of December 31, 2017, the Company was in compliance with each financial covenant.10.

~~4. REVENUE~~

Revenue by metal type attributable to each of our revenue sources is ~~comprised~~disaggregated as follows (amounts in thousands):


	Three Months Ended
	March 31,		March 31,
	2022		2021
Stream revenue:
Gold	$	77,502	$	65,511
Silver		11,439		12,805
Copper		16,310		17,030
Total stream revenue	$	105,251	$	95,346
Royalty revenue:
Gold	$	37,917	$	31,245
Silver		4,317		4,208
Copper		6,705		4,015
Other		8,165		7,775
Total royalty revenue	$	57,104	$	47,243
Total revenue	$	162,355	$	142,589

Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands):


		Three Months Ended
		March 31,		March 31,
	Metal(s)	2022		2021
Stream revenue:
Mount Milligan	Gold & Copper	$	42,416	$	33,803
Pueblo Viejo	Gold & Silver		23,264		30,173
Andacollo	Gold		15,674		13,022
Wassa	Gold		7,202		8,774
Khoemacau	Silver		2,389		—
Other	Gold & Silver		14,306		9,574
Total stream revenue		$	105,251	$	95,346
Royalty revenue:
Cortez	Gold	$	16,714	$	8,609
Peñasquito	Gold, Silver, Lead & Zinc		13,094		13,128
Other	Various		27,296		25,506
Total royalty revenue		$	57,104	$	47,243
Total revenue		$	162,355	$	142,589

Please refer to Note 10 for the geographical distribution of ~~the following:~~our revenue by reportable segment.

Three Months Ended

Six Months Ended

December 31,

December 31,

December 31,

December 31,


2017

2016

2017

2016

(Amounts in thousands)

(Amounts in thousands)
Stream interests

$
79,287

$
74,007

$
158,049

$
159,511
Royalty interests

35,061

32,954

68,775

65,398
Total revenue

$
114,348

$
106,961

$
226,824

$
224,909

Table of Contents

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

5.(Unaudited)

7. STOCK-BASED COMPENSATION

~~The Company~~We recognized stock-based compensation expense as ~~follows:~~follows (amounts in thousands):


	Three Months Ended				Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2017		2016		2017		2016
		(Amounts in thousands)				(Amounts in thousands)
Stock options	$	79	$	95	$	170	$	203
Stock appreciation rights		486		454		974		922

									Three Months Ended
									March 31,		March 31,
									2022		2021
Restricted stock		888		829		2,314		2,203	$	1,155	$	533
Performance stock		568		921		937		3,115		631		364
Stock appreciation rights										332		430
Stock options										6		17
Total stock-based compensation expense	$	2,021	$	2,299	$	4,395	$	6,443	$	2,124	$	1,344

Stock-based compensation expense is included within General and administrative expense in the consolidated statements of operations and comprehensive ~~(loss)~~ income.

~~Table of Contents~~

~~ROYAL GOLD, INC.~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

During the three ~~and six~~ months ended ~~December~~March 31, ~~2017, the Company~~2022 and 2021, we granted the following stock-based compensation awards:

Three Months Ended

Six Months Ended

December 31,

December 31,

December 31,

December 31,



2017


2016


2017


2016

(Number of shares)

(Number of shares)
Stock options

-

-

6,858

7,200
Stock appreciation rights

-

-

71,262

63,340
Restricted stock

-

-

50,380

44,890
Performance stock

-

-

34,010

29,830
Total equity awards granted

-

-

162,510

145,260


		Three Months Ended
		March 31,		March 31,
	2022		2021

		(Number of shares)
Performance stock (at maximum 200% attainment)		39,380		—
Restricted stock		28,220		—
Total equity awards granted		67,600		—

As of ~~December~~March 31, ~~2017,~~2022, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows:


	Unrecognized		Weighted-
	compensation		average vesting
	expense		period (years)
Stock options	$	397		1.8
Stock appreciation rights		3,189		2.1

					Unrecognized		Weighted-
					compensation		average vesting
					expense		period (years)
Restricted stock		6,939		3.2	$	9,377		2.6
Performance stock		2,424		2.0		6,760		2.5
Stock appreciation rights						1,296		1.2
Stock options						43		1.3

6.8. EARNINGS PER SHARE (“EPS”)

Basic ~~earnings per common share~~EPS were computed using the weighted average number of shares of common stock outstanding during the period, considering the effect of participating securities. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of ~~earnings per share~~EPS pursuant to the two-class method. ~~The Company’s~~Our unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared. ~~The Company’s~~Our unexercised stock ~~options,~~option awards, unexercised ~~SSARs~~stock-settled stock appreciation rights and unvested performance stock do not contain rights to dividends. Under the two-class method, the earnings used to determine basic ~~(loss) earnings per common share~~EPS are reduced by an amount allocated to participating securities. Use of the two-class method has an immaterial impact on the calculation of basic and diluted ~~(loss) earnings per common share.~~EPS.

Table of Contents

ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

(Unaudited)

The following tables summarize the effects of dilutive securities on diluted EPS for the ~~period:~~periods shown below (amounts in thousands, except share data):


	Three Months Ended				Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2017		2016		2017		2016
		(in thousands, except per share data)				(in thousands, except per share data)
Net (loss) income available to Royal Gold common stockholders	$	(14,765)	$	28,062	$	13,864	$	57,850

									Three Months Ended
									March 31,		March 31,
									2022		2021
Net income attributable to Royal Gold common stockholders									$	65,675	$	54,026
Weighted-average shares for basic EPS		65,306,766		65,149,518		65,271,131		65,133,102		65,565,735		65,550,400
Effect of other dilutive securities		-		103,691		189,299		131,035		78,933		71,203
Weighted-average shares for diluted EPS		65,306,766		65,253,209		65,460,430		65,264,137		65,644,668		65,621,603
Basic (loss) earnings per share	$	(0.23)	$	0.43	$	0.21	$	0.89
Diluted (loss) earnings per share	$	(0.23)	$	0.43	$	0.21	$	0.88
Basic EPS									$	1.00	$	0.82
Diluted EPS									$	1.00	$	0.82

~~Table of Contents~~9. INCOME TAXES

~~ROYAL GOLD, INC.~~


	Three Months Ended
	March 31,		March 31,
	2022		2021
Income tax expense	$	15,304	$	17,679
Effective tax rate		18.8%		24.6%

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

The calculation of weighted average shares includes all of our outstanding common stock. The Company intends to settle the principal amount of the 2019 Notes in cash. As a result, there will be no impact to diluted earnings per share unless the share price of the Company’s common stock exceeds the conversion price of $102.79.

~~7. INCOME TAXES~~

Three Months Ended

Six Months Ended

December 31,

December 31,

December 31,

December 31,


2017

2016

2017

2016

(Amounts in thousands, except rate)

(Amounts in thousands, except rate)
Income tax expense

$
(48,360)

$
(5,044)

$
(55,904)

$
(12,232)
Effective tax rate

148.5%

15.7%

83.9%

18.5%

~~The increase in the~~ effective tax rate for the three ~~and six~~ months ended ~~December~~March 31, ~~2017 is primarily~~2021, included an income tax expense attributable to ~~the effects of recent U.S. tax legislation, as discussed below, and the effects of a non-cash functional currency election ($15.9 million expense) to file certain Canadian income tax returns~~an increase in ~~U.S. dollars. Prior to the functional currency election,~~valuation allowance on certain deferred tax liabilities were measured on the difference between adjusted Canadian dollar acquisition cost and Canadian dollar tax basis. These deferred tax liabilities were then marked-to market every quarter, for income tax expense (benefit) purposes, to account for changes in the Canadian dollar to U.S. dollar exchange rate. Post-election, the applicable deferred tax liabilities will be measured on the difference between U.S. GAAP value and U.S. dollar tax basis, and eliminating volatility in the effective tax rate caused by this mark-to-market adjustment.assets.

On December 22, 2017, H.R. 1, originally known as the Tax Cuts and Jobs Act (the “Act”), was enacted and is effective for tax years including January 1, 2018. Certain other aspects of the Act are not effective for fiscal June 30 companies until July 1, 2018.

The Act, among other things, reduced the U.S. corporate income tax rate to 21% starting January 1, 2018. As the Company is a fiscal year tax payer, we applied a blended U.S. federal income tax rate of approximately 28.1% for the fiscal year ending June 30, 2018. The blended percentage was calculated on a pro-rata percentage of the number of days before and after January 1, 2018. The Company’s U.S. federal corporate income tax rate will be 21% for the fiscal year commencing on July 1, 2018 and all future years.

~~ASC 740,~~ ~~Income Taxes,~~ requires recognition of the effects of tax law changes in the period of enactment. As a result, the Company recorded a net charge (expense) of $26.4 million during the three months ended December 31, 2017. This amount, which is included in ~~Income tax expense~~ on our consolidated statements of operations and comprehensive (loss) income, consists of three components: (i) a $11.5 million charge relating to the one-time mandatory tax on the net accumulated post-1986 untaxed earnings and profits of the Company’s foreign subsidiaries, which we will elect to pay over an eight-year period, (ii) a $2.3 million benefit resulting from the re-measurement of the Company’s net deferred tax assets and liabilities, and (iii) a $17.2 million charge related to re-measurement of the U.S. income tax impacts resulting from foreign uncertain tax positions.

The net $26.4 million charge represents what the Company believes is a reasonable estimate of the impact of the Act. As the net charge is based on currently available information and interpretations, which are continuing to evolve, all amounts should be considered provisional. The Company will continue to analyze additional information and guidance related to the Act as supplemental legislation, regulatory guidance, or evolving technical interpretations become available. The final impacts may differ from the recorded amounts as of December 31, 2017 and the Company will continue to refine such amounts within the measurement period provided by Staff Accounting Bulletin No. 118. The Company expects to complete its analysis no later than the second quarter of fiscal year 2019.

~~Table of Contents~~

~~ROYAL GOLD, INC.~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

8.10. SEGMENT INFORMATION

~~The Company manages its~~We manage our business under ~~two~~2 reportable segments, consisting of the acquisition and management of stream interests and the acquisition and management of royalty interests. ~~Royal Gold’s~~Our long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following ~~table:~~table (amounts in thousands):


	As of March 31, 2022						As of December 31, 2021
					Total stream						Total stream
	Stream		Royalty		and royalty		Stream		Royalty		and royalty
	interest		interest		interests, net		interest		interest		interests, net
Canada	$	560,911	$	415,905	$	976,816	$	579,326	$	412,419	$	991,745
Chile		245,038		224,116		469,154		249,147		224,116		473,263
Dominican Republic		342,532		—		342,532		350,083		—		350,083
Africa		319,827		321		320,148		297,569		321		297,890
United States		—		103,855		103,855		—		107,761		107,761
Mexico		—		58,276		58,276		—		60,977		60,977
Australia		—		27,193		27,193		—		27,496		27,496
Rest of world		109,098		26,617		135,715		107,920		26,617		134,537
Total	$	1,577,406	$	856,283	$	2,433,689	$	1,584,045	$	859,707	$	2,443,752

As of December 31, 2017

As of June 30, 2017


Stream interest

Royalty interest

Total stream
and royalty
interests, net

Stream interest

Royalty
interest

Total stream
and royalty
interests, net
Canada

$
836,129

$
218,683

$
1,054,812

$
852,035

$
221,618

$
1,073,653
Dominican Republic

517,203

—

517,203

543,256

—

543,256
Chile

336,854

453,369

790,223

348,778

453,369

802,147
Africa

112,029

525

112,554

123,760

572

124,332
Mexico

—

99,769

99,769

—

105,889

105,889
United States

—

166,115

166,115

—

168,378

168,378
Australia

—

35,780

35,780

—

37,409

37,409
Other

12,030

22,130

34,160

12,030

25,162

37,192
Total

$
1,814,245

$
996,371

$
2,810,616

$
1,879,859

$
1,012,397

$
2,892,256

Table of Contents

~~The Company’s revenue, cost~~ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

(Unaudited)

Our reportable segments for purposes of ~~sales and net~~assessing performance are shown below (amounts in thousands):


	Three Months Ended March 31, 2022
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	105,251	$	22,639	$	—	$	36,378	$	46,234
Royalty interests		57,104		—		2,221		11,485		43,398
Total	$	162,355	$	22,639	$	2,221	$	47,863	$	89,632

	Three Months Ended March 31, 2021
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	95,346	$	21,469	$	—	$	32,595	$	41,282
Royalty interests		47,243		—		1,835		8,607		36,801
Total	$	142,589	$	21,469	$	1,835	$	41,202	$	78,083

(1)	Excludes depreciation, depletion and amortization

(2)	Depletion amounts are included within Depreciation, depletion and amortization on our consolidated statements of operations and comprehensive income.

A reconciliation of total segment gross profit to the consolidated Income before income taxes is shown below (amounts in thousands):


	Three Months Ended
	March 31,		March 31,
		2022		2021
Total segment gross profit	$	89,632	$	78,083

Costs and expenses
General and administrative expenses		8,931		6,932
Depreciation and amortization		125		94
Operating income		80,576		71,057
Fair value changes in equity securities		613		1,902
Interest and other income		975		733
Interest and other expense		(898)		(1,820)
Income before income taxes	$	81,266	$	71,872

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ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

(Unaudited)

Our revenue by reportable segment for the three ~~and six~~ months ended ~~December~~March 31, ~~2017~~2022 and ~~2016,~~2021 is geographically distributed as shown in the following ~~table:~~table (amounts in thousands):


	Three Months Ended December 31, 2017						Three Months Ended December 31, 2016
	Revenue		Cost of sales		Net revenue		Revenue		Cost of sales		Net revenue
Streams:

													Three Months Ended
													March 31,		March 31,
													2022		2021
Stream interests:
Canada	$	22,702	$	6,624	$	16,078	$	31,664	$	11,181	$	20,483	$	51,485	$	42,609
Dominican Republic		26,355		8,198		18,157		26,437		8,547		17,890		23,264		30,173
Chile		21,601		3,297		18,304		10,985		1,746		9,239		15,674		13,022
Africa		8,629		1,744		6,885		4,921		1,028		3,893		8,446		9,542
Total streams	$	79,287	$	19,863	$	59,424	$	74,007	$	22,502	$	51,505

Royalties:
Rest of world														6,382		—
Total stream interests													$	105,251	$	95,346

Royalty interests:
United States													$	24,358	$	16,474
Mexico	$	10,854	$	—	$	10,854	$	11,530	$	—	$	11,530		15,881		15,270
United States		12,298		—		12,298		9,407		—		9,407
Canada		5,396		—		5,396		5,682		—		5,682		10,778		8,612
Australia		3,227		—		3,227		3,230		—		3,230		4,046		4,360
Africa		585		—		585		764		—		764		316		748
Other		2,701		—		2,701		2,341		—		2,341
Total royalties	$	35,061	$	—	$	35,061	$	32,954	$	—	$	32,954
Total streams and royalties	$	114,348	$	19,863	$	94,485	$	106,961	$	22,502	$	84,459
Rest of world														1,725		1,779
Total royalty interests													$	57,104	$	47,243
Total revenue													$	162,355	$	142,589

~~Table of Contents~~

~~ROYAL GOLD, INC.~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

Six Months Ended December 31, 2017

Six Months Ended December 31, 2016


Revenue

Cost of sales

Net revenue

Revenue

Cost of sales

Net revenue
Streams:

Canada

$
54,654

$
15,847

$
38,807

$
70,050

$
23,758

$
46,292
Dominican Republic

51,758

15,785

35,973

47,387

14,443

32,944
Chile

33,938

5,109

28,829

31,154

4,744

26,410
Africa

17,699

3,541

14,158

10,920

2,218

8,702
Total streams

$
158,049

$
40,282

$
117,767

$
159,511

$
45,163

$
114,348

Royalties:

Mexico

$
21,751

$
—

$
21,751

$
21,127

$
—

$
21,127
United States

22,727

—

22,727

19,113

—

19,113
Canada

11,488

—

11,488

11,870

—

11,870
Australia

6,548

—

6,548

6,692

—

6,692
Africa

1,047

—

1,047

1,588

—

1,588
Chile

—

—

—

950

—

950
Other

5,214

—

5,214

4,058

—

4,058
Total royalties

$
68,775

$
—

$
68,775

$
65,398

$
—

$
65,398
Total streams and royalties

$
226,824

$
40,282

$
186,542

$
224,909

$
45,163

$
179,746

9.11. FAIR VALUE MEASUREMENTS

~~FASB Accounting Standards Codification (ASC) 820,~~ Fair ~~Value Measurements and Disclosures~~ ~~(“ASC 820”) establishes~~value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, we utilize a three-tier fair value hierarchy, ~~that~~which prioritizes the inputs ~~to valuation techniques~~ used ~~to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices~~ in ~~active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the~~measuring fair value ~~hierarchy under ASC 820 are described below:~~as follows:

Level 1: Quoted prices for identical instruments in active markets;

Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

Level 3: Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The following table sets forth ~~the Company’s~~our financial assets measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy.


	As of March 31, 2022
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Assets (amounts in thousands):
Marketable equity securities⁽¹⁾	$	2,346	$	2,346	$	—	$	2,346	$	—

As of December 31, 2017

Carrying

Fair Value


Amount

Total

Level 1

Level 2

Level 3
Assets (In thousands):

Marketable equity securities(1)

$
3,450

$
3,450

$
3,450

$
—

$
—
Total assets

$
3,450

$
3,450

$
—

$
—
Liabilities (In thousands):

Debt(2)

$
427,890

$
401,309

$
401,309

$
—

$
—
Total liabilities

$
401,309

$
401,309

$
—

$
—

⁽¹⁾

~~Included in~~ ~~Other assets~~ ~~on the Company’s consolidated balance sheets.~~

⁽²⁾

~~Included in the carrying amount is the equity component of our 2019 Notes in the amount of $77 million, which is included within~~ ~~Additional paid-in capital~~ ~~on the Company’s consolidated balance sheets.~~

(1) Included in Other assets on our consolidated balance sheets.

~~Table of Contents~~

~~ROYAL GOLD, INC.~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

The Company’s marketable equity securities classified within Level 1 of the fair value hierarchy are valued using quoted market prices in active markets. The fair value of the Level 1 marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company. TheTriStar Gold Inc. warrants that were part of the term loan funded to a subsidiary of Golden Star Resources Ltd. (“Golden Star”) in July 2015 were exercised during the quarter ended September 30, 2017. The warrants had been(Note 4) classified within Level 2 of the fair value hierarchy ~~as of June 30, 2017. The fair value of~~are model-derived (Black-Scholes) valuations in which the ~~Golden Star common shares received by the Company upon exercise of the warrants~~significant inputs are ~~classified within Level 1 of the fair value hierarchy as of September 30, 2017. The Company sold all of the common shares of Golden Star received upon exercise of the warrants~~observable in ~~October 2017. The Company’s debt classified within Level 1 of the fair value hierarchy is valued using quoted prices in an~~ active ~~market.~~markets. The carrying value of ~~the Company’s~~our revolving credit facility (Note 3)5) approximates fair value as of ~~December~~March 31, ~~2017.~~2022.

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ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

(Unaudited)

As of ~~December~~March 31, ~~2017, the Company also~~2022, we had assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis like those associated with stream and royalty interests, intangible assets and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if any of these assets are determined to be impaired. If recognition of these assets at their fair value becomes necessary, such measurements will be determined utilizing Level 3 inputs.

~~10.~~

12. COMMITMENTS AND CONTINGENCIES

NX Gold Exploration Payment

On March 22, 2022, we made a payment of $3.2 million to a subsidiary of Ero Copper Corporation (“Ero”) as part of our commitment to support the achievement of success-based targets related to regional exploration and mineral resource additions. This payment has been recorded to exploration stage stream interests (Note 3) within Stream and royalty interests, net on our consolidated balance sheets. As of March 31, 2022, $6.8 million of additional exploration and mineral resource addition payments remain if Ero meets certain success-based targets through calendar 2024. Refer to our Transition Report for further information on the NX Gold stream acquisition.

Ilovica Gold Stream Acquisition

As of ~~December~~March 31, ~~2017, the Company’s~~2022, our conditional funding schedule ~~for~~of $163.75 million, ~~related to its~~as part of the Ilovica gold stream acquisition ~~made~~entered into in October 2014, remains subject to certain conditions.

~~Voisey’s Bay~~

The Company indirectly owns a royalty on the Voisey’s Bay mine in Newfoundland and Labrador owned by Vale Newfoundland & Labrador Limited (“VNL”). The royalty is directly owned by the Labrador Nickel Royalty Limited Partnership (“LNRLP”), in which the Company’s wholly-owned indirect subsidiary, Voisey’s Bay Holding Corporation, is the general partner and 90% owner. The remaining 10% interest in LNRLP is owned by Altius Royalty Corporation, a company unrelated to Royal Gold.

On October 6, 2017, LNRLP filed a Fresh as Amended Statement of Claim, amending the original October 16, 2009 Statement of Claim and amendments thereto made in December 2014, in the Supreme Court of Newfoundland and Labrador Trial Division against Vale Inco Limited, now known as Vale Canada Limited, and its wholly-owned subsidiaries, Vale Inco Atlantic Sales Limited and VNL, related to calculation of the NSR on the sale of concentrates, including nickel concentrates, from the Voisey’s Bay mine. LNRLP asserts that the defendants have incorrectly calculated the NSR since production at Voisey’s Bay began in late 2005, and since defendants began processing Voisey’s Bay concentrates at the new Long Harbour processing facility, and that the defendants have breached their contractual duties of good faith in several ways. LNRLP requests an order in respect of the correct calculation of future payments, and unspecified damages for non-payment and underpayment of past royalties to the date of the claim, together with additional damages until the date of trial, interest, costs and other damages. The litigation is in the discovery phase, and trial is expected to commence in the second half of calendar 2018.

~~11.SUBSEQUENT EVENT~~

On January 18, 2018 Barrick reported that it is analyzing a revised sanction related to the Pascua-Lama project issued by Chile’s Superintendencia del Medio Ambiente (“SMA”) on January 17, 2018. The sanction is part of a re-evaluation process ordered by Chile’s Environmental Court in 2014 and relates to historical compliance matters at the Pascua-Lama project. According to Barrick, the SMA has not revoked Pascua-Lama’s environmental permit, but has ordered the closure of existing facilities on the Chilean side of the project, in addition to certain monitoring activities.

Table of Contents

~~ROYAL GOLD, INC.~~

~~Notes to Consolidated Financial Statements (Continued)~~

~~(Unaudited)~~

Barrick also reported that closure of existing surface facilities in Chile is consistent with its plan to advance a prefeasibility study for underground mining operations at Pascua-Lama, which would address a number of community concerns by reducing the overall environmental impact of the project. Barrick reported that it is currently undertaking a number of optimization studies in order to complete the prefeasibility study.

On February 6, 2018, in light of the SMA order to close surface facilities in Chile, and current plans to evaluate an underground mine, Barrick announced it is reclassifying Pascua-Lama’s proven and probable gold reserves of approximately 14 million ounces, which are based on an open pit mine plan, as mineralized material. Barrick reported that it will include further details in its year-end results release on February 14, 2018 and an update on the Pascua-Lama project at its February 22, 2018 Investor Day.

The Company owns a 0.78% to 5.45% sliding-scale net smelter return (“NSR”) gold royalty and a 1.09% NSR copper royalty on the Pascua-Lama project. Our royalty interests are applicable to all gold and copper production from the portion of the Pascua-Lama project lying on the Chilean side of the border. The Company’s carrying value for its royalty interests at Pascua-Lama is approximately $416.8 million as of December 31, 2017.

The Company routinely assesses whether impairment indicators are present for its long-lived assets. A significant reduction in reserves or mineralized material is an indicator of potential impairment. As part of our fiscal 2018 third quarter procedures, we will be evaluating Barrick’s reserves reclassification to assess the recoverability of our carrying value at Pascua-Lama. The Company will also consider further updates from Barrick, including those expected on February 14 and February 22, 2018, as part of our recoverability analysis. Upon completion of our process, the Company may determine an impairment is necessary.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General Presentation

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide information to assist you in better understanding and evaluating our financial condition and results of ~~operations.~~operations of Royal ~~Gold, Inc. (“Royal Gold”, the “Company”, “we”, “us”, or “our”), recommends that you~~Gold. You should read this MD&A in conjunction with our consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q, as well as our ~~Annual~~Transition Report on Form 10-K for the ~~fiscal year~~six months ended ~~June 30, 2017~~December 31, 2021 filed with the Securities and Exchange Commission ~~(the “SEC”~~(“SEC”) on ~~August 10, 2017.~~February 17, 2022 (“Transition Report”).

This MD&A contains forward-looking information. You should review our important note about forward-looking statements following this MD&A.

We ~~refer to “GSR,” “NSR,” “NVR,” “metal~~do not own, develop, or mine the properties on which we hold stream ~~(or “stream”)” and other types of~~or royalty ~~or similar interests throughout this MD&A. These terms are defined in our Fiscal 2017 10-K.~~

~~Statement Regarding Third Party Information~~

interests. Certain information provided in this ~~report,~~Quarterly Report on Form 10-Q about operating properties in which we hold interests, including ~~the Operator’s Production Estimates by Stream~~information about mineral reserves, historical production, production estimates, property descriptions, and ~~Royalty Interest for Calendar 2017 and Property Developments, has been~~property developments, was provided to us by the operators of those properties ~~where we own interests~~ or is publicly available information filed by these operators with applicable securities regulatory bodies, including the SEC. ~~Royal Gold has~~We have not verified, and isare not in a position to verify, and expressly ~~disclaims~~disclaim any responsibility for the accuracy, completeness, or fairness of, ~~such~~this third-party information and ~~refers~~refer the reader to the public reports filed by the operators for information regarding those properties.

Overview of Our Business

~~Royal Gold, together with its subsidiaries, is engaged in the business of acquiring~~We acquire and ~~managing~~manage precious metal streams, royalties, and similar interests. We seek to acquire existing stream and royalty interests or to finance projects that are in production or in the development stage in exchange for stream or royalty interests.

We manage our business under two segments:

●

Acquisition and Management of Stream Interests — A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced from a mine, at a price determined for the life of the transaction by the purchase agreement. As of March 31, 2022, we owned nine stream interests, which are on eight producing properties and one development stage property. Stream interests accounted for approximately 65% of our total revenue for the three months ended March 31, 2022, and 67% for the three months ended March 31, 2021. We expect stream interests to continue representing a significant portion of our total revenue.

~~Acquisition and Management of Stream Interests~~ — A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced from a mine, at a price determined for the life of the transaction by the purchase agreement. As of December 31, 2017, we owned stream interests on five producing properties and one development stage property. Stream interests accounted for approximately 69% and 70%, respectively, of our total revenue for the three and six months ended December 31, 2017 and 69% and 71%, respectively, of our total revenue for the three and six months ended December 31, 2016. We expect stream interests to continue representing a significant proportion of our total revenue.

●

Acquisition and Management of Royalty Interests — Royalties are non-operating interests in mining projects that provide the right to revenue or metals produced from the project after deducting specified costs, if any. As of March 31, 2022, we owned royalty interests on 35 producing properties, 17 development stage properties and 126 exploration stage properties, of which we consider 51 to be evaluation stage projects. We use “evaluation stage” to describe exploration stage properties that contain mineral resources and on which operators are engaged in the search for mineral reserves. Royalty interests accounted for 35% of our total revenue for the three months ended March 31, 2022, and 33% for the three months ended March 31, 2021.

~~Acquisition and Management of Royalty Interests —~~ Royalties are non-operating interests in mining projects that provide the right to revenue or metals produced from the project after deducting specified costs, if any. As of December 31, 2017, we owned royalty interests on 34 producing properties, 22 development stage properties and 133 exploration stage properties, of which we consider 51 to be evaluation stage projects. We use “evaluation stage” to describe exploration stage properties that contain mineralized material and on which operators are engaged in the search for reserves. Royalties accounted for approximately 31% and 30%, respectively, of our total revenue for the three and six months ended December 31, 2017 and 31% and 29%, respectively, of our total revenue for the three and six months ended December 31, 2016.

We do not conduct mining operations on the properties in which we hold stream and royalty interests, and ~~except for our interest in the Peak Gold, LLC joint venture (“Peak Gold JV”),~~ we generally are not required to contribute to capital ~~costs, exploration~~ costs, environmental costs or other operating costs on those properties.

~~In the ordinary course of business, we engage in a continual review of~~We are continually reviewing opportunities to ~~acquire~~grow our portfolio, whether through the creation or acquisition of new or existing stream ~~and~~or royalty interests ~~to establish new streams on operating mines, to create new stream and royalty interests through the financing of mine development~~ or ~~exploration, or to acquire companies that hold stream and royalty interests.~~other acquisition activity. We ~~currently, and~~ generally ~~at any time,~~ have acquisition opportunities in various stages of ~~active~~review. Our review ~~including,~~process may include, for example, ~~our engagement of~~engaging consultants and advisors to analyze ~~particular opportunities,~~an opportunity; analysis of technical, financial, legal, and other confidential information of an opportunity; submission of indications of interest and term ~~sheets,~~sheets; participation in preliminary discussions and ~~negotiations~~negotiations; and involvement as a bidder in competitive processes.

Table of Contents

Business Trends and Uncertainties

Metal Prices

Our financial results are primarily tied to the price of gold, ~~and, to a lesser extent, the price of silver and copper, together with the amounts of production from our producing stage stream and royalty interests. The price of gold,~~ silver, copper, and other ~~metals has~~metals. Metal prices have fluctuated widely in recent ~~years.~~years and we expect this volatility to continue. The marketability and ~~the~~ price of metals are influenced by numerous factors beyond ~~the~~our control, ~~of the Company~~ and significant ~~declines~~changes in ~~the price of gold, silver or copper could~~metal prices can have a material ~~and adverse~~ effect on ~~the Company’s results of operations and financial condition.~~our revenue.

For the three ~~and six~~ months ended ~~December~~March 31, ~~2017~~2022 and ~~2016, gold, silver~~2021, average metal prices and ~~copper price averages and percentage~~percentages of revenue by metal were as follows:


	Three Months Ended						Six Months Ended
	December 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016

													Three Months Ended
													March 31, 2022			March 31, 2021
Metal	Average Price		Percentage of Revenue	Average Price		Percentage of Revenue	Average Price		Percentage of Revenue	Average Price		Percentage of Revenue	Average Price		Percentage of Revenue	Average Price		Percentage of Revenue
Gold ($/ounce)	$	1,275	79%	$	1,222	84%	$	1,277	78%	$	1,280	86%	$	1,877	71%	$	1,794	68%
Silver ($/ounce)	$	16.73	9%	$	17.19	11%	$	16.78	9%	$	18.42	9%	$	24.01	10%	$	26.26	12%
Copper ($/pound)	$	3.09	9%	$	2.39	3%	$	2.98	9%	$	2.28	3%	$	4.53	14%	$	3.86	15%
Other		N/A	3%		N/A	2%		N/A	4%		N/A	2%		N/A	5%		N/A	5%

~~Recent Business Developments~~Lawyers Royalty Acquisition

~~U.S. Tax Legislation~~

On ~~December~~March 24, 2022, we acquired a 0.5% net smelter returns royalty (“NSR”) on production from the Lawyers Project, an exploration stage project currently operated by Benchmark Metals Inc., which is located in British Columbia, Canada. As part of this transaction, we also acquired a right of first offer (“ROFO”) for an existing 2.0% NSR royalty over the Ranch Project that is located adjacent to the Lawyers Project. We paid $8.0 million in cash consideration for the royalty and ROFO to Guardsmen Resources Inc.

NX Gold Exploration Payment

On March 22, ~~2017, H.R. 1, originally known~~2022, we made a payment of $3.2 million to a subsidiary of Ero Copper Corporation (“Ero”) as part of our commitment to support achievement of success-based targets related to regional exploration and mineral resource additions. As of March 31, 2022, $6.8 million of additional exploration and mineral resource addition payments remain if Ero meets certain success-based targets through calendar 2024. Refer to our Transition Report for further information on the ~~Tax Cuts~~NX Gold stream acquisition.

COVID-19 Pandemic

At times since early 2020, several of our operating counterparties have instituted temporary operational curtailments due to the ongoing COVID-19 pandemic. In addition, the pandemic and ~~Jobs Act (the “Act”), was enacted~~resulting economic and ~~is effective~~societal impacts have made it difficult for ~~tax years including January 1, 2018. The~~operators to forecast expected production amounts and, at times, operators have had to withdraw or revise previously disclosed guidance. For the most part, our results of operations and financial condition have not been materially impacted by these measures to date. However, the effects of the ~~Act~~pandemic will ultimately depend on many factors that are ~~recognized in~~outside of our control, including the ~~period of enactment, or the period ending December 31, 2017. Certain other aspects~~severity and duration of the ~~Act are not~~pandemic, government and operator actions in response to the pandemic, and the development, availability, and public acceptance of effective ~~for fiscal June 30 companies until July 1, 2018.~~

The Act, among other things, reduced the U.S. corporate income tax rate to 21% starting January 1, 2018. As a United States domiciled company, we expect that the Act will have a positive long-term impact on Royal Gold’s future financial results through the reduction in the U.S. corporate tax rate from 35% to 21%treatments and ~~by allowing us to efficiently repatriate future earnings from our foreign subsidiaries.~~ As the Company is a fiscal year tax payer, we applied a blended U.S. federal income tax rate of approximately 28.1% for the fiscal year ending June 30, 2018. The blended percentage was calculated on a pro-rata percentage of the number of days before and after January 1, 2018. The Company’s U.S. statutory federal corporate income tax rate will be 21% for the fiscal year commencing on July 1, 2018 and all future years. We estimate that our effective tax rate in the second half of fiscal 2018 will be between 17% and 23%.

vaccines. As a result, we are currently unable to predict the nature or extent of ~~the Act, the Company recorded a net charge (expense) of $26.4 million during the three months ended December 31, 2017. This amount, which is included in~~ ~~Income tax expense~~ any future impact on our ~~consolidated statements~~results of operations and ~~comprehensive (loss) income, consists~~financial condition. We continue to monitor the impact of ~~three components: (i) a $11.5 million charge relating to~~developments associated with the ~~one-time mandatory tax~~pandemic on the net accumulated post-1986 untaxed earnings and profits of the Company’s foreign subsidiaries, which we will elect to pay over an eight-year period, (ii) a $2.3 million benefit resulting from the re-measurement of the Company’s net deferred tax assets and liabilities, and (iii) a $17.2 million charge related to re-measurement of the U.S. income tax impacts resulting from foreign uncertain tax positions. Refer to Note 7 of our notes to consolidated financial statements for further discussion on the income tax accounting considerations for the Act.

~~Principal Stream and Royalty Interests~~

~~The Company considers both historical and future potential revenues in determining which~~ stream and royalty interests ~~in our portfolio are principal to our business. Estimated future potential revenues from both producing and development~~

~~Table of Contents~~

properties are based on a number of factors, including reserves subject to our stream and royalty interests, production estimates, feasibility studies, metal price assumptions, mine life, legal status and other factors and assumptions, any of which could change and could cause the Company to conclude that one or more of such stream and royalty interests are no longer principal to our business. Currently, our principal producing and development stream and royalty interests are listed alphabetically in the following tables.

~~Please refer to our Fiscal 2017 10-K for further discussion~~as part of our ~~principal producing and development stream and royalty interests.~~regular asset impairment analysis.

~~Principal Producing Properties~~


			~~Stream or royalty interests~~
~~Mine~~	~~Location~~	~~Operator~~	~~(Gold unless otherwise stated)~~
~~Andacollo~~	~~Region IV, Chile~~	~~Compañía Minera Teck Carmen de Andacollo (“Teck”)~~	~~Gold stream - 100% of gold produced (until 900,000 ounces delivered; 50% thereafter)~~
~~Cortez~~	~~Nevada, USA~~	~~Barrick Gold Corporation ("Barrick")~~	~~GSR1: 0.40% to 5.0% sliding-scale GSR~~
			~~GSR2: 0.40% to 5.0% sliding-scale GSR~~
			~~GSR3: 0.71% GSR~~
			~~NVR1: 4.91% NVR; 4.52% NVR (Crossroads)~~
~~Mount Milligan~~	~~British Columbia, Canada~~	~~Centerra Gold Inc. ("Centerra")~~	~~Gold stream - 35.00% of payable gold~~
			~~Copper stream - 18.75% of payable copper~~
~~Peñasquito~~	~~Zacatecas, Mexico~~	~~Goldcorp Inc. (“Goldcorp”)~~	~~2.0% NSR (gold, silver, lead, zinc)~~
~~Pueblo Viejo~~	~~Sanchez Ramirez, Dominican Republic~~	~~Barrick (60%)~~	~~Gold stream - 7.5% of gold produced (until 990,000 ounces delivered; 3.75% thereafter)~~
			~~Silver stream - 75% of silver produced (until 50.0 million ounces delivered; 37.5% thereafter)~~
~~Rainy River(1)~~	~~Ontario, Canada~~	~~New Gold, Inc. (“New Gold”)~~	~~Gold stream - 6.5% of gold produced (until 230,000 ounces delivered; 3.25% thereafter)~~
			~~Silver stream - 60% of silver produced (until 3.1 million ounces delivered; 30% thereafter)~~
~~Wassa and Prestea(2)~~	~~Western Region of Ghana~~	~~Golden Star Resources Ltd. (“Golden Star”)~~	~~Gold stream - 9.25% of gold produced~~

⁽¹⁾

New Gold announced commercial production at Rainy River in October 2017. The Company reclassified the Rainy River stream interest to production stage from development stage during the three months ended December 31, 2017.

⁽²⁾

~~Gold stream percentage increased to 10.5% effective January 1, 2018.~~

~~Principal Development Stage Properties~~

Operators’ Production Estimates by Stream and Royalty Interest for Calendar ~~2017~~2022

We ~~received~~generally receive annual production estimates from many of the operators of our producing mines during the first ~~calendar~~ quarter of ~~2017.~~each calendar year. In some instances, an operator may revise its original calendar year guidance throughout the year. The following table shows ~~such~~current production estimates for ~~our principal producing properties for~~ calendar ~~2017~~2022, as well as ~~the~~ actual production through March 31, 2022, for our principal properties as reported to us by the ~~various operators through December 31, 2017. The estimates and production reports are prepared by the operators of the mining properties. We do not participate in the preparation or~~operators.

(1)

⁽¹⁾

Production estimates received from our operators are for calendar ~~2017. Please refer to our cautionary statement regarding third party information at the beginning of this MD&A.~~2022. There can be no assurance that production estimates received from ~~our~~the operators will be achieved. Please also refer to our cautionary language regarding forward-looking statements, ~~following this MD&A,~~ as well as the Risk Factors identified in Part I, Item 1A, of our ~~Fiscal 2017 10-K~~Transition Report for information regarding factors that could affect actual results.

(2)

⁽²⁾

Actual production figures shown are from ~~our~~the operators and cover the period from January 1, ~~2017~~2022, through ~~December~~March 31, ~~2017,~~2022, unless otherwise ~~noted.~~

noted in footnotes to this table. Such amounts may differ from our reported revenue and production.

(3)

⁽³⁾

The ~~estimated and~~ actual production ~~figures~~figure shown for Andacollo ~~are~~is contained gold in concentrate.

(4)

⁽⁴⁾

The estimated ~~and actual~~ production figures shown for Mount Milligan are payable gold and copper in concentrate. ~~Actual production shown is for the nine months ended September 30, 2017. Full calendar year 2017 information was not available from the operator as of the date of this report.~~

(5)

⁽⁵⁾

The estimated and actual production figures shown for Pueblo Viejo are payable gold in doré and represent ~~Barrick’s~~the 60% interest in Pueblo ~~Viejo.~~Viejo held by Barrick Gold Corporation (“Barrick”). The operator did not provide estimated or actual silver production. ~~Actual~~

(6)	The estimated production figure shown for Wassa is payable gold in doré.

(7)	The estimated and actual production figures for ~~the nine months ended September 30, 2017. Full calendar year 2017 information was~~Khoemacau are not available ~~from~~through the ~~operator as of the date of this report.~~ ramp-up period.

(8)	⁽⁶⁾Production from Cortez subject to our royalty interests.

(9)

The estimated and actual gold and silver production figures shown for Peñasquito are payable gold and silver in concentrate and doré. The estimated and actual lead and zinc production figures shown are payable lead and zinc in concentrate. The operator did not provide estimated silver production. Actual production shown is for the nine months ended September 30, 2017. Full calendar year 2017 information was not available from the operator as of the date of this report.

Stream Interests

Andacollo

Gold stream deliveries from Andacollo were approximately ~~13,500~~6,100 ounces ~~of gold~~ for the three months ended ~~December~~March 31, ~~2017,~~2022, compared to approximately ~~9,200~~10,700 ounces ~~of gold~~ for the three months ended ~~December~~March 31, ~~2016.~~2021. The ~~production variability between quarters is typical for~~decrease in deliveries resulted primarily from Andacollo ~~resulting from concentrate shipment timing.~~

~~Teck indicated that they expect~~experiencing lower gold grades ~~to continue to gradually decline, which they expect to be offset largely by planned throughput improvements~~and lower gold recoveries, in line with the expected downward trend of gold grades, as well as differences in the ~~mill.~~ timing of shipments and settlements during the periods.

The current life of mine for ~~Carmen de~~ Andacollo is expected to continue until ~~2034. Additional permitting~~2035. According to Teck, additional permits or permit amendments ~~to existing permits~~ will be required to execute the life of mine plan.

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Khoemacau Project

Silver stream deliveries from Khoemacau were approximately 115,210 ounces for the three months ended March 31, 2022. First concentrate was shipped in mid-July 2021 from Khoemacau and we received our first silver stream deliveries during the quarter ended September 30, 2021.

According to Khoemacau Copper Mining (Pty.) Limited (“KCM”), average monthly underground production increased consistently during the quarter ended March 31, 2022, from approximately 3,900 tons per day in January to approximately 6,300 tons per day in March. KCM reported that issues experienced in the quarter ended December 31, 2021, related to stope ore production and workforce availability associated with COVID-19 were largely resolved during the quarter ended March 31, 2022.

KCM expects that the mining rate will continue to increase steadily from current levels and reach full sustained production by the fourth quarter of 2022, absent further COVID-19 impacts. With the results experienced so far during the ramp-up period, KCM continues to expect that at full production Khoemacau will produce 171,000 to 182,000 tons of high-grade copper and silver concentrate a year, containing approximately 66,000 to 72,000 tons of payable copper and 1.8 to 2.0 million ounces of payable silver, over an approximate 20-year mine life from Zone 5.

During the quarter ended March 31, 2022, our interest in the payable silver from Khoemacau increased from 90% to 100% upon the draw by KCM of the remaining $26.5 million stream advance payments. After the final draw on March 14, 2022, we hold the right to receive 100% of the payable silver produced from Khoemacau until the delivery of 40.0 million silver ounces, and 50% thereafter. We will pay a cash price equal to 20% of the spot silver price for each ounce delivered; however, if KCM achieves mill expansion throughput levels above 14,300 tons per day (30% above current mill design capacity), we will pay a higher ongoing cash price for silver ounces delivered in excess of specific annual thresholds.

Mount Milligan

Gold stream deliveries from Mount Milligan were approximately ~~17,600~~10,000 ounces ~~of gold~~ for the three months ended ~~December~~March 31, ~~2017,~~2022, compared to approximately ~~23,500~~12,200 ounces ~~of gold~~ for the three months ended ~~December~~March 31, ~~2016. The decrease~~2021. Decreased gold deliveries resulted from differences in the timing of shipments and settlements during the ~~current quarter is primarily attributable to the reduced stream rate of 35% versus 52.5% in the prior year quarter.~~periods.

Copper stream deliveries from Mount Milligan were approximately ~~1,245 tonnes~~2.7 million pounds during the three months ended ~~December~~March 31, ~~2017. Copper stream deliveries began~~2022, compared to approximately 3.4 million pounds during the ~~June 2017 quarter.~~

On December 27, 2017, Centerra reported that mill processing operations at Mount Milligan were temporarily suspended due to lack of sufficient water resources, as a result of Mount Milligan experiencing a drier than normal spring and summerthree months ended March 31, 2021. Decreased copper deliveries resulted from differences in calendar 2017, with lower than average spring snow melt. On February 5, 2018, Centerra reported that it recommenced mill processing operations at partial capacity. During the temporary shutdown, Centerra completed a number of steps to increase the flow of water into the tailings storage facility (“TSF”) from which the Mount Milligan mill draws all of its water requirements to supply milling operations. Such steps included adding pumps to existing water wells, increasing pump sizes to increase the flow rate, and drilling additional wells. Current make-up water sources for the TSF are from normal surface run-off, groundwater wells internal to the TSF, and from base underdrain towers that access process water underlying the TSF.

Centerra expects to resume milling operations at full capacity in April 2018, when additional fresh water becomes available from surface run-off after the spring melt. As a further, longer-term mitigation measure, Centerra received an amendment to Mount Milligan’s Environmental Assessment to allow pumping of water from a nearby lake (Phillip Lake) and has received additional related permits.

~~Due to~~ the timing of shipments and ~~deliveries~~settlements during the periods.

On January 18, 2022, Centerra Gold Inc. (“Centerra”) reported updated guidance for Mount Milligan. Centerra expects gold production at Mount Milligan during calendar 2022 of between 190,000 and 210,000 ounces of gold, compared to the previously issued guidance range of 170,000 to 190,000 ounces and actual calendar 2021 production of 196,400 ounces. Centerra also expects copper production in calendar 2022 to be in the range of 70 to 80 million pounds compared to the previous guidance range of 90 to 100 million pounds and actual calendar 2021 production of 73.3 million pounds. Centerra expects gold and copper production for calendar 2022 to be back-end weighted, with the ~~impact~~first half of the ~~temporary shutdown is likely to be reflected in Royal Gold’s mid-calendar 2018 results, as some~~calendar year representing approximately 40% of the ~~deliveries~~metal production total while the second half of the calendar year representing up to approximately 60% of the metal production total. Centerra reported that the changes to expected gold and copper production at the Mount Milligan mine are due to planned mine sequence changes. Centerra also reported that ~~were~~a new National Instrument 43-101 (“NI 43-101”) technical report for Mount Milligan is expected to be issued in the ~~June through August 2018~~second quarter of calendar 2022.

Centerra also reported that it obtained an amendment to the Mount Milligan mine environmental assessment certificate in January 2022, which will allow access to long-term surface water sources for the life of the project, subject to the receipt of ordinary course permits. In addition, according to Centerra, water inventory in the tailings storage facility as of March 31, 2022, combined with the incoming freshet in the second quarter of calendar 2022, is expected to secure continued operations for a period ~~will be deferred~~of 12 months or longer.

Further, Centerra reported mineral reserves and mineral resources for Mount Milligan for the year ended December 31, 2021. Centerra disclosed that compared to ~~a later date.~~ the year ended December 31, 2020, proven and probable mineral reserves decreased by 310,000 ounces of contained gold and 101 million pounds of contained copper, primarily due to mining

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depletion, while measured and indicated mineral resources increased by 1.4 million ounces of contained gold and 453 million pounds of contained copper, due to an updated mineral resource estimate after completion of the 2021 infill drilling program. Additionally, over the same period, inferred mineral resources increased by 125,000 ounces of contained gold and 19 million pounds of contained copper.

Pueblo Viejo

Gold stream deliveries from Pueblo Viejo were approximately ~~12,600~~7,100 ounces ~~of gold~~ for the three months ended ~~December~~March 31, ~~2017,~~2022, compared to approximately ~~15,600~~11,100 ounces ~~of gold~~ for the three months ended ~~December~~March 31, ~~2016. Barrick reported Pueblo Viejo experienced~~2021. Decreased deliveries resulted from processing lower ~~ore grades processed during the 2017 calendar year, partially offset by higher recovery rates during the prior calendar year.~~grade gold stockpile material.

Silver stream deliveries were approximately ~~260,200~~274,500 ounces ~~of silver~~ for the three months ended ~~December~~March 31, ~~2017,~~2022, compared to approximately ~~322,500~~247,500 ounces ~~of silver~~ for the three months ended ~~December~~March 31, ~~2016. The decrease in deliveries~~2021. Deliveries during the ~~three months ended December~~first quarter included approximately 20,000 ounces of deferred silver. The deferred ounces are the result of a mechanism in the stream agreement that allows for the deferral of deliveries in a period if Barrick’s share of silver production is insufficient to cover its stream delivery obligations. The stream agreement terms include a fixed 70% silver recovery rate. If actual recovery rates fall below the contractual 70% recovery rate, ounces may be deferred with deferred ounces to be delivered in future periods as silver recovery allows. As of March 31, ~~2017 was due~~2022, approximately 439,000 ounces remain deferred, and the timing for the delivery of the entire deferred amount is uncertain.

On February 16, 2022, Barrick reported that its share of Pueblo Viejo gold production for calendar 2022 is expected to range between 400,000 and 440,000 ounces compared to actual calendar 2021 gold production of 488,000, with maintenance planned in the first quarter of calendar 2022.

Also on February 16, 2022, Barrick reported continued progress on the plant expansion and mine life extension project to increase throughput and allow the mine to maintain minimum average annual gold production of approximately 800,000 ounces after calendar 2022 and beyond calendar 2040 (100% basis). With respect to the ~~timing~~plant expansion, on May 4, 2022, Barrick reported that as of ~~payments from Barrick’s third-party refiners.~~

~~Rainy River~~

March 31, 2022, construction was 39% complete, with completion expected by the end of calendar 2022. With respect to the mine life extension, Barrick also disclosed that social, environmental and technical studies for additional tailings capacity continued to advance. On ~~October 19, 2017, New Gold announced~~April 8, 2022, Barrick further reported that the ~~Rainy River mine achieved commercial production, approximately two weeks ahead~~Government of ~~schedule. Mining and milling activities at Rainy River continued to progress well during~~ the ~~December~~

~~Table~~Dominican Republic had completed its strategic review of ~~Contents~~

~~2017 quarter. The milling rate~~alternative sites for the ~~month~~location of ~~December averaged 21,000 tonnes per day, which is~~ the ~~nameplate capacity~~new tailings storage facility (“TSF”). Barrick reported that the final location and construction of the TSF would be subject to the completion of an Environmental and Social Impact Assessment (“ESIA”) in accordance with Dominican Republic legislation and international standards. Once completed, the ESIA would be submitted to the Government of the Dominican Republic for ~~the facility.~~ evaluation and final decision.

RGLD Gold AG (“RGLD Gold”) began receiving gold and silver deliveries during the quarter ended December 31, 2017. Stream deliveries from Rainy River were approximately 1,000 ounces of gold and approximately 11,900 ounces of silver for the three months ended December 31, 2017.

New Gold’s focus for calendar 2018 will be on optimizing throughput at the mill, as well as advancing initiatives to potentially increase production. In calendar 2018, New Gold expects to produce between 310,000 and 350,000 ounces of gold at Rainy River.~~New Gold estimates that approximately 21,500 ounces of gold and 185,000 ounces of silver will be delivered to RGLD Gold in calendar 2018.~~Wassa

~~Wassa and Prestea~~

Gold stream deliveries from Wassa ~~and Prestea~~ were approximately ~~6,000~~4,500 ounces ~~of gold~~ for the three months ended ~~December~~March 31, ~~2017,~~2022, compared to approximately ~~4,300~~4,400 ounces ~~of gold~~ for the three months ended ~~December~~March 31, ~~2016.~~2021.

Golden Star expects Wassa to become an underground-only operation by the end of January 2018, although 341,000 tonnes of lower grade, stockpiled ore will continue to be fed to the processing plant during the first nine months of calendar 2018.

Golden Star stated that mining rates at Wassa underground continued to be strong in the December 2017 quarter at approximately 1,900 tonnes per day, which represents a 36% outperformance compared to the planned mining rate for calendar 2017 of 1,400 tonnes per day and head grade delivered to the processing plant increased by 55% in the fourth quarter of calendar 2017 when compared to the third quarter of calendar 2017. The targeted mining rate for Wassa Underground in calendar 2018 is 2,700-3,000 tonnes per day.

The Prestea open pits were expected to complete gold production at the end of calendar 2017 but Golden Star now anticipates that mining will continue until late in the March 2018 quarter and stockpiled ore will continue to be processed until the end of the first half of calendar 2018.

Golden Star reported that the Prestea underground has been delivering a consistent quantity of material to the processing plant throughout December 2017 and early January 2018. From mid-January 2018, the grade is expected to increase significantly as the final draw down of the first stope begins. Golden Star forecasts that ore production will continue to ramp-up.

Under our stream agreement, the gold stream percentage at Wassa and Prestea increased to 10.5%, from 9.25%, effective January 1, 2018. Golden Star expects consolidated calendar 2018 gold production to range between 230,000 and 255,000 ounces.

Royalty Interests

Cortez

Production attributable to our royalty interest at Cortez increased approximately 72% over the prior year quarter. Waste stripping at Crossroads, which is subject to our NVR1 (Crossroads) and GSR2 royalty interests, restarted in October 2016 and is currently ongoing. Barrick expects production from Crossroads to begin in late calendar 2018.

~~Pascua-Lama~~

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~~reducing the overall environmental impact of the project. Barrick reported that it is currently undertaking a number of optimization studies in order to complete the prefeasibility study.~~

On February 6, 2018, in light of the SMA order to close surface facilities in Chile, and current plans to evaluate an underground mine, Barrick announced it is reclassifying Pascua-Lama’s proven and probable gold reserves of approximately 14 million ounces, which are based on an open pit mine plan, as mineralized material.~~Barrick reported that it will include further details in its year-end results release on February 14, 2018 and an update on the Pascua-Lama project at its February 22, 2018 Investor Day.~~

~~Peñasquito~~

Gold production attributable to our royalty interest at Cortez was approximately 102,000 ounces for the three months ended March 31, 2022, compared to approximately 51,900 ounces for the three months ended March 31, 2021. The increase was due to increased production from the Pipeline pit, offset by a reduction in production from Crossroads.

Nevada Gold Mines LLC (“NGM”) recently provided an updated mineral reserve and life of mine plan for our royalty areas at Cortez. As of December 31, 2021, at a gold price of $1,200 per ounce, proven and probable mineral reserves on the areas subject to our royalties contained 4.1 million ounces of gold (62.4 million tons of ore at a gold grade of 0.048 ounces per ton), compared to 3.5 million ounces of gold (81.5 million tons of ore at a gold grade of 0.043 ounces per ton) as of December 31, 2020 at the same gold price. Reserves for December 31, 2021, include approximately 3.0 million ounces of gold for the royalty areas covering the Crossroads and Pipeline deposits, as well as 1.1 million ounces of gold for the Goldrush project that fall within our royalty area.

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NGM expects gold production subject to our royalty interests covering the Crossroads and Pipeline areas of approximately 280,000 ounces in calendar 2022, and average annual gold production for calendar 2022 through calendar 2026 to be approximately 332,000 ounces. NGM’s forecast for future gold production is lower than NGM’s previous forecast provided in calendar 2021 primarily due to the overall optimization of production and revenue at the Cortez mine complex. Our interest in this production is approximately equivalent to an 8% gross smelter return royalty.

We own a 1% net value royalty on a portion of the Goldrush project.

Peñasquito

Production attributable to our royalty interest at Peñasquito ~~decreased~~was approximately ~~62%, when~~133,400 ounces of gold, 7.65 million ounces of silver, 41.9 million pounds of lead and 120 million pounds of zinc for the three months ended March 31, 2022. This compares to approximately 180,400 ounces of gold, 8.12 million ounces of silver, 50.1 million pounds of lead and 119 million pounds of zinc for the three months ended March 31, 2021. Gold production was lower compared to the prior year quarter ~~as a higher proportion of~~due to lower grade ore milled and ~~stockpiled material fed~~lower mill recovery.

Newmont Corporation (“Newmont”) expects Peñasquito to deliver lower gold production in calendar 2022 of 475,000 ounces compared to actual calendar 2021 gold production of 660,000 ounces, due to lower-grade, harder ore mined from the ~~mill during~~Chile Colorado pit and stripping of the ~~current quarter. Zinc production increased approximately 34% during~~next phases of the ~~current quarter, while silver~~Peñasco and ~~lead production were in line with the prior year quarter.~~

~~Goldcorp~~Chile Colorado pits continuing through calendar 2023. Newmont expects ~~calendar 2018 gold~~co-product production at Peñasquito in calendar 2022 to be 310,000 ounces, which is lower compared to calendar 2017 (410,000 ounces), due to the continued processing of low-grade stockpiles. Goldcorp anticipates the feed will then revert to higher grade ore in calendar 2019 when the Phase 6D stripping program exposes higher-grade ore in the Peñasco pit.

On January 17, 2018, Goldcorp stated that the Pyrite Leach Project (“PLP”) was 62% complete and is expected to achieve commercial production in the December 2018 quarter, ahead of schedule. Goldcorp expects the PLP to add production of approximately one million ounces of gold and 4429 million ounces of silver, ~~over~~150 million pounds of lead and 350 million pounds of zinc, which is consistent with calendar 2021 production levels, with increased production starting in calendar 2023 due to higher silver, lead and zinc content delivered from the ~~current life of the mine.~~Chile Colorado pit.

Results of Operations

Quarter Ended ~~December~~March 31, ~~2017,~~2022, Compared to Quarter Ended ~~December~~March 31, ~~2016~~2021

For the quarter ended ~~December~~March 31, ~~2017,~~2022, we recorded net ~~loss~~income and comprehensive income attributable to Royal Gold stockholders (“net income”) of ~~$14.8~~$65.7 million, or ~~($0.23)~~$1.00 per basic and diluted share, as compared to net income ~~attributable to Royal Gold stockholders~~ of ~~$28.1~~$54.0 million, or ~~$0.43~~$0.82 per basic and diluted share, for the quarter ended ~~December~~March 31, ~~2016.~~2021. The ~~decrease~~increase in ~~our earnings per share~~net income was primarily attributable to an increase in ~~our income tax expense due to the impacts of the Act and a non-cash functional currency election at certain of our Canadian subsidiaries. The decrease in our earnings per share for the quarter~~revenue, as ~~result of the increased income tax expense was partially offset by an increase in our revenue, which is~~ discussed below. The effects of the Act and the non-cash functional currency election for income tax purposes was additional income tax expense of approximately $26.4 million and $15.9 million, respectively, or $0.40 and $0.24 per basic share, respectively. Refer to “Recent Business Developments” above and Note 7 of our notes to consolidated financial statements for further discussion on the Act.

For the quarter ended ~~December~~March 31, ~~2017,~~2022, we recognized total revenue of ~~$114.4~~$162.4 million, ~~which is~~ comprised of stream revenue of ~~$79.3~~$105.3 million and royalty revenue of ~~$35.1~~$57.1 million at an average gold price of ~~$1,275~~$1,877 per ounce, an average silver price of ~~$16.73~~$24.01 per ounce and an average copper price of ~~$3.09~~$4.53 per pound. This is compared to total revenue of ~~$107.0~~$142.6 million for the three months ended ~~December~~March 31, ~~2016, which was~~2021, comprised of stream revenue of ~~$74.0~~$95.3 million and royalty revenue of ~~$33.0~~$47.3 million, at an average gold price of ~~$1,222~~$1,794 per ounce, an average silver price of ~~$17.19~~$26.26 per ounce and an average copper price of ~~$2.39~~$3.86 per ~~pound for the quarter ended December 31, 2016.~~pound. Revenue and the

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corresponding production attributable to our stream and royalty interests for the quarter ended ~~December~~March 31, ~~2017~~2022, compared to the quarter ended ~~December~~March 31, ~~2016~~2021, are as follows:

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Revenue and Reported Production Subject to Our Stream and Royalty Interests

~~Quarter Ended December 31, 2017 and 2016~~

(InAmounts in thousands, except reported production ~~ozs.~~oz. and lbs.)


		Three Months Ended				Three Months Ended
		March 31, 2022				March 31, 2021
				Reported				Reported
Stream/Royalty	Metal(s)	Revenue		Production⁽¹⁾		Revenue		Production⁽¹⁾
Stream⁽²⁾:
Mount Milligan		$	42,416			$	33,803
	Gold			13,900	oz.			9,200	oz.
	Copper			3.6	Mlbs.			4.4	Mlbs.
Pueblo Viejo		$	23,264			$	30,173
	Gold			8,600	oz.			10,500	oz.
	Silver			316,000	oz.			418,200	oz.
Andacollo	Gold	$	15,674	8,400	oz.	$	13,022	7,100	oz.
Wassa	Gold	$	7,202	3,900	oz.	$	8,774	4,800	oz.
Khoemacau	Silver	$	2,389	102,700	oz.	$	—	—
Other⁽³⁾		$	14,306			$	9,574
	Gold			6,800	oz.			4,300	oz.
	Silver			70,500	oz.			66,200	oz.
Total stream revenue		$	105,251			$	95,346

Royalty⁽²⁾:
Cortez	Gold	$	16,714	102,000	oz.	$	8,609	51,900	oz.
Peñasquito		$	13,094			$	13,128
	Gold			133,400	oz.			180,400	oz.
	Silver			7.7	Moz.			8.1	Moz.
	Lead			41.9	Mlbs.			50.1	Mlbs.
	Zinc			120.1	Mlbs.			119.3	Mlbs.
Other⁽³⁾	Various	$	27,296	N/A		$	25,506	N/A
Total royalty revenue		$	57,104			$	47,243
Total Revenue		$	162,355			$	142,589

Three Months Ended

Three Months Ended

December 31, 2017

December 31, 2016

Reported

Reported
Stream/Royalty

Metal(s)

Revenue

Production(1)

Revenue

Production(1)
Stream(2):

Pueblo Viejo

$
26,355

$
26,437

Gold

14,500
oz.

13,700
oz.

Silver

469,600
oz.

543,300
oz.
Mount Milligan

Gold

$
21,632

12,600
oz.

$
31,664

25,700
oz.

Copper

1.8
Mlbs.

N/A

Andacollo

Gold

$
21,601

17,000
oz.

$
10,985

9,200
oz.
Wassa and Prestea

Gold

$
8,629

6,800
oz.

$
4,921

4,000
oz.
Rainy River

Gold

$
1,070

800
oz.

$
N/A

N/A

Total stream revenue

$
79,287

$
74,007

Royalty(2):

Peñasquito

$
6,190

$
7,134

Gold

71,100
oz.

185,400
oz.

Silver

5.1
Moz.

5.0
Moz.

Lead

33.4
Mlbs.

33.6
Mlbs.

Zinc

94.4
Mlbs.

70.5
Mlbs.
Cortez

Gold

$
2,934

25,000
oz.

$
1,834

14,500
oz.
Other(3)

Various

$
25,937

N/A

$
23,986

N/A

Total royalty revenue

$
35,061

$
32,954

Total Revenue

$
114,348

$
106,961

(1)

⁽¹⁾

Reported production relates to the amount of metal sales subject to our stream and royalty interests for the three months ended ~~December~~March 31, ~~2017~~2022, and ~~2016,~~2021, and may differ from the operators’ public reporting.

(2)

⁽²⁾

Refer to “Property Developments” above for ~~further~~a discussion onof recent developments at principal properties.

(3)	Individually, except for our ~~principal~~ stream interest at Rainy River, which contributed 6% of total revenue for the three months ended March 31, 2022 and ~~royalty interests.~~

⁽³⁾

~~Individually,~~2021, no stream or royalty included within the “Other” category contributed greater than 5% of our total revenue for either period.

The increase in our total revenue ~~for the three months ended December 31, 2017, compared with the three months ended December 31, 2016,~~ resulted primarily from ~~an increase in our stream revenue~~higher gold sales at Mount Milligan and Andacollo, an increase in the average gold ~~silver~~ and copper ~~prices. The increase in our stream revenue was primarily attributable to increased~~prices, higher gold production at ~~Andacollo~~Cortez and ~~Wassa and Prestea, and new gold production~~$4.0 million of revenue from ~~our Rainy River~~the newly acquired NX Gold stream, ~~partially~~ offset by a ~~production (gold)~~ decrease ~~at Mount Milligan. Silver deliveries from Rainy River began during our December 2017 quarter with~~in gold and silver sales ~~anticipated~~from Pueblo Viejo compared to ~~begin in~~ the ~~March 2018 quarter. Copper deliveries from Mount Milligan began during our June 2017 quarter.~~

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prior period. Gold and silver ounces and ~~tonnes of~~ copper pounds purchased and sold during the three months ended ~~December~~March 31, ~~2017~~2022 and ~~2016,~~ 2021,

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and gold and silver ounces and ~~tonnes of~~ copper pounds in inventory as of March 31, 2022, and December 31, ~~2017, and June 30, 2017,~~2021, for our streaming interests were as follows:


	Three Months Ended		Three Months Ended		As of	As of
	December 31, 2017		December 31, 2016		December 31, 2017	June 30, 2017

							Three Months Ended		Three Months Ended		As of	As of
							March 31, 2022		March 31, 2021		March 31, 2022	December 31, 2021
Gold Stream	Purchases (oz.)	Sales (oz.)	Purchases (oz.)	Sales (oz.)	Inventory (oz.)	Inventory (oz.)	Purchases (oz.)	Sales (oz.)	Purchases (oz.)	Sales (oz.)	Inventory (oz.)	Inventory (oz.)
Mount Milligan	17,700	12,700	23,500	25,700	5,200	100	10,000	13,900	12,000	9,200	200	4,100
Andacollo	13,500	17,000	9,200	9,200	—	100	6,100	8,400	10,700	7,100	—	2,200
Pueblo Viejo	12,600	14,500	15,600	13,700	8,500	12,900	7,100	8,600	11,100	10,500	7,100	8,600
Wassa and Prestea	6,000	6,800	4,300	4,000	500	1,000
Rainy River	1,000	800	—	—	200	—
Wassa							4,500	3,900	4,400	4,800	2,200	1,600
Other							6,600	6,800	4,600	4,300	2,000	2,200
Total	50,800	51,800	52,600	52,600	14,400	14,100	34,300	41,600	42,800	35,900	11,500	18,700

	Three Months Ended		Three Months Ended		As of	As of
	December 31, 2017		December 31, 2016		December 31, 2017	June 30, 2017

							Three Months Ended		Three Months Ended		As of	As of
							March 31, 2022		March 31, 2021		March 31, 2022	December 31, 2021
Silver Stream	Purchases (oz.)	Sales (oz.)	Purchases (oz.)	Sales (oz.)	Inventory (oz.)	Inventory (oz.)	Purchases (oz.)	Sales (oz.)	Purchases (oz.)	Sales (oz.)	Inventory (oz.)	Inventory (oz.)
Pueblo Viejo	260,200	469,600	322,500	543,300	260,800	536,800	274,500	316,000	247,500	418,200	274,500	316,000
Rainy River	11,900	—	—	—	11,900	—
Khoemacau							115,200	102,700	—	—	54,500	42,000
Other							51,100	70,500	72,200	66,200	15,000	34,300
Total	272,100	469,600	322,500	543,300	272,700	536,800	440,800	489,200	319,700	484,400	344,000	392,300

	Three Months Ended		Three Months Ended		As of	As of
	December 31, 2017		December 31, 2016		December 31, 2017	June 30, 2017

							Three Months Ended		Three Months Ended		As of	As of
							March 31, 2022		March 31, 2021		March 31, 2022	December 31, 2021
Copper Stream	Purchases (tonnes)	Sales (tonnes)	Purchases (tonnes)	Sales (tonnes)	Inventory (tonnes)	Inventory (tonnes)	Purchases (Mlbs.)	Sales (Mlbs.)	Purchases (Mlbs.)	Sales (Mlbs.)	Inventory (Mlbs.)	Inventory (Mlbs.)
Mount Milligan	1,245	819	N/A	N/A	426	—	2.7	3.6	3.3	4.4	-	0.9

~~Our royalty revenue~~Cost of sales, which excludes depreciation, depletion and amortization, increased ~~during~~to $22.6 million for the ~~quarter~~three months ended ~~December~~March 31, ~~2017,~~2022, from $21.5 million for the three months ended March 31, 2021. The increase, when compared ~~with~~to the ~~quarter ended December 31, 2016,~~prior period, was primarily due to an increase in the average gold, silver and copper prices. Please refer to “Property Developments” earlier within this MD&A for further discussion on recent developments regarding properties covered by certain of our stream and royalty interests.

~~Cost of sales decreased to $19.9 million for the three months ended December 31, 2017 from $22.5 million for the three months ended December 31, 2016. The decrease was primarily due to decreased~~ gold sales from Mount ~~Milligan.~~Milligan, offset by a decrease in gold sales at Pueblo Viejo. Cost of sales is specific to our stream agreements and is the result of ~~RGLD Gold’s~~our purchase of gold, silver and copper for a cash payment. The cash payment for gold from Mount Milligan is the lesser of $435 per ounce or the prevailing market price of gold when purchased, while the cash payment for our other streams is a set contractual percentage of the gold, silver or copper (Mount Milligan) spot price near the date of metal delivery.

General and administrative ~~expenses~~costs increased to ~~$9.6~~$8.9 million for the three months ended ~~December~~March 31, ~~2017~~2022, from ~~$7.5~~$6.9 million for the three months ended ~~December~~March 31, ~~2016.~~2021. The increase ~~during the current quarter~~ was primarily due to an increase in ~~legal~~employee-related costs including non-cash compensation expense, as well as higher costs associated with environmental, social and ~~litigation costs of approximately $1.7 million.~~ governance (“ESG”) initiatives.

Depreciation, depletion and amortization increased to ~~$42.0~~$48.0 million for the three months ended ~~December~~March 31, ~~2017~~2022, from ~~$39.5~~$41.3 million for the three months ended ~~December~~March 31, ~~2016.~~2021. The increase was primarily ~~attributable~~due to ~~increased~~higher gold sales from Mount Milligan, higher gold production at ~~Andacollo~~Cortez and ~~Wassa and Prestea, which resulted in~~ additional depletion ~~of approximately $6.6 million. This~~from the newly acquired Khoemacau and NX Gold streams when compared to the prior period. The increase was partially offset by ~~a decrease in~~lower gold and silver sales ~~at Mount Milligan, which resulted in a decrease in depletion~~from Pueblo Viejo.

For the three months ended March 31, 2022, we recorded income tax expense totaling $15.3 million, compared with income tax expense of ~~approximately $3.2 million.~~

~~Interest and other income decreased to $0.6~~$17.7 million for the three months ended ~~December~~March 31, ~~2017, from $7.5 million for the three months ended December 31, 2016.~~2021. The decrease was primarily due to a gain recognized ($3.4 million) on consideration received as part of the termination of our Phoenix Gold Project streaming interest during the prior period. Refer to our Fiscal 2017 10-K for discussion on the Phoenix Gold Project restructuring. The decrease in interest and other income was also due to consideration received as part of a legal settlement and termination of a non-principal royalty of approximately $2.8 million during the prior period.

~~During the three months ended December 31, 2017, we recognized~~ income tax expense ~~totaling $48.4 million compared with an income tax expense of $5.0 million during the three months ended December 31, 2016. This~~ resulted in an effective tax rate of ~~148.5%~~18.8% in the current period, compared with ~~15.7% in the quarter ended December 31, 2016. The increase in the effective tax rate~~24.6% for the three months ended ~~December~~March 31, ~~2017 is primarily attributable to the effects of~~

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the Act and a non-cash functional currency election at certain of our Canadian subsidiaries. Refer to “Recent Business Developments” above and Note 7 of our notes to consolidated financial statements for further discussion on the Act.

~~Six Months Ended December 31, 2017, Compared to Six Months Ended December 31, 2016~~

~~For the six~~2021. The three months ended ~~December~~March 31, ~~2017, we recorded net~~2021, included an income attributable to Royal Gold stockholders of $13.9 million, or $0.21 per basic and diluted share, as compared to net income attributable to Royal Gold stockholders of $57.9 million, or $0.89 per basic share and $0.88 per diluted share, for the six months ended December 31, 2016. The decrease in our earnings per share was primarilytax expense attributable to an increase in ~~our income~~valuation allowance on certain deferred tax expense due to the impacts of the Act and a non-cash functional currency election at certain of our Canadian subsidiaries. The effects of the Act and the non-cash functional currency election for income tax purposes was additional income tax expense of approximately $26.4 million and $15.9 million, respectively, or $0.40 and $0.24 per basic share, respectively. Refer to “Recent Business Developments” above and Note 7 of our notes to consolidated financial statements for further discussion on the Act.assets.

For the six months ended December 31, 2017, we recognized total revenue of $226.8 million, which is comprised of stream revenue of $158.0 million and royalty revenue of $68.8 million, at an average gold price of $1,277 per ounce, an average silver price of $16.78 per ounce and an average copper price of $2.98 per pound. This is compared to total revenue of $224.9 million for the six months ended December 31, 2016, which is comprised of stream revenue of $159.5 million and royalty revenue of $65.4 million, at an average gold price of $1,280 per ounce, an average silver price of $18.42 per ounce and an average copper price of $2.28 per pound. Revenue and the corresponding production attributable to our stream and royalty interests for the six months ended December 31, 2016 compared to the six months ended December 31, 2016 is as follows:

~~Revenue and Reported Production Subject to Our Royalty and Stream Interests~~

~~Six Months Ended December 31, 2017 and 2016~~

~~(In thousands, except reported production ozs. and lbs.)~~

Six Months Ended

Six Months Ended

December 31, 2017

December 31, 2016

Reported

Reported
Stream/Royalty

Metal(s)

Revenue

Production(1)

Revenue

Production(1)
Stream(2):

Mount Milligan

$
53,584

$
70,050

Gold

31,300
oz.

54,600
oz.

Copper

4.4
Mlbs.

N/A

Pueblo Viejo

$
51,758

$
47,387

Gold

27,400
oz.

24,600
oz.

��
Silver

1.0
Moz.

866,600
oz.
Andacollo

Gold

$
33,938

26,700
oz.

$
31,154

24,400
oz.
Wassa and Prestea

Gold

$
17,699

13,900
oz.

$
10,920

8,600
oz.
Rainy River

Gold

$
1,070

800
oz.

N/A

N/A

Total stream revenue

$
158,049

$
159,511

Royalty(2):

Peñasquito

$
13,986

$
12,955

Gold

205,100
oz.

285,500
oz.

Silver

11.0
Moz.

10.3
Moz.

Lead

69.6
Mlbs.

66.6
Mlbs.

Zinc

186.8
Mlbs.

143.5
Mlbs.
Cortez

Gold

$
5,922

54,900
oz.

$
3,874

36,300
oz.
Other(3)

Various

$
48,867

N/A

$
48,569

N/A

Total royalty revenue

$
68,775

$
65,398

Total revenue

$
226,824

$
224,909

~~(1)~~Reported production relates to the amount of metal sales, subject to our royalty and stream interests, for the six months ended December 31, 2017 and 2016, and may differ from the operators’ public reporting.

~~(2)Refer to “Property Developments” above for further discussion on our principal stream interests.~~

~~(3)Individually, no stream or royalty included within the “Other” category contributed greater than 5% of our total revenue for either period.~~

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The increase in our total revenue for the six months ended December 31, 2017, compared with the six months ended December 31, 2016, resulted primarily from an increase in our royalty revenue. The increase in our royalty revenue was primarily attributable to increased gold production from our Cortez royalty interests. The slight decrease in our stream revenue was primarily attributable to a decrease in production (gold) at Mount Milligan. This decrease was offset by production increases at Pueblo Viejo, Andacollo and Wassa and Prestea and new gold production from our Rainy River stream interest. Silver deliveries from our Rainy River interest began during the December 2017 quarter with silver sales anticipated to begin in the March 2018 quarter. Copper deliveries from Mount Milligan began during our June 2017 quarter.

Gold and silver ounces and tonnes of copper purchased and sold during the six months ended December 31, 2017 and 2016, gold and silver ounces and tonnes of copper in inventory as of December 31, 2017, and June 30, 2017, for our streaming interests were as follows:

Six Months Ended

Six Months Ended

As of

As of

December 31, 2017

December 31, 2016

December 31, 2017

June 30, 2017
Gold Stream

Purchases (oz.)

Sales (oz.)

Purchases (oz.)

Sales (oz.)

Inventory (oz.)

Inventory (oz.)
Mount Milligan

36,400

31,300

53,400

54,600

5,200

100
Andacollo

26,500

26,700

24,500

24,400

—

100
Pueblo Viejo

23,100

27,400

29,200

24,600

8,500

12,900
Wassa and Prestea

13,400

13,900

8,900

8,600

500

1,000
Rainy River

1,000

800

—

-

200

—
Total

100,400

100,100

116,000

112,200

14,400

14,100

Six Months Ended

Six Months Ended

As of

As of

December 31, 2017

December 31, 2016

December 31, 2017

June 30, 2017
Silver Stream

Purchases (Moz.)

Sales (Moz.)

Purchases (oz.)

Sales (oz.)

Inventory (oz.)

Inventory (oz.)
Pueblo Viejo

730,200

1,006,200

865,800

866,600

260,800

536,800
Rainy River

11,900

-

—

—

11,900

—
Total

742,100

1,006,200

865,800

866,600

272,700

536,800

Six Months Ended

Six Months Ended

As of

As of

December 31, 2017

December 31, 2016

December 31, 2017

June 30, 2017
Copper Stream

Purchases (tonnes)

Sales (tonnes)

Purchases (tonnes)

Sales (tonnes)

Inventory (tonnes)

Inventory (tonnes)
Mount Milligan

2,414

1,988

N/A

N/A

426

—

Cost of sales decreased to $40.3 million for the six months ended December 31, 2017, compared to $45.2 million for the six months ended December 31, 2016. The decrease was primarily due to decreased gold sales from Mount Milligan. Cost of sales is specific to our stream agreements and is the result of RGLD Gold’s purchase of gold, silver and copper for a cash payment. The cash payment for gold from Mount Milligan is the lesser of $435 per ounce or the prevailing market price of gold when purchased, while the cash payment for our other streams is a set contractual percentage of the gold, silver or copper (Mount Milligan) spot price near the date of metal delivery.

General and administrative expenses decreased to $16.5 million for the six months ended December 31, 2017, from $18.0 million for the six months ended December 31, 2016. The decrease during the current period was primarily due to a decrease in non-cash stock based compensation.

Depreciation, depletion and amortization increased to $81.7 million for the six months ended December 31, 2017, from $79.6 million for the six months ended December 31, 2016. The increase was primarily attributable to increased gold sales at Andacollo, Pueblo Viejo and Wassa and Prestea, which resulted in additional depletion of approximately $11.4 million. This increase was partially offset by a decrease in gold sales at Mount Milligan, which resulted in a decrease in depletion of approximately $4.8 million.

Interest and other income decreased to $1.6 million for the six months ended December 31, 2017, from $9.0 million for the six months ended December 31, 2016. The decrease was primarily due to a gain recognized ($3.4 million) on consideration received as part of the termination of our Phoenix Gold Project streaming interest during the prior period. Refer to our Fiscal 2017 10-K for discussion on the Phoenix Gold Project restructuring. The decrease in interest and other income was also due to consideration received as part of a legal settlement and termination of a non-principal royalty of approximately $2.8 million during the prior period.

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During the six months ended December 31, 2017, we recognized income tax expense totaling $55.9 million compared with $12.2 million during the six months ended December 31, 2016. This resulted in an effective tax rate of 83.9% in the current period, compared with 18.5% during the six months ended December 31, 2016. The increase in the effective tax rate for the six months ended December 31, 2017 is primarily attributable to the effects of the Act and a non-cash functional currency election at certain of our Canadian subsidiaries. Refer to “Recent Business Developments” above and Note 7 of our notes to consolidated financial statements for further discussion on the Act.

Liquidity and Capital Resources

Overview

At ~~December~~March 31, ~~2017,~~2022, we had current assets of ~~$165.5~~$258.6 million compared to current liabilities of ~~$41.6~~$49.5 million, ~~resulting~~which resulted in working capital of ~~$123.9~~$209.1 million and a current ratio of 45 to 1. This compares to current assets of ~~$143.6~~$216.0 million and current liabilities of ~~$34.3~~$61.4 million at ~~June 30, 2017,~~December 31, 2021, resulting in working capital of ~~$109.3~~$154.6 million and a current ratio of approximately 4 to 1. The increase in working capital was primarily due to an increase in our available cash, resulting from increased revenue during the current period.

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During the ~~quarter~~three months ended ~~December~~March 31, ~~2017,~~2022, liquidity needs were met from ~~$94.5~~$101.1 million in net ~~revenue~~cash provided by operating activities and our available cash resources. ~~During the three months ended December 31, 2017, the Company repaid $50.0 million of the outstanding borrowings under the revolving credit facility.~~ As of ~~December~~March 31, ~~2017, the Company~~2022, we had ~~$850 million~~$1 billion available ~~and $150 million outstanding~~ under ~~its~~our revolving credit facility. Working capital, combined with ~~the Company’s undrawn~~available capacity under our revolving credit facility, resulted in approximately ~~$970 million~~$1.2 billion of total ~~available~~ liquidity ~~as of December~~at March 31, ~~2017. The Company was~~2022. We were in compliance with each financial covenant under the revolving credit facility as of ~~December~~March 31, ~~2017.~~2022. Refer to Note 35 of our notes to consolidated financial statements for further discussion on our debt.

We believe that our current financial resources and funds generated from operations will be adequate to cover anticipated expenditures for debt service, general and administrative expense costs and capital expenditures for the foreseeable future. Our current financial resources are also available to fund dividends and for acquisitions of stream and royalty ~~interests.~~interests, including any conditional funding schedules. Our long-term capital requirements are primarily affected by our ongoing acquisition activities. ~~The Company~~We currently, and generally at any time, ~~has~~have acquisition opportunities in various stages of active review. In the event of one or more substantial stream ~~and~~or royalty interest or other acquisitions, we may seek additional debt or equity financing as necessary. We occasionally borrow and repay amounts under our revolving credit facility and may do so in the future.

Please refer to our risk factors included in Part 1, Item 1A of our ~~Fiscal 2017 10-K and in Part II, Item 1A of this Quarterly~~Transition Report ~~on Form 10-Q~~ for a discussion of certain risks that may impact ~~the Company’s~~our liquidity and capital resources.

~~Summary of~~ Cash Flows

Operating Activities

Net cash provided by operating activities totaled ~~$147.2~~$101.1 million for the ~~six~~three months ended ~~December~~March 31, ~~2017,~~2022, compared to ~~$124.9~~$92.2 million for the ~~six~~three months ended ~~December~~March 31, ~~2016.~~2021. The increase was primarily due to ~~a decrease in income taxes paid at certain foreign subsidiaries of approximately $14.0 million and~~ an increase in cash proceeds received from our stream and royalty interests, net of ~~production taxes and~~ cost of sales and production taxes, of approximately ~~$11.2~~$9.1 million.

Investing Activities

Net cash used in investing activities totaled ~~$0.1~~$37.8 million for the ~~six~~three months ended ~~December~~March 31, ~~2017,~~2022, compared to ~~cash used in investing activities of $191.0~~$33.7 million for the ~~six~~three months ended ~~December~~March 31, ~~2016.~~2021. The ~~decrease in cash used in investing activities is~~increase was primarily due to ~~a decrease in acquisitions~~the acquisition of stream and royalty ~~interests in mineral properties compared to the prior year period.~~interests.

Financing Activities

Net cash used in financing activities totaled ~~$134.9~~$23.2 million for the ~~six~~three months ended ~~December~~March 31, ~~2017,~~2022, compared to net cash ~~provided by~~used in financing activities of ~~$33.5~~$70.1 million for the ~~six~~three months ended ~~December~~March 31, ~~2016.~~2021. The decrease ~~in cash provided by financing activities is~~was primarily due to ~~the Company’s $70~~a repayment of $50 million ~~borrowing under its~~on our revolving credit facility ~~to fund a royalty acquisition~~ during the prior year ~~period. During the six months ended December 31, 2017, the Company repaid $100 million of the outstanding borrowings under the revolving credit facility.~~ quarter.

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Recently ~~Issued or~~ Adopted Accounting Standards and Critical Accounting Policies

Refer to Note 1 of our notes to consolidated financial statements for further discussion on any recently ~~issued or~~ adopted accounting standards. Refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations in our ~~Fiscal 2017 10-K~~Transition Report for discussion on our critical accounting policies.

Forward-Looking Statements

~~Cautionary “Safe Harbor” Statement under~~This report and our other public communications include “forward-looking statements” within the ~~Private Securities Litigation Reform Act~~meaning of ~~1995: With the exception~~U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical ~~matters, the matters discussed in this Quarterly Report on Form 10-Q~~fact. Forward-looking statements are ~~forward-looking statements that involve risks~~not guarantees of future performance, and ~~uncertainties that could cause~~ actual results tomay differ materially from ~~projections or estimates contained herein. Such forward-looking~~these statements.

Forward-looking statements include, without limitation, statements regarding projected production estimates and estimates pertaining to timing and commencement of production from the operators of properties where we hold stream and royalty interests; statements related to ongoing developments and expected developments at properties where we hold stream and royalty interests; effective tax rate estimates, including the effect of recently enacted tax reform; the adequacy of financial resources and funds to cover anticipated expenditures for debt service and general and administrative expenses as well as costs associated with exploration and business development and capital expenditures, expected delivery dates of gold, silver, copper and other metals, and our expectation that substantially all our revenues will be derived from stream and royalty interests. Words such asare often identified by words like “will,” “may,” “could,” “should,” “would,” “believe,” “estimate,” “expect,” “anticipate,” “plan,” “forecast,” “potential,” “intend,” “continue,” “project,” ~~and variations~~or negatives of these words ~~comparable words~~or similar expressions. Forward-looking statements include, among others, the following: statements about our expected financial performance and ~~similar expressions generally indicate forward-looking statements, which speak only as~~outlook, including sales volume, revenue, expenses, tax rates, earnings or cash flow; operators’ expected operating and financial performance, including production, deliveries, mine plans, mineral resources

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and reserves, access to and adequacy of water sources, development, cash flows and capital expenditures; liquidity, financing and stockholder returns; our overall investment portfolio; macroeconomic and market conditions including the ~~date the statement is made. Do not unduly rely on forward-looking statements. Actual results may differ materially from those expressed or implied by these forward-looking statements.~~ impacts of COVID-19; prices for gold, silver, copper, nickel and other metals; estimates of fair value and potential impairments; and tax changes.

Factors that could cause actual results to differ materially from these forward-looking statements include, among ~~others:~~

a low price environment for gold and other metal prices on which our stream and royalty interests are paid or a low price environment for the primary metals mined at properties where we hold stream and royalty interests;

~~the production at~~others, the following: a lower-price environment for gold, silver, copper, nickel or other metals; operating activities or financial performance ~~of properties where we hold stream and royalty interests, and variation of actual performance from the production estimates and forecasts made by the operators of these properties;~~

the ability of operators to bring projects into production on schedule or operate in accordance with feasibility studies, including development stage mining properties, mine and mill expansion project and other development and construction projects;

~~acquisition and maintenance of permits and authorizations, completion of construction and commencement and continuation of production at the properties where we hold stream and royalty interests;~~

challenges to mining, processing and related permits and licenses, or to applications for permits and licenses, by or on behalf of indigenous populations, non-governmental organizations or other third parties;

~~liquidity or other problems our operators may encounter, including shortfalls in the financing required to complete construction and bring a mine into production;~~

~~decisions and activities of the operators of properties where we hold stream and royalty interests;~~

hazards and risks at the properties where we hold stream and royalty interests that are normally associated with developing and mining properties, including unanticipated grade, continuity and geological, metallurgical, processing or other problems, mine operating and ore processing facility problems, pit wall or tailings dam failures, industrial accidents, environmental hazards and natural catastrophes such as drought, floods or earthquakes and access to sufficient raw materials, water and power;

~~changes in operators’ mining, processing and treatment techniques, which may change the production of minerals subject to our stream and royalty interests;~~

~~changes in the methodology employed by our operators to calculate our stream and royalty interests in accordance with the agreements that govern them;~~

~~Table~~ of ~~Contents~~

~~changes in project parameters as plans of the operators of properties where we hold stream and royalty interests are refined;~~

~~accuracy of and decreases in estimates of reserves and mineralization by the operators of properties where we hold stream and royalty interests;~~

~~contests to our stream and royalty interests and title and other defects to the properties where we hold stream and royalty interests;~~

~~adverse effects on market demand for commodities, the availability of financing, and other effects from adverse economic and market conditions;~~

~~future financial needs of the Company and the operators of properties where we hold stream or royalty interests;~~

~~federal, state and foreign legislation governing us or the operators of properties where we hold stream and royalty interests;~~

~~the availability of stream and royalty interests for acquisition or other acquisition opportunities and the availability of debt or equity financing necessary to complete such acquisitions;~~

~~our ability to make accurate assumptions regarding the valuation, timing and amount of revenue to be derived from our stream and royalty interests when evaluating acquisitions;~~

risks associated with conducting business in foreign countries, including application of foreign laws to contract and other disputes, validity of security interests, governmental consents for granting interests in exploration and exploitation licenses, application and enforcement of real estate, mineral tenure, contract, safety, environmental and permitting laws, currency fluctuations, expropriation of property, repatriation of earnings, taxation, price controls, inflation, import and export regulations, community unrest and labor disputes, endemic health issues, corruption, enforcement and uncertain political and economic environments;

~~changes in laws governing us, the properties where we hold stream and royalty interests or the operators of such properties;~~

risks associated with issuances of additional common stock or incurrence of indebtedness in connection with acquisitions or otherwise including risks associated with the issuance and conversion of convertible notes;

properties on which we hold stream or royalty interests, including inaccuracies in operators’ disclosures, variations between actual and forecasted performance, operators’ ability to complete projects on schedule and as planned, operators’ changes to mine plans, and mineral resources and reserves, liquidity needs, mining and environmental hazards, labor disputes, distribution and supply chain disruptions, permitting and licensing issues, contractual issues involving our stream or royalty agreements, or operational disruptions due to COVID-19, including due to variant strains of the virus; risks associated with doing business in foreign countries; increased competition for stream and royalty interests; environmental risks, including those caused by climate change; potential cyber-attacks, including ransomware; our ability to identify, finance, value and complete acquisitions; adverse economic and market conditions; changes in laws or regulations governing us, operators or operating properties; changes in management and key employees; and

~~failure to complete future acquisitions;~~

~~as well as~~ other factors described ~~elsewhere~~ in Item 1A. Risk Factors of our Transition Report and this ~~report and our other reports filed with the SEC, including our Fiscal 2017 10-K.~~Form 10-Q. Most of these factors are beyond our ability to predict or control. ~~Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements.~~

Forward-looking statements speak only as of the date on which they are made. We disclaim any obligation to update any

forward-looking statements, ~~made herein,~~ except as required by law. Readers are cautioned not to put undue reliance on forward-looking statements.

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ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our earnings and cash flows are significantly impacted by changes in the market price of gold and other metals. Gold, silver, copper, ~~nickel~~ and other metal prices can fluctuate significantly and are affected by numerous factors, such as demand, production levels, economic policies of central banks, producer hedging, world political and economic events, inflation and the strength of the U.S. dollar relative to other currencies. Please see the risk factor entitled “~~Volatility~~Our revenue is subject to volatility in ~~gold, silver, copper, nickel and other~~ metal prices, ~~may have an adverse impact on the value~~which could negatively affect our results of ~~our stream and royalty interests and may reduce our revenues. Certain contracts governing our royalty stream interests have features that may amplify the negative effects of a drop in metals prices,~~operations or cash flow.” under Part I, Item 1A of our ~~Fiscal 2017 10-K,~~Transition Report, for more information ~~that can affect gold, silver, copper, nickel and other~~about risks associated with metal ~~prices as well as historical gold, silver, copper and nickel prices.~~price volatility.

~~Table of Contents~~

During the ~~six~~three months ended ~~December~~March 31, ~~2017,~~2022, we reported revenue of ~~$226.8~~$162.4 million, with an average gold price for the period of ~~$1,277~~$1,877 per ounce, an average silver price of ~~$16.78~~$24.01 per ounce, and an average copper price of ~~$2.98~~$4.53 per pound. ~~Approximately 78% of our total reported revenues for~~The table below shows the six months ended December 31, 2017 were attributable to gold sales from our gold producing stream and royalty interests, as shown within the MD&A. For the six months ended December 31, 2017, if the price of gold had averagedimpact that a 10% ~~higher or lower per ounce, we would have recorded an~~ increase or decrease in ~~revenue~~the average price of ~~approximately $18.2 million.~~

~~Approximately 9% of~~the specified metal would have had on our total reported ~~revenues~~revenue for the ~~six~~three months ended ~~December~~March 31, 2017 were attributable to silver sales from our silver producing stream and royalty interests. For the six months ended December 31, 2017, if the price of silver had averaged 10% higher or lower per ounce, we would have recorded an increase or decrease in revenue of approximately $2.1 million.2022:


Metal	Percentage of Total Reported Revenue Associated with Specified Metal	Amount by Which Total Reported Revenue Would Have Increased or Decreased If Price of Specified Metal Had Averaged 10% Higher or Lower in Period
Gold	71%	$14.1 million
Copper	14%	$4.2 million
Silver	10%	$0.7 million

Approximately 9% of our total reported revenues for the six months ended December 31, 2017 were attributable to copper sales from our copper producing stream and royalty interests. For the six months ended December 31, 2017, if the price of copper had averaged 10% higher or lower per pound, we would have recorded an increase or decrease in revenue of approximately $2.2 million.

ITEM 4.CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

~~As of December 31, 2017,~~Under the ~~Company’s management,~~supervision and with the participation of ~~the President and~~our management, including our Chief Executive Officer (the principal executive officer) and Chief Financial Officer ~~and Treasurer~~ (the principal financial and accounting officer) ~~of the Company, carried out an evaluation of~~, we evaluated the effectiveness of the design and operation of ~~the Company’s~~our disclosure controls and procedures ~~(as defined in Rules 13a-15(e) and 15d-15(e)~~as of ~~the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).~~March 31, 2022. Based on ~~such~~this evaluation, ~~the Company’s President and~~our Chief Executive Officer and ~~its~~ Chief Financial Officer ~~and Treasurer~~ have concluded that ~~as of December 31, 2017, the Company’s~~our disclosure controls and procedures were effective ~~to provide~~as of March 31, 2022, at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the three months ended March 31, 2022, that ~~information required~~materially affected, or are reasonably likely to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the required time periods and that such information is accumulated and communicated to the Company’smaterially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including ~~the President and~~our Chief Executive Officer and ~~the~~ Chief Financial Officer, ~~and Treasurer, as appropriate to allow timely decisions regarding required disclosure.~~

~~Disclosure~~does not expect that our disclosure controls and procedures ~~involve human diligence~~or our internal controls will prevent all error and ~~compliance and are subject to lapses in judgment and breakdowns resulting from human failures. As a result, a~~all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within ~~the Company~~Royal Gold have been detected.

~~Changes in Internal Controls~~

There has been no change in the Company’s internal control over financial reporting during the three months ended December 31, 2017 that has materially affected, or that is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II.OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

None.

~~Voisey’s Bay~~

~~Refer to Note 10 of our notes to consolidated financial statements for a discussion of the litigation associated with our Voisey’s Bay royalty.~~

~~Table of Contents~~

ITEM 1A. RISK FACTORS

~~Information regarding~~There have been no material changes to the risk factors appears in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Forward-Looking Statements,” and various risks faced by us are also discussed elsewhere in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report on Form 10-Q. In addition, risk factors are included in ~~Part I, Item 1A~~the section entitled “Risk Factors” of our ~~Fiscal 2017 10-K.~~Transition Report.

Table of Contents

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities


Period	(a) Total Number of Shares Purchased	(b) Average Price Paid Per Share	(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plan or Programs
January 2022	—	—	N/A	N/A
February 2022	—	—	N/A	N/A
March 2022	—	—	N/A	N/A
Total	—	—	N/A	N/A

~~Not applicable.~~

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

None.

~~Not applicable.~~

ITEM 4.MINE SAFETY DISCLOSURE

Not applicable.

ITEM 5.OTHER INFORMATION

None.

Table of Contents

~~Not applicable.~~

ITEM 6.EXHIBITS



Exhibit Number			Description

	10.1*▲			Form of ~~First~~Restricted Stock Agreement under Royal Gold’s 2015 Omnibus Long-Term Incentive Plan
10.2*▲		Form of Restricted Stock Unit Agreement under Royal Gold’s 2015 Omnibus Long-Term Incentive Plan

10.3*▲		Form of Performance Share Award Agreement under Royal Gold’s 2015 Omnibus Long-Term Incentive Plan

10.4▲		Form of Amendment to Employment Agreement ~~made and entered into~~(filed as Exhibit 10.1 of the ~~15th day of December, 2017,~~Current Report on Form 8-K on April 11, 2022, and incorporated herein by ~~and between Royal Gold, Inc. and each of the following: Karli Anderson, William Heissenbuttel, Mark Isto, Tony Jensen, Bruce Kirchhoff and Stefan Wenger.~~reference).

	31.1*			Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

	31.2*			Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

	32.1‡			Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

	32.2‡			Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

	101.INS101			The following financial statements from Royal Gold, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in Inline XBRL: (a) Consolidated Statements of Cash Flows, (b) Consolidated Statements of Operations, (c) Consolidated Statements of Comprehensive Income, (d) Consolidated Balance Sheets, and (e) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags.

104*		The cover page from Royal Gold, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in Inline XBRL ~~Instance Document.~~(included as Exhibit 101).
101.SCH*		~~XBRL Taxonomy Extension Schema Document.~~
101.CAL*		~~XBRL Taxonomy Extension Calculation Linkbase Document.~~
101.DEF*		~~XBRL Taxonomy Extension Definition Linkbase Document.~~
101.LAB*		~~XBRL Taxonomy Extension Label Linkbase Document.~~
101.PRE*		~~XBRL Taxonomy Extension Presentation Linkbase Document.~~

*	Filed herewith.

‡	Furnished herewith.

▲	Identifies a management contract or compensation plan or arrangement.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ROYAL GOLD, INC.

Date: ~~February 8, 2018~~May 5, 2022
	By:	/s/ ~~Tony Jensen~~William Heissenbuttel
		~~Tony Jensen~~William Heissenbuttel
		President and Chief Executive Officer
		(Principal Executive Officer)

Date: ~~February 8, 2018~~May 5, 2022	By:	/s/ ~~Stefan Wenger~~Paul Libner
		~~Stefan Wenger~~Paul Libner
		Chief Financial Officer and Treasurer
		(Principal Financial and Accounting Officer)

3230

		PAGE

PART I	FINANCIAL INFORMATION

~~PART I~~Item 1.	~~FINANCIAL INFORMATION~~Financial Statements (Unaudited)

~~Item 1.~~	~~Financial Statements (Unaudited)~~Consolidated Balance Sheets	3

	~~Consolidated Balance Sheets~~	3
	Consolidated Statements of Operations and Comprehensive ~~(Loss)~~ Income	4
	Consolidated Statements of Changes in Stockholders’ Equity	5
	Consolidated Statements of Cash Flows	5 6
	Notes to Consolidated Financial Statements	6 7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16 17

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	29 27

Item 4.	Controls and Procedures	30 27

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	30 27

Item 1A.	Risk Factors	31 27

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31 28

Item 3.	Defaults Upon Senior Securities	31 28

Item 4.	Mine Safety Disclosures	31 28

Item 5.	Other Information	31 28

Item 6.	Exhibits	31 29

SIGNATURES		32 30


	December 31, 2017		June 30, 2017
ASSETS
Cash and equivalents	$	98,132	$	85,847
Royalty receivables		29,285		26,886
Income tax receivable		27,366		22,169
Stream inventory		7,359		7,883
Prepaid expenses and other		3,337		822
Total current assets		165,479		143,607
Stream and royalty interests, net (Note 2)		2,810,616		2,892,256
Other assets		53,305		58,202
Total assets	$	3,029,400	$	3,094,065
LIABILITIES
Accounts payable	$	2,251	$	3,908
Dividends payable		16,363		15,682
Income tax payable		15,097		5,651
Foreign withholding taxes payable		3,451		3,425
Other current liabilities		4,413		5,617
Total current liabilities		41,575		34,283
Debt (Note 3)		493,486		586,170
Deferred tax liabilities		147,548		121,330
Uncertain tax positions		30,187		25,627
Other long-term liabilities		16,787		6,391
Total liabilities		729,583		773,801
Commitments and contingencies (Note 10)
EQUITY
Preferred stock, $.01 par value, 10,000,000 shares authorized; and 0 shares issued		—		—
Common stock, $.01 par value, 200,000,000 shares authorized; and 65,307,285 and 65,179,527 shares outstanding, respectively		653		652
Additional paid-in capital		2,186,648		2,185,796
Accumulated other comprehensive income		687		879
Accumulated earnings		69,842		88,050
Total Royal Gold stockholders’ equity		2,257,830		2,275,377
Non-controlling interests		41,987		44,887
Total equity		2,299,817		2,320,264
Total liabilities and equity	$	3,029,400	$	3,094,065


	For The Three Months Ended				For The Six Months Ended
	December 31,		December 31,		December 31,		December 31,
	2017		2016		2017		2016
Revenue	$	114,348	$	106,961	$	226,824	$	224,909

Costs and expenses
Cost of sales		19,863		22,502		40,282		45,163
General and administrative		9,555		7,538		16,455		18,045
Production taxes		602		445		1,145		942
Exploration costs		1,358		2,476		4,561		5,764
Depreciation, depletion and amortization		42,008		39,519		81,701		79,621
Total costs and expenses		73,386		72,480		144,144		149,535

Operating income		40,962		34,481		82,680		75,374

Interest and other income		645		7,488		1,634		9,045
Interest and other expense		(9,034)		(9,823)		(17,651)		(18,128)
Income before income taxes		32,573		32,146		66,663		66,291

Income tax expense		(48,360)		(5,044)		(55,904)		(12,232)
Net (loss) income		(15,787)		27,102		10,759		54,059
Net loss attributable to non-controlling interests		1,022		960		3,105		3,791
Net (loss) income attributable to Royal Gold common stockholders	$	(14,765)	$	28,062	$	13,864	$	57,850

Net (loss) income	$	(15,787)	$	27,102	$	10,759	$	54,059
Adjustments to comprehensive (loss) income, net of tax
Unrealized change in market value of available-for-sale securities		(390)		822		(193)		822
Comprehensive (loss) income		(16,177)		27,924		10,566		54,881
Comprehensive loss attributable to non-controlling interests		1,022		960		3,105		3,791
Comprehensive (loss) income attributable to Royal Gold stockholders	$	(15,155)	$	28,884	$	13,671	$	58,672

Net (loss) income per share available to Royal Gold common stockholders:
Basic (loss) earnings per share	$	(0.23)	$	0.43	$	0.21	$	0.89
Basic weighted average shares outstanding		65,306,766		65,149,518		65,271,131		65,133,102
Diluted (loss) earnings per share	$	(0.23)	$	0.43	$	0.21	$	0.88
Diluted weighted average shares outstanding		65,306,766		65,253,209		65,460,430		65,264,137
Cash dividends declared per common share	$	0.25	$	0.24	$	0.49	$	0.47


	As of December 31, 2017								As of June 30, 2017
	Principal		Unamortized Discount		Debt Issuance Costs		Total		Principal		Unamortized Discount		Debt Issuance Costs		Total
		(Amounts in thousands)								(Amounts in thousands)
Convertible notes due 2019	$	370,000	$	(19,110)	$	(1,986)	$	348,904	$	370,000	$	(25,251)	$	(2,646)	$	342,103
Revolving credit facility		150,000		—		(5,418)		144,582		250,000		—		(5,933)		244,067
Total debt	$	520,000	$	(19,110)	$	(7,404)	$	493,486	$	620,000	$	(25,251)	$	(8,579)	$	586,170


	As of December 31, 2017						As of June 30, 2017
	Stream interest		Royalty interest		Total stream and royalty interests, net		Stream interest		Royalty interest		Total stream and royalty interests, net
Canada	$	836,129	$	218,683	$	1,054,812	$	852,035	$	221,618	$	1,073,653
Dominican Republic		517,203		—		517,203		543,256		—		543,256
Chile		336,854		453,369		790,223		348,778		453,369		802,147
Africa		112,029		525		112,554		123,760		572		124,332
Mexico		—		99,769		99,769		—		105,889		105,889
United States		—		166,115		166,115		—		168,378		168,378
Australia		—		35,780		35,780		—		37,409		37,409
Other		12,030		22,130		34,160		12,030		25,162		37,192
Total	$	1,814,245	$	996,371	$	2,810,616	$	1,879,859	$	1,012,397	$	2,892,256


	Six Months Ended December 31, 2017						Six Months Ended December 31, 2016
	Revenue		Cost of sales		Net revenue		Revenue		Cost of sales		Net revenue
Streams:
Canada	$	54,654	$	15,847	$	38,807	$	70,050	$	23,758	$	46,292
Dominican Republic		51,758		15,785		35,973		47,387		14,443		32,944
Chile		33,938		5,109		28,829		31,154		4,744		26,410
Africa		17,699		3,541		14,158		10,920		2,218		8,702
Total streams	$	158,049	$	40,282	$	117,767	$	159,511	$	45,163	$	114,348

Royalties:
Mexico	$	21,751	$	—	$	21,751	$	21,127	$	—	$	21,127
United States		22,727		—		22,727		19,113		—		19,113
Canada		11,488		—		11,488		11,870		—		11,870
Australia		6,548		—		6,548		6,692		—		6,692
Africa		1,047		—		1,047		1,588		—		1,588
Chile		—		—		—		950		—		950
Other		5,214		—		5,214		4,058		—		4,058
Total royalties	$	68,775	$	—	$	68,775	$	65,398	$	—	$	65,398
Total streams and royalties	$	226,824	$	40,282	$	186,542	$	224,909	$	45,163	$	179,746


	As of December 31, 2017
	Carrying		Fair Value
	Amount		Total		Level 1		Level 2		Level 3
Assets (In thousands):
Marketable equity securities(1)	$	3,450	$	3,450	$	3,450	$	—	$	—
Total assets			$	3,450	$	3,450	$	—	$	—
Liabilities (In thousands):
Debt(2)	$	427,890	$	401,309	$	401,309	$	—	$	—
Total liabilities			$	401,309	$	401,309	$	—	$	—

~~Stream or royalty interests~~

~~Location~~

~~Operator~~

~~(Gold unless otherwise stated)~~

~~Pascua-Lama~~

~~Region III, Chile~~

~~Barrick~~

~~0.78% to 5.45% sliding-scale NSR~~

~~1.09% fixed rate royalty (copper)~~