~~ROYAL GOLD, INC.~~5. DEBT

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

Our debt as of September 30, 2022 and December 31, 2021 consists of the following (amounts in thousands):


	As of September 30, 2022						As of December 31, 2021
	Principal		Debt Issuance Costs		Total		Principal		Debt Issuance Costs¹		Total

		(Amounts in thousands)						(Amounts in thousands)
Revolving credit facility	$	450,000	$	(3,673)	$	446,327	$	—	$	(4,408)	$	(4,408)
Total debt	$	450,000	$	(3,673)	$	446,327	$	—	$	(4,408)	$	(4,408)

~~5. DEBT~~⁽¹⁾ Included in Other assets on our consolidated balance sheets.

Revolving credit facility

On July 2, 2022, we borrowed $500 million under our revolving credit facility for the acquisition of the Cortez Complex Royalty, and on September 6, 2022, we repaid $50 million of the outstanding borrowings. Refer to Note 2 of our notes to consolidated financial statements for further discussion on the Cortez Complex Royalty acquisition.

As of ~~March 31,~~September 30, 2022, we had ~~0 amounts~~$450 million outstanding and $550 million available under our revolving credit facility dated June 2, 2017, and as amended. ~~Interest expense recognized~~The interest rate on ~~the~~borrowings under our revolving credit facility as of September 30, 2022, was LIBOR plus 1.10% for an all-in rate of 4.2%. Interest expense, which includes interest on outstanding borrowings and amortization of debt issuance costs, was $3.9 million and $4.4 million for the three and nine months ended ~~March 31,~~September 30, 2022, respectively, and ~~2021, was approximately $0.2~~$1.0 million and ~~$0.8~~$2.1 million ~~respectively,~~for the three and ~~included the amortization of the debt issuance costs and interest on the outstanding borrowings.~~nine months ended September 30, 2021, respectively. We were in compliance with each financial covenant (leverage ratio and interest coverage ratio) under the revolving credit facility as of ~~March 31,~~September 30, 2022.

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

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

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ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

(Unaudited)

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 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 period in which metal production occurs. As a royalty holder, we act as a passive entity in the production and 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.

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~~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 ~~March 31,~~September 30, 2022, royalty revenue that was estimated or was attributable to metal production for a period prior to ~~March 31,~~September 30, 2022, was not material.

Disaggregation of Revenue

We have identified 2two material revenue sources in our business: stream interests and royalty interests. These identified revenue sources are consistent with our reportable segments as discussed in Note 10.

~~Revenue by metal type attributable to each of our revenue sources is 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 our revenue by reportable segment.~~

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Notes to Consolidated Financial Statements

(Unaudited)

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


	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2022		2021		2022		2021
Stream revenue:
Gold	$	76,833	$	83,318	$	229,661	$	240,016
Silver		12,063		13,877		36,393		35,132
Copper		9,836		18,726		42,809		50,540
Total stream revenue	$	98,732	$	115,921	$	308,863	$	325,688
Royalty revenue:
Gold	$	23,163	$	43,417	$	90,054	$	111,826
Silver		2,648		3,952		10,477		12,517
Copper		1,285		4,967		11,271		12,960
Other		5,601		6,174		19,561		22,056
Total royalty revenue	$	32,697	$	58,510	$	131,363	$	159,359
Total revenue	$	131,429	$	174,431	$	440,226	$	485,047

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


		Three Months Ended				Nine Months Ended
		September 30,		September 30,		September 30,		September 30,
	Metal(s)	2022		2021		2022		2021
Stream revenue:
Mount Milligan	Gold & Copper	$	41,553	$	53,455	$	129,596	$	131,061
Pueblo Viejo	Gold & Silver		21,156		27,198		64,232		83,957
Andacollo	Gold		12,170		11,601		39,565		52,491
Wassa	Gold		7,390		8,033		22,840		23,935
Khoemacau	Silver		5,050		107		12,641		107
Other	Gold & Silver		11,413		15,527		39,989		34,137
Total stream revenue		$	98,732	$	115,921	$	308,863	$	325,688
Royalty revenue:
Peñasquito	Gold, Silver, Lead & Zinc	$	9,010	$	12,212	$	31,768	$	38,739
Cortez	Gold		4,562		17,126		29,413		39,475
Other	Various		19,125		29,172		70,182		81,145
Total royalty revenue		$	32,697	$	58,510	$	131,363	$	159,359
Total revenue		$	131,429	$	174,431	$	440,226	$	485,047

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

7. STOCK-BASED COMPENSATION

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


	Three Months Ended				Three Months Ended				Nine Months Ended
	March 31,		March 31,		September 30,		September 30,		September 30,		September 30,
	2022		2021		2022		2021		2022		2021
Restricted stock	$	1,155	$	533	$	1,140	$	1,116	$	3,496	$	2,198
Performance stock		631		364		658		(43)		2,136		801
Stock appreciation rights		332		430		283		414		975		1,290
Stock options		6		17		9		16		25		51
Total stock-based compensation expense	$	2,124	$	1,344	$	2,090	$	1,503	$	6,632	$	4,340

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

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ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

(Unaudited)

During the three and nine months ended ~~March 31,~~September 30, 2022 and 2021, we granted the following stock-based compensation awards:


		Three Months Ended			Three Months Ended			Nine Months Ended
		March 31,		March 31,	September 30,		September 30,	September 30,		September 30,
	2022		2021		2022	2021		2022	2021

		(Number of shares)			(Number of shares)			(Number of shares)
Performance stock (at maximum 200% attainment)		39,380		—	—		73,200	39,380		73,200
Restricted stock		28,220		—
Restricted Stock					—		50,604	28,220		50,604
Total equity awards granted		67,600		—	—		123,804	67,600		123,804

As of ~~March 31,~~September 30, 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-		Unrecognized		Weighted-
	compensation		average vesting		compensation		average vesting
	expense		period (years)		expense		period (years)
Restricted stock	$	9,377		2.6	$	7,361		2.2
Performance stock		6,760		2.5		5,265		2.0
Stock appreciation rights		1,296		1.2		701		0.9
Stock options		43		1.3		25		0.9

8. EARNINGS PER SHARE (“EPS”)

Basic EPS ~~were~~was 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 EPS pursuant to the two-class method. Our unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared. Our unexercised stock option awards, unexercised 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 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 EPS.

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~~ROYAL GOLD, INC.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

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


	Three Months Ended				Three Months Ended				Nine Months Ended
	March 31,		March 31,		September 30,		September 30,		September 30,		September 30,
	2022		2021		2022		2021		2022		2021
Net income attributable to Royal Gold common stockholders	$	65,675	$	54,026	$	45,792	$	70,176	$	182,609	$	205,879
Weighted-average shares for basic EPS		65,565,735		65,550,400		65,579,834		65,556,608		65,571,737		65,552,586
Effect of other dilutive securities		78,933		71,203		80,318		71,237		89,460		76,241
Weighted-average shares for diluted EPS		65,644,668		65,621,603		65,660,152		65,627,845		65,661,197		65,628,827
Basic EPS	$	1.00	$	0.82	$	0.70	$	1.07	$	2.78	$	3.14
Diluted EPS	$	1.00	$	0.82	$	0.70	$	1.07	$	2.78	$	3.13

9. INCOME TAXES


	Three Months Ended				Three Months Ended				Nine Months Ended
	March 31,		March 31,		September 30,		September 30,		September 30,		September 30,
	2022		2021		2022		2021		2022		2021
Income tax expense	$	15,304	$	17,679	$	10,954	$	16,028	$	20,347	$	39,242
Effective tax rate		18.8%		24.6%		19.3%		18.5%		10.0%		16.0%

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ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

(Unaudited)

The effective tax rate for the ~~three~~nine months ended ~~March 31, 2021,~~September 30, 2022, included ana discrete income tax ~~expense~~benefit of $18.8 million attributable to ~~an increase in~~the release of a valuation allowance on certain deferred tax assets. The effective tax rate for the nine months ended September 30, 2021, included a discrete tax benefit of $12.0 million attributable to the settlement of an uncertain tax position with a foreign jurisdiction.

10. SEGMENT INFORMATION

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


	As of March 31, 2022						As of December 31, 2021						As of September 30, 2022						As of December 31, 2021
					Total stream						Total stream						Total stream						Total stream
	Stream		Royalty		and royalty		Stream		Royalty		and royalty		Stream		Royalty		and royalty		Stream		Royalty		and royalty
	interest		interest		interests, net		interest		interest		interests, net		interest		interest		interests, net		interest		interest		interests, net
Canada	$	560,911	$	415,905	$	976,816	$	579,326	$	412,419	$	991,745	$	528,325	$	620,035	$	1,148,360	$	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		328,674		—		328,674		350,083		—		350,083
Africa		319,827		321		320,148		297,569		321		297,890		307,291		321		307,612		297,569		321		297,890
Chile														238,596		224,116		462,712		249,147		224,116		473,263
United States		—		103,855		103,855		—		107,761		107,761		—		626,525		626,525		—		107,761		107,761
Mexico		—		58,276		58,276		—		60,977		60,977		—		53,046		53,046		—		60,977		60,977
Australia		—		27,193		27,193		—		27,496		27,496		—		26,642		26,642		—		27,496		27,496
Rest of world		109,098		26,617		135,715		107,920		26,617		134,537		104,192		26,617		130,809		107,920		26,617		134,537
Total	$	1,577,406	$	856,283	$	2,433,689	$	1,584,045	$	859,707	$	2,443,752	$	1,507,078	$	1,577,302	$	3,084,380	$	1,584,045	$	859,707	$	2,443,752

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


	Three Months Ended September 30, 2022
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	98,732	$	23,221	$	—	$	32,576	$	42,935
Royalty interests		32,697		—		1,119		5,063		26,515
Total	$	131,429	$	23,221	$	1,119	$	37,639	$	69,450

	Three Months Ended September 30, 2021
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	115,921	$	27,230	$	—	$	41,922	$	46,769
Royalty interests		58,510		—		2,054		8,596		47,860
Total	$	174,431	$	27,230	$	2,054	$	50,518	$	94,629


	Nine Months Ended September 30, 2022
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	308,863	$	69,670	$	—	$	106,745	$	132,448
Royalty interests		131,363		—		4,765		22,623		103,975
Total	$	440,226	$	69,670	$	4,765	$	129,368	$	236,423

	Nine Months Ended September 30, 2021
	Revenue		Cost of sales⁽¹⁾		Production taxes		Depletion ⁽²⁾		Segment gross profit
Stream interests	$	325,688	$	73,367	$	—	$	113,263	$	139,058
Royalty interests		159,359		—		6,042		26,394		126,923
Total	$	485,047	$	73,367	$	6,042	$	139,657	$	265,981

(1)	Excludes depreciation, depletion and amortization

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Notes to Consolidated Financial Statements

(Unaudited)

~~Our reportable segments for purposes of 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				Three Months Ended				Nine Months Ended
	March 31,		March 31,		September 30,		September 30,		September 30,		September 30,
		2022		2021		2022		2021		2022		2021
Total segment gross profit	$	89,632	$	78,083	$	69,450	$	94,629	$	236,423	$	265,981

Costs and expenses
General and administrative expenses		8,931		6,932		7,554		7,129		25,797		21,272
Depreciation and amortization		125		94		122		93		371		278
Operating income		80,576		71,057		61,774		87,407		210,255		244,431
Fair value changes in equity securities		613		1,902		356		176		(1,221)		4,035
Interest and other income		975		733		3,571		819		5,665		2,227
Interest and other expense		(898)		(1,820)		(8,814)		(1,908)		(11,110)		(4,873)
Income before income taxes	$	81,266	$	71,872	$	56,887	$	86,494	$	203,589	$	245,820

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~~ROYAL GOLD, INC.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

Our revenue by reportable segment for the three and nine months ended ~~March 31,~~September 30, 2022 and 2021 is geographically distributed as shown in the following table (amounts in thousands):


	Three Months Ended				Three Months Ended				Nine Months Ended
	March 31,		March 31,		September 30,		September 30,		September 30,		September 30,
	2022		2021		2022		2021		2022		2021
Stream interests:
Canada	$	51,485	$	42,609	$	46,861	$	64,031	$	152,938	$	158,679
Dominican Republic		23,264		30,173		21,156		27,198		64,232		83,957
Chile		15,674		13,022		12,170		11,601		39,566		52,491
Africa		8,446		9,542		13,257		8,679		38,633		26,149
Rest of world		6,382		—		5,288		4,412		13,494		4,412
Total stream interests	$	105,251	$	95,346	$	98,732	$	115,921	$	308,863	$	325,688

Royalty interests:
United States	$	24,358	$	16,474	$	11,413	$	27,080	$	52,616	$	64,903
Mexico		15,881		15,270		11,095		15,427		38,915		46,888
Canada		10,778		8,612		4,826		6,402		21,377		24,616
Australia		4,046		4,360		3,446		6,917		11,533		15,526
Africa		316		748		—		602		430		1,909
Rest of world		1,725		1,779		1,917		2,082		6,492		5,517
Total royalty interests	$	57,104	$	47,243	$	32,697	$	58,510	$	131,363	$	159,359
Total revenue	$	162,355	$	142,589	$	131,429	$	174,431	$	440,226	$	485,047

11. FAIR VALUE MEASUREMENTS

Fair 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, which prioritizes the inputs used in measuring fair value as follows:

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

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ROYAL GOLD, INC.

Notes to Consolidated Financial Statements

(Unaudited)

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 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										As of September 30, 2022
			Fair Value										Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3		Carrying Value		Total		Level 1		Level 2		Level 3
Assets (amounts in thousands):
Marketable equity securities⁽¹⁾	$	2,346	$	2,346	$	—	$	2,346	$	—	$	655	$	655	$	117	$	538	$	—


	As of December 31, 2021
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Assets (amounts in thousands):
Marketable equity securities⁽¹⁾	$	1,733	$	1,733	$	—	$	1,733	$	—

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

Our marketable securities classified within Level 1 of the fair value hierarchy are valued using quoted market prices in active markets multiplied by the quantity of shares held. The TriStar Gold Inc. warrants (Note 4) classified within Level 2 of the fair value hierarchy are model-derived (Black-Scholes) valuations in which the significant inputs are observable in active markets. The carrying value of our revolving credit facility (Note 5) approximates fair value as of ~~March 31,~~September 30, 2022.

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~~ROYAL GOLD, INC.~~

~~Notes to Consolidated Financial Statements~~

~~(Unaudited)~~

As of ~~March 31,~~September 30, 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.

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,~~September 30, 2022, $6.8 million of ~~additional exploration and mineral resource addition~~advance payments remain if Ero meets certain success-based targets related to regional exploration and mineral resource additions through calendar 2024. Refer to our Transition Report for further information on the NX Gold stream acquisition.

Ilovica Gold Stream Acquisition

As of ~~March 31,~~September 30, 2022, our conditional funding schedule of $163.75 million, as part of the Ilovica gold stream acquisition entered into in October 2014, remains subject to certain conditions.

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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 of Royal 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 the audited consolidated financial statements included in our Transition Report on Form 10-K for the six months ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on 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 do not own, develop, or mine the properties on which we hold stream or royalty interests. Certain information provided in this Quarterly Report on Form 10-Q about operating properties in which we hold interests, including information about mineral resources and reserves, historical production, production estimates, property descriptions, and property developments, was provided to us by the operators of those properties or is publicly available information filed by these operators with applicable securities regulatory bodies, including the SEC. We have not verified, and are not in a position to verify, and expressly disclaim any responsibility for the accuracy, completeness, or fairness of, this third-party information and refer the reader to the public reports filed by the operators for information regarding those properties.

Overview of Our Business

We acquire and manage precious metal streams, royalties, and similar interests. We seek to acquire existing stream and royalty interests or 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,~~September 30, 2022, we owned nine stream interests, which are on eight producing properties and one development stage property. Stream interests accounted for approximately ~~65%~~75% and 70% of our total revenue for the three and nine months ended ~~March 31,~~September 30, 2022, respectively, and ~~67%~~66% for each of the three and nine months ended ~~March 31, 2021.~~September 30, 2021, respectively. We expect stream interests to continue representing a significant portion 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,~~September 30, 2022, we owned royalty interests on 3533 producing properties, 1719 development stage properties and ~~126~~125 exploration stage properties, of which we consider 5154 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%~~25% and 30% of our total revenue for the three and nine months ended ~~March 31,~~September 30, 2022, respectively, and ~~33%~~34% for each of the three and nine months ended ~~March 31, 2021.~~September 30, 2021, respectively.

We do not conduct mining operations on the properties in which we hold stream and royalty interests, and we generally are not required to contribute to capital costs, environmental costs or other operating costs on those properties.

We are continually reviewing opportunities to grow our portfolio, whether through the creation or acquisition of new or existing stream or royalty interests or other acquisition activity. We generally have acquisition opportunities in various stages of review. Our review process may include, for example, engaging consultants and advisors to analyze an opportunity; analysis of technical, financial, legal, and other confidential information ofregarding an opportunity; submission

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of indications of interest and term sheets; participation in preliminary discussions and negotiations; and involvement as a bidder in competitive processes.

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Business Trends and Uncertainties

Metal Prices

Our financial results are primarily tied to the price of gold, silver, copper, and other metals. Metal prices have fluctuated widely in recent years and we expect this volatility to continue. The marketability and price of metals are influenced by numerous factors beyond our control, and significant changes in metal prices can have a material effect on our revenue.

For the three and nine months ended ~~March 31,~~September 30, 2022 and 2021, average metal prices and percentages of revenue by metal were as follows:


	Three Months Ended						Three Months Ended						Nine Months Ended
	March 31, 2022			March 31, 2021			September 30, 2022			September 30, 2021			September 30, 2022			September 30, 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)	$	1,877	71%	$	1,794	68%	$	1,729	76%	$	1,790	73%	$	1,824	73%	$	1,800	73%
Silver ($/ounce)	$	24.01	10%	$	26.26	12%	$	19.23	11%	$	24.36	10%	$	21.92	11%	$	25.75	10%
Copper ($/pound)	$	4.53	14%	$	3.86	15%	$	3.51	8%	$	4.25	14%	$	4.11	12%	$	4.17	13%
Other		N/A	5%		N/A	5%		N/A	5%		N/A	3%		N/A	4%		N/A	4%

Acquisition of Great Bear Royalties Corporation

On September 9, 2022 we completed the previously announced acquisition of all of the issued and outstanding shares of Great Bear Royalties Corporation (“GBR”) for cash consideration of approximately C$199.6 million (US$151.7 million) (the “Acquisition Price”). GBR’s sole material asset is a 2.0% net smelter return royalty (“Great Bear Royalty”) that covers the entirety of the Great Bear Project in the Red Lake district of Ontario, Canada, owned and operated by a subsidiary of Kinross Gold Corporation (“Kinross”). The Great Bear Royalty includes all metals produced from contiguous claims covering 9,140 hectares and will be registered on title to the relevant claims. Royalty payments will be made quarterly with applicable standard deductions. Refer to Note 2 of our notes to consolidated financial statements for further discussion on the GBR acquisition. The purchase price was funded with available cash on hand.

As part of the acquisition and in exchange for information and access to the project provided by Kinross, we granted an option to Kinross to purchase a 25% interest in the Great Bear Royalty (0.5% of the 2.0% royalty rate) for an amount equal to 25% of the Acquisition Price, adjusted for inflation, at any time from the transaction closing date until the earlier of a construction decision for the Great Bear Project and 10 years after the transaction closing date.

Acquisition of Additional Royalty Interest on Cortez Complex

On August 2, 2022, we acquired a sliding scale gross royalty (“Cortez Complex Royalty”) on production from an area within the Cortez Complex for cash consideration of $525 million. The area within the Cortez Complex is owned or controlled by Nevada Gold Mines LLC a joint venture between Barrick Gold Corporation (“Barrick”) and Newmont Corporation (“Newmont”), with the exception of the Fourmile development project which is 100% owned and operated by Barrick. The royalty is a life of mine sliding scale gross royalty payable at a rate of 0% at a gold price less than $400 per ounce, increasing to 3% at a gold price above $900 per ounce, and is payable on 40% of all production from the Cortez Complex except for the existing deposits within the Robertson property. The purchase price was funded with debt and available cash on hand. Refer to Note 2 and Note 5 of our notes to consolidated financial statements for further discussion on the Cortez complex royalty acquisition and funding.

Lawyers Royalty Acquisition

On 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 owned by Thesis Gold, Inc. 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.

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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 achievement of success-based targets related to regional exploration and mineral resource additions. As of ~~March 31,~~September 30, 2022, up to $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.

~~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 resulting economic and societal impacts have made it difficult for 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 pandemic will ultimately depend on many factors that are outside of our control, including the severity and duration of the pandemic, government and operator actions in response to the pandemic, and the development, availability, and public acceptance of effective treatments and vaccines. As a result, we are currently unable to predict the nature or extent of any future impact on our results of operations and financial condition. We continue to monitor the impact of developments associated with the pandemic on stream and royalty interests as part of our regular asset impairment analysis.

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

We generally receive annual production estimates from many of the operators of ~~our~~the producing mines in which we own a stream or royalty interest during the first quarter of each calendar year. In some instances, an operator may revise its original calendar year guidance throughout the year. The following table shows current production estimates for calendar 2022, as well as actual production through ~~March 31,~~September 30, 2022 (except as otherwise noted), for our principal properties as reported to us by the operators.

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Operators’ Estimated and Actual Production by Stream and Royalty Interest for Calendar 2022

Principal Producing Properties

Calendar Year 2022 Operator’s Production

Estimate⁽¹⁾

Actual⁽²⁾

Estimate⁽¹⁾

Actual⁽²⁾

Gold

Silver

Base Metals

Gold

Silver

Base Metals

Gold

Silver

Base Metals

Gold

Silver

Base Metals

Stream/Royalty

(oz.)

(lbs.)

(oz.)

(lbs.)

(oz.)

(lbs.)

(oz.)

(lbs.)

Stream:

Andacollo⁽³⁾

36,000

6,500

36,000

17,800

Mount Milligan⁽⁴⁾

190,000 - 210,000

39,100

190,000 - 210,000

81,800

Copper

70 - 80 Million

20.6 Million

70 - 80 Million

37.9 Million

Pueblo Viejo⁽⁵⁾

400,000 - 440,000

N/A

104,000

N/A

400,000 - 440,000

N/A

330,000

N/A

Wassa⁽⁶⁾

155,000 - 170,000

38,000

155,000 - 170,000

125,600

Khoemacau⁽⁷⁾

N/A

Royalty:

Cortez⁽⁸⁾

280,000

102,000

280,000

190,600

Peñasquito⁽⁹⁾

475,000

29 Million

137,000

8.1 Million

475,000

29 Million

440,000

23.3 Million

Lead

150 Million

44 Million

150 Million

112 Million

Zinc

350 Million

114 Million

350 Million

297 Million

(1)

Production estimates received from our operators are for calendar 2022. There can be no assurance that production estimates received from the operators will be achieved. Please also refer to our cautionary language regarding forward-looking statements included herein, as well as the Risk Factors identified in Part I, Item 1A, of our Transition Report for information regarding factors that could affect actual results.

(2)

Actual production figures shown are from the operators and cover the period from January 1, 2022, through ~~March 31,~~September 30, 2022, unless otherwise noted in footnotes to this table. Such amounts may differ from our reported revenue and ~~production.~~production and are not reduced to show the production attributable to our interests.

(3)	The actual production figure shown for Andacollo is contained gold in concentrate.

(4)	The estimated production figures shown for Mount Milligan are payable gold and copper in concentrate. Actual figures reflect production through June 30, 2022.

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

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

(7)	The estimated ~~and actual~~ production figures for Khoemacau are not available through the ramp-up period.

(8)	~~Production from~~The estimated and actual production figures for Cortez represent the areas subject to our royalty ~~interests.~~interests excluding the production from the Cortez Complex Royalty.

(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.

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Property Developments

This section provides recent updates for our principal properties as reported by the operators, either directly to us or in their publicly available documents.

Stream Interests

Andacollo

Gold stream deliveries from Andacollo were approximately ~~6,100~~3,200 ounces for the three months ended ~~March 31,~~September 30, 2022, compared to approximately ~~10,700~~6,400 ounces for the three months ended ~~March 31,~~September 30, 2021. The decrease in deliveries resulted primarily from Andacollo experiencing lower gold grades and lower gold recoveries, ~~in line with the expected downward trend of gold grades,~~ as well as differences in the timing of shipments and settlements during the periods.

~~The~~As reported by Teck Resources Limited (“Teck”), a significant rainfall event in July caused operations to shut down for five days. We expect the impact of this shutdown will affect stream deliveries in the first quarter of 2023.

Gold production at Andacollo has trended lower since the beginning of 2021 due to lower ore grades, as anticipated in the mine plan. According to Teck, the period of lower grades is expected to last through 2023, and the mine plan then anticipates a transition to higher grade ore as the next phase of mining is developed over the following years. Teck has reported that the current life of mine for Andacollo is expected to continue until ~~2035. According to Teck,~~2035 and that additional permits or permit amendments 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~~290,700 ounces for the three months ended ~~March 31,~~September 30, 2022. First concentrate was shipped ~~in mid-July 2021~~ from Khoemacau in mid-July 2021 and ~~we received our first~~ silver stream deliveries ~~during~~to us were approximately 105,800 ounces for the ~~quarter~~three months ended September 30, 2021.

According to Khoemacau Copper Mining (Pty.) Limited (“KCM”), the operator of Khoemacau, ramp-up of operations continued and average monthly underground production increased consistently during the quarter ended ~~March 31,~~September 30, 2022, from approximately ~~3,900~~7,300 tonnes per day (8,000 tons per ~~day~~day) in ~~January~~June to approximately ~~6,300~~8,000 tonnes per day (8,800 tons per day) in September 2022. Production has reached the target mining rate of 10,000 tonnes 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~~(11,000 tons per day) for short periods during the ramp up period but has not yet been consistently sustained at this level. KCM expects to reach the target mining rate on a sustained basis toward the end of December 2022 and into the first quarter ~~ended March 31, 2022.~~of 2023.

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~~155,000 to 165,000 tonnes (171,000 to 182,000 ~~tons~~tons) of high-grade copper and silver concentrate a year, containing approximately ~~66,000~~60,000 to 65,000 tonnes (66,000 to 72,000 ~~tons~~tons) of payable copper and 1.8 to 2.0 million ounces of payable silver per year, over an approximate 20-year mine life from Zone 5.

~~During the quarter ended March 31, 2022, our interest in the payable silver from Khoemac~~au 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 ~~10,000~~18,400 ounces for the three months ended ~~March 31,~~September 30, 2022, compared to approximately ~~12,200~~10,800 ounces for the three months ended ~~March 31,~~September 30, 2021. ~~Decreased~~Increased gold deliveries resulted from differences in the timing of shipments and settlements during the periods and gold grade variability in the concentrate shipments.

Copper stream deliveries from Mount Milligan were approximately 4.5 million pounds during the three months ended September 30, 2022, compared to approximately 2.6 million pounds during the three months ended September 30, 2021. Increased deliveries resulted from differences in the timing of shipments and settlements during the periods.

~~Copper stream~~Stream deliveries during the quarter from Mount Milligan ~~were approximately 2.7~~provided for complete repayment of the $781.5 million ~~pounds during the three months ended March 31, 2022, compared~~advance deposit made by Royal Gold to ~~approximately 3.4 million pounds during the three months ended March 31, 2021. Decreased copper deliveries resulted from differences in the timing~~Thompson Creek Metals Company, Inc. (“Thompson Creek”), a subsidiary of ~~shipments and settlements during the periods.~~

~~On January 18, 2022,~~ Centerra Gold Inc. (“Centerra”) ~~reported updated guidance~~. Royal Gold contributed three advance payments prior to and during the development of the mine in 2010 through 2012, in return for the right to acquire 52.25% of the payable gold produced from 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 first half of the calendar year representing approximately 40% of the 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 a new National Instrument 43-101 (“NI 43-101”) technical report for Mount Milligan is expected to be issued in the 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 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 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 miningRoyal

2021

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~~depletion, while measured~~Gold and ~~indicated mineral resources increased~~Centerra subsequently amended the stream interest in 2016 to a 35% gold stream and 18.75% copper stream. Mount Milligan began commercial production in early 2014 and was Royal Gold’s first stream acquisition.

Subsequent to the end of the quarter on October 4, 2022, Centerra published the highlights of an updated life of mine plan for Mount Milligan. According to Centerra, the mine life is expected to be extended by ~~1.4~~over four years to 2033. Centerra expects total payable gold and copper to increase more than 800,000 ounces and 191 million pounds, respectively, from 2022 onwards when compared to the previous plan, with average annual production of 175,000 ounces of ~~contained~~ gold and ~~453~~68 million pounds of ~~contained copper,~~copper.

Centerra also indicated the potential for future resource growth due to anexploration success in areas proximal to the open pit. Centerra expects to file a new technical report detailing the life of mine plan and updated ~~mineral~~reserve and resource ~~estimate after completion~~information within 45 days of October 4, 2022. As a result of the ~~2021 infill drilling program. Additionally, over~~increase in proven and probable reserves as announced by Centerra, the ~~same period, inferred mineral resources increased by 125,000~~gold and copper depletion rates on our Mount Milligan stream decreased to $416 per ounce of gold and $1.06 per pound of copper as of September 30, 2022 from $703 per ounce of gold and $1.53 per pound of copper. Royal Gold will update its annual SK1300 disclosure for the Mount Milligan technical report update within its 2022 Annual Report on Form 10-K, which we expect to file in February 2023.

Centerra remains on track to meet 2022 production guidance of between 190,000 to 210,000 ounces of ~~contained~~payable gold and 19between 70 to 80 million pounds of ~~contained~~payable copper.

Pueblo Viejo

Gold stream deliveries from Pueblo Viejo were approximately ~~7,100~~8,900 ounces for the three months ended ~~March 31,~~September 30, 2022, compared to approximately ~~11,100~~9,200 ounces for the three months ended ~~March 31,~~September 30, 2021. ~~Decreased deliveries resulted from processing lower grade gold stockpile material.~~

During the current quarter, Barrick reported continued progress on the plant expansion and mine life extension project at Pueblo Viejo to increase throughput and allow the mine to maintain minimum average annual gold production of approximately 800,000 ounces after 2022 and beyond 2040 (100% basis).

With respect to the plant expansion, on August 8, 2022, Barrick reported that as of June 30, 2022, overall construction was 56% complete and it expects the expansion to be substantially completed by the end of 2022 with commissioning in the first quarter of 2023. With respect to the mine life extension, Barrick also disclosed that social, environmental and technical studies for additional tailings capacity continued to advance, and that a preferred site for a tailings storage facility (“TSF”) had been put forward for further evaluation. Barrick reported that the final location and construction of the additional TSF would be subject to the completion of an Environmental and Social Impact Assessment (“ESIA”) in accordance with Dominican Republic legislation and international standards, which would then be submitted to the Government of the Dominican Republic for evaluation and final decision. Further according to Barrick, basic engineering of the additional TSF is expected to be completed in the fourth quarter of 2022.

Silver stream deliveries were approximately ~~274,500~~319,100 ounces for the three months ended ~~March 31,~~September 30, 2022, compared to ~~approximately 247,500~~396,500 ounces for the three months ended ~~March 31,~~September 30, 2021. ~~Deliveries during~~During the ~~first~~third quarter ~~included approximately 20,000~~an additional 47,000 ounces of ~~deferred silver.~~silver deliveries were deferred. 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,~~September 30, 2022, approximately ~~439,000~~530,000 ounces remain ~~deferred, and the timing for the delivery of the entire deferred amount is uncertain.~~

~~On February 16, 2022, Barrick reported~~deferred. We expect 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~~silver recoveries could remain highly variable until the plant expansion project is complete and ~~mine life extension project to increase throughput~~bottlenecks associated with the silver circuit and ~~allow the mine to maintain minimum average annual gold production~~silver recovery can be fully addressed, and we do not expect material deliveries of approximately 800,000 ounces after calendar 2022 and beyond calendar 2040 (100% basis). With respect to the plant expansion, on May 4, 2022, Barrick reported that as of 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 April 8, 2022, Barrick further reported that the Government of the Dominican Republic had completed its strategic review of alternative sites for the location of the 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 evaluation and final decision.deferred silver this year.

Wassa

Gold stream deliveries from Wassa were approximately ~~4,500~~4,800 ounces for the three months ended ~~March 31,~~September 30, 2022, compared to approximately ~~4,400~~4,300 ounces for the three months ended ~~March 31,~~September 30, 2021.

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Royalty Interests

Cortez

~~Gold production~~Production attributable to our royalty interest at Cortez was approximately ~~102,000~~36,600 ounces of gold for the three months ended ~~March 31,~~September 30, 2022, compared to approximately ~~51,900~~98,300 ounces of gold for the three months ended ~~March 31,~~September 30, 2021. ~~The increase was due~~This production is attributable to ~~increased production from~~the Company’s legacy royalty interests, including overlapping royalties at the Pipeline ~~pit, offset by a reduction in production from Crossroads.~~and Crossroads deposits (known as GSR1, GSR2, GSR 3, NVR1 and NVR1C). Refer to the Business Trends and Uncertainties section of this MD&A for information on the recent Cortez Complex Royalty acquisition.

~~Nevada Gold Mines LLC (“NGM”) recently provided an updated mineral reserve~~On August 8, 2022, Barrick reported that mining of Phase 5 of Crossroads is expected to deliver oxide ore and ~~life~~underpin stronger performance for Cortez in the December quarter 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.2022.

~~Table~~As a result of ~~Contents~~

~~NGM expects~~the acquisition of the Cortez Complex Royalty, there has been an increase of over 300% in gold ~~production subject~~mineral reserves and an increase of over 1200% in measured and indicated gold mineral resources attributable to our royalty interests ~~covering~~at Cortez beyond the ~~Crossroads~~resources and ~~Pipeline areas of approximately 280,000 ounces~~reserves previously disclosed 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 provideddetail in ~~calendar 2021 primarily due~~our Transition Report. Refer to the ~~overall optimization of production~~“Property Mineral Reserve 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.~~Mineral Resource Update for Cortez” section below.

Peñasquito

~~Production attributable to our royalty interest~~During the three months ended September 30, 2022, gold production at Peñasquito was approximately ~~133,400 ounces of gold, 7.65~~144,300 ounces; silver production was approximately 6.80 million ~~ounces of~~ounces; lead production was approximately 29.6 million pounds; and zinc production was approximately 84.6 million pounds. Gold production was approximately 170,400 ounces; silver production was approximately 7.79 million ounces; lead production was approximately 41.9 million ~~pounds of lead~~pounds; and ~~120~~zinc production was approximately 98.3 million pounds ~~of zinc for~~during 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,~~September 30, 2021. ~~Gold production was lower compared to the prior year quarter due to lower grade ore milled and 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 Chile Colorado pit and stripping of the next phases of the Peñasco and Chile Colorado pits continuing through calendar 2023. Newmont expects co-product production at Peñasquito in calendar 2022 to be 29 million ounces of silver, 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 Chile Colorado pit.

Results of Operations

Quarter Ended ~~March 31,~~September 30, 2022, Compared to Quarter Ended ~~March 31,~~September 30, 2021

For the quarter ended ~~March 31,~~September 30, 2022, we recorded net income and comprehensive income attributable to Royal Gold stockholders (“net income”) of ~~$65.7~~$45.8 million, or ~~$1.00~~$0.70 per basic and diluted share, as compared to net income of ~~$54.0~~$70.2 million, or ~~$0.82~~$1.07 per basic and diluted share, for the quarter ended ~~March 31,~~September 30, 2021. The ~~increase~~decrease in net income was primarily attributable to ~~an increase~~a decrease in revenue, as discussed below.

For the quarter ended ~~March 31,~~September 30, 2022, we recognized total revenue of ~~$162.4~~$131.4 million, comprised of stream revenue of ~~$105.3~~$98.7 million and royalty revenue of ~~$57.1~~$32.7 million at an average gold price of ~~$1,877~~$1,729 per ounce, an average silver price of ~~$24.01~~$19.23 per ounce and an average copper price of ~~$4.53~~$3.51 per pound. This is compared to total revenue of ~~$142.6~~$174.4 million for the three months ended ~~March 31,~~September 30, 2021, comprised of stream revenue of ~~$95.3~~$115.9 million and royalty revenue of ~~$47.3~~$58.5 million, at an average gold price of ~~$1,794~~$1,790 per ounce, an average silver price of ~~$26.26~~$24.36 per ounce and an average copper price of ~~$3.86~~$4.25 per pound. Revenue and the corresponding production attributable to our stream and royalty interests for the quarter ended ~~March 31,~~September 30, 2022, compared to the quarter ended ~~March 31,~~September 30, 2021, are as follows:

2223

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Revenue and Reported Production Subject to Our Stream and Royalty Interests

(Amounts in thousands, except reported production oz. and lbs.)


		Three Months Ended				Three Months Ended					Three Months Ended				Three Months Ended
		March 31, 2022				March 31, 2021					September 30, 2022				September 30, 2021
				Reported				Reported					Reported				Reported
Stream/Royalty	Metal(s)	Revenue		Production⁽¹⁾		Revenue		Production⁽¹⁾		Metal(s)	Revenue		Production⁽¹⁾		Revenue		Production⁽¹⁾
Stream⁽²⁾:
Mount Milligan		$	42,416			$	33,803				$	41,553			$	53,455
	Gold			13,900	oz.			9,200	oz.	Gold			18,200	oz.			19,300	oz.
	Copper			3.6	Mlbs.			4.4	Mlbs.	Copper			2.7	Mlbs.			4.4	Mlbs.
Pueblo Viejo		$	23,264			$	30,173				$	21,156			$	27,198
	Gold			8,600	oz.			10,500	oz.	Gold			8,600	oz.			9,800	oz.
	Silver			316,000	oz.			418,200	oz.	Silver			307,100	oz.			386,500	oz.
Andacollo	Gold	$	15,674	8,400	oz.	$	13,022	7,100	oz.	Gold	$	12,170	6,800	oz.	$	11,601	6,500	oz.
Wassa	Gold	$	7,202	3,900	oz.	$	8,774	4,800	oz.	Gold	$	7,390	4,200	oz.	$	8,033	4,500	oz.
Khoemacau	Silver	$	2,389	102,700	oz.	$	—	—		Silver	$	5,050	255,900	oz.	$	107	4,500	oz.
Other⁽³⁾		$	14,306			$	9,574				$	11,413			$	15,527
	Gold			6,800	oz.			4,300	oz.	Gold			5,900	oz.			6,300	oz.
	Silver			70,500	oz.			66,200	oz.	Silver			51,100	oz.			165,400	oz.
Total stream revenue		$	105,251			$	95,346				$	98,732			$	115,921
												.
Royalty⁽²⁾:
Cortez	Gold	$	16,714	102,000	oz.	$	8,609	51,900	oz.
Peñasquito		$	13,094			$	13,128				$	9,010			$	12,212
	Gold			133,400	oz.			180,400	oz.	Gold			144,300	oz.			170,300	oz.
	Silver			7.7	Moz.			8.1	Moz.	Silver			6.8	Moz.			7.8	Moz.
	Lead			41.9	Mlbs.			50.1	Mlbs.	Lead			29.6	Mlbs.			42.0	Mlbs.
	Zinc			120.1	Mlbs.			119.3	Mlbs.	Zinc			84.6	Mlbs.			98.3	Mlbs.
Cortez										Gold	$	4,562	36,600	oz.	$	17,126	106,300	oz.
Other⁽³⁾	Various	$	27,296	N/A		$	25,506	N/A		Various	$	19,125	N/A		$	29,172	N/A
Total royalty revenue		$	57,104			$	47,243				$	32,697			$	58,510
Total Revenue		$	162,355			$	142,589				$	131,429			$	174,431

(1)	Reported production relates to the amount of stream metal sales ~~subject~~and the metal sales attributable to our ~~stream and~~ royalty interests for the three months ended ~~March 31,~~September 30, 2022, and 2021, and may differ from the operators’ public reporting.

(2)	Refer to “Property Developments” above for a discussion of recent developments at principal properties.

(3)	Individually, except for our stream interest at Rainy River, which contributed 6% of total revenue for the three months ended ~~March 31, 2022 and~~September 30, 2021, no stream or royalty included within the “Other” category contributed greater than 5% of our total revenue for either period.

The ~~increase~~decrease in our total revenue resulted primarily from ~~higher~~lower gold sales at Mount Milligan and ~~Andacollo, an increase in the average gold and copper prices, higher~~Pueblo Viejo, lower gold production at Cortez and ~~$4.0 million of revenue from the newly acquired NX Gold stream,~~Peñasquito, and lower average gold, silver and copper prices. The decrease was offset by ~~a decrease in gold and~~higher silver sales ~~from Pueblo Viejo compared to~~at Khoemacau, which shipped its first concentrate during the prior ~~period.~~ year quarter.

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Gold and silver ounces and copper pounds purchased and sold during the three months ended ~~March 31,~~September 30, 2022 and 2021,

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


	Three Months Ended		Three Months Ended		As of	As of	Three Months Ended		Three Months Ended		As of	As of
	March 31, 2022		March 31, 2021		March 31, 2022	December 31, 2021	September 30, 2022		September 30, 2021		September 30, 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	10,000	13,900	12,000	9,200	200	4,100	18,400	18,200	10,800	19,300	8,700	4,100
Andacollo	6,100	8,400	10,700	7,100	—	2,200
Pueblo Viejo	7,100	8,600	11,100	10,500	7,100	8,600	8,900	8,600	9,200	9,800	8,900	8,600
Wassa	4,500	3,900	4,400	4,800	2,200	1,600	4,800	4,200	4,300	4,500	2,000	1,600
Andacollo							3,200	6,800	6,400	6,500	—	2,200
Other	6,600	6,800	4,600	4,300	2,000	2,200	7,100	5,900	7,500	6,300	3,100	2,200
Total	34,300	41,600	42,800	35,900	11,500	18,700	42,400	43,700	38,200	46,400	22,700	18,700

	Three Months Ended		Three Months Ended		As of	As of	Three Months Ended		Three Months Ended		As of	As of
	March 31, 2022		March 31, 2021		March 31, 2022	December 31, 2021	September 30, 2022		September 30, 2021		September 30, 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	274,500	316,000	247,500	418,200	274,500	316,000	319,100	307,100	396,500	386,500	319,100	316,000
Khoemacau	115,200	102,700	—	—	54,500	42,000
Khoemacau							290,700	255,900	105,800	4,500	114,400	42,000
Other	51,100	70,500	72,200	66,200	15,000	34,300	64,300	51,100	109,700	165,400	29,600	34,300
Total	440,800	489,200	319,700	484,400	344,000	392,300	674,100	614,100	612,000	556,400	463,100	392,300

	Three Months Ended		Three Months Ended		As of	As of	Three Months Ended		Three Months Ended		As of	As of
	March 31, 2022		March 31, 2021		March 31, 2022	December 31, 2021	September 30, 2022		September 30, 2021		September 30, 2022	December 31, 2021
Copper Stream	Purchases (Mlbs.)	Sales (Mlbs.)	Purchases (Mlbs.)	Sales (Mlbs.)	Inventory (Mlbs.)	Inventory (Mlbs.)	Purchases (Mlbs.)	Sales (Mlbs.)	Purchases (Mlbs.)	Sales (Mlbs.)	Inventory (Mlbs.)	Inventory (Mlbs.)
Mount Milligan	2.7	3.6	3.3	4.4	-	0.9	4.5	2.7	2.6	4.4	1.8	0.9

Cost of sales, which excludes depreciation, depletion and amortization, ~~increased~~decreased to ~~$22.6~~$23.2 million for the three months ended ~~March 31,~~September 30, 2022, from ~~$21.5~~$27.2 million for the three months ended ~~March 31,~~September 30, 2021. The ~~increase,~~decrease, when compared to the prior period, was primarily due to ~~an increase~~a decrease in gold and silver sales ~~from~~at Pueblo Viejo and lower gold sales at Mount Milligan, offset by ~~a decrease in gold~~higher silver sales at ~~Pueblo Viejo.~~Khoemacau. Stream deliveries from Khoemacau began in the prior year quarter. Cost of sales is specific to our stream agreements and is the result of 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 costs increased to ~~$8.9~~$7.6 million for the three months ended ~~March 31,~~September 30, 2022, from ~~$6.9~~$7.1 million for the three months ended ~~March~~September 30, 2021. The increase was primarily due to an increase in employee-related costs including non-cash compensation expense.

Depreciation, depletion and amortization decreased to $37.8 million for the three months ended September 30, 2022, from $50.6 million for the three months ended September 30, 2021. The decrease was primarily due to lower gold production at Cortez and lower gold sales and at Mount Milligan. Lower depletion rates at Mount Milligan compared to the prior quarter also contributed to the decrease. Refer to Note 3 of our notes to consolidated financial statements for further discussion on the decrease in depletion rates at Mount Milligan. The decrease was partially offset by additional depletion from Khoemacau which produced first deliveries in the prior year comparable quarter.

Interest and other expense increased to $8.8 million for the three months ended September 30, 2022, from $1.9 million for the three months ended September 30, 2021. The increase was primarily due to higher interest expense as a result of the $500 million draw on the revolving credit facility and foreign exchange losses related to the GBR acquisition.

For the three months ended September 30, 2022, we recorded an income tax expense of $11.0 million, compared with income tax expense of $16.0 million for the three months ended September 30, 2021. The income tax expense resulted in an effective tax rate of 19.3% in the current period, compared with 18.5% for the three months ended September 30, 2021.

Nine Months Ended September 30, 2022, Compared to Nine Months Ended September 30, 2021

For the nine months ended September 30, 2022, we recorded net income and comprehensive income attributable to Royal Gold stockholders (“net income”) of $182.6 million, or $2.78 per basic and diluted share, as compared to net income of $205.9 million, or $3.14 per basic and diluted share, for the nine months ended September 30, 2021.

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For the nine months ended September 30, 2022, we recognized total revenue of $440.2 million, comprised of stream revenue of $308.9 million and royalty revenue of $131.4 million at an average gold price of $1,824 per ounce, an average silver price of $21.92 per ounce and an average copper price of $4.11 per pound. This is compared to total revenue of $485.0 million for the nine months ended September 30, 2021, comprised of stream revenue of $325.7 million and royalty revenue of $159.4 million, at an average gold price of $1,800 per ounce, an average silver price of $25.75 per ounce and an average copper price of $4.17 per pound. Revenue and the corresponding production attributable to our stream and royalty interests for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021, are as follows:

Revenue and Reported Production Subject to Our Stream and Royalty Interests

(Amounts in thousands, except reported production oz. and lbs.)


		Nine Months Ended				Nine Months Ended
		September 30, 2022				September 30, 2021
				Reported				Reported
Stream/Royalty	Metal(s)	Revenue		Production⁽¹⁾		Revenue		Production⁽¹⁾
Stream⁽²⁾:
Mount Milligan		$	129,596			$	131,061
	Gold			47,600	oz.			44,700	oz.
	Copper			10.3	Mlbs.			12.2	Mlbs.
Pueblo Viejo		$	64,232			$	83,957
	Gold			24,300	oz.			31,400	oz.
	Silver			.9	Moz.			1.1	Moz.
Andacollo	Gold	$	39,565	21,500	oz.	$	52,491	29,000	oz.
Khoemacau	Silver		12,641	580,400	oz.	$	107	4,500	oz.
Wassa	Gold	$	22,840	12,500	oz.	$	23,935	13,200	oz.
Other⁽³⁾		$	39,989			$	34,137
	Gold			19,600	oz.			14,500	oz.
	Silver			175,300	oz.			303,700	oz.
Total stream revenue		$	308,863			$	325,688

Royalty⁽²⁾:
Peñasquito		$	31,768			$	38,739
	Gold			408,300	oz.			530,500	oz.
	Silver			22.6	Moz.			23.5	Moz.
	Lead			106.6	Mlbs.			133.8	Mlbs.
	Zinc			289.6	Mlbs.			319.3	Mlbs.
Cortez	Gold	$	29,413	190,600	oz.	$	39,475	241,300	oz.
Other⁽³⁾	Various	$	70,182	N/A		$	81,145	N/A
Total royalty revenue		$	131,363			$	159,359
Total revenue		$	440,226			$	485,047

⁽¹⁾	Reported production relates to the amount of stream metal sales and the metal sales attributable to our royalty interests for the nine months ended September 30, 2022, and 2021, and may differ from the operators’ public reporting.

⁽²⁾	Refer to “Property Developments” above for a discussion of recent developments at principal properties.

⁽³⁾	Individually, except for our stream interest at Rainy River, which contributed 6% of total revenue for the nine months ended September 30, 2022 and 2021, no stream or royalty included within the “Other” category contributed greater than 5% of our total revenue for either period.

The decrease in our total revenue resulted primarily from lower gold sales at Andacollo and Pueblo Viejo and lower gold production at Cortez and Peñasquito. The decrease was offset by $26.1 million of new revenue from the NX Gold and Khoemacau streams which were not in full production during the prior year comparable period.

Cost of sales, which excludes depreciation, depletion and amortization, decreased to $69.7 million for the nine months ended September 30, 2022, from $73.4 million for the nine months ended September 30, 2021. The decrease, when compared to the prior period, was primarily due to a decrease in gold and silver sales at Pueblo Viejo and lower gold sales at Andacollo, offset by higher silver sales at Khoemacau. Stream deliveries from Khoemacau began in the prior year comparable period. Cost of sales is specific to our stream agreements and is the result of 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

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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.

Gold and silver ounces and copper pounds purchased and sold during the nine months ended September 30, 2022 and 2021, and gold and silver ounces and copper pounds in inventory as of September 30, 2022, and December 31, 2021, for our streaming interests were as follows:

Revenue and Reported Production Subject to Our Stream and Royalty Interests

(Amounts in thousands, except reported production oz. and lbs.)


	Nine Months Ended		Nine Months Ended		As of	As of
	September 30, 2022		September 30, 2021		September 30, 2022	December 31, 2021
Gold Stream	Purchases (oz.)	Sales (oz.)	Purchases (oz.)	Sales (oz.)	Inventory (oz.)	Inventory (oz.)
Mount Milligan	52,200	47,600	43,800	44,700	8,700	4,100
Pueblo Viejo	24,600	24,300	30,100	31,400	8,900	8,600
Andacollo	19,300	21,500	28,400	29,000	—	2,200
Wassa	12,800	12,500	12,300	13,200	2,000	1,600
Other	20,500	19,600	15,800	14,500	3,100	2,200
Total	129,400	125,500	130,400	132,800	22,700	18,700

	Nine Months Ended		Nine Months Ended		As of	As of
	September 30, 2022		September 30, 2021		September 30, 2022	December 31, 2021
Silver Stream	Purchases (oz.)	Sales (oz.)	Purchases (oz.)	Sales (oz.)	Inventory (oz.)	Inventory (oz.)
Pueblo Viejo	900,700	897,600	1,030,500	1,052,100	319,100	316,000
Khoemacau	652,800	580,400	105,800	4,500	114,400	42,000
Other	170,600	175,300	280,500	303,700	29,600	34,300
Total	1,724,100	1,653,300	1,416,800	1,360,300	463,100	392,300

	Nine Months Ended		Nine Months Ended		As of	As of
	September 30, 2022		September 30, 2021		September 30, 2022	December 31, 2021
Copper Stream	Purchases (Mlbs.)	Sales (Mlbs.)	Purchases (Mlbs.)	Sales (Mlbs.)	Inventory (Mlbs.)	Inventory (Mlbs.)
Mount Milligan	11.2	10.3	11.2	12.2	1.8	0.9

General and administrative costs increased to $25.8 million for the nine months ended September 30, 2022, from $21.3 million for the nine months ended September 30, 2021. The increase was primarily due to an increase in employee-related costs including non-cash compensation expense, as well as higher costs associated with certain environmental, social and governance ~~(“ESG”)~~ initiatives.

Depreciation, depletion and amortization ~~increased~~decreased to ~~$48.0~~$129.7 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2022, from ~~$41.3~~$139.9 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2021. The ~~increase~~decrease was primarily due to ~~higher~~lower gold sales ~~from~~at Mount Milligan ~~higher~~and Andacollo and lower gold ~~production~~and silver sales at ~~Cortez and~~Pueblo Viejo. Refer to Note 3 of our notes to consolidated financial statements for further discussion on the decrease in depletion rates at Mount Milligan. The decrease in depletion was partially offset by the additional depletion from the newly acquired Khoemacau and NX Gold streams when compared to the prior year period.

Interest and other expense increased to $11.1 million for the nine months ended September 30, 2022, from $4.9 million for the nine months ended September 30, 2021. The increase was ~~partially offset by lower gold~~primarily due to higher interest expense as a result of the $500 million draw on the revolving credit facility in July 2022 as part of the Cortez Complex Royalty acquisition discussed earlier in this MD&A and ~~silver sales from Pueblo Viejo.~~foreign exchange losses related to the GBR acquisition.

For the ~~three~~nine months ended ~~March 31,~~September 30, 2022, we recorded income tax expense totaling ~~$15.3~~$20.3 million, compared with income tax expense of ~~$17.7~~$39.2 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2021. The income tax expense resulted in an effective tax rate of ~~18.8%~~10.0% in the current period, compared with ~~24.6%~~16.0% for the ~~three~~nine months ended ~~March 31,~~September 30, 2021. The ~~three~~nine months ended ~~March 31, 2021,~~September 30, 2022, included ana discrete income tax ~~expense~~benefit attributable to ~~an increase in~~the release of a valuation allowance on certain deferred tax assets. The nine months ended September 30, 2021, included a discrete tax benefit attributable to the settlement of an uncertain tax position with a foreign jurisdiction.

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Liquidity and Capital Resources

Overview

At ~~March 31,~~September 30, 2022, we had current assets of ~~$258.6~~$181.8 million compared to current liabilities of ~~$49.5~~$64.5 million, which resulted in working capital of ~~$209.1~~$117.3 million and a current ratio of 53 to 1. This compares to current assets of $216.0 million and current liabilities of $61.4 million at December 31, 2021, resulting in working capital of $154.6 million and a current ratio of approximately 4 to 1. The ~~increase~~decrease in working capital was primarily due to ~~an increase~~a decrease in our available cash ~~resulting from increased revenue during~~as a result of the ~~current period.~~Cortez Complex Royalty and GBR acquisitions.

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During the ~~three~~nine months ended ~~March 31,~~September 30, 2022, liquidity needs were met from ~~$101.1~~$316.3 million in net cash provided by operating activities and our available cash resources. As of ~~March 31,~~September 30, 2022, we had ~~$1 billion~~$550 million available and $450 million outstanding under our revolving credit facility. Working capital, combined with available capacity under our revolving credit facility, resulted in approximately ~~$1.2 billion~~$667 million of total liquidity at ~~March 31,~~September 30, 2022. We were in compliance with each financial covenant under the revolving credit facility as of ~~March 31,~~September 30, 2022. Refer to Note 5 of our notes to consolidated financial statements and below under Recent Liquidity Developments 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, including any conditional funding schedules. Our long-term capital requirements are primarily affected by our ongoing acquisition activities. We currently, and generally at any time, have acquisition opportunities in various stages of active review. In the event of one or more substantial stream 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 Transition Report for a discussion of certain risks that may impact our liquidity and capital resources.

Recent Liquidity Developments

Revolving Credit Facility Draw

In July 2022, we borrowed $500 million under our revolving credit facility to fund the acquisition of the Cortez Complex Royalty, and on September 6, 2022, we made a $50 million principal payment towards the outstanding balance leaving $550 million available as of September 30, 2022.

Cash Flows

Operating Activities

Net cash provided by operating activities totaled ~~$101.1~~$316.3 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2022, compared to ~~$92.2~~$343.0 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2021. The ~~increase~~decrease was primarily due to ~~an increase~~a decrease in cash proceeds received from our stream ~~and royalty~~ interests, net of cost of sales, ~~and production taxes,~~ of approximately ~~$9.1 million.~~$16.9 million compared to the prior year period. Higher income taxes paid due to the change in year-end of $9.8 million compared to the prior year period also contributed to the decrease.

Investing Activities

Net cash used in investing activities totaled ~~$37.8~~$716.5 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2022, compared to ~~$33.7~~$401.6 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2021. The increase over the prior year period was primarily due to higher acquisitions of royalty interests due to the ~~acquisition of stream~~GBR and ~~royalty interests.~~Cortez Complex Royalty acquisitions.

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Financing Activities

Net cash ~~used in~~provided by financing activities totaled ~~$23.2~~$378.9 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2022, compared to net cash used in financing activities of ~~$70.1~~$163.1 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2021. The ~~decrease~~increase was primarily due to a ~~repayment of $50~~$500 million draw on our revolving credit facility during the ~~prior~~current year ~~quarter.~~period.

Recently Adopted Accounting Standards and Critical Accounting Policies

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

Property Mineral Reserve and Mineral Resource Update for Cortez

Below is certain updated information regarding the estimates of mineral resources and mineral reserves (as such terms are defined in Subpart 1300 of Regulation S-K (“SK1300”)) previously reported by the operator of Cortez and included in our Transition Report on Form 10-KT (“Form 10-KT”) and our Current Report on Form 8-K dated April 12, 2022.

On August 1, 2022, we acquired an additional royalty at Cortez that we refer to as the Cortez Complex Royalty. The updated disclosures herein reflect the change in Royal Gold’s royalty position on the Cortez property as a result of that acquisition.

We own various royalty positions at Cortez, including: (1) overlapping royalties covering the Pipeline and Crossroads deposits (known as GSR1, GSR2, GSR 3, NVR1 and NVR1C); (2) a 1% NVR on a portion of the Goldrush development property (NVR2); and (3) the Cortez Complex Royalty. The Cortez Complex Royalty covers an area including the Cortez mine operational area (including the Fourmile development project owned by Barrick). Refer to footnote 3 in each of the tables below for further detail regarding our royalties at Cortez.

Deductions under the Cortez Complex Royalty are limited to third-party royalties that existed prior to the creation of the royalty in 2008, which include the royalties listed under (1) and (2) above. The Cortez Complex Royalty is not subject to any stepdowns or caps. Based on the information available to Royal Gold, the Cortez Complex Royalty does not cover the existing deposits in the Robertson property.

As a result of the acquisition of the Cortez Complex Royalty, there has been an increase of 380% in gold mineral reserves and an increase of 1230% in measured and indicated gold mineral resources attributable to our royalty interests at Cortez beyond the resources and reserves previously disclosed in detail in our Transition Report.

The disclosures below are derived from the Annual Information Form of Barrick, dated March 18, 2022, attached as Exhibit 99.1 to Barrick’s Annual Report on Form 40-F for the year ended December 31, 2021, which reports resources and reserves for Cortez pursuant to National Instrument 43-101 and CIM Standards, and nonpublic mineral resource and reserve updates provided by Barrick to us specific to the portions of the property to which our legacy royalty interests apply. Measurement units presented in this section are US standard units. There may be rounding differences due to unit conversions.

Table 1 Cortez – Summary of Gold Mineral Resources at December 31, 2021, Based on $1,500 Au ^(1)(2)(3)

	Amount Tons (M)	Au Grade opt	Cut-Off Grade	Metallurgical Recovery
Measured Mineral Resources	0.8	0.203	(4)	(4)
Indicated Mineral Resources	28.1	0.099	(4)	(4)
Measured + Indicated Mineral Resources	28.9	0.102	(4)	(4)
Inferred Mineral Resources	47.5	0.159	(4)	(4)

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⁽¹⁾	Mineral resources are estimated by Barrick as at December 31, 2021, and are shown exclusive of mineral reserves
⁽²⁾	Cortez mineral resources as reported by Barrick under its March 18, 2022, filing and separately to us are determined pursuant to CIM Standards.
⁽³⁾	We control various royalty positions at Cortez, including (i) the overlapping royalties covering the Pipeline and Crossroads deposits (known as GSR1, GSR2, GSR 3, NVR1 and NVR1C), which are equivalent to an approximate 8% gross smelter return royalty and cover 5.7 million tons of measured and indicated mineral resources at an average grade of 0.039 opt; (ii) NVR2 over a portion of the Goldrush property, which is a 1% NVR covering 1 million tons of indicated resource averaging 0.129 opt and 2.3 million tons of inferred resources grading 0.136 opt. and (iii) The Cortez Complex Royalty is an effective 1.2% gross royalty on the Cortez Complex at gold prices above $900 per ounce. Our resources for Cortez may vary from other information published by Barrick because we exclude any amounts for areas not covered by our royalties. Our royalties for Cortez cover all metals, but Barrick reports only gold resources for Cortez.
⁽⁴⁾	Specific cutoff grades and metallurgical recoveries used for resource estimates for Cortez have not been disclosed by Barrick.

Table 2 Cortez – Summary of Gold Mineral Reserves at December 31, 2021, Based on $1,200 Au and $16.50 Ag ^(1)(2)(3)

	Amount Tons (M)	Au Grade opt	Cut-Off Grade	Metallurgical Recovery
Proven Mineral Reserves	4.0	0.126	(4)	(4)
Probable Mineral Reserves	113.8	0.122	(4)	(4)
Total Mineral Reserves	117.7	0.122	(4)	(4)

contr
⁽¹⁾	Mineral reserves are estimated by Barrick as at December 31, 2021.
⁽²⁾	Cortez mineral reserves are reported by Barrick pursuant to CIM Standards.
⁽³⁾	We control various royalty positions at Cortez, including (i) the overlapping royalties covering the Pipeline and Crossroads deposits (known as GSR1, GSR2, GSR 3, NVR1 and NVR1C), which are equivalent to an approximate 8% gross smelter return royalty and cover 62.4 million tons of probable reserves at an average grade of 0.048 opt, (ii) (ii) NVR2 over a portion of the Goldrush property, which is a 1% NVR covering 5.4 million tons of probable reserves averaging 0.208 opt and (iii) The Cortez Complex Royalty is an effective 1.2% gross royalty on the Cortez Complex at gold prices above $900 per ounce. Our reserves for Cortez may vary from other information published by Barrick because we exclude any amounts for areas not covered by our royalties. Our royalties for Cortez cover all metals, but Barrick reports only gold reserves for the property.
⁽⁴⁾	Reserves have been estimated based on an assumed gold price of $1,200 per ounce and an assumed silver price of $16.50 per ounce. Specific cutoff grades and metallurgical recoveries used for mineral reserve estimates for Cortez have not been disclosed by Barrick.

Forward-Looking Statements

This report and our other public communications include “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from these statements.

Forward-looking statements are often identified by words like “will,” “may,” “could,” “should,” “would,” “believe,” “estimate,” “expect,” “anticipate,” “plan,” “forecast,” “potential,” “intend,” “continue,” “project,” or negatives of these words or similar expressions. Forward-looking statements include, among others, statement regarding the following: ~~statements about~~volatility of metal prices and factors impacting same; our expected financial performance and outlook, including sales volume, revenue, expenses, tax rates, earnings or cash flow; operators’ expected operating and financial performance, including production, deliveries, mine plans, mine lives, facilities, mineral resources

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and reserves, access to and adequacy of water sources, development, cash flows, capital expenditures, and ~~capital expenditures; liquidity, financing~~permitting and ~~stockholder returns; our overall investment portfolio; macroeconomic and market conditions including~~environmental impact studies; effects of the ~~impacts of COVID-19; prices for gold, silver, copper, nickel and other metals;~~pandemic; estimates of fair value and potential impairments; tax changes; deferral of silver ounces from Pueblo Viejo; impact on stream deliveries due to rainfall and ~~tax changes.~~the resulting temporary shutdown of operations at Andacollo; anticipated stronger performance at Cortez for the fourth quarter of 2022; adequacy of our current financial resources and funds from operations to cover anticipated expenditures for the foreseeable future; seeking additional debt or equity

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financing as necessary; borrowing and repaying amounts under our revolving credit facility; and disclosure controls and procedures and internal controls over financial reporting.

~~Factors~~The risks and uncertainties that could cause actual results to differ materially from ~~these forward-looking~~those in forward looking statements include, ~~among others, the following:~~without limitation, a lower-price environment for gold, silver, copper, nickel or other metals; operating activities or financial performance of ~~properties on which we hold stream or royalty interests,~~operators, including inaccuracies in ~~operators’~~the operator’s disclosures, variations between actual and forecasted performance, ~~operators’~~the operator’s ability to complete projects on schedule and as planned, ~~operators’~~the operator’s changes to mine plans and ~~mineral~~reserves and resources, ~~and reserves,~~the operator’s 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,~~agreement, or operational disruptions due to ~~COVID-19,~~public health crises; environmental risks, including ~~due to variant strains of the virus;~~those caused by climate change; potential cyber-attacks, including ransomware; 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~~effects of global and ~~complete acquisitions; adverse~~regional economic and market ~~conditions;~~conditions, including as a result of government policies, war, natural disasters, and public health issues; changes in laws or regulations governing us, operators or operating properties; changes in management and key employees; the risk that any announcement relating to an acquisition could have adverse effects on the market price of Royal Gold’s common stock; the risk of litigation related to acquisitions; and the diversion of management time from ongoing business operations due to acquisition-related issues; and other factors described in ~~Item 1A. Risk Factors of~~our reports filed with the Securities and Exchange Commission, including our Transition ~~Report and this Form 10-Q.~~Report. Most of these factors are beyond our ability to predict or control. Other unpredictable or unknown factors not discussed in this presentation could also have material adverse effects on 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, 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, 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 “Our revenue is subject to volatility in metal prices, which could negatively affect our results of operations or cash flow.” under Part I, Item 1A of our Transition Report, for more information about risks associated with metal price volatility.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2022, we reported revenue of ~~$162.4~~$440.2 million, with an average gold price for the period of ~~$1,877~~$1,824 per ounce, an average silver price of ~~$24.01~~$21.92 per ounce, and an average copper price of ~~$4.53~~$4.11 per pound. The table below shows the impact that a 10% increase or decrease in the average price of the specified metal would have had on our total reported revenue for the ~~three~~nine months ended ~~March 31,~~September 30, 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%~~73%	$~~14.1~~32.8 million
Copper	~~14%~~12%	$~~4.2~~9.7 million
Silver	~~10%~~11%	$~~0.7~~2.5 million

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer (the principal executive officer) and Chief Financial Officer (the principal financial and accounting officer), we evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of ~~March 31,~~September 30, 2022. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of ~~March 31,~~September 30, 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,~~September 30, 2022, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and 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 Royal Gold have been detected.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors included in the section entitled “Risk Factors” of our Transition Report.

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

Issuer Purchases of Equity Securities


Period	(a) Total Number of Shares Purchased⁽¹⁾	(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~~July 2022	—	—	N/A	N/A
~~February~~August 2022	—	—	N/A	N/A
~~March~~September 2022	—	—	N/A	N/A
Total	—	—$0.00	N/A	N/A

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURE

Not applicable.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS


Exhibit Number		Description

10.1*▲3.1		Amended and Restated Bylaws of Royal Gold, Inc. (filed as Exhibit 3.1 of the Current Report on Form ~~of Restricted Stock Agreement under Royal Gold’s 2015 Omnibus Long-Term Incentive Plan~~8-K on August 26, 2022, and incorporated herein by reference)

10.2*▲10.1		~~Form of Restricted Stock Unit~~Royalty Sale and Purchase Agreement, ~~under~~dated August 1, 2022, between 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~~Gold, Inc. and its wholly owned subsidiary RG Royalties, LLC, as purchaser parties, and Kennecott Royalty Company, as seller (filed as Exhibit 10.1 of the Current Report on Form 8-K on ~~April 11,~~August 2, 2022, and incorporated herein by reference). Certain portions of this Exhibit were redacted pursuant to Item 601 (b)(10) of Regulations S-K. The Company agrees to furnish supplementally an unredacted copy of this Exhibit to the SEC upon request.

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*		The following financial statements from Royal Gold, Inc.’s Quarterly Report on Form 10-Q for the quarter ended ~~March 31,~~September 30, 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,~~September 30, 2022, formatted in Inline XBRL (included as Exhibit 101).

*	Filed herewith.

‡	Furnished herewith.

▲	~~Identifies a management contract or compensation plan or arrangement.~~

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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: ~~May 5,~~November 3, 2022
	By:	/s/ William Heissenbuttel
		William Heissenbuttel
		President and Chief Executive Officer
		(Principal Executive Officer)

Date: ~~May 5,~~November 3, 2022	By:	/s/ Paul Libner
		Paul Libner
		Chief Financial Officer and Treasurer
		(Principal Financial and Accounting Officer)

3035

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

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


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

Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
Emerging growth company ☐


	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


	September 30,		December 31,
	2022		2021
ASSETS
Cash and equivalents	$	122,238	$	143,551
Royalty receivables		28,476		54,088
Income tax receivable		15,056		4,915
Stream inventory		13,691		11,607
Prepaid expenses and other		2,322		1,835
Total current assets		181,783		215,996
Stream and royalty interests, net (Note 3)		3,084,380		2,443,752
Other assets		110,630		97,284
Total assets	$	3,376,793	$	2,757,032
LIABILITIES
Accounts payable	$	7,332	$	6,475
Dividends payable		22,985		22,966
Income tax payable		21,716		19,070
Other current liabilities		12,443		12,917
Total current liabilities		64,476		61,428

Debt (Note 5)		446,327		—
Deferred tax liabilities		140,197		87,705
Other liabilities		5,854		6,688
Total liabilities		656,854		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 65,592,597 and 65,564,364 shares outstanding, respectively		656		656
Additional paid-in capital		2,211,353		2,206,159
Accumulated earnings		495,570		381,929
Total Royal Gold stockholders’ equity		2,707,579		2,588,744
Non-controlling interests		12,360		12,467
Total equity		2,719,939		2,601,211
Total liabilities and equity	$	3,376,793	$	2,757,032


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


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

		PAGE

PART I	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)

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

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1718

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	2732

Item 4.	Controls and Procedures	2732

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	2732

Item 1A.	Risk Factors	2732

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2833

Item 3.	Defaults Upon Senior Securities	2833

Item 4.	Mine Safety Disclosures	2833

Item 5.	Other Information	2833

Item 6.	Exhibits	2934

SIGNATURES		3035


	Royal Gold Stockholders											Royal Gold Stockholders

				Additional											Additional
	Common Shares			Paid-In		Accumulated		Non-controlling		Total		Common Shares			Paid-In		Accumulated		Non-controlling		Total
	Shares	Amount		Capital		Earnings		Interests		Equity		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
Balance at June 30, 2022												65,569,687	$	656	$	2,210,809	$	472,764	$	12,429	$	2,696,658
Stock-based compensation and related share issuances	4,435		—		2,266		—		—		2,266	22,910		—		544		—		—		544
Distributions to non-controlling interests	—		—		—		—		(329)		(329)	—		—		—		—		(210)		(210)
Net income and comprehensive income	—		—		—		65,675		287		65,962	—		—		—		45,792		141		45,933
Dividends declared	—		—		—		(22,996)		—		(22,996)	—		—		—		(22,986)		—		(22,986)
Balance at March 31, 2022	65,568,799	$	656	$	2,208,425	$	424,608	$	12,425	$	2,646,114
Balance at September 30, 2022												65,592,597	$	656	$	2,211,353	$	495,570	$	12,360	$	2,719,939

	Royal Gold Stockholders											Royal Gold Stockholders

				Additional											Additional
	Common Shares			Paid-In		Accumulated		Non-controlling		Total		Common Shares			Paid-In		Accumulated		Non-controlling		Total
	Shares	Amount		Capital		Earnings		Interests		Equity		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
Balance at June 30, 2021												65,551,061	$	656	$	2,203,863	$	286,249	$	12,647	$	2,503,415
Stock-based compensation and related share issuances	2,030		—		1,334		—		—		1,334	12,741		—		594		—		—		594
Distributions to non-controlling interests	—		—		—		—		(399)		(399)	—		—		—		—		(271)		(271)
Net income and comprehensive income	—		—		—		54,026		167		54,193	—		—		—		70,176		290		70,466
Dividends declared	—		—		—		(19,682)		—		(19,682)	—		—		—		(19,691)		—		(19,691)
Balance at March 31, 2021	65,550,445	$	656	$	2,202,410	$	224,254	$	12,805	$	2,440,125
Balance at September 30, 2021												65,563,802	$	656	$	2,204,457	$	336,734	$	12,666	$	2,554,513


	(in thousands)
Purchase Price	$	151,679
Cash		315
Other assets		293
Royalty interests in mineral property (Great Bear royalty)		151,071
Total allocated purchase price	$	151,679

Click or tap here to enter text.
As of March 31, 2022 (Amounts in thousands):	Cost		Accumulated Depletion		Net

As of September 30, 2022 (Amounts in thousands):							Cost		Accumulated Depletion		Net
Production stage stream interests:
Mount Milligan	$	790,635	$	(352,165)	$	438,470	$	790,635	$	(379,708)	$	410,927
Pueblo Viejo		610,405		(267,872)		342,533		610,404		(281,730)		328,674
Andacollo		388,182		(143,144)		245,038		388,182		(149,586)		238,596
Khoemacau		265,911		(4,963)		260,948		265,911		(11,621)		254,290
Rainy River		175,727		(53,285)		122,442		175,727		(58,328)		117,399
Wassa		146,475		(87,597)		58,878		146,475		(93,474)		53,001
Other		69,100		(6,254)		62,846		69,100		(11,200)		57,900
Total production stage stream interests		2,446,435		(915,280)		1,531,155		2,446,434		(985,647)		1,460,787

Production stage royalty interests:
Cortez								280,219		(28,352)		251,867
Voisey's Bay		205,724		(115,738)		89,986		205,724		(117,228)		88,496
Red Chris		116,187		(1,797)		114,390		116,187		(1,797)		114,390
Peñasquito		99,172		(54,243)		44,929		99,172		(56,529)		42,643
Cortez		80,681		(26,693)		53,988
Other		447,014		(390,227)		56,787		447,246		(395,641)		51,605
Total production stage royalty interests		948,778		(588,698)		360,080		1,148,548		(599,547)		549,001
Total production stage stream and royalty interests		3,395,213		(1,503,978)		1,891,235		3,594,982		(1,585,194)		2,009,788

Development stage stream interests:
Other		12,038		—		12,038		12,038		—		12,038
Development stage royalty interests:
Côté		45,421		—		45,421		45,421		—		45,421
Other		62,797		—		62,797		73,233				73,233
Total development stage stream and royalty interests		120,256		—		120,256		130,692		—		130,692

Exploration stage stream interests:
NX Gold		34,213		—		34,213		34,253		—		34,253
Exploration stage royalty interests:
Cortez								325,654		—		325,654
Great Bear								206,965		—		206,965
Pascua-Lama		177,690		—		177,690		177,690		—		177,690
Red Chris		48,895		—		48,895		48,895		—		48,895
Côté		29,610				29,610		29,610		—		29,610
Other		131,790		—		131,790		120,833		—		120,833
Total exploration stage stream and royalty interests		422,198		—		422,198		943,900		—		943,900
Total stream and royalty interests, net	$	3,937,667	$	(1,503,978)	$	2,433,689	$	4,669,574	$	(1,585,194)	$	3,084,380


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


	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