Royal Gold (RGLD) 47th Annual Raymond James Institutional Investor Conference summary

Business model and sector overview

• Operates as a royalty and streaming company focused on precious metals, primarily gold, with a passive investment approach and no direct exposure to mining operations or associated costs.

• Maintains a diversified portfolio of 360 mineral properties, with 80 generating revenue, and 78% of revenue derived from gold, mainly in Canada, the U.S., and Australia.

• Achieved an adjusted EBITDA margin of 82% in 2025, supported by a lean workforce of 39 employees and a market cap of $24 billion.

• Has paid an increasing annual dividend for 25 consecutive years and is the only precious metals company in the S&P High Yield Dividend Aristocrats Index.

• The business model is resilient across commodity cycles, with opportunities arising from project development, M&A, and balance sheet restructuring regardless of gold price levels.

Investment strategy and portfolio management

• Focuses on structuring deals creatively to meet counterparties' needs, often using step-downs in stream rates to align incentives and avoid caps to maintain life-of-mine exposure.

• Actively manages jurisdictional and concentration risks by investing in mining-friendly countries and diversifying assets, with no single asset (except Mount Milligan) representing more than 10% of NAV.

• Recent acquisitions, such as Sandstorm and Kansanshi, were structured to preserve liquidity and optimize capital allocation, with ongoing efforts to streamline the portfolio and exit non-core equity and debt holdings.

• Capital allocation priorities include new investments, debt repayment (targeting $725 million in revolving credit to be paid off within a year), and maintaining a sustainable, growing dividend.

• Concentration risk has been reduced over the past decade, with diversification now a key strategic goal.

Market positioning and competitive landscape

• Trades at a premium to producers due to lower risk and high margins, but currently at a discount to larger competitors, attributed to recent portfolio changes and market uncertainty.

• Faces increased competition as more entrants adopt the royalty model, differentiating through deal structuring rather than outbidding on price.

• Consolidation in the sector is limited by valuation gaps between large and mid-tier companies, though accretive transactions are pursued when possible.

• Portfolio includes exposure to new discoveries, such as Four Mile at Cortez, which exceeded expectations in grade and scale within three years of acquisition.

• Embedded growth potential exists in exploration and development projects, though significant new production from higher gold prices would take years to materialize.