Royal Gold (RGLD) Virtual Non-Deal Roadshow Series summary

Business performance and financial highlights

• Achieved record revenue, earnings, and cash flow for both Q4 and the full year, with an EBITDA margin of 84% in Q4 2024.

• Ended the year with zero debt and $1.2 billion in liquidity, providing flexibility for new transactions.

• Revenue was 76% gold, with 60% from Canada, USA, and Australia, reflecting a focus on safe jurisdictions.

• Maintained a high-margin, scalable business model with only 30 employees and low fixed G&A costs.

• Consistently increased dividends for 24 consecutive years, now included in the S&P High Yield Dividend Aristocrats Index.

Strategic approach and portfolio management

• Focuses on gold assets in stable jurisdictions with strong upside and counterparties, prioritizing asset-by-asset acquisitions over company purchases.

• Maintains strict due diligence, only investing when strategic criteria are met, and is willing to wait for the right opportunities.

• Portfolio is diversified across 42 producing mines and 133 development-stage assets, with over 50% of revenue from North America.

• Organic growth is driven by advancing assets within the portfolio, with recent examples including King of the Hills and Bellevue.

• Recent capital deployment of $1.2 billion since June 2021 focused on gold assets with significant upside in safe jurisdictions.

Risk management and market positioning

• Business model provides gold price leverage without direct exposure to operating or capital cost risks.

• Margins are less exposed to inflation due to low, mostly fixed G&A costs, unlike traditional gold producers.

• Maintains a strong balance sheet, using cash and a revolving credit facility for acquisitions, avoiding shareholder dilution.

• ESG considerations are integral to investment decisions, with top ratings from Sustainalytics and MSCI.

• Avoids high-risk jurisdictions and non-core commodities, focusing on precious metals and select opportunistic copper deals.