8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of 
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 31, 2018

ROYAL GOLD, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-13357	84-0835164
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

1660 Wynkoop Street, Suite 1000, Denver, CO	80202-1132
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 303-573-1660

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

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

Item 2.02

On October 31, 2018, Royal Gold, Inc. (the “Company”) reported its first quarter fiscal 2019 results. Copies of the press release and an earnings presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K.

The information furnished under this Item 2.02, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by reference to such filing.

Item 9.01Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release dated October 31, 2018 regarding First Quarter Fiscal 2019 Results.
99.2	Royal Gold, Inc. November 1, 2018 Earnings Presentation.

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 hereunto duly authorized.

	Royal Gold, Inc.
	(Registrant)
Dated:  November 1, 2018	By:	/s/ Bruce C. Kirchhoff
		Name:	Bruce C. Kirchhoff
		Title:	Vice President, General Counsel and Secretary

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EX-99.1

Exhibit 99.1

Royal Gold Reports First Quarter 2019 Results

DENVER, COLORADO.  OCTOBER 31, 2018: ROYAL GOLD, INC. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) reports net income of $15.0 million, or ($0.23 per share), on revenue of $100.0 million in its fiscal first quarter ended September 30, 2018 (“first quarter”).  Earnings were primarily impacted by lower sales as previously guided, lower metal prices, higher legal expenses and the adoption of new accounting guidance for equity securities.

First Quarter Highlights Compared to Prior Year Quarter:

·Revenue of $100.0 million, a decrease of 11.1%

·Operating cash flow of $44.6 million, a decrease of 37.7%

·Volume of 82,400 GEOs,(1) a decrease of 6.4%

·Dividends paid of $16.4 million, an increase of 4.4%

·Average gold price of $1,213 per ounce, a decrease of 5.1%

“As expected, deliveries from Mount Milligan during the first quarter were lower due to the suspension of operations earlier in the calendar year associated with water availability issues,” commented Tony Jensen, President and CEO.  “Peñasquito and Pueblo Viejo production were also lower but the operators expect improvements in the December quarter with higher grade ore anticipated.”

“Looking forward to long term value, we made important advancements during the first quarter by resolving the Voisey’s Bay royalty dispute and completing a preliminary economic assessment on the Peak Gold project, and Mount Milligan and Rainy River mill throughputs have recently improved to targeted levels.  Our financial position continues to strengthen with over $1.1 billion in capacity to take advantage of new business opportunities.”

Recent Developments

Mount Milligan

The temporary shutdown of the Mount Milligan processing facility that occurred earlier in calendar 2018 due to a lack of sufficient water sources resulted in a decrease in our gold and copper stream deliveries from the project during the first quarter.

On September 14, 2018, Centerra Gold Inc. (“Centerra”) reported that Mount Milligan received

(1)Gold Equivalent Ounces, (“GEOs”) are calculated as revenue divided by the average gold price for the same period. GEOs net of stream payments were 68,800 in the first quarter, compared to 72,000 in the prior first quarter, respectively.

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approval to access certain short-term water sources until November 15, 2018.  On October 31, 2018, Centerra provided the following update:  Centerra has made applications for certain additional / extended water sources until 2021.  Discussions are under way with regulators, First Nations and other affected stakeholders regarding these applications and Centerra expects that access to these sources may be granted as early as the end of January 2019.  However, these applications have not yet been granted and as the flow from the approved short-term water sources declines during the calendar fourth quarter and during the remainder of the winter season, Centerra expects to reduce Mount Milligan throughput to properly manage its water balance until the water flow increases in the spring.

In addition, development of a long-term water supply plan and methodology to assess water sources is under way, and applications and government review of that methodology are expected to commence within the fourth calendar quarter of 2018.  Centerra’s expectation is that its updated long-term water source (or sources) will be available from and after 2021 for the entire mine life.

Processing operations were impacted during the first quarter by unplanned shutdowns for primary crusher maintenance in July and maintenance to repair transformer damage from a lightning strike in September.  Although these two events reduced operating days, Centerra reaffirmed their annual guidance expectation.  Plant performance for the first quarter averaged 40,805 tonnes per calendar day, or approximately 55,000 tonnes per operating day, while throughput in August was 61,135 tonnes per operating day.

Resolution of Voisey’s Bay Royalty Dispute

On September 14, 2018, Royal Gold announced that the Labrador Nickel Royalty Limited Partnership (“LNRLP”) entered into an agreement with Vale Canada Limited (“Vale”) and certain of its subsidiaries to comprehensively settle long-standing litigation related to calculation of LNRLP’s 3% royalty on the sale of all concentrates produced from the Voisey’s Bay mine in Newfoundland and Labrador, Canada.  A wholly owned indirect subsidiary of Royal Gold is the general partner and 90% owner of LNRLP, with the remaining 10% owned by a subsidiary of Altius Minerals Corporation (“Altius”).

During the three months ended September 30, 2018, Royal Gold recognized royalty revenue for Voisey’s Bay metal production attributable to our 90% share of LNRLP of approximately $2.4 million and $2.0 million for the June 30 and September 30, 2018 quarters, respectively, based on a new royalty calculation method effective for all production after April 1, 2018.  We expect that regular quarterly royalty payments will be received 45 days after the end of each calendar quarter for the duration of the remaining mine life.

Completion of Preliminary Economic Assessment for the Peak Gold Project

On September 24, 2018, Royal Gold announced that the Peak Gold joint venture, of which our Royal Alaska, LLC subsidiary owns a 40% interest, completed a Preliminary Economic Assessment (“PEA”) on the Peak Gold Project located near Tok, Alaska.  In summary, the PEA contemplates open pit mining 9.3 million tonnes of mineralized material grading 3.99 grams per tonne gold, and presents attractive economics at a base case gold price of $1,250 per ounce and a silver price of $17.00 per ounce, with an eight year mine life, 24-month preproduction period and cash costs after sustaining capital of approximately $470 per ounce.  Further details of the PEA

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are found in our September 24, 2018 press release entitled “Royal Gold Announces Preliminary Economic Assessment for the Peak Gold Project” on our website.

The estimates from the PEA must be regarded as preliminary and do not provide assurance that a mine can or will be developed at the Peak Gold Project.  Substantial further work, including a full-scale feasibility study, would be required to confirm and refine these estimates. Accordingly, there can be no certainty that the results of the PEA will be realized even if Peak Gold decides to proceed with the mine plan described in the PEA at any point in the future.

Royal Gold also owns two net smelter return royalties on the Peak Gold Project.

Purchase of Shares of Contango Ore, Inc.

Subsequent to the quarter end on October 3, 2018, Royal Gold acquired the second and final tranche of 127,188 shares of Contango ORE, Inc. (“CORE”), our joint venture partner in the Peak Gold Project, common stock for consideration of $26 per share, pursuant to a Stock Purchase Agreement entered into on April 5, 2018 between Royal Gold and certain individual stockholders of CORE.  With the purchase of this second tranche, Royal Gold owns 809,744 shares of CORE common stock, representing approximately 13.2% of the shares outstanding.

First Quarter 2019 Overview

First quarter revenue was $100.0 million compared to $112.5 million in the prior year quarter, with stream revenue totaling $70.0 million and royalty revenue totaling $30.0 million.  The decrease in total revenue for the first quarter compared to the prior year quarter was due to lower average gold, silver and copper prices, as well as lower overall sales and production.  Lower stream sales from Mount Milligan and Pueblo Viejo were partially offset by higher sales from Andacollo and initial contributions from Rainy River, while a decrease in royalty revenue was due to lower production at Peñasquito and Cortez.

First quarter cost of sales was approximately $16.5 million, compared to $20.4 million in the prior year quarter.  The decrease was primarily due to lower stream sales from Mount Milligan partially offset by higher stream sales at Andacollo.  Cost of sales is specific to our stream agreements and is the result of the purchase of gold, silver and copper for a cash payment.

General and administrative expenses increased to $9.9 million in the first quarter from $6.9 million during the prior year quarter.  The increase during the current period was primarily due to greater legal costs related to the settlement of the Voisey’s Bay royalty calculation dispute.

Exploration costs attributable to Royal Gold’s controlling membership interest in the Peak Gold Project increased to $1.8 million in the first quarter from $1.2 million in the prior year quarter.  Royal Gold’s membership interest in the Peak Gold JV was 40% and 35.8% during the quarters ended September 30, 2018 and 2017, respectively.

Depreciation, depletion and amortization expense increased to $42.6 million in the first quarter from $39.7 million in the prior year quarter.  The increase was primarily due to additional depletion from the Voisey’s Bay royalty interest.

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As a result of the adoption of new Accounting Standards Update (“ASU”) guidance, we recognized a loss on changes in fair value of equity securities related to our holdings in CORE and Rubicon Minerals Corporation of $1.5 million for the three months ended September 30, 2018.  The new ASU guidance, which impacts how we recognize changes in fair value on our equity securities at each reporting period, was adopted on July 1, 2018.  The new guidance could increase our earnings volatility in the future.

We recognized first quarter income tax expense of $4.1 million, compared to $7.5 million during the prior year quarter.  Our effective tax rate for the first quarter was 25.6% compared to 22.1% for the prior year quarter.  The increase in the effective rate was primarily due to fewer tax benefits attributable to equity award vesting and exercise in the current quarter compared to the prior year quarter.

At September 30, 2018, we had current assets of $159.4 million compared to current liabilities of $37.4 million, resulting in working capital of $122.0 million.  This compares to current assets of $125.8 million and current liabilities of $51.4 million at June 30, 2018, resulting in working capital of $74.4 million.

During the first quarter, liquidity needs were met from $83.5 million in net revenue and our available cash resources.  As of September 30, 2018, the Company had no amount outstanding and the full $1 billion available under its revolving credit facility.  Working capital, combined with the Company’s undrawn revolving credit facility, resulted in approximately $1.1 billion of total liquidity at September 30, 2018.

Property Highlights

A summary of first quarter and historical production reported by operators of our stream and royalty properties can be found on Tables 1 and 2.  Calendar year 2018 operator production estimates for certain properties in which we have interests compared to actual production at those properties through September 30, 2018 can be found on Table 3.  Results of our streaming business for the first quarter, compared to the prior year quarter, can be found on Table 4.  Highlights at certain of the Company’s principal producing and development properties during the first quarter, compared to the prior year quarter, are detailed in our Quarterly Report on Form 10-Q.

CORPORATE PROFILE

Royal Gold is a precious metals stream and royalty company engaged in the acquisition and management of precious metal streams, royalties and similar production-based interests.  As of November 1, 2018, the Company owns interests on 191 properties on six continents, including interests on 40 producing mines and 18 development stage projects.  Royal Gold is publicly traded on the Nasdaq Global Select Market under the symbol “RGLD.”  The Company’s website is located at www.royalgold.com.

For further information, please contact:

Alistair Baker

Director, Business Development

(720) 554-6995

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Note:  Management’s conference call reviewing the first quarter results will be held on Thursday, November 1, 2018, at noon Eastern Time (10:00 a.m. Mountain Time).  The call will be webcast and archived on the Company’s website for a limited time.

First Quarter Earnings Call Information:

Dial-In Numbers:	855-209-8260 (U.S.); toll free
	855-669-9657 (Canada); toll free
	412-542-4106 (International)
Conference Title:	Royal Gold
Webcast URL:	www.royalgold.com under Investors, Events & Presentations

Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995:  With the exception of historical matters, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein.  Such forward-looking statements include statements about future production contributions from Peñasquito, Pueblo Viejo, Mount Milligan and Rainy River, future contributions from Voisey’s Bay, the results of the Peak Gold preliminary economic assessment and attractive economics presented therein, strengthening financial position, access to capital and taking advantage of new business opportunities, the impact of temporary shutdowns and restarts of mill processing operations at Mount Milligan, the availability of sufficient water resources to avoid future potential shutdowns and reduced production at Mount Milligan, and operators’ production estimates for calendar year 2018 and their estimates of reserves and mineralized material.  Net gold and metal reserves attributable to Royal Gold’s stream, royalty and other interests are subject to certain assumptions and, like reserves, do not reflect actual ounces that will be produced.  Like any stream, royalty or similar interest on a non-producing or not-yet-in-development project, our interests on development projects are subject to certain risks, such as the ability of the operators to bring the projects into production and operate in accordance with their feasibility studies and mine plans, and the ability of Royal Gold to make accurate assumptions regarding valuation and timing and amount of payments.  In addition, many of our interests are subject to risks associated with conducting business in a foreign country, including application of foreign laws to contract and other disputes, foreign environmental laws and enforcement and uncertain political and economic environments. Factors that could cause actual results to differ materially from the projections include, among others, precious metals, copper and nickel prices; performance of and production at the Company’s stream and royalty properties; the ability of operators to finance project construction to completion and bring projects into production as expected, including development stage mining properties, mine and mill expansion projects and other development and construction projects; operators’ delays in securing or inability to secure or maintain necessary governmental permits; decisions and activities of the operators of the Company’s stream and royalty properties; unanticipated grade, environmental, geological, seismic, metallurgical, processing, liquidity or other problems the operators of the Company’s stream and royalty properties may encounter; operators’ inability to access sufficient raw materials, water or power; changes in operators’ project parameters as plans continue to be refined; changes in estimates of reserves and mineralization by the operators of the Company’s stream and royalty properties; contests to the Company’s stream and royalty interests and title and other defects in the properties where the Company holds stream and royalty interests; errors or disputes in calculating stream deliveries and royalty payments, or deliveries or payments not made in accordance with stream and royalty agreements; economic and market conditions;

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changes in laws governing the Company and its stream and royalty interests or the operators of the properties subject to such interests, and other subsequent events; as well as other factors described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission.  Most of these factors are beyond the Company’s ability to predict or control.  The Company disclaims any obligation to update any forward-looking statement made herein.  Readers are cautioned not to put undue reliance on forward-looking statements.

Statement Regarding Third-Party Information:  Certain information provided in this press release, including production estimates for calendar 2018, has been provided to us by the operators of the relevant properties or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission.  Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of such third-party information and refers the reader to the public reports filed by the operators for information regarding those properties.

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TABLE 1

First Quarter Fiscal 2019

Revenue and Operators’ Reported Production for Principal Stream and Royalty Interests

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

		Three Months Ended				Three Months Ended
		September 30, 2018				September, 2017
				Reported				Reported
Stream/Royalty	Metal(s)	Revenue		Production(1)		Revenue		Production(1)
Stream:
Andacollo	Gold	$	27,743	22,700	oz.	$	12,337	9,700	oz.
Pueblo Viejo		$	19,486			$	25,403
	Gold			9,200	oz.			12,900	oz.
	Silver			540,200	oz.			536,600	oz.
Mount Milligan		$	8,847			$	31,952
	Gold			5,500	oz.			18,600	oz.
	Copper			837,100	lbs.			2.6	Mlbs.
Wassa and Prestea	Gold	$	8,061	6,500	oz.	$	9,070	7,100	oz.
Other(2)		$	5,900			$	N/A
Total stream revenue		$	70,037			$	78,762
Royalty:
Peñasquito		$	3,637			$	7,796
	Gold			50,300	oz.			133,300	oz.
	Silver			4.2	Moz.			5.9	Moz.
	Lead			29.9	Mlbs.			36.2	Mlbs.
	Zinc			64.2	Mlbs.			92.4	Mlbs.
Cortez	Gold	$	603	7,000	oz.	$	2,988	29,900	oz.
Other(2)	Various	$	25,715	N/A		$	22,930	N/A
Total royalty revenue		$	29,955			$	33,714
Total Revenue		$	99,992			$	112,476

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TABLE 2

Operators’ Historical Production

Reported Production For The Quarter Ended(1)

Property

Operator

Stream/Royalty

Metal(s)

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Stream:

Mount Milligan(3)

Centerra

35% of payable gold

Gold

5,500

oz.

20,700

oz.

25,800

oz.

12,600

oz.

18,600

oz.

18.75% of payable copper

Copper

0.8

Mlbs.

1.6

Mlbs.

4.3

Mlbs.

1.8

Mlbs.

2.6

Mlbs.

Pueblo Viejo

Barrick (60%)

7.5% of gold produced up to 990,000 ounces; 3.75% therafter

Gold

9,200

oz.

13,200

oz.

8,500

oz.

14,500

oz.

12,900

oz.

75% of payable silver up to 50 million ounces; 37.5% therafter

Silver

540,200

oz.

616,300

oz.

260,800

oz.

469,600

oz.

536,600

oz.

Andacollo

Teck

100% of gold produced

Gold

22,700

oz.

12,400

oz.

5,400

oz.

17,000

oz.

9,700

oz.

Wassa and Prestea(4)

Golden Star

10.5% of gold produced up to 240,000 ounces; 5.5% therafter

Gold

6,500

oz.

2,800

oz.

6,300

oz.

6,800

oz.

7,100

oz.

Royalty:

Peñasquito

Goldcorp

2.0% NSR

Gold

50,300

oz.

79,600

oz.

91,200

oz.

71,100

oz.

134,000

oz.

Silver

4.2

Moz.

5.0

Moz.

5.0

Moz.

5.1

Moz.

5.9

Moz.

Lead

29.9

Mlbs.

26.6

Mlbs.

26.0

Mlbs.

33.4

Mlbs.

36.2

Mlbs.

Zinc

64.2

Mlbs.

73.7

Mlbs.

88.0

Mlbs.

94.4

Mlbs.

92.4

Mlbs.

Cortez

Barrick

GSR1 and GSR2, GSR3, NVR1

Gold

7,000

oz.

3,900

oz.

18,900

oz.

25,000

oz.

29,900

oz.

FOOTNOTES

Tables 1 and 2

(1)Reported production relates to the amount of metal sales that are subject to our stream and royalty interests for the stated period, as reported to us by operators of the mines.

(2)Individually, no stream or royalty included within the “Other” category contributed greater than 5% of our total revenue for either period.  The “Other” category for streams is our Rainy River gold and silver stream.

(3)Reflects the October 20, 2016 amendment to our Mount Milligan streaming agreement. Prior to the amendment, Royal Gold held a 52.25% gold stream.

(4)The gold stream percentage at Wassa and Prestea increased to 10.5% from 9.25%, effective
January 1, 2018.

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TABLE 3

Calendar 2018 Operator’s Production Estimate vs Actual Production

	Calendar 2018 Operator’s Production			Calendar 2018 Operator’s Production
	Estimate(1)			Actual(2),(3)
	Gold	Silver	Base Metals	Gold	Silver	Base Metals
Stream/Royalty	(oz.)	(oz.)	(lbs.)	(oz.)	(oz.)	(lbs.)
Stream:
Andacollo(4)	66,700			43,300
Mount Milligan(5)	175,000 - 195,000			134,700
Copper			40 - 47 million			35.3 million
Pueblo Viejo(6)	575,000 - 590,000	Not provided		415,000	Not provided
Wassa and Prestea(7)	225,000 - 235,000			175,900
Royalty:
Cortez GSR1	48,300			29,100
Cortez GSR2	2,200			700
Cortez GSR3	50,500			29,800
Cortez NVR1	31,600			18,100
Peñasquito(8)	310,000	Not provided		220,000	14.1 million
Lead			160 million			82.5 million
Zinc			300 million			225.9 million

(1)Production estimates received from our operators are for calendar 2018.  There can be no assurance that production estimates received from our operators will be achieved.  Please refer to our cautionary language regarding forward-looking statements and the statement regarding third party information contained in this press release, as well as the Risk Factors identified in Part I, Item 1A, of our Fiscal 2018 Form 10-K for information regarding factors that could affect actual results.

(2)Actual production figures shown are from our operators and cover the period January 1, 2018 through
September 30, 2018.

(3)Actual production figures for Cortez are based on information provided to us by Barrick Gold Corporation, and actual production figures for Andacollo, Mount Milligan, Pueblo Viejo, Peñasquito (gold) and Wassa and Prestea are the publicly reported figures of the operators of those properties.

(4)The estimated and actual production figures shown for Andacollo are contained gold in concentrate.

(5)The estimated and actual production figures shown for Mount Milligan are payable gold and copper in concentrate.

(6)The estimated and actual production figures shown for Pueblo Viejo are payable gold in doré and represent Barrick’s 60% interest gold produced from Pueblo Viejo.  The operator did not provide estimated silver production.

(7)The estimated gold production figures shown for Wassa and Prestea are payable gold in concentrate and doré.

(8)The estimated and actual gold production figures shown for Peñasquito are payable gold in concentrate and doré.  The estimated and actual lead and zinc production figures shown are payable lead and zinc from concentrate.  The operator did not provide estimated silver production and the actual silver production figure shown is payable silver in concentrate and doré.

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TABLE 4

Stream Summary

	Three Months Ended		Three Months Ended		As of	As of
	September 30, 2018		September 30, 2017		September 30, 2018	June 30, 2018
Gold Stream	Purchases (oz.)	Sales (oz.)	Purchases (oz.)	Sales (oz.)	Inventory (oz.)	Inventory (oz.)
Andacollo	15,300	22,700	13,000	9,600	—	7,400
Mount Milligan	12,600	5,500	18,700	18,600	7,400	300
Pueblo Viejo	8,900	9,200	10,500	12,900	8,900	9,200
Wassa and Prestea	6,500	6,500	7,400	7,100	3,900	3,900
Rainy River	3,600	4,500	NA	NA	—	800
Total	46,900	48,400	49,600	48,200	20,200	21,600

	Three Months Ended		Three Months Ended		As of	As of
	September 30, 2018		September 30, 2017		September 30, 2018	June 30, 2018
Silver Stream	Purchases (oz.)	Sales (oz.)	Purchases (oz.)	Sales (oz.)	Inventory (oz.)	Inventory (oz.)
Pueblo Viejo	509,500	540,200	470,000	536,000	509,500	540,200
Rainy River	35,200	31,500	—	—	36,000	32,300
Total	544,700	571,700	470,000	536,000	545,500	572,500

	Three Months Ended		Three Months Ended		As of	As of
	September 30, 2018		September 30, 2017		September 30, 2018	June 30, 2018
Copper Stream	Purchases (Mlbs.)	Sales (Mlbs.)	Purchases (Mlbs.)	Sales (Mlbs.)	Inventory (Mlbs.)	Inventory (Mlbs.)
Mount Milligan	1.6	0.8	2.6	2.6	0.8	—

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ROYAL GOLD, INC.

Consolidated Balance Sheets

(In thousands except share data)

	September 30, 2018			June 30, 2018
ASSETS
Cash and equivalents	$	117,078		$	88,750
Royalty receivables	25,106			26,356
Income tax receivable	6,381			40
Stream inventory	10,011			9,311
Prepaid expenses and other	854			1,350
Total current assets	159,430			125,807
Stream and royalty interests, net	2,458,615			2,501,117
Other assets	54,821			55,092
Total assets	$	2,672,866		$	2,682,016
LIABILITIES
Accounts payable	$	5,055		$	9,090
Dividends payable	16,376			16,375
Income tax payable	8,012			18,253
Withholding taxes payable	2,551			3,254
Other current liabilities	5,377			4,411
Total current liabilities	37,371			51,383
Debt	354,939			351,027
Deferred tax liabilities	91,356			91,147
Uncertain tax positions	36,659			33,394
Other long-term liabilities	13,275			13,796
Total liabilities	533,600			540,747
Commitments and contingencies
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 65,394,898 and 65,360,041 shares outstanding, respectively	654			654
Additional paid-in capital	2,195,034			2,192,612
Accumulated other comprehensive loss	—			(1,201		)
Accumulated losses	(92,467		)	(89,898		)
Total Royal Gold stockholders’ equity	2,103,221			2,102,167
Non-controlling interests	36,045			39,102
Total equity	2,139,266			2,141,269
Total liabilities and equity	$	2,672,866		$	2,682,016

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ROYAL GOLD, INC.

Consolidated Statements of Operations and Comprehensive Income

(In thousands except for per share data)

	Three Months Ended
	September 30,			September 30,
	2018			2017
Revenue	$	99,992		$	112,476
Costs and expenses
Cost of sales	16,527			20,419
General and administrative	9,927			6,899
Production taxes	1,292			543
Exploration costs	4,362			3,203
Depreciation, depletion and amortization	42,551			39,692
Total costs and expenses	74,659			70,756
Operating income	25,333			41,720
Fair value changes in equity securities	(1,468		)	—
Interest and other income	103			989
Interest and other expense	(7,877		)	(8,617		)
Income before income taxes	16,091			34,092
Income tax expense	(4,115		)	(7,544		)
Net income	11,976			26,548
Net loss attributable to non-controlling interests	3,032			2,083
Net income attributable to Royal Gold common stockholders	$	15,008		$	28,631
Net income	$	11,976		$	26,548
Adjustments to comprehensive income , net of tax Unrealized change in market value of available-for-sale securities	—			197
Comprehensive income	11,976			26,745
Comprehensive loss attributable to non-controlling interests	3,032			2,083
Comprehensive income attributable to Royal Gold stockholders	$	15,008		$	28,828
Net income per share available to Royal Gold common stockholders:
Basic earnings per share	$	0.23		$	0.44
Basic weighted average shares outstanding	65,374,866			65,235,496
Diluted earnings per share	$	0.23		$	0.44
Diluted weighted average shares outstanding	65,497,159			65,404,680
Cash dividends declared per common share	$	0.25		$	0.24

12

ROYAL GOLD, INC.

Consolidated Statements of Cash Flows

(In thousands)

	Three Months Ended
	September 30,			September 30,
	2018			2017
Cash flows from operating activities:
Net income	$	11,976		$	26,548
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	42,551			39,692
Amortization of debt discount and issuance costs	3,903			3,679
Non-cash employee stock compensation expense	2,444			2,373
Fair value changes in equity securities	1,468			—
Deferred tax benefit	(1,681		)	(727		)
Other	—			(223		)
Changes in assets and liabilities:
Royalty receivables	1,250			(2,193		)
Stream inventory	(701		)	89
Income tax receivable	(6,341		)	(3,854		)
Prepaid expenses and other assets	1,061			(1,654		)
Accounts payable	(4,060		)	(985		)
Income tax payable	(10,241		)	6,035
Withholding taxes payable	(703		)	37
Uncertain tax positions	3,266			2,493
Other liabilities	445			299
Net cash provided by operating activities	$	44,637		$	71,609
Cash flows from investing activities:
Acquisition of stream and royalty interests	(3		)	(5		)
Other	(121		)	100
Net cash (used in) provided by investing activities	$	(124	)	$	95
Cash flows from financing activities:
Repayment of revolving credit facility	—			(50,000		)
Net payments from issuance of common stock	(1,972		)	(3,529		)
Common stock dividends	(16,376		)	(15,682		)
Other	2,163			55
Net cash used in financing activities	$	(16,185	)	$	(69,156	)
Net increase in cash and equivalents	28,328			2,548
Cash and equivalents at beginning of period	88,750			85,847
Cash and equivalents at end of period	$	117,078		$	88,395

13

EX-99.2

Exhibit 99.2

First Fiscal Quarter 2019 Results November 1, 2018

2 Cautionary Statement Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from the projections and estimates contained herein and include, but are not limited to statements with regard to: solid, steady and successful performance; balance sheet liquidity growth; value surfaced at Voisey’s Bay and Peak Gold Project; production ramp-up at Vale’s Long Harbour processing plant and extension of Voisey’s Bay mine life; the results of the Peak Gold PEA and the robust open pit operation and attractive economics presented therein; plans to drive efficiency at Rainy River; achieving production guidance at Rainy River, Mount Milligan and Peñasquito; the impact of temporary shutdowns and restarts of mill processing operations at Mount Milligan and securing sufficient water resources to avoid future potential shutdowns and reduced production at Mount Milligan; commercial production at the Peñasquito Pyrite Leach project and estimated annual production; stripping and leaching operations at Cortez Crossroads; start-up of pilot pre-oxidation leach pad and pilot flotation concentrator and related throughput increases at Pueblo Viejo; production and achieving production guidance at Wassa; Golden Star’s use of proceeds from La Mancha investment; expectations about second quarter sales and inventories; the Company’s expectations to repay June 2019 bonds with cash from revolver; and positioning for continued focus on total shareholder returns, funding new investments with cash flow and revolver capacity. Factors that could cause actual results to differ materially from these forward-looking statements include, among others: the risks inherent in the operation of mining properties; a decreased price environment for gold and other metals on which our stream and royalty interests are determined; performance of and production at properties, and variation of actual production from the production estimates and forecasts made by the operators of those stream and royalty properties; decisions and activities of the Company’s management affecting margins, use of capital and changes in strategy; unexpected operating costs, decisions and activities of the operators of the Company’s stream and royalty properties; changes in operators’ mining and processing techniques or stream or royalty calculation methodologies; resolution of regulatory and legal proceedings; unanticipated grade, geological, metallurgical, environmental, processing or other problems at the properties; operators’ inability to access sufficient raw materials, water or power; inability of operators to bring projects into production as expected, including development stage mining properties, mine and mill expansion projects and other development and construction projects; revisions or inaccuracies in technical reports, reserve, resources and economic and production estimates; changes in project parameters as plans of the operators are refined; the results of current or planned exploration activities; errors or disputes in calculating stream deliveries and royalty payments, or deliveries or payments under stream or royalty agreements; the liquidity and future financial needs of the Company; economic and market conditions; the impact of future acquisitions and stream and royalty financing transactions; the impact of issuances of additional common stock; and risks associated with conducting business in foreign countries, including application of foreign laws to contract and other disputes, environmental laws, enforcement and uncertain political and economic environments. These risks and other factors are discussed in more detail in the Company’s public filings with the Securities and Exchange Commission. Statements made herein are as of the date hereof or as of the date indicated and should not be relied upon as of any subsequent date. The Company’s past performance is not necessarily indicative of its future performance. The Company disclaims any obligation to update any forward-looking statements. Third-party information: Certain information provided in this presentation has been provided to the Company by the operators of properties subject to our stream and royalty interests, or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. The Company has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of such third-party information and refers readers to the public reports filed by the operators for information regarding those properties.

Today’s Speakers 3 Tony Jensen President and CEO Bill Heissenbuttel CFO and Vice President Strategy

Highlights: Revenue of $100.0M Earnings of $0.23/share Volume of 82,400 GEO’s1 Cash flow from operations of $44.6M Dividends of $16.4M Other accomplishments: Resolution of Voisey’s Bay royalty dispute Positive PEA on the Peak Gold Project Balance sheet liquidity continues to grow Q1 FY19 Performance Highlights 4

Recent Developments 5 Completed PEA for Peak Gold Project3 Robust open pit operation with conventional processing Estimated after-tax NPV5% of $283M and IRR of 29.1% 3,450km2 land package on the prolific Tintina Gold Belt Mount Milligan Settled long-standing royalty dispute with Vale $4.9M royalty payment recognized this quarter (100% basis) $2.7M fiscal Q4 2018, $2.2M fiscal Q1 2019 Long Harbour processing plant ramping up to 45-50k t/year finished nickel2 Underground expansion to extend mine life through to 2034 Significant value surfaced at Voisey’s Bay and Peak Gold Project Voisey’s Bay Peak Gold Project

Recent Developments 6 Mount Milligan Rainy River, Mount Milligan, Peñasquito as reported by the operators Mount Milligan Mill modifications lead to record 20,462 t/d in September2 Launched near-term operational plan to drive efficiency2 On track to achieve low end of revised 2018 guidance2 Milled 55k t/operating day during calendar Q3 20182 Taking steps to secure additional long term water supply2 2018 guidance reaffirmed: 175-195k oz gold, 40-47M lb copper2 Mount Milligan Wassa and Prestea Rainy River Mount Milligan Peñasquito Mount Milligan Enhancements Pueblo Viejo – Potential Resource Conversion Rainy River Ball & SAG Mill Peñasquito Pyrite Leach Commissioning with low grade stockpiles in calendar Q32 Commercial production expected calendar Q42 Estimated annual production 100-140k oz gold and 4-6M oz silver2

Upcoming Catalysts 7 Sources of embedded growth, as reported by the operators Mount Milligan Enhancements Peñasquito Peñasquito Pyrite Leach Project Peñasquito Pyrite Leach Project Pre-stripping continuing, initial ore placed on leach pad2 4.5% NVR & 5% GSR royalty 3.2M oz gold in reserves2 Pilot pre-oxidation leach pad in operation2 Pilot flotation concentrator construction advanced2 Potential 50% throughput increase to maintain 800k oz/year gold production (100% basis)2 Wassa underground production up 55% to 3,400 tpd2 Wassa guidance increased 9% to 150-155k oz for CY 20182 La Mancha funds for exploration, development and expansion, primarily at Wassa2 Wassa Deeps Pueblo Viejo Flotation Cells Cortez Crossroads

Fiscal Q1 Financial Results 8 $100.0M revenue $15.0M earnings Lower earnings this quarter compared to fiscal Q4 2018: $16.2M lower volume and prices $1.5M equity recognition charge Note: EPS numbers do not add due to rounding $0.23

DD&A of $524/GEO 25.7% effective tax rate OCF of $44.6M Expect flat fiscal Q2 sales, lower inventories due to delivery timing $1.1B of liquidity available Working capital increased to $122M Expect to repay $370M June 2019 bonds with cash from revolver Fiscal Q1 Results and Liquidity 9 September 30, 2018 Amount (US$ M) Undrawn revolver $1,000 Working capital $122 Total available liquidity $1,122 Additional near term commitments $0

Continued focus on total shareholder returns Solid, Steady, Successful 10 $16.4M Q1 Fund with cash flow and revolver capacity $1.1B liquidity $370M bonds due June 2019 $44.6M Q1 from 40 producing mines Portfolio cash flow Balance sheet Dividends New investments

[LOGO]

Endnotes 12 Gold Equivalent Ounces (“GEOs”) are calculated as revenue divided by the average gold price for the same period. Information has been provided to the Company by the operators of these properties or is publicly available information disclosed by the operators. Reserves information shown is as of December 31, 2017. References to portfolio reflect total property interests at August 8, 2018. Please see slide 2. The Resource Estimate and Preliminary Economic Assessment (PEA) were prepared in accordance with Canadian National Instrument 43-101 (NI 43-101). The terms “measured”, “indicated”, “M&I” and “inferred” as used in the Resource Estimate and the PEA are Canadian mining resource classifications stated in accordance with NI 43-101; however, these terms are not defined terms under the U.S. Securities and Exchange Commission’s Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. The estimation of measured resources and indicated resources involves greater uncertainty as to their existence and the legal and economic feasibility of extraction than the estimation of proven and probable reserves. Conversion of mineral resources to proven and probable mineral reserves generally requires a further economic study, such as a preliminary feasibility study. The Resource Estimate and the PEA are not preliminary feasibility studies and do not support an estimate of proven and probable mineral reserves. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Investors are also cautioned not to assume that all or any part of measured or indicated resources will ever be converted into mineral reserves. In addition, the SEC normally only permits issuers to report mineralization that does not constitute mineral reserves as in-place tonnage and grade without reference to unit amounts. The results of the PEA are preliminary in nature and are based on various assumptions. These assumptions may be affected by environmental, permitting, legal, title, taxation, socio-political, market or other relevant factors, including changes in metal prices. In addition, no decision has been made to proceed with the mine plan described in the PEA. A decision to proceed with the mine plan, would require significant further technical, economic, environmental, permitting, legal, engineering and other work, including a full-scale feasibility study. No decision has been made by the Peak Gold Joint Venture to proceed with a further economic study. Accordingly, there is no certainty that the results of the PEA would be realized should the Peak Gold Joint Venture decide to proceed with the mine plan described in the PEA at any point in the future.

Diverse Portfolio of Long-Lived Assets 13 Operator Mine Metal Initial Until* Thereafter Until* Initial Until* Thereafter Until* Streams (at October 31, 2018) Centerra Mount Milligan Gold 35.0% LOM - - $435/oz LOM - - 20 175-195k oz Copper 18.75% LOM - - 15% of spot LOM - - 20 40-47M lb Barrick Pueblo Viejo (60% interest) Gold 7.5% 990k oz 3.75% LOM 30% of spot 550k oz 60% of spot LOM 25+ 575-590k oz Silver 75% (fixed 70% recovery) 50M oz 37.50% LOM 30% of spot 23.1M oz 60% of spot LOM 25+ n/a New Gold Rainy River Gold 6.5% 230k oz 3.25% LOM 25% of spot - - - 14 210-250k oz Silver 60.0% 3.1M oz 30.0% LOM 25% of spot - - - 14 n/a Teck Andacollo Gold 100.0% 900k oz 50.0% LOM 15% of spot - - - 17 n/a Golden Star Wassa/Prestea Gold 10.5% 240k oz 5.5% LOM 20% of spot 240k oz 30% of spot LOM 10 225-235k oz Key Royalties 3 (at January 1, 2018) Goldcorp Pe ñ asquito Gold/Silver/ Lead/Zinc 2.0% LOM - - - - - - 10 310k oz (gold) Barrick Cortez Gold Various LOM - - - - - - 12 n/a Vale Voisey's Bay Nickel/Copper/ Cobalt 2.7% LOM - - - - - - 16 n/a Agnico/ Yamana Malartic Gold 1-1.5% LOM - - - - - - 10 650k oz Newmont Leeville Gold 1.8% LOM - - - - - - 11 n/a KGHM Robinson Gold/Copper 3.0% LOM - - - - - - 5 n/a Kirkland Lake Holt Gold .00013 x gold price LOM - - - - - - 8 65-75k oz Alamos Gold Mulatos Gold 1-5% capped; likely to 2019 - - - - - - 2 150-160k oz *LOM = life of mine 2. 100% unless otherwise specified. 3. Includes largest royalties by revenue. An additional 28 royalties from producing mines in Royal Gold's portfolio not shown. Royal Gold Interest Ongoing Payment Remaining Reserve Life (years) CY 2018 Operator Production Guidance 1,2 1. Production estimates are received from our operators and there can be no assurance that production estimates received from our operators will be achieved. Please refer to our cautionary language regarding forward-looking statements, as well as the Risk Factors identified in Part I, Item 1A of our Fiscal 2018 10-K for information regarding factors that could affect actual results.