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): August 10, 2016

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):

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

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

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

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

Item 2.02 Results of Operations and Financial Condition.

On August 10, 2016, Royal Gold, Inc. (the “Company”) reported its fiscal 2016 financial 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 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release dated August 11, 2016 regarding Fiscal 2016 Results.
99.2	Royal Gold, Inc. August 11, 2016 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:  August 11, 2016	By:	/s/ Bruce C. Kirchhoff
		Name:	Bruce C. Kirchhoff
		Title:	Vice President, General Counsel and Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated August 11, 2016 regarding Fiscal 2016 Results.
99.2	Royal Gold, Inc. August 11, 2016 Earnings Presentation.

EX-99.1

EXHIBIT 99.1

 

Royal Gold Reports a 38% Increase in Fourth Quarter Earnings and Record Annual Revenue

DENVER, COLORADO. AUGUST 11, 2016: ROYAL GOLD, INC. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) reports net income attributable to stockholders (“net income”) of $20.4 million, or $0.32 per share, on revenue of $94.1 million in its fiscal fourth quarter ended June 30, 2016 (“fourth quarter”). Earnings increased 38% compared to the prior year quarter net income of $14.8 million, or $0.23 per share, on revenue of $73.6 million. The average gold price was $1,259 per ounce, up 6% from the prior year quarter.

Fourth Fiscal Quarter 2016 Highlights Compared to the Prior Year Quarter:

· Volume of 74,700 Gold Equivalent Ounces (“GEOs¹”), an increase of 21%

· Revenue of $94.1 million, an increase of 28%

· Reported earnings per share of $0.32, an increase of 38%

· Operating cash flow of $49.2 million, an increase of 12%

· Dividends paid of $15 million, an increase of 5%.

Fiscal 2016 Highlights Compared to Fiscal 2015:

· Record volume of 308,000 GEOs², an increase of 36%

· Record revenue of $359.8 million, an increase of 29%

· Record dividends paid of $58.7 million, an increase of 5%

For the fiscal year ended June 30, 2016 (“fiscal 2016”), Royal Gold reports record revenue of $359.8 million, a 29% increase over $278.0 million in fiscal 2015. Fiscal 2016 earnings were impacted by impairments reported in the March 2016 quarter and discrete tax expenses reported in the September 2015 quarter resulting in a net loss attributable to stockholders of $77.1 million, or ($1.18) per share, compared to fiscal 2015 net income of $52.0 million, or $0.80 per share. Absent the adjustments for impairments and the discrete tax expenses, fiscal 2016 adjusted net income³ would have been $65.0 million, or $1.00 per share. The average gold price was $1,168 in fiscal 2016, down 5% from fiscal 2015.

¹ GEOs are calculated as revenue divided by the average gold price for the same period. GEOs net of stream payments were 59,600 in the fourth quarter compared to 53,300 in the year-ago quarter.

² GEOs net of stream payments were 247,300 for fiscal 2016, compared to 199,800 net GEOs in fiscal 2015.

³ Non-GAAP measure. See Schedule A for reconciliation.

1 

“We made great progress in fiscal 2016 by enhancing our portfolio with four large transactions resulting in immediate contributions to our operating results from four new mines, including Pueblo Viejo, Andacollo, Wassa and Prestea,” commented Tony Jensen, President and CEO. “And fiscal 2017 is starting off strong with Centerra Gold’s agreement to acquire Thompson Creek Metals. In this new fiscal year, we look forward to a financially stronger Mount Milligan, construction progress at Rainy River and the Wassa and Prestea underground mines, and ongoing development at Cortez Crossroads to further grow and diversify our portfolio.”

Recent Developments

Mount Milligan Commitment Letter

On July 5, 2016, we signed a binding commitment letter with Centerra Gold Inc. (“Centerra”) describing key terms of a future amendment to the Company’s streaming interest at the Mount Milligan mine owned by Terrane Metals Corp. (“Terrane”), a subsidiary of Thompson Creek Metals Company Inc. (“Thompson Creek”). Centerra entered into a definitive arrangement agreement to acquire Thompson Creek and, in connection with closing that acquisition, will redeem all of Thompson Creek’s secured and unsecured notes.

Under the commitment letter, our 52.25% gold streaming interest at Mount Milligan will be amended to a 35% gold stream and we will obtain an 18.75% copper stream. We will continue to pay $435 per ounce of gold delivered and will pay 15% of the spot price per metric tonne of copper delivered. The amendment is conditioned upon closing of Centerra’s acquisition of Thompson Creek. Royal Gold estimates this amendment to be value neutral on a discounted cash flow basis, and expects about two-thirds of its future net revenue from Mount Milligan will be gold related and one-third copper related over the next ten years. After transition to the amended stream, Royal Gold expects that approximately 85% of our total net revenue will come from precious metals and 15% from base metals.⁴

Centerra’s proposed acquisition of Thompson Creek is subject to court and applicable regulatory approvals as well as approval of Thompson Creek shareholders, and is expected to close in the fall of calendar 2016.

Fiscal 2016 Overview

Fiscal year 2016 revenue of $359.8 million included stream revenue of $238.0 million and royalty revenue of $121.8 million. Stream segment gold purchases totaled approximately 216,600 ounces of gold and sales were approximately 202,000 ounces of gold. Stream segment silver purchases were 532,600 ounces and sales were 208,900 ounces of silver. The Company had approximately 19,800 ounces of gold and 323,700 ounces of silver in inventory at June 30, 2016, as previously announced, compared to 5,300 ounces of gold at June 30, 2015.

⁴ Based on current projections for the next five years from operators where the Company has interests.

2 

The increase in fiscal 2016 revenue, compared to the fiscal year ended June 30, 2015, resulted primarily from higher production at Mount Milligan and new production from our recently acquired streams at the Wassa, Prestea, Pueblo Viejo and Andacollo mines.

Fiscal 2016 cost of sales was $71.0 million, compared to $33.5 million in fiscal 2015. The increase is primarily attributable to higher volume from our streaming segment. Cost of sales is specific to our stream agreements and results from the Company’s purchase of gold and silver for cash payments at a set contractual price, or a percentage of the prevailing market price of gold or silver when purchased.

General and administrative expenses increased to $31.7 million in fiscal 2016 compared to $24.9 million in fiscal 2015. The increase was primarily due to non-cash, stock-based compensation of approximately $4.9 million, resulting from management’s change in estimate for the number of performance shares that are expected to vest.

Depreciation, depletion and amortization expense increased to $141.1 million in fiscal 2016, compared to $93.5 million in fiscal 2015. The increase was primarily attributable to the ramp-up in production at Mount Milligan ($11.4 million) and new production from the recently acquired streams at Pueblo Viejo ($21.9 million), Wassa and Prestea ($7.8 million), and Andacollo
($9.0 million).

Exploration costs, which are specific to our Peak Gold joint venture in Alaska, increased to $8.6 million in fiscal 2016, compared to $2.2 million in fiscal 2015.

We recognized a fiscal 2016 income tax expense of $60.7 million compared to $9.6 million in fiscal 2015.  The increase is primarily related to the gain attributable to the Company’s Andacollo transactions, the liquidation of our Chilean subsidiary, and impairment charges.

At June 30, 2016, we had current assets of $164.8 million compared to current liabilities of $22.7 million. This compares to current assets of $797.0 million and current liabilities of $25.0 million at June 30, 2015. The decrease in our current assets was primarily attributable to a decrease in our cash and equivalents resulting from the stream acquisitions completed early in the fiscal year.

The Company repaid $25 million on its revolving credit facility during the fourth quarter and as of June 30, 2016, had $375 million available and $275 million outstanding under the facility. Working capital, combined with the Company’s undrawn revolving credit facility, totaled $517.1 million in liquidity at June 30, 2016.

PROPERTY HIGHLIGHTS

A summary of fiscal 2016 fourth quarter and historical production can be found on Tables 1 and 2. Calendar year production estimates versus actual production at certain producing properties can be found on Table 3. Results of our streaming business for the three months and fiscal year ended June 30, 2016 compared to the three months and fiscal year ended June 30, 2015, can be found on Table 4. Highlights at certain of the Company’s principal producing and development properties during fiscal 2016, compared to fiscal 2015, are detailed in our Form 10-K.

3 

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. The Company owns interests on 193 properties on six continents, including interests on 38 producing mines and 24 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:

Karli Anderson

Vice President Investor Relations

(303) 575-6517

Note: Management’s conference call reviewing the fourth fiscal quarter results will be held Thursday, August 11, 2016 at 10:00 a.m. Mountain Daylight Time (noon Eastern Daylight Time) and will be available by calling (855) 209-8260 (U.S.), (855) 669-9657 (Canada) or (412) 542-4106 (international), conference title “Royal Gold.” The call will be simultaneously broadcast on the Company’s website at www.royalgold.com under the “Presentations” section. A replay of this webcast will be available on the Company’s website approximately two hours after the call ends.

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 operators’ expectations about development; anticipated production and returns from our stream and royalty properties, including without limitation Centerra’s proposed acquisition of Thompson Creek Metals Company, Centerra’s financial strength as proposed owner of Mount Milligan, estimated percentages of precious and base metals expected from Mount Milligan and from the Company’s stream and royalty portfolio in the aggregate after the proposed Mount Milligan stream agreement becomes effective; construction progress at Rainy River and at Wassa and Prestea and development at Cortez Crossroads; operators’ production estimates for calendar year 2016 and statements about the opportunities for portfolio and investment growth and diversification and the Company’s ability to pursue such opportunities. 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, including gold and copper production at Mount Milligan; the ability of operators of development properties to finance project construction to completion and bring projects into production as expected; operators’ delays in securing or inability to secure 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 mining properties may encounter; 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; the failure of Centerra’s acquisition of Thompson Creek to occur; contests to the Company’s stream and royalty interests and title and other defects to the Company’s stream and royalty properties; errors or disputes in calculating stream and royalty payments, or payments not made in accordance with stream and royalty agreements; economic and market conditions; risks associated with conducting business in foreign countries; changes in laws governing the Company and its stream and royalty properties or the operators of such properties, 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.

4 

Statement Regarding Third Party Information:  Royal Gold does not own, develop or mine the properties on which it holds stream or royalty interests.  Certain information provided in this press release, including production estimates for calendar 2016, has been 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 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.

5 

TABLE 1

Fourth Quarter Fiscal 2016

Revenue and Reported Production for Principal Royalty and Stream Interests

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

			Three Months Ended					Three Months Ended
			June 30, 2016					June 30, 2015
					Reported					Reported
Stream/Royalty	Metal(s)		Revenue		Production11			Revenue		Production1
Stream:
Mount Milligan		Gold	$	29,874		23,800	oz.	$	27,411		23,000	oz.
Andacollo		Gold	$	17,080		13,500	oz.		N/A		N/A
Pueblo Viejo		Gold	$	16,676		10,600	oz.		N/A		N/A
		Silver				208,900	oz.		N/A		N/A
Wassa and Prestea		Gold	$	5,791		4,600	oz.		N/A		N/A
Other		Gold	$	-		300	oz.		N/A		N/A
Total stream revenue			$	69,421				$	27,411
Royalty:
Peñasquito			$	2,552				$	10,369
		Gold				41,900	oz.				296,900	oz.
		Silver				2.6	Moz.				7.0	Moz.
		Lead				13.3	Mlbs.				48.2	Mlbs.
		Zinc				43.2	Mlbs.				88.9	Mlbs.
Voisey's Bay			$	-				$	3,021
		Nickel				N/A					9.0	Mlbs.
		Copper				N/A					20.8	Mlbs.
Holt		Gold	$	2,775		13,500	oz.	$	2,911		15,800	oz.
Cortez		Gold	$	1,267		16,100	oz.	$	3,283		43,900	oz.
Andacollo2		Gold		-		N/A	oz.	$	9,433		10,500	oz.
Other		Various		18,114		N/A		$	17,151		N/A
Total royalty revenue				24,708				$	46,168
Total Revenue				94,129				$	73,579

6 

TABLE 1

Fiscal Year 2016

Revenue and Reported Production for Principal Royalty and Stream Interests

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

			Fiscal Year Ended					Fiscal Year Ended
			June 30, 2016					June 30, 2015
					Reported					Reported
Stream/Royalty	Metal(s)		Revenue		Production1			Revenue		Production1
Stream:
Mount Milligan		Gold	$	125,438		108,800	oz.	$	94,104		76,900	oz.
Andacollo		Gold	$	49,243		41,600	oz.		N/A		N/A
Pueblo Viejo		Gold	$	39,683		31,200	oz.		N/A		N/A
		Silver				208,900	oz.		N/A		N/A
Wassa and Prestea		Gold	$	23,346		20,100	oz.		N/A		N/A
Other		Gold	$	318		300	oz.		N/A		N/A
Total stream revenue			$	238,028				$	94,104
Royalty:
Peñasquito			$	22,760				$	30,306
		Gold				584,000	oz.				742,100	oz.
		Silver				21.4	Moz.				24.6	Moz.
		Lead				134.2	Mlbs.				158.4	Mlbs.
		Zinc				333.0	Mlbs.				340.8	Mlbs.
Voisey's Bay			$	11,044				$	16,665
		Nickel				78.6	Mlbs.				62.8	Mlbs.
		Copper				56.2	Mlbs.				64.8	Mlbs.
Holt		Gold	$	10,295		58,300	oz.	$	11,954		61,500	oz.
Cortez		Gold	$	6,107		74,000	oz.	$	18,044		229,000	oz.
Andacollo2		Gold	$	-		-	oz.	$	38,033		41,500	oz.
Other		Various	$	71,556		N/A		$	68,913		N/A
Total royalty revenue			$	121,762				$	183,915
Total Revenue			$	359,790				$	278,019

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TABLE 2

Historical Production

Reported Production For The Quarter Ended1

Property

Stream/Royalty

Operator

Metal(s)

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Stream:

Mount Milligan

52.25% of payable gold

Thompson Creek

Gold

23,800

oz.

25,400

oz.

38,700

oz.

21,000

oz.

23,000

oz.

Andacollo

100% of gold produced

Teck

Gold

13,500

oz.

13,500

oz.

5,200

oz.

9,500

oz.

N/A

Pueblo Viejo

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

Barrick (60%)

Gold

10,600

oz.

11,800

oz.

8,800

oz.

N/A

N/A

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

Silver

208,900

oz.

N/A

N/A

N/A

N/A

Wassa and Prestea

9.25% of gold produced up to 12/31/17; 10.5% of gold produced up to 240,000 ounces; 5.5% thereafter

Golden Star

Gold

4,600

oz.

3,500

oz.

8,800

oz.

3,200

oz.

N/A

Royalty:

Peñasquito

2.0% NSR

Goldcorp

Gold

41,900

oz.

120,300

oz.

195,400

oz.

226,500

oz.

296,900

oz.

Silver

2.6

Moz.

4.8

Moz.

6.8

Moz.

7.3

Moz.

7.0

Moz.

Lead

13.3

Mlbs.

30.2

Mlbs.

41.7

Mlbs.

49.1

Mlbs.

48.2

Mlbs.

Zinc

43.2

Mlbs.

73.1

Mlbs.

98.0

Mlbs.

118.7

Mlbs.

88.9

Mlbs.

Cortez

GSR1 and GSR2, GSR3, NVR1

Barrick

Gold

16,100

oz.

18,400

oz.

17,000

oz.

22,600

oz.

43,900

oz.

Holt

0.00013 x quarterly average gold price

Kirkland Lake Gold

Gold

13,500

oz.

13,500

oz.

15,000

oz.

16,300

oz.

15,800

oz.

Voisey's Bay

2.7% NSR

Vale

Nickel

N/A

17.2

Mlbs.

23.6

Mlbs.

37.8

Mlbs.

9.0

Mlbs.

Copper

N/A

39.2

Mlbs.

15.2

Mlbs.

1.7

Mlbs.

20.8

Mlbs.

Andacollo2

75%

Teck

Gold

N/A

N/A

N/A

N/A

10,500

oz.

FOOTNOTES

Tables 1 and 2

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

² This royalty was terminated effective July 1, 2015.

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TABLE 3

Calendar 2016 Operators’ Production Estimate vs Actual Production

	Calendar 2016 Operator’s Production Estimate1								Calendar 2016 Operator's Production Actual2,3
	Gold		Silver			Base Metals			Gold		Silver			Base Metals
Stream/Royalty	(oz.)		(oz.)			(lbs.)			(oz.)		(oz.)			(lbs.)
Stream:
Andacollo4		57,600		-			-			25,300		-			-
Mount Milligan5		240,000-270,000		-			-			99,700		-			-
Pueblo Viejo6		600,000-650,000		Not provided						321,900		Not provided			-
Wassa and Prestea7		180,000-205,000		-						95,700
Royalty:
Cortez GSR1		119,200		-			-			31,800		-			-
Cortez GSR2		1,300		-			-			2,700		-			-
Cortez GSR3		120,500		-			-			34,400		-			-
Cortez NVR1		68,900		-			-			23,700		-			-
Penasquito8		520,000-580,000		22-24	million		-			161,000		7.8	million		-
Lead							145-155	million							46.1	million
Zinc							375-400	million							109.4	million

¹ Production estimates received from our operators are for calendar 2016. 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 preceding Table 1 above, as well as the Risk Factors identified in Part I, Item 1A, of our Fiscal 2015 10-K for information regarding factors that could affect actual results.

² Actual production figures shown are for the period January 1, 2016 through June 30, 2016, unless otherwise noted.

³ Actual production figures for Andacollo and Cortez are based on information provided to us by the operators, and actual production figures for Andacollo, Mount Milligan, Peñasquito (gold), and Wassa and Prestea are the operators’ publicly reported figures.

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 in concentrate.

⁶ The estimated and actual production figures shown are payable gold in doré and represent Barrick’s 60% interest in Pueblo Viejo.

⁷ The estimated production figure shown is payable gold in doré.

⁸ The estimated gold and silver production figures reflect payable gold and silver in concentrate and doré, while the estimated lead and zinc production figures reflect payable metal in concentrate.

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TABLE 4
Stream Summary

	Three Months Ended June 30, 2016				Three Months Ended June 30, 2015				As of June 30, 2016		As of June 30, 2015
Gold Stream	Purchases (oz.)		Sales (oz.)		Purchases (oz.)		Sales (oz.)		Ounces in inventory		Ounces in inventory
Mount Milligan		31,200		23,700		21,400		23,000		7,500		5,300
Pueblo Viejo		11,000		11,000		N/A		N/A		11,000		N/A
Andacollo		13,500		13,500		N/A		N/A		-		N/A
Wassa and Prestea		4,400		4,600		N/A		N/A		1,300		N/A
Phoenix Gold		-		-		N/A		N/A		-		N/A
Total		60,100		52,800		21,400		23,000		19,800		5,300

Three Months Ended June 30, 2016

Three Months Ended June 30, 2015

As of June 30, 2016

As of June 30, 2015

Silver Stream

Purchases (oz.)

Sales (oz.)

Purchases (oz.)

Sales (oz.)

Ounces in inventory

Ounces in inventory

Pueblo Viejo

322,800

208,900

N/A

N/A

323,700

N/A

	Fiscal Year Ended June 30, 2016				Fiscal Year Ended June 30, 2015				As of June 30, 2016		As of June 30, 2015
Gold Stream	Purchases (oz.)		Sales (oz.)		Purchases (oz.)		Sales (oz.)		Ounces in inventory		Ounces in inventory
Mount Milligan		111,000		108,800		74,400		76,900		7,500		5,300
Pueblo Viejo		42,200		31,200		N/A		N/A		11,000		N/A
Andacollo		41,700		41,600		N/A		N/A		-		N/A
Wassa and Prestea		21,400		20,100		N/A		N/A		1,300		N/A
Phoenix Gold		300		300		N/A		N/A		-		N/A
Total		216,600		202,000		74,400		76,900		19,800		5,300

Fiscal Year Ended June 30, 2016

Fiscal Year Ended June 30, 2015

As of June 30, 2016

As of June 30, 2015

Silver Stream

Purchases (oz.)

Sales (oz.)

Purchases (oz.)

Sales (oz.)

Ounces in inventory

Ounces in inventory

Pueblo Viejo

532,600

208,900

N/A

N/A

323,700

N/A

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ROYAL GOLD, INC.

Consolidated Balance Sheets

As of June 30,

(In thousands except share data)

	2016		2015
ASSETS
Cash and equivalents	$	116,633	$	742,849
Royalty receivables		17,990		37,681
Income tax receivable		20,043		6,422
Stream inventory		9,489		2,287
Available-for-sale securities		-		6,273
Prepaid expenses and other		614		1,511
Total current assets		164,769		797,023
Stream and royalty interests, net		2,848,087		2,083,608
Other assets		53,696		36,560
Total assets	$	3,066,552	$	2,917,191
LIABILITIES
Accounts payable	$	4,114	$	4,911
Dividends payable		15,012		14,341
Other current liabilities		3,554		5,721
Total current liabilities		22,680		24,973
Debt		600,685		313,869
Deferred tax liabilities		133,867		146,603
Uncertain tax positions		16,996		15,130
Other long-term liabilities		6,439		689
Total liabilities		780,667		501,264
Commitments and contingencies
EQUITY
Preferred stock, $.01 par value, authorized 10,000,000 shares authorized; and 0 shares issued		-		-
Common stock, $.01 par value, 100,000,000 shares authorized; and 65,093,950 and 65,033,547 shares outstanding, respectively		651		650
Additional paid-in capital		2,179,781		2,170,643
Accumulated other comprehensive loss		-		(3,292	)
Accumulated earnings		48,584		185,121
Total Royal Gold stockholders’ equity		2,229,016		2,353,122
Non-controlling interests		56,869		62,805
Total equity		2,285,885		2,415,927
Total liabilities and equity	$	3,066,552	$	2,917,191

11 

ROYAL GOLD, INC.

Consolidated Statements of Operations and Comprehensive (Loss) Income

(In thousands except for per share data)

	For The Three Months Ended						For The Years Ended
	June 30,			June 30,			June 30,			June 30,
	2016			2015			2016			2015
Revenue	$	94,129		$	73,579		$	359,790		$	278,019
Costs and expenses
Cost of sales		19,019			9,998			70,979			33,450
General and administrative		8,305			6,671			31,720			24,873
Production taxes		432			1,091			3,978			5,446
Exploration Costs		2,466			2,038			8,601			2,194
Depreciation, depletion and amortization		35,391			26,213			141,108			93,486
Impairment of stream and royalty interests and royalty receivables		-			-			98,588			31,335
Total costs and expenses		65,613			46,011			354,974			190,784
Operating income		28,516			27,568			4,816			87,235
Gain (loss) on available-for-sale securities		1,665			(183	)		2,340			(183	)
Interest and other income		1,582			178			3,711			883
Interest and other expense		(8,656	)		(6,196	)		(32,625	)		(25,691	)
Income (loss) before income taxes		23,107			21,367			(21,758	)		62,244
Income tax expense		(5,025	)		(6,394	)		(60,680	)		(9,566	)
Net income (loss)		18,082			14,973			(82,438	)		52,678
Net loss (income) attributable to non-controlling interests		2,357			(154	)		5,289			(713	)
Net income (loss) attributable to Royal Gold common stockholders	$	20,439		$	14,819		$	(77,149	)	$	51,965
Net income (loss)	$	18,082		$	14,973		$	(82,438	)	$	52,678
Adjustments to comprehensive income (loss), net of tax
Unrealized change in market value of available-for-sale securities		1,112			689			5,632			(3,292	)
Reclassification adjustment for (gains) losses included in net income (loss)		(1,665	)		167			(2,340	)		160
Comprehensive income (loss)		17,529			15,829			(79,146	)		49,546
Comprehensive income attributable to non-controlling interests		2,357			154			5,289			(713	)
Comprehensive income (loss) attributable to Royal Gold stockholders	$	19,886		$	15,675		$	(73,857	)	$	48,833
Net income (loss) per share available to Royal Gold common stockholders:
Basic earnings (loss) per share	$	0.32		$	0.23		$	(1.18	)	$	0.80
Basic weighted average shares outstanding		65,090,772			65,033,547			65,074,455			65,007,861
Diluted earnings (loss) per share	$	0.32		$	0.23		$	(1.18	)	$	0.80
Diluted weighted average shares outstanding		65,090,772			65,129,362			65,074,455			65,125,173
Cash dividends declared per common share	$	0.23		$	0.22		$	0.91		$	0.87

12 

ROYAL GOLD, INC.

Consolidated Statements of Cash Flows

(In Thousands)

	For The Three Months Ended						For The Years Ended
	June 30,			June 30,			June 30,			June 30,
	2016			2016			2016			2015
Cash flows from operating activities:
Net income (loss)	$	18,082		$	14,973		$	(82,438	)	$	52,678
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		35,391			26,213			141,108			93,486
Impairment of stream and royalty interests		-			-			98,588			31,335
Amortization of debt discount and issuance costs		4,843			3,088			12,985			12,100
Non-cash employee stock compensation expense		2,250			1,481			10,039			5,141
Tax benefit of stock-based compensation exercises		301			(290	)		548			(364	)
(Gain) loss on available-for-sale securities		(1,665	)		183			(2,340	)		183
Deferred tax benefit		12,263			6,548			(4,983	)		(27,651	)
Other		-			(46	)		(390	)		(46	)
Changes in assets and liabilities:
Royalty receivables		2,245			1,805			17,221			5,977
Stream inventory		(4,088	)		675			(7,203	)		1,110
Income taxes receivable		(11,181	)		(9,666	)		(14,177	)		15,525
Prepaid expenses and other assets		(1,783	)		(121	)		(153	)		2,527
Accounts payable		684			1,892			(849	)		150
Foreign withholding taxes payable		-			1			(199	)		(2,000	)
Uncertain tax positions		(83	)		(331	)		1,867			1,405
Other liabilities		(8,047	)		(2,500	)		235			543
Net cash provided by operating activities	$	49,212		$	43,905		$	169,859		$	192,099
Cash flows from investing activities:
Acquisition of royalty and stream interests		(19,853	)		(88	)		(1,346,109	)		(60,429	)
Andacollo royalty termination		-			-			345,000			-
Golden Star term loan		-			-			(20,000	)		-
Proceeds from sale of available-for-sale securities		4,972			-			11,905			-
Tulsequah stream termination		-			-			-			10,000
Other		(7	)		(702	)		(309	)		(773	)
Net cash used in investing activities	$	(14,888	)	$	(790	)	$	(1,009,513	)	$	(51,202	)
Cash flows from financing activities:
Borrowings from revolving credit facility		-			-			350,000			-
Repayment of revolving credit facility		(25,000	)		-			(75,000	)		-
Net (payments) proceeds from issuance of common stock		(179	)		-			(353	)		775
Common stock dividends		(15,011	)		(14,342	)		(58,720	)		(56,054	)
Debt issuance costs		(62	)		(864	)		(1,111	)		(864	)
Distribution to non-controlling interests		(1	)		(578	)		(830	)		(1,805	)
Tax (benefit) expense of stock-based compensation exercises		(301	)		290			(548	)		364
Net cash (used in) provided by financing activities	$	(40,554	)	$	(15,494	)	$	213,438		$	(57,584	)
Net (decrease) increase  in cash and equivalents		(6,230	)		27,621			(626,216	)		83,313
Cash and equivalents at beginning of period		122,863			715,228			742,849			659,536
Cash and equivalents at end of period	$	116,633		$	742,849		$	116,633		$	742,849

13 

SCHEDULE A

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (GAAP). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Our management uses Adjusted EBITDA and Adjusted Net Income as measures of operating performance to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the board of directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe that these measures are used by and are useful to investors and other users of our financial statements in evaluating our operating performance because they provide an additional tool to evaluate our performance without regard to special and noncore items, which can vary substantially from company to company depending upon accounting methods and book value of assets and capital structure. We have provided reconciliations of all non-GAAP measures to their nearest U.S. GAAP measures and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment.

14 

SCHEDULE A

Adjusted EBITDA Reconciliation

Adjusted EBITDA is defined by the Company as net income (loss) plus depreciation, depletion and amortization, non-cash charges, income tax expense, interest and other expense, and any impairment of mining assets, less non-controlling interests in operating loss (income) of consolidated subsidiaries, interest and other income, and any royalty portfolio restructuring gains or losses. Other companies may define and calculate this measure differently. Adjusted EBITDA identifies the cash generated in a given period that will be available to fund the Company's future operations, growth opportunities, shareholder dividends and to service the Company's debt obligations. This information differs from measures of performance determined in accordance with U.S. generally accepted accounting principles (“GAAP”) and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. See the table below for a reconciliation of net income to Adjusted EBITDA.

	For The Three Months Ended					For The Years Ended
	June 30,					June 30,
	2016		2015			2016			2015
Net income (loss)	$	18,082	$	14,973		$	(82,438	)	$	52,678
Depreciation, depletion and amortization		35,391		26,213			141,108			93,486
Non-cash employee stock compensation		2,250		1,481			10,039			5,141
Impairment of stream and royalty interests and royalty receivables		-		-			98,588			31,335
Interest and other, net		5,409		6,201			26,574			24,992
Income tax expense		5,025		6,394			60,680			9,566
Non-controlling interests in operating loss (income) of consolidated subsidiaries		2,357		(108	)		5,289			(666	)
Adjusted EBITDA	$	68,514	$	55,154		$	259,840		$	216,532

Adjusted Net Income (Loss) Reconciliation

Management of the Company uses adjusted net income (loss) to evaluate the Company’s operating performance, and for planning and forecasting future business operations. The Company believes the use of adjusted net income (loss) allows investors and analysts to understand the results relating to receipt of revenue from its royalty interests and purchase and sale of gold from its streaming interests by excluding certain items that have a disproportionate impact on our results for a particular period. The net income (loss) adjustments are presented net of tax generally at the Company’s statutory effective tax rate. Management’s determination of the components of adjusted net income (loss) are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Royal Gold stockholders is reconciled to adjusted net income (loss) as follows:

	For The Three Months Ended				For The Years Ended
	June 30,				June 30,
	2016		2015		2016			2015
Net income (loss) attributable to Royal Gold common stockholders	$	20,439	$	14,819	$	(77,149	)	$	51,965
Impairment of stream and royalty interests and royalty receivables, net of tax		-		-		86,130			24,185
Tax expense on Andacollo royalty sale and Chilean subsidiary liquidation		-		-		56,000			-
Adjusted net income attributable to Royal Gold common stockholders	$	20,439	$	14,819	$	64,981		$	76,150
Adjusted earnings per share	$	0.32	$	0.23	$	1.00		$	1.17

15 

EX-99.2

Fourth Quarter Fiscal 2016 Results August 11, 2016 EXHIBIT 99.2

Cautionary Statement August 11, 2016 2 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 : anticipated production and returns from our stream and royalty properties, Centerra’s proposed acquisition of Thompson Creek Metals Company, the proposed amendment to our stream at Mount Milligan and that it will be value neutral to us, Centerra’s plans to improve recoveries at Mount Milligan as proposed owner of Mount Milligan, estimated percentages of precious and base metals expected from Mount Milligan and from the Company’s stream over the life of the mine ; forecasts of increased production and project updates from the operators of the Company’s royalty and stream properties at Pueblo Viejo, Peñasquito, Wassa and Prestea and Rainy River, our estimated DD&A statements regarding creating long - term value . Factors that could cause actual results to differ materially from these forward-looking statements include, among others : the risks inherent in construction, development and operation of mining properties, including those specific to new mines being developed and operated in foreign countries ; changes in gold, silver and copper, nickel and other metals prices ; performance of and production at properties ; decisions and activities of the Company’s management ; unexpected operating costs, decisions and activities of the operators of the Company’s royalty and stream properties ; changes in operators’ mining and processing techniques or royalty calculation methodologies ; resolution of regulatory and legal proceedings(including with Vale with respect to Voisey’s Bay) ; unanticipated grade, geological, metallurgical, environmental, processing or other problems at the properties ; inaccuracies in technical reports and reserve estimates ; revisions by operators of reserves, resources, mineralization or production estimates ; changes in project parameters as plans of the operators are refined ; the results of current or planned exploration activities ; the ability of operators of development properties to finance construction to project completion and bring projects into production and operate them in accordance with feasibility studies ; errors or disputes in calculating royalty payments or stream deliveries, or payments or deliveries not made in accordance with royalty or stream agreements ; the liquidity and future financial needs of the company ; economic and market conditions ; variations between operators’ production estimates and our estimates of net GEOs ; the impact of future acquisitions and royalty and stream financing transactions ; litigation ; 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 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 : The Company does not own, develop or mine the properties on which it holds stream or royalty interests . Certain information provided in this presentation has been provided to the Company by the operators of those properties 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 Tony Jensen President and CEO Stefan Wenger CFO and Treasurer 3 August 11, 2016 Mark Isto VP Operations

Delivering on our Objectives Quality Mount Milligan to be acquired by Centerra Gold Peñasquito Pyrite Leach Project approved by Goldcorp Pueblo Viejo tailings expansion pre - feasibility Opportunity Another $25 million of debt paid down in FQ4 >$ 500 million of existing liquidity Growth New investments fully integrated into financial results First sales of silver from Pueblo Viejo Record annual revenue 4 August 11, 2016

Growth Streaming Business Drives Excellent Results 5 August 11, 2016 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Revenue Net Gold Equivalent Ounces Reported Earnings Operating Cash Flow Dividends Paid $USD Millions Fourth Quarter 2015 Fourth Quarter 2016 +28% +21% +38% +12% +5%

Centerra(CG) and Thompson Creek (TCM) entered into an Arrangement Agreement Centerra to acquire Thompson Creek, all stakeholders addressed » Mount Milligan streaming agreement to be amended o Royal Gold maintains economic interest equivalent to the current arrangement o Closing expected second half of 2016 Centerra is evaluating opportunities to increase gold and copper recoveries by 1 : » Adding additional flotation capacity » Adding additional regrind capacity » Developing a geo - metallurgical model » Leaching flotation tailings Excellent outcome for all stakeholders 6 Quality Centerra Gold to Acquire Thompson Creek August 11, 2016 1 See Centerra Gold’s press release dated July 5, 2016.

7 Quality Royal Gold Value at Mount Milligan Preserved Existing Stream (deliveries continue up to ~5 months after CG - TCM deal closes): » 52.25% of gold, payment of $435 per ounce of gold delivered Amended Stream (deliveries begin ~5 months after CG - TCM deal closes): » 35% of gold, payment of $435 per ounce of gold delivered » 18.75% of copper, payment of 15% of prevailing copper spot price per metric tonne delivered Amendment estimated to be value - neutral on a discounted cash flow basis 0 400,000 800,000 1,200,000 1,600,000 0 30,000 60,000 90,000 120,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Net Gold Equivalent Ounces 1 Current (left) Amended (left) Current Cumulative (right) Amended Cumulative (right) 1 Pro - Forma net gold equivalent ounces calculated as Royal Gold’s estimated revenue from Mount Milligan less applicable stream p ayments, divided by consensus gold price as of June 27, 2016. Volume based on Thompson Creek’s latest publicly filed technical report on SEDAR. Production subject t o r isks outlined on slide 2. August 11, 2016

» Expected to deliver ~50,000 GEOs of production per year to Royal Gold 1 » Gold and silver deliveries to Royal Gold coming in as expected » Latest Update (Barrick’s share) 2 : o Barrick reiterated 2016 production forecast of 600,000 - 650,000 ounces and at all - in sustaining costs of $550 - $590 per ounce o Prefeasibility to be commissioned in H2 2016 to evaluate possible increase in tailings storage capacity – potential to move a significant portion of the mine’s 7.7 million ounces of gold and 44.7 million ounces of silver in M+I Resources to Reserves 3 Quality Pueblo Viejo 8 Pueblo Viejo – Barrick Gold (60% interest), Dominican Republic August 11, 2016 1 Estimates are based on future projections provided to Royal Gold by the operators and assuming constant $1,200 gold. 2 See Barrick’s press release dated July 27,2016. 3 Estimated in accordance with National Instrument 43 - 101 as required by Canadian securities regulatory authorities. Estimates are as of December 31, 2015, unless otherwise noted.

» Expected to deliver an incremental ~100,000 - 140,000 ounces of gold and 4 - 6 million ounces of silver per year to Goldcorp » All metals subject to Royal Gold’s 2% Net Smelter Return royalty Quality Exciting new Pyrite Leach Project at Peñasquito 9 Peñasquito – Goldcorp, Mexico August 11, 2016 1 Calendar quarters. Source: Goldcorp presentation, July 28, 2016. 1

Wassa and Prestea – Golden Star Resources, Ghana 10 Quality Wassa and Prestea Transition to Underground » Latest Update 1 : » Golden Star’s total 2016 gold production expected to be 180,000 - 205,000 ounces » Expect new sources of ore will increase annual production by ~25% starting late 2017: o Underground stoping at Wassa has begun in the moderate grade F Shoot — Higher grade B Shoot scheduled to be accessed in early 2017 o Prestea underground activities continue to advance according to schedule — Stoping at Prestea underground expected to start in the second quarter of 2017 August 11, 2016 1 See Golden Star’s press release dated July 25, 2016.

» Latest Update 1 : o Overall construction progress is currently 40% complete o Installation of mechanical, piping, electrical and instrumentation underway in grinding building and primary crusher o Received approval to begin pumping an initial amount of water from Pinewood river to water management facility for storage o Approvals to commence remediation work on water management facilities expected in the coming weeks o Final submission of redesigns to tailings management facility planned for mid - August August 11, 2016 11 Quality Rainy River In Construction Rainy River – New Gold, Canada 1 See New Gold’s press release dated July 27, 2016 .

Fourth quarter revenue of $94.1 million FY16 tax rate of ~20%, consistent with earlier guidance FY16 DD&A of ~$460 per GEO, expected to be $450 - $500 for FY2017 Opportunity Financial Results & Current Liquidity 12 Date Item ($USD millions) June 30, 2016 Undrawn Revolver $375.0m June 30, 2016 Working Capital $142.1m June 30, 2016 Total Available Liquidity $517.1m Strong and Growing Operating Cash Flow Fiscal Fourth Quarter Operating Cash Flow $49.2m Near - Term Conditional Commitments Existing conditional commitments at Rainy River ($75 million) and Golden Star ($50 million, of which $20 million was advanced on July 1, 2016) expected to be funded primarily through cash flow from operations $125m August 11, 2016

13 Royal Gold Vision & Strategy We create long term value by providing leverage and optionality to gold price and reserve upside by: » Providing a portfolio of assets in some of the best gold districts in the world » Maintaining a fixed cost structure » Capital allocation discipline Gold Focused Pay a Growing and Sustainable Dividend Invest at the Troughs and be Patient at the Top Reinvest Free Cash Flow in Long Lived Properties Be the Most Valuable, Not Necessarily the Largest August 11, 2016

1660 Wynkoop Street, #1000 Denver, CO 80202 - 1132 303.573.1660 info @royalgold.com www.royalgold.com 1660 Wynkoop Street, #1000 Denver, CO 80202 - 1132 303.573.1660 info @royalgold.com www.royalgold.com