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): November 2, 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 November 2, 2016, Royal Gold, Inc. (the “Company”) reported its first quarter fiscal 2017 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 November 2, 2016 regarding First Fiscal Quarter 2017 Results.
99.2	Royal Gold, Inc. November 3, 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:  November 3, 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 November 2, 2016 regarding First Fiscal Quarter 2017 Results.
99.2	Royal Gold, Inc. November 3, 2016 Earnings Presentation.

EX-99.1

EXHIBIT 99.1

 

Royal Gold Reports Record Quarterly Revenue and Earnings Per Share

DENVER, COLORADO. NOVEMBER 2, 2016: ROYAL GOLD, INC. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) reports record net income attributable to stockholders (“net income”) of $29.8 million, or $0.46 per share, on record revenue of $117.9 million in its fiscal first quarter ended September 30, 2016 (“first quarter”). Earnings increased significantly compared to the prior year quarter net loss of $45.0 million, or ($0.69)¹per share, on revenue of $74.1 million.

First Quarter Highlights Compared to the Prior Year Quarter:

· Strong volume of 88,400 Gold Equivalent Ounces (“GEOs²”), an increase of 34%

· Record revenue of $117.9 million, an increase of 59%

· Operating cash flow of $55.1 million, versus $2.5 million prior year

· Record earnings per share of $0.46, versus ($0.69) per share prior year

· Dividends paid of $15.0 million, an increase of 5%

· Average gold price of $1,335, an increase of 19%

“Fiscal 2017 is off to a great start with two powerful business development catalysts and very strong financial results,” commented Tony Jensen, President and CEO. “Our purchase of another royalty at Cortez Crossroads provides additional exposure to one the world’s premier gold mines, while Centerra Gold’s successful acquisition of Thompson Creek Metals adds a strong partner to our portfolio and provides clarity for our Mount Milligan interest. In addition to these successes, the benefits of other investments we made over the last six quarters are now contributing to the record financial results we are announcing today.”

Recent Developments

Amended Stream at Mount Milligan

On October 20, 2016, Royal Gold amended its streaming interest at the Mount Milligan mine, now owned by a subsidiary of Centerra Gold Inc. (“Centerra”).

Under the terms of the amendment, our 52.25% gold stream at Mount Milligan has been amended to a 35.0% gold stream and an 18.75% copper stream. We will continue to pay $435 per ounce of gold delivered and will pay 15.0% of the spot price per metric tonne of copper delivered. Mount Milligan gold in concentrate that was in transit prior to October 20, 2016 will be delivered to us under the current 52.25% stream. Under the terms of both the original and amended agreements, there is a maximum of five months between concentrate shipment and final settlement, and the Company expects to begin receiving gold and copper deliveries reflecting the amended stream agreement in March 2017.

¹ Earnings and operating cash flow in the prior year quarter were impacted by discrete tax expenses of $56 million.

² GEOs are calculated as revenue divided by the average gold price for the same period. GEOs net of stream payments were 71,400 ounces in the first quarter compared to 55,700 ounces in the year ago quarter.

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After transition to the amended stream, Royal Gold expects that, on the basis of its current stream and royalty portfolio, approximately 85% of total future net revenue will come from precious metals and 15% from base metals.

Acquisition of Additional Royalty Interests at Cortez

On September 19, 2016, Royal Gold, through its wholly owned subsidiary, Denver Mining Finance Company, Inc. acquired a 3.75% Net Value Royalty (“NVR”) covering a significant area of Barrick Gold Corporation’s (“Barrick”) Cortez gold mine in Nevada, including the Crossroads deposit from a private party seller for total consideration of $70 million. With this acquisition, Royal Gold’s interests at Cortez Crossroads comprise a 4.43% NVR and a 5% sliding-scale Gross Smelter Return (“GSR”) royalty at current gold prices. Royal Gold’s interests on production from the Pipeline and South Pipeline deposits as well as portions of the Gap deposit are comprised of a 4.83% NVR and a 5.71% GSR royalty at current gold prices.

As of December 31, 2015, proven and probable reserves subject to Royal Gold’s interests at Cortez were estimated at 3.7 million ounces of gold, including approximately 3 million gold ounces at Crossroads. Waste stripping at Crossroads is underway and production is estimated to begin in calendar 2018.

First Quarter Overview

First quarter revenue of $117.9 million included stream revenue of $85.5 million and royalty revenue of $32.4 million. Stream segment gold purchases totaled approximately 63,000 ounces and gold sales were approximately 60,000 ounces. Stream segment silver purchases were approximately 543,000 ounces and silver sales were approximately 323,000 ounces. The Company had approximately 24,000 ounces of gold and 544,000 ounces of silver in inventory at September 30, 2016, as previously announced, compared to approximately 20,000 ounces of gold and approximately 324,000 ounces of silver at June 30, 2016.

First quarter cost of sales was $22.7 million, compared to $11.5 million in the year ago quarter. Cost of sales is specific to our stream agreements and is the result of Royal Gold’s purchase of gold and silver for a cash payment. The increase is primarily attributable to new production from our gold and silver streams at Pueblo Viejo and increased deliveries from Andacollo and Mount Milligan.

General and administrative expenses were $10.5 million in the first quarter, compared to $9.5 million in the year ago quarter. The increase was related to increased legal and litigation costs of approximately $1.3 million.

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Depreciation, depletion and amortization increased to $40.1 million for the first quarter, an increase from $27.1 million from the year ago quarter. The increase was primarily attributable to new production from our gold and silver streams at Pueblo Viejo ($9.6 million) and an increase in gold stream sales from Mount Milligan and Andacollo, which resulted in additional depletion of approximately $5.7 million. These increases were partially offset by lower overall production within our royalty interest segment.

Exploration costs, which are related to our Peak Gold joint venture in Alaska, totaled $3.3 million in the first quarter, compared to $3.2 million in the year ago quarter. As of September 30, 2016, Royal Gold had earned a 15.1% interest in the Peak Gold joint venture.

We recognized a first quarter income tax expense of $7.2 million, compared with income tax expense of $59.2 million during the year ago quarter.  This resulted in an effective tax rate of 21.1% in the current period, compared with 415.7% in the quarter ended September 30, 2015.  The decrease in the effective tax rate is primarily related to the discrete tax impacts attributable to the Company’s Andacollo transactions and the liquidation of our Chilean subsidiary during the three months ended September 30, 2015.

At September 30, 2016, we had current assets of $192.0 million compared to current liabilities of $25.6 million, resulting in working capital of $166.4 million. This compares to current assets of $164.8 million and current liabilities of $22.7 million at June 30, 2016, resulting in working capital of $142.1 million. As of September 30, 2016, the Company had $305 million available and $345 million outstanding under its revolving credit facility. Working capital, combined with the Company’s undrawn revolving credit facility, resulted in approximately $471 million of total liquidity at September 30, 2016.

PROPERTY HIGHLIGHTS

A summary of first 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 first quarter compared to the year ago 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 year ago quarter, are detailed in our 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. The Company owns interests on 192 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.

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For further information, please contact:

Karli Anderson

Vice President Investor Relations

(303) 575-6517

Note: Management’s conference call reviewing the first quarter results will be held on Thursday, November 3, 2016, followed by a conference call that day 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 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 an additional royalty at Cortez providing exposure to one of the world’s premier gold mines, Centerra’s acquisition of Thompson Creek Metals adding a strong partner to the Company’s portfolio and providing clarity for the Company’s Mount Milligan interest; operators’ expectations about development; anticipated production and returns from our stream and royalty properties; estimated percentages of precious and base metals expected from Mount Milligan and from the Company’s stream and royalty portfolio in the aggregate after transition to the amended Mount Milligan stream agreement; development and estimated start of production 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; 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.

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Statement Regarding Third Party Information:  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.

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TABLE 1

First Quarter Fiscal 2017

Revenue and 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, 2016					September 30, 2015
				Reported					Reported
Stream/Royalty	Metal(s)	Revenue		Production1			Revenue		Production1
Stream:
Mount Milligan	Gold	$	38,386		28,900	oz.	$	23,465		21,000	oz.
Pueblo Viejo		$	20,950					N/A		N/A
	Gold				11,000	oz.		N/A		N/A
	Silver				323,300	oz.		N/A		N/A
Andacollo	Gold	$	20,169		15,200	oz.	$	10,716		9,500	oz.
Wassa and Prestea	Gold	$	5,999		4,500	oz.	$	3,624		3,200	oz.
Other	Gold	$	-		N/A	oz.	$	52		100	oz.
Total stream revenue		$	85,504				$	37,857
Royalty:
Peñasquito		$	5,821				$	8,046
	Gold				100,100	oz.				226,500	oz.
	Silver				5.2	Moz.				7.3	Moz.
	Lead				33.0	Mlbs.				49.1	Mlbs.
	Zinc				73.0	Mlbs.				118.7	Mlbs.
Cortez	Gold	$	2,040		21,800	oz.	$	1,812		22,600	oz.
Other	Various	$	24,582		N/A		$	26,341		N/A
Total royalty revenue		$	32,443				$	36,199
Total revenue		$	117,947				$	74,056

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TABLE 2

Operators’ Historical Production

Reported Production For The Quarter Ended1

Property

Stream/Royalty

Operator

Metal(s)

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Stream:

Mount Milligan2

35.00% of payable gold; 18.75% of payable copper

Centerra

Gold

28,900

oz.

23,800

oz.

25,400

oz.

38,700

oz.

21,000

oz.

Pueblo Viejo

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

Barrick (60%)

Gold

11,000

oz.

10,600

oz.

11,800

oz.

8,800

oz.

N/A

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

Silver

323,300

oz.

208,900

oz.

N/A

N/A

N/A

Andacollo

100% of gold produced

Teck

Gold

15,200

oz.

13,500

oz.

13,500

oz.

5,200

oz.

9,500

oz.

Wassa and Prestea

9.25% of gold produced up to 240,000 ounces; 5.5% therafter

Golden Star

Gold

4,500

oz.

4,600

oz.

3,500

oz.

8,800

oz.

3,200

oz.

Royalty:

Peñasquito

2.0% NSR

Goldcorp

Gold

100,100

oz.

41,900

oz.

120,300

oz.

195,400

oz.

226,500

oz.

Silver

5.2

Moz.

2.6

Moz.

4.8

Moz.

6.8

Moz.

7.3

Moz.

Lead

33.0

Mlbs.

13.3

Mlbs.

30.2

Mlbs.

41.7

Mlbs.

49.1

Mlbs.

Zinc

73.0

Mlbs.

43.2

Mlbs.

73.1

Mlbs.

98.0

Mlbs.

118.7

Mlbs.

Cortez

GSR1 and GSR2, GSR3, NVR1

Barrick

Gold

21,800

oz.

16,100

oz.

18,400

oz.

17,000

oz.

22,600

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 Reflects the October 20, 2016 amendment to our Mount Milligan streaming agreement. Prior to the amendment, Royal Gold had a 52.25% gold stream. Gold concentrate that is currently in transit will be delivered to us under the 52.25% gold stream.

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TABLE 3

Calendar 2016 Operators’ Production Estimate vs Actual Production

	Calendar 2016 Operator’s Production								Calendar 2016 Operator's Production
	Estimate1								Actual2,3
	Gold		Silver			Base Metals			Gold		Silver			Base Metals
Stream/Royalty	(oz.)		(oz.)			(lbs.)			(oz.)		(oz.)			(lbs.)
Stream:
Andacollo4		57,600		-			-			40,100		-			-
Mount Milligan5		240,000-270,000		-			-			99,700		-			-
Pueblo Viejo6		670,000-700,000		Not provided						511,000		Not provided			-
Wassa and Prestea7		180,000-205,000								95,700
Royalty:
Cortez GSR1		119,200		-			-			53,100		-			-
Cortez GSR2		1,300		-			-			3,100		-			-
Cortez GSR3		120,500		-			-			56,200		-			-
Cortez NVR1		68,900		-			-			36,600		-			-
Peñasquito8		520,000-580,000		22-24	million		-			282,000		13.1	million		-
Lead							145-155	million							79.8	million
Zinc							375-400	million							184.6	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 2016 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, 2016 through September 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, Pueblo Viejo, 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. Actual production shown is for the six months ended June 30, 2016. Nine months ended September 30, 2016, information was not available from the operator as of the date of this report.

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. Actual production shown is for the six months ended June 30, 2016. Nine months ended September 30, 2016, information was not available from the operator as of the date of this report.

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 September 30, 2016				Three months ended September 30, 2015				As of September 30, 2016		As of June 30, 2016
Gold Stream	Purchases (oz.)		Sales (oz.)		Purchases (oz.)		Sales (oz.)		Ounces in inventory		Ounces in inventory
Mount Milligan		29,900		28,900		23,800		21,000		8,500		7,500
Wassa and Prestea		4,500		4,500		6,300		3,200		1,300		1,300
Pueblo Viejo		13,700		11,000		N/A		N/A		13,700		11,000
Andacollo		15,300		15,200		9,800		9,500		100		-
Phoenix Gold		-		-		100		100		-		-
Total		63,400		59,600		40,000		33,800		23,600		19,800

	Three months ended September 30, 2016				Three months ended September 30, 2015		As of September 30, 2016		As of June 30, 2016
Silver Stream	Purchases (oz.)		Sales (oz.)		Purchases (oz.)	Sales (oz.)	Ounces in inventory		Ounces in inventory
Pueblo Viejo		543,300		323,300	N/A	N/A		543,700		323,700

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ROYAL GOLD, INC.

Consolidated Balance Sheets

As of September 30,

(In thousands except share data)

	September 30, 2016		June 30, 2016
ASSETS
Cash and equivalents	$	133,042	$	116,633
Royalty receivables		23,951		17,990
Income tax receivable		21,028		20,043
Stream inventory		12,615		9,489
Prepaid expenses and other		1,350		614
Total current assets		191,986		164,769
Stream and royalty interests, net		2,898,094		2,848,087
Other assets		58,511		53,696
Total assets	$	3,148,591	$	3,066,552
LIABILITIES
Accounts payable	$	6,129	$	4,114
Dividends payable		15,023		15,012
Other current liabilities		4,433		3,554
Total current liabilities		25,585		22,680
Debt		674,029		600,685
Deferred tax liabilities		120,672		133,867
Uncertain tax positions		23,370		16,996
Other long-term liabilities		6,391		6,439
Total liabilities		850,047		780,667
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 65,142,812 and 65,093,950 shares outstanding, respectively		652		651
Additional paid-in capital		2,180,815		2,179,781
Accumulated other comprehensive loss		-		-
Accumulated earnings		63,349		48,584
Total Royal Gold stockholders’ equity		2,244,816		2,229,016
Non-controlling interests		53,728		56,869
Total equity		2,298,544		2,285,885
Total liabilities and equity	$	3,148,591	$	3,066,552

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ROYAL GOLD, INC.

Consolidated Statements of Operations and Comprehensive Income (Loss)

(In thousands except for per share data)

	For The Three Months Ended
	September 30,			September 30,
	2016			2015
Revenue	$	117,947		$	74,056
Costs and expenses
Cost of sales		22,662			11,466
General and administrative		10,507			9,510
Production taxes		497			1,592
Exploration costs		3,288			3,156
Depreciation, depletion and amortization		40,102			27,147
Total costs and expenses		77,056			52,871
Operating income		40,891			21,185
Interest and other income		1,557			265
Interest and other expense		(8,305	)		(7,214	)
Income before income taxes		34,143			14,236
Income tax expense		(7,188	)		(59,177	)
Net income (loss)		26,955			(44,941	)
Net loss (income) attributable to non-controlling interests		2,832			(105	)
Net income (loss) attributable to Royal Gold common stockholders	$	29,787		$	(45,046	)
Net income (loss)	$	26,955		$	(44,941	)
Adjustments to comprehensive income (loss), net of tax
Unrealized change in market value of available-for-sale securities		-			(449	)
Comprehensive  income (loss)		26,955			(45,390	)
Comprehensive loss (income) attributable to non-controlling interests		2,832			(105	)
Comprehensive income (loss) attributable to Royal Gold stockholders	$	29,787		$	(45,495	)
Net income (loss) per share available to Royal Gold common stockholders:
Basic earnings (loss) per share	$	0.46		$	(0.69	)
Basic weighted average shares outstanding		65,116,686			65,048,439
Diluted earnings (loss) per share	$	0.46		$	(0.69	)
Diluted weighted average shares outstanding		65,280,904			65,048,439
Cash dividends declared per common share	$	0.23		$	0.22

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ROYAL GOLD, INC.

Consolidated Statements of Cash Flows

(In Thousands)

	For The Three Months Ended
	September 30,			September 30,
	2016			2015
Cash flows from operating activities:
Net income (loss)	$	26,955		$	(44,941	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		40,102			27,147
Amortization of debt discount and issuance costs		3,351			3,197
Non-cash employee stock compensation expense		4,144			4,227
Tax benefit of stock-based compensation exercises		24			150
Deferred tax expense		(1,030	)		11,767
Other		(153	)		(390	)
Changes in assets and liabilities:
Royalty receivables		(5,962	)		13,142
Stream inventory		(3,125	)		(1,981	)
Income taxes receivable		(16,480	)		(17,192	)
Prepaid expenses and other assets		(1,724	)		(2,682	)
Accounts payable		1,777			3,266
Uncertain tax positions		6,374			77
Other liabilities		879			6,704
Net cash provided by operating activities	$	55,132		$	2,491
Cash flows from investing activities:
Acquisition of stream and royalty interests		(90,083	)		(1,300,881	)
Andacollo royalty termination		-			345,000
Golden Star term loan		-			(20,000	)
Other		(226	)		(228	)
Net cash used in investing activities	$	(90,309	)	$	(976,109	)
Cash flows from financing activities:
Borrowings from revolving credit facility		70,000			350,000
Net payments from issuance of common stock		(2,038	)		-
Common stock dividends		(15,012	)		(14,341	)
Purchase of additional royalty interest from non-controlling interest		(1,025	)		-
Tax expense of stock-based compensation exercises		(24	)		(150	)
Other		(315	)		(430	)
Net cash provided by financing activities	$	51,586		$	335,079
Net increase (decrease) in cash and equivalents		16,409			(638,539	)
Cash and equivalents at beginning of period		116,633			742,849
Cash and equivalents at end of period	$	133,042		$	104,310

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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.

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 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.

13

SCHEDULE A

	For The Three Months Ended
	September 30,
	(Unaudited, in thousands)
	2016		2015
Net income (loss)	$	26,955	$	(44,941	)
Depreciation, depletion and amortization		40,102		27,147
Non-cash employee stock compensation		4,144		4,227
Interest and other, net		6,748		6,949
Income tax expense		7,188		59,177
Non-controlling interests in operating loss (income) of consolidated subsidiaries		2,984		(105	)
Adjusted EBITDA	$	88,121	$	52,454

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:

	September 30,
	(Unaudited, in thousands)
	2016		2015
Net income (loss) attributable to Royal Gold common stockholders	$	29,787	$	(45,046	)
Tax expense on Andacollo royalty sale and Chilean subsidiary liquidation		-		56,000
Adjusted net income attributable to Royal Gold common stockholders	$	29,787	$	10,954
Net income (loss) attributable to Royal Gold common stockholders per share	$	0.46	$	(0.69	)
Tax expense on Andacollo royalty sale and Chilean subsidiary liquidation		-		0.86
Adjusted net income attributable to Royal Gold common stockholders per share	$	0.46	$	0.17

14

EX-99.2

Fiscal First Quarter Results Royal Gold, Inc. November 3, 2016 EXHIBIT 99.2

2 November 3, 2016 Cautionary Statement 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 ; investing in long - lived properties ; investing at troughs and patience at the top ; paying a growing and sustainable dividend ; being the most valuable, not necessarily the largest ; gold price optionality and reserve upside leverage ; providing a portfolio of assets in some of the world’s best gold districts ; capital allocation and shareholder return descriptions ; potential for additional reserves at Pueblo Viejo and Rainy River ; underground development at Wassa and Prestea ; improving production and grade at Peñasquito ; efforts to improve copper and gold recovery at Mount Milligan ; successful commissioning of secondary crusher at Mount Milligan ; exploration upside at Wassa and Prestea ; maintaining a fixed cost structure and expanding margins on per share metrics ; estimated revenue percentages from precious and other metals ; the amendment to the Mount Milligan stream being value - neutral to Royal Gold ; estimated value of our interests in the Cortez camp ; the estimated value of our interests and potential long term growth at Goldrush ; mine life and reserves estimates and production forecasts from the operators of our stream and royalty interests ; estimated gold equivalent production from amended Mount Milligan stream ; and access to and expected uses of capital . 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 paid ; performance of and production at properties, and variation of actual performance from the production estimates and forecasts made by the operators of those properties ; decisions and activities of the Company’s management affecting margins, use of capital and strategy ; 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 ; unanticipated grade, geological, metallurgical, environmental, processing or other problems at the properties ; revisions or inaccuracies in technical reports, reserve, resources 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 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 ; the impact of future acquisitions and royalty and stream 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 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 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 Bill Heissenbuttel VP Corporate Development 3 November 3, 2016

Royal Gold Vision and Strategy Gold Focused 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 Pay a Growing and Sustainable Dividend Value created by providing gold price optionality and reserve upside leverage, and » Providing a portfolio of assets in some of the best gold districts in the world » Capital allocation and shareholder return discipline » Maintaining a fixed cost structure and expanding margins on per share metrics 4 November 3, 2016

Record results driven by Pueblo Viejo, Mount Milligan and Andacollo 5 November 3, 2016 Record Performance in Q1 FY17 $40 $60 $80 $100 $120 $140 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Record Revenue $20 $40 $60 $80 $100 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Record Adjusted EBITDA 1 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Record Net Gold Equivalent Ounces (GEOs) 2,3 $USD Millions $USD Millions 1 Non - GAAP measure. See slide 15 for reconciliation. 2 Net GEOs are calculated as revenue less stream payments, divided by the average gold price for the same period. 3 Volume in Q2FY16 positively influenced by true - up deliveries from Wassa and Prestea.

Seizing unique opportunities to enhance diversity and drive growth 1 6 November 3, 2016 Long Lived, Quality Properties Acting as a catalyst for Centerra - Thompson Creek deal x Mount Milligan stream amended; 35% gold, 18.75% copper x Stream value - neutral on a discounted cash flow basis x Strong operator and balance sheet Increasing interest at Cortez Crossroads x 3.75% NVR royalty acquired x Total Crossroads interest = 5% G SR + 4.4% NVR x Waste stripping underway Completing the innovative Pueblo Viejo stream transaction x Barrick increased production guidance to 670 - 700koz for CY16 x Silver recoveries achieved best ever quarterly performance Supporting development at Rainy River x Final $75m advance payment to be made in November 2016 x 60% of capital spending complete x Production expected mid - 2017 1 Project development as reported by the mine operators.

Operators’ innovation, capital and exploration at no incremental capital cost to Royal Gold 1 7 November 3, 2016 Long Lived, Quality Properties Peñasquito x Pyrite Leach under construction x Incremental annual production; 100 - 140k ozs Au, +4 - 6m ozs Ag x Goldcorp notes that grades are improving in current quarter Pueblo Viejo x Tailings expansion potential additional reserves (up to 7.7m ozs Au, 44m ozs Ag) Wassa and Prestea Underground x Underground development advancing well x Mampon deposit mining permit received Mount Milligan x Secondary crusher commissioning underway x A dditional floatation and regrind capacity, leaching of floatation tailings being considered to boost gold recovery 1 Project development as reported by the mine operators.

Cortez camp includes several royalty areas of interest to Royal Gold » Pipeline, South Pipeline, Gap, Crossroads and Goldrush 8 November 3, 2016 Cortez Summary The Cortez camp is located 100km southwest of Elko, Nevada. All photos from Barrick.

Table below describes Royal Gold’s interests at Cortez » Summary includes our expanded interest at Crossroads » Majority of Crossroads will be heap leach with higher grade refractory ore shipped to Goldstrike for processing 9 November 3, 2016 Cortez Summary Deposit Subject to Royal Gold Interest Royalty Interest Nature of Royalty 1 Current Reserve 2 Pipeline South Pipeline Gap Yes Yes A portion of 4.83% NVR 744,000oz 5.71% GSR Crossroads Yes 4.43% NVR 2,963,000oz 5% GSR Pediment No Cortez Hills UG No Goldrush Yes, an interest near the south 1 % NVR N/A 1 Royalties are either a GSR=Gross Smelter Return Royalty; or NVR=Net Value Royalty: a defined percentage of the gross revenue from a resource extraction operation, less certain contract - defined costs. 2 Current reserve is estimated based on boundaries of Royal Gold’s interests applied to Barrick’s reserves reported in their 43 - 1 01 report on March 21, 2016.

Goldrush offers long term potential for growth (Royal Gold’s 1% NVR interest in green below) 1 10 November 3, 2016 Cortez Summary 1 Source: Barrick. Illustration is an estimate of Royal Gold’s royalty interest. No landmarks or coordinates given in original image.

Date Item ($USD millions) September 30, 2016 Undrawn Revolver $305m September 30, 2016 Working Capital $166m September 30, 2016 Total Available Liquidity $471m Strong Operating Cash Flow Fiscal First Quarter Operating Cash Flow $55m Advances Post 9/30/16 Golden Star ($20 million was advanced on October 1, 2016) and Rainy River ($75 million to be advanced on or about November 16, 2016) $95m Few Near - Term Commitments Golden Star (Expected January 1, 2017) $10m Revenue of $117.9 million FQ1 tax rate of ~21% FQ1 DD&A of ~$455 per GEO, within guidance range of $450 - $500 for FY2017 11 November 3, 2016 Financial Results and Liquidity

Royal Gold Vision and Strategy Gold Focused 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 Pay a Growing and Sustainable Dividend Value created by providing gold price optionality and reserve upside leverage, and » Providing a portfolio of assets in some of the best gold districts in the world » Capital allocation and shareholder return discipline » Maintaining a fixed cost structure and expanding margins on per share metrics 12 November 3, 2016

Gold Focused 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 Pay a Growing and Sustainable Dividend 13 November 3, 2016 Appendix

Directors (from left to right): Jamie Sokalsky , Independent Director; Former President and CEO, Barrick Gold Corporation Kevin McArthur, Independent Director; Executive Chair, Tahoe Resources and Former CEO and Director, Goldcorp, Inc. Gordon Bogden, Independent Director; Former Vice Chairman, Mining & Metals, Standard Chartered Bank Tony Jensen, Director; President and CEO, Royal Gold, Inc. M. Craig Haase, Independent Director; Former EVP and Chief Legal Officer, Franco - Nevada Mining Corporation William Hayes, Independent Director and Chairman of the Board; Former EVP, Placer Dome Inc. Ronald J. Vance, Independent Director; Former SVP Corporate Development, Teck Resources Christopher M.T. Thompson, Independent Director; Former Chairman and CEO, Gold Fields Limited November 3, 2016 Board of Directors 14

Adjusted EBITDA reconciliation Adjusted EBITDA Reconciliation: For The Three Months Ended 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 Net (loss) income $ (44,941) $ 13,920 $ (69,498) $ 18,082 $ 26,955 Depreciation, depletion and amortization 27,147 40,407 38,163 35,391 40,102 Non - cash employee stock compensation 4,227 1,222 2,340 2,250 4,144 Impairments of stream and royalty interests and royalty receivables - (386) 98,973 - - Interest and other, net 6,949 8,513 5,702 5,409 6,748 Income tax expense (benefit) 59,177 4,740 (8,262) 5,025 7,188 Non - controlling intrests in operating (income) loss of consolidated subsidiaries (105) 1,194 1,842 2,357 2,984 Adjusted EBITDA $ 52,454 $ 69,610 $ 69,260 $ 68,514 $ 88,121 15 November 3, 2016

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