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

Market environment and positioning

• Gold prices have reached record highs, providing a favorable backdrop for the business and driving strong financial performance in recent quarters.

• The company offers investors exposure to precious metals with consistent financial results and a focus on per share metrics.

• Positioned to compete for large transactions while remaining agile enough to benefit from smaller deals, aiming to be the best rather than the biggest in the sector.

• The business model provides leverage to gold prices without direct exposure to operating or capital cost risks.

• Outperformed gold, the GDX index, and the general market over the long term.

Financial performance and capital allocation

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

• Ended the year with zero debt and $1.2 billion in liquidity, including a fully undrawn $1 billion revolving credit facility.

• Growth has been funded primarily through internal resources, avoiding shareholder dilution and maintaining the lowest share count among GDX index members.

• Paid a growing dividend every year since 2001, with a 12.5% increase announced for 2025, and over $1 billion returned to shareholders.

• Focused on reinvesting cash flow in the business, but open to special dividends or buybacks if growth opportunities diminish.

Business model and risk management

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

• Portfolio diversification across 40 revenue-generating assets and 135 development-stage assets reduces single asset and jurisdictional risk.

• Due diligence is a core competency, with a disciplined approach to asset selection and a willingness to wait for the right opportunities.

• ESG considerations are integral, with improved ratings from Sustainalytics and MSCI, and a focus on sustainable, long-life assets.

• No hedging on top-line revenue; cost control is maintained through vigilant management of G&A expenses.