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

Business performance and financial highlights

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

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

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

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

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

Strategic approach and portfolio management

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

• Portfolio is diversified across 42 producing mines and 133 development-stage assets, reducing single asset and jurisdictional risk.

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

• Recent capital deployment of $1.2 billion since June 2021 targeted gold assets with significant upside in safe jurisdictions, funded without equity dilution.

• Maintains strict due diligence and patience, only investing when strategic criteria are met.

Market positioning and valuation

• Trades at a discount to peers like Wheaton Precious Metals and Franco-Nevada, despite strong financial results and portfolio quality.

• Believes the market undervalues its long-life assets and optionality, with current share price not reflecting the strong gold price outlook.

• Largest shareholders are institutional, with the top 20 holding 40-45% of shares and long average holding periods.

• Management and directors collectively hold about $50 million in shares, aligning interests with shareholders.