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    RGLD
    Earnings call· Mar 2026(Q1 FY26)

    ROYAL GOLD Q1 FY26 earnings call RGLD

    May 7, 2026 Source

    Executive summary

    Royal Gold Q1 FY26 — Record Revenue, Cash Flow, and Earnings Driven by Portfolio Expansion and Strong Metal Prices

    Royal Gold delivered a record-breaking first quarter, showcasing the benefits of its expanded portfolio and strong metal prices. The company is focused on strategic capital allocation, introducing a $600 million accordion feature for its revolver and a $500 million share repurchase program to enhance flexibility and shareholder value. Management continues to emphasize its stable cost structure as a hedge against market volatility, particularly with rising energy costs impacting operators.

    Highlights

    5

    • Quarterly revenue reached a record $469 million, a 143% increase over Q1 FY25.

    • Operating cash flow was a record $294 million, up 115% year-over-year.

    • Adjusted net income hit a record $233 million, an 80% increase from the prior year.

    • Available liquidity rebuilt to $1.1 billion by quarter-end, with $300 million repaid on the revolver.

    • Adjusted EBITDA margin remained high at 83% for the quarter.

    Concerns

    4

    • G&A expense increased by $6.5 million year-over-year to $17.5 million, primarily due to higher corporate costs related to 2025 transactions.

    • DD&A expense increased to $91 million from $33 million in the prior year, driven by higher carrying values of recent acquisitions.

    • Interest and other expense rose to $13.2 million from $1.2 million, mainly due to higher average amounts outstanding on the revolving credit facility.

    • Newmont expects lower gold, lead, and zinc production at Peñasquito in 2026 compared to last year due to mining ramp-down at Phase 7.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year G&A expense
    $50 million to $60 million (high end)
    medium materiality
    High
    Full-year effective tax rate
    17% to 22%
    medium materiality
    High
    Debt repayment timeline
    Fully repay outstanding balance by sometime in the fourth quarter
    high materiality
    High
    H1/H2 performance split
    48/52
    low materiality
    Medium

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Royalty
    Revenue from the royalty segment was up significantly year-over-year, contributing to overall strong performance.
    		$156 million120%——
    Stream
    Stream revenue also saw a strong increase, with higher contributions from multiple stream interests.
    		$313 million155%——
    Gold Revenue Contribution
    Gold remained the dominant revenue driver but decreased as a percentage of total revenue due to strong silver prices.
    Percentage of total revenue: 71%
    		————
    Silver Revenue Contribution
    Silver's contribution to total revenue increased significantly due to very strong silver prices during the quarter.
    Percentage of total revenue: 16%
    		————
    Copper Revenue Contribution
    Copper revenue contribution remained consistent with the prior year.
    Percentage of total revenue: 10%
    		————

    Operational metrics

    34
    Revenue
    $469 million143% increase YoY
    Q1 FY26

    Record quarterly revenue.

    Earnings
    $281 million148% increase YoY
    Q1 FY26

    Record quarterly earnings.

    Adjusted net income
    $233 million80% increase YoY
    Q1 FY26

    Record adjusted net income, after adjusting for unusual items.

    Adjusted net income per share
    $2.72
    Q1 FY26

    Adjusted net income per share for the quarter.

    Adjusted EBITDA margin
    83%
    Q1 FY26

    High and stable margin.

    Dividends paid
    $40 million
    Q1 FY26

    Total dividends paid to shareholders.

    Annual dividend rate
    $1.90
    Annual

    New annual dividend rate.

    Revolver repayment
    $300 million
    Q1 FY26

    Amount repaid on the revolving credit facility.

    Available liquidity
    $1.1 billion
    End of March

    Total available liquidity, including working capital.

    Working capital
    $295 million
    End of March

    Component of total available liquidity.

    Accordion feature (revolver)
    $600 million
    Q1 FY26

    New accordion feature added to the revolving credit facility.

    Share repurchase program authorization
    $500 million
    Q1 FY26

    Authorization by the Board for a share repurchase program.

    Volume
    96,300
    Q1 FY26

    Gold Equivalent Ounces for the quarter.

    Gold price increase
    70%YoY
    Q1 FY26

    Increase in gold price over the prior year.

    Silver price increase
    165%YoY
    Q1 FY26

    Increase in silver price over the prior year.

    Copper price increase
    38%YoY
    Q1 FY26

    Increase in copper price over the prior year.

    G&A expense
    $17.5 million$6.5 million higher YoY
    Q1 FY26

    Higher expense mostly due to higher corporate costs, including employee-related, legal, and audit costs attributable to 2025 transactions.

    DD&A expense
    $91 millionfrom $33 million YoY
    Q1 FY26

    Mainly driven by higher carrying values of Kansanshi Gold Stream and Sandstorm Horizon interests.

    DD&A per GEO
    $944from $488 YoY
    Q1 FY26

    Unit basis DD&A expense.

    Gain on sale of marketable securities
    $14 million
    Q1 FY26

    Mostly due to the sale of Highlander Silver shares.

    Interest and other expense
    $13.2 millionfrom $1.2 million YoY
    Q1 FY26

    Primarily due to higher average amounts outstanding on the revolving credit facility.

    Tax expense
    $25 millionfrom $10 million YoY
    Q1 FY26

    Total tax expense for the quarter.

    Effective tax rate
    8%
    Q1 FY26

    Effective tax rate for the quarter, including a $33.7 million discrete benefit.

    Net income
    $281 millionfrom $113 million YoY
    Q1 FY26

    Net income for the quarter.

    Net income per share
    $3.30from $1.72 YoY
    Q1 FY26

    Net income per share for the quarter.

    April debt repayment
    $75 million
    April 2026

    Repayment made on the revolving credit facility after quarter end.

    Intended May debt repayment
    $100 million
    May 2026

    Additional repayment intended for the following week after the call.

    Outstanding debt after May repayment
    $425 million
    After May 2026 repayment

    Remaining balance on the credit facility.

    Available credit facility after May repayment
    $975 million
    After May 2026 repayment

    Amount available under the credit facility.

    Hod Maden cash call (Royal Gold's share)
    $14 million
    Q1 FY26

    Cash call for Royal Gold's portion of ongoing development costs at Hod Maden.

    Hod Maden losses (Royal Gold's share)
    $1.3 million
    Q1 FY26

    Royal Gold's 30% pickup of losses in the Hod Maden equity investment, recognized in interest and other expense.

    Mount Milligan cost support program payment
    expected
    Q3 FY26

    Second payment from the Mount Milligan cost support program is expected in Q3 FY26 based on Equinox's production and guidance.

    Maximum asset revenue contribution
    12.5%
    Q1 FY26

    No single asset contributed more than this percentage of total revenue.

    Business development deal size range
    $300 million to $400 million
    Current

    Typical size range for deals seen in the pipeline.

    Industry KPIs

    3
    MetricValueDetails
    Growth project CAPEX first production—
    Ore grade recovery drilling by deposit—
    Production sales volume by metal and by mine96,300GEOs

    Deals & partnerships

    3
    Bear CreekRestructuring of debt and equity investments

    Converted interests into cash, Highlander Silver shares, and royalties on the Corani Project and Mercedes Mine.

    Highlander SilverSale of shares

    Sold Highlander Silver shares during the quarter, aligning with the strategy to rationalize noncore assets and focus on royalty interests.

    Zijin MiningStrategic investment agreement with Chifeng Gold subsidiary for Wassa mine$1.2 billion

    Zijin Gold will invest approximately $1.2 billion of new capital and take operating control of Wassa. This investment is seen as a positive development for the future of Wassa, with all identified projects covered by Royal Gold's stream agreement.

    Capital programs

    2
    Warintza acquisition fundingunderway
    Period spend: $50 million
    Spent to date: $50 million (April 2026)

    At the end of March, $100 million of funding was outstanding. A $50 million payment was made in April upon technical approval of the EIA, with the remaining $50 million expected to be funded in May on the anniversary of the transaction closing date, subject to satisfaction of outstanding conditions.

    Hod Maden project costsunderway

    Royal Gold continues to fund its 30% share of project costs. SSR reported a strategic review is ongoing, and they intend to incur minimal capital costs at the project during this review period.

    Risks & headwinds

    4
    Lower production at PeñasquitoFY26

    Lower production of gold, lead, and zinc and higher silver in 2026 compared to last year

    Mitigation: Newmont expects to increase processing of stockpiles during the transition from Phase 7 to Phase 8, with higher grades expected to begin in 2028.

    Hod Maden strategic review uncertaintyNear term (next few months)

    Minimal capital costs incurred while SSR's strategic review is ongoing; Royal Gold's 30% ownership interest is impacted.

    Mitigation: Royal Gold will continue to fund its 30% of project costs, but expects these to be relatively low. Management is working with partners to rationalize the investment.

    Operating company margin compressionComing quarters

    Not quantified for Royal Gold, but noted for operators due to higher energy costs.

    Mitigation: Royal Gold highlights its stable cost structure and lack of direct exposure to diesel prices, tariffs, or general inflation as a strength of its business model.

    Pueblo Viejo deferred silver ouncesNear term (multiple years)

    Not expected to be clawed back in the near term.

    Mitigation: Management will not actively update the balance of deferred ounces unless recovery rates improve above 52.5%.

    What to watch in Q2 FY26

    5

    Hod Maden strategic review outcome

    Next few months (Q2/Q3 FY26)
    CurrentUnder review by SSR, minimal capital costs incurred
    TargetResolution of SSR's strategic review, clarity on project future

    Why it matters

    Impacts Royal Gold's 30% ownership interest and future funding commitments.

    I think you're going to see an answer in the near term. I don't want to put months on that, but I think you're going to -- because something is going to happen, I think, relatively soon because, again, I think SSR actually put a time frame on it over the next few months.

    Q&A highlights

    5

    Why was the 5-year guidance not mentioned, and what is the status of Pueblo Viejo's deferred silver ounces?

    The 5-year guidance from Investor Day will not be updated until 2031 guidance is given next year. Pueblo Viejo's deferred silver ounces are not expected to be recovered in the near term due to recovery rates below the 52.5% threshold, so the balance is not being actively updated.

    “The fact that we didn't mention the 2030 guidance was on purpose. It was intentional, and it just reflects our view that we're not going to update those figures.”

    asked by Chunshan Liu · answered by William Heissenbuttel

    2 min read5 chapters

    Detailed Narrative

    01

    Record Financial Performance and Portfolio Diversification

    Royal Gold achieved record revenue of $469 million, operating cash flow of $294 million, and earnings of $281 million in Q1 FY26, representing significant year-over-year increases. This performance was attributed to higher volumes from legacy interests, new contributions from recent acquisitions, and increased metal prices. Notably, no single asset contributed more than 12.5% of total revenue, highlighting the portfolio's diversification and reduced reliance on any one operation.

    02

    Strategic Capital Allocation and Liquidity Management

    The company emphasized its capital allocation framework, focusing on reinvestment, maintaining a strong balance sheet, and a growing dividend. Royal Gold repaid $300 million on its revolver, boosting available liquidity to $1.1 billion. Additionally, a new $600 million accordion feature was added to the revolver, increasing total capacity to $2 billion, and a $500 million share repurchase program was authorized, providing flexibility for opportunistic buybacks if a valuation disconnect occurs.

    03

    Portfolio Developments and Growth Projects

    Key portfolio updates included Mount Milligan being on track for full-year guidance, Peñasquito transitioning to Phase 8 with higher grades expected in 2028, and Greenstone targeting 320,000 ounces of gold per year. Significant progress was reported at Khoemacau with its expansion to 130,000 tons of copper per year on track for H1 2028, and a PFS for a further expansion to 200,000 tonnes. Platreef's Shaft 3 construction was completed, with first revenue expected in the current quarter.

    04

    Hod Maden and Warintza Project Updates

    The Hod Maden joint venture is undergoing a strategic review by SSR Mining, with minimal capital costs expected during this period. Royal Gold continues to fund its 30% share of project costs. For Warintza, technical approval of the EIA was received in April, with full permits targeted by the end of 2026 and a final investment decision in 2027. Royal Gold made a $50 million payment in April and expects to fund the remaining $50 million in May for the Warintza acquisition.

    05

    Market Transparency and Outlook

    Royal Gold announced plans to issue a press release providing more detail on notable financial items, including revenue estimates from both Stream and Royalty segments, starting next quarter. The company views its business model as resilient through cycles, with a stable cost structure providing an advantage in an environment of rising energy costs and gold price volatility, making it an attractive gold investment.

    AI-generated summary of the company’s earnings call. Not investment advice.