Royal Gold, Inc.

Second-quarter revenue was $451 million, operating cash flow was a record $335 million, and net income was $236 million, versus $132 million a year ago. Revenue increased 115%, operating cash flow increased 119%, earnings increased 79%, and adjusted net income was $218 million or $2.56 per share, up 41% from last year. Adjusted EBITDA margin was 83%, gold was 76% of total revenue, and the dividend rate was $1.90 per share, 6% higher than last year. On capital allocation, the company repaid $200 million on the revolver, repurchased and canceled 147,000 shares for $30 million, and ended the quarter with $1.2 billion of total available liquidity. For guidance, management said gold and silver are tracking well to 2026 ranges, copper and other metals are trending around or above the top end, total G&A is expected near the high end of the $50 million to $60 million range, DD&A is expected within $339 million to $379 million, and the full-year tax rate is still expected in the 17% to 22% range.

Bill Heissenbuttel framed the quarter as proof that the 2025 transactions have materially increased the scale and diversification of the business, and he said the company is now delivering more steady and predictable results. He repeatedly stressed that the portfolio simplification is progressing, pointing to the Hod Maden restructuring, Relief Canyon settlement, Horizon simplification, and other steps to reduce complexity. His tone was constructive but disciplined: he said Royal Gold will keep balancing investments, debt reduction, dividends, and opportunistic buybacks based on long-term priorities rather than just valuation.

Paul Libner highlighted the financial upside from the larger portfolio and higher metal prices, noting revenue of $451 million, net income of $236 million, adjusted net income of $218 million, and record operating cash flow of $335 million. He said G&A was $13.4 million, DD&A was $96 million, and interest and other expense rose to $10 million due mainly to higher revolver balances. He also said the company expects G&A to finish near the high end of the $50 million to $60 million range, DD&A to land within $339 million to $379 million, and the outstanding revolver balance to be fully repaid in the fourth quarter absent significant acquisitions, after a $75 million July repayment and an intended additional $100 million repayment in mid-August.

Analysts focused heavily on capital allocation, especially the buyback, the remaining Sandstorm-related holdings, and the timing and size of future Hod Maden commitments. Management said the buyback will be used flexibly and will not be tied to a fixed model, and that the remaining 15% Hod Maden stake is non-core but not on a hard deadline for sale; they also said the remaining base CapEx commitment is about $65 million over 2027-2028 after the $70 million already funded. On guidance, management said the biggest variable remains the Antamina NPI, which is why they are not yet raising full-year metal guidance despite strong first-half performance in copper and other metals.