Royal Gold (RG3) Q2 2026 Earnings Report

The call highlights a materially stronger and larger business with record cash generation, substantial revenue and earnings growth, high margins, improved liquidity, active capital returns and multiple positive operational updates across newly acquired and existing assets. Key near-term negatives are higher DD&A and some increased interest and G&A costs, the variability tied to Antamina NPI and base-metal revenues, a front-loaded Relief Canyon delivery that accelerates revenue recognition, and remaining funding obligations (notably the 15% Hod Maden interest). Overall the positive financial and operational developments, liquidity improvements and successful portfolio simplification outweigh the identified challenges.

On guidance, management said gold and silver sales are tracking to 2026 guidance ranges while copper and “other metals” are trending around or above the top end of their ranges (noting YTD metal-price moves of gold +37%, silver +117% and copper +40%); gold remains 76% of revenue (silver 12%, copper 8%). They reiterated DD&A full‑year guidance of $339–$379 million (Q2 DD&A $96M; $962 per GEO vs $487/ GEO a year ago) and expect total G&A near the high end of the $50–$60M range (Q2 G&A $13.4M), with a full‑year effective tax rate of 17–22% (Q2 19.7%, YTD 19.9%). On liquidity and capital items they reported record Q2 operating cash flow of $335M (up 119%), total available liquidity of $1.2B (including $244M working capital), expect to fully repay the revolver in Q4 absent acquisitions, and noted near‑term commitments of $50M for Warintza (expected Q3/Q4) and ongoing 15% Hod Maden funding (Royal Gold has funded $70M to date, cumulative project spend ~$175M, Lidya to fund the next $397M, RG expects to resume its share mid‑2027 with initial concentrate targeted in 2028). They also noted a Centerra Mount Milligan deferred‑gold tranche expected late Q3/early Q4 (proceeds treated as operating cash flow, not GEOs) and that an advanced Relief Canyon delivery of 5,000 oz this quarter added about $22M (1,175 oz more this year than planned).