UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K

Transcription

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): November 2, 2016 ROYAL GOLD, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1660 Wynkoop Street, Suite 1000, Denver, CO (Address of principal executive offices) (Zip Code) Registrant s telephone number, including area code: (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c))

2 Item 2.02 Results of Operations and Financial Condition. On November 2, 2016, Royal Gold, Inc. (the Company ) reported its first quarter fiscal 2017 financial results. Copies of the press release and an earnings presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K. The information furnished under this Item 2.02, including the exhibits, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by reference to such filing. Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 99.1 Press Release dated November 2, 2016 regarding First Fiscal Quarter 2017 Results Royal Gold, Inc. November 3, 2016 Earnings Presentation. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Royal Gold, Inc. (Registrant) Dated: November 3, 2016 By: /s/ Bruce C. Kirchhoff Name: Bruce C. Kirchhoff Title: Vice President, General Counsel and Secretary EXHIBIT INDEX Exhibit No. Description 99.1 Press Release dated November 2, 2016 regarding First Fiscal Quarter 2017 Results Royal Gold, Inc. November 3, 2016 Earnings Presentation.

3 EXHIBIT 99.1 Royal Gold Reports Record Quarterly Revenue and Earnings Per Share DENVER, COLORADO. NOVEMBER 2, 2016: ROYAL GOLD, INC. (NASDAQ: RGLD) (together with its subsidiaries, Royal Gold or the Company, we or our ) reports record net income attributable to stockholders ( net income ) of $29.8 million, or $0.46 per share, on record revenue of $117.9 million in its fiscal first quarter ended September 30, 2016 ( first quarter ). Earnings increased significantly compared to the prior year quarter net loss of $45.0 million, or ($0.69) 1 per share, on revenue of $74.1 million. First Quarter Highlights Compared to the Prior Year Quarter: Strong volume of 88,400 Gold Equivalent Ounces ( GEOs 2 ), an increase of 34% Record revenue of $117.9 million, an increase of 59% Operating cash flow of $55.1 million, versus $2.5 million prior year Record earnings per share of $0.46, versus ($0.69) per share prior year Dividends paid of $15.0 million, an increase of 5% Average gold price of $1,335, an increase of 19% Fiscal 2017 is off to a great start with two powerful business development catalysts and very strong financial results, commented Tony Jensen, President and CEO. Our purchase of another royalty at Cortez Crossroads provides additional exposure to one the world s premier gold mines, while Centerra Gold s successful acquisition of Thompson Creek Metals adds a strong partner to our portfolio and provides clarity for our Mount Milligan interest. In addition to these successes, the benefits of other investments we made over the last six quarters are now contributing to the record financial results we are announcing today. Recent Developments Amended Stream at Mount Milligan On October 20, 2016, Royal Gold amended its streaming interest at the Mount Milligan mine, now owned by a subsidiary of Centerra Gold Inc. ( Centerra ). Under the terms of the amendment, our 52.25% gold stream at Mount Milligan has been amended to a 35.0% gold stream and an 18.75% copper stream. We will continue to pay $435 per ounce of gold delivered and will pay 15.0% of the spot price per metric tonne of copper delivered. Mount Milligan gold in concentrate that was in transit prior to October 20, 2016 will be delivered to us under the current 52.25% stream. Under the terms of both the original and amended agreements, there is a maximum of five months between concentrate shipment and final settlement, and the Company expects to begin receiving gold and copper deliveries reflecting the amended stream agreement in March Earnings and operating cash flow in the prior year quarter were impacted by discrete tax expenses of $56 million. 2 GEOs are calculated as revenue divided by the average gold price for the same period. GEOs net of stream payments were 71,400 ounces in the first quarter compared to 55,700 ounces in the year ago quarter. 1

4 After transition to the amended stream, Royal Gold expects that, on the basis of its current stream and royalty portfolio, approximately 85% of total future net revenue will come from precious metals and 15% from base metals. Acquisition of Additional Royalty Interests at Cortez On September 19, 2016, Royal Gold, through its wholly owned subsidiary, Denver Mining Finance Company, Inc. acquired a 3.75% Net Value Royalty ( NVR ) covering a significant area of Barrick Gold Corporation s ( Barrick ) Cortez gold mine in Nevada, including the Crossroads deposit from a private party seller for total consideration of $70 million. With this acquisition, Royal Gold s interests at Cortez Crossroads comprise a 4.43% NVR and a 5% sliding-scale Gross Smelter Return ( GSR ) royalty at current gold prices. Royal Gold s interests on production from the Pipeline and South Pipeline deposits as well as portions of the Gap deposit are comprised of a 4.83% NVR and a 5.71% GSR royalty at current gold prices. As of December 31, 2015, proven and probable reserves subject to Royal Gold s interests at Cortez were estimated at 3.7 million ounces of gold, including approximately 3 million gold ounces at Crossroads. Waste stripping at Crossroads is underway and production is estimated to begin in calendar First Quarter Overview First quarter revenue of $117.9 million included stream revenue of $85.5 million and royalty revenue of $32.4 million. Stream segment gold purchases totaled approximately 63,000 ounces and gold sales were approximately 60,000 ounces. Stream segment silver purchases were approximately 543,000 ounces and silver sales were approximately 323,000 ounces. The Company had approximately 24,000 ounces of gold and 544,000 ounces of silver in inventory at September 30, 2016, as previously announced, compared to approximately 20,000 ounces of gold and approximately 324,000 ounces of silver at June 30, First quarter cost of sales was $22.7 million, compared to $11.5 million in the year ago quarter. Cost of sales is specific to our stream agreements and is the result of Royal Gold s purchase of gold and silver for a cash payment. The increase is primarily attributable to new production from our gold and silver streams at Pueblo Viejo and increased deliveries from Andacollo and Mount Milligan. General and administrative expenses were $10.5 million in the first quarter, compared to $9.5 million in the year ago quarter. The increase was related to increased legal and litigation costs of approximately $1.3 million. 2

5 Depreciation, depletion and amortization increased to $40.1 million for the first quarter, an increase from $27.1 million from the year ago quarter. The increase was primarily attributable to new production from our gold and silver streams at Pueblo Viejo ($9.6 million) and an increase in gold stream sales from Mount Milligan and Andacollo, which resulted in additional depletion of approximately $5.7 million. These increases were partially offset by lower overall production within our royalty interest segment. Exploration costs, which are related to our Peak Gold joint venture in Alaska, totaled $3.3 million in the first quarter, compared to $3.2 million in the year ago quarter. As of September 30, 2016, Royal Gold had earned a 15.1% interest in the Peak Gold joint venture. We recognized a first quarter income tax expense of $7.2 million, compared with income tax expense of $59.2 million during the year ago quarter. This resulted in an effective tax rate of 21.1% in the current period, compared with 415.7% in the quarter ended September 30, The decrease in the effective tax rate is primarily related to the discrete tax impacts attributable to the Company s Andacollo transactions and the liquidation of our Chilean subsidiary during the three months ended September 30, At September 30, 2016, we had current assets of $192.0 million compared to current liabilities of $25.6 million, resulting in working capital of $166.4 million. This compares to current assets of $164.8 million and current liabilities of $22.7 million at June 30, 2016, resulting in working capital of $142.1 million. As of September 30, 2016, the Company had $305 million available and $345 million outstanding under its revolving credit facility. Working capital, combined with the Company s undrawn revolving credit facility, resulted in approximately $471 million of total liquidity at September 30, PROPERTY HIGHLIGHTS A summary of first quarter and historical production can be found on Tables 1 and 2. Calendar year production estimates versus actual production at certain producing properties can be found on Table 3. Results of our streaming business for the first quarter compared to the year ago quarter, can be found on Table 4. Highlights at certain of the Company s principal producing and development properties during the first quarter, compared to the year ago quarter, are detailed in our Form 10-Q. CORPORATE PROFILE Royal Gold is a precious metals stream and royalty company engaged in the acquisition and management of precious metal streams, royalties and similar production based interests. The Company owns interests on 192 properties on six continents, including interests on 38 producing mines and 24 development stage projects. Royal Gold is publicly traded on the NASDAQ Global Select Market under the symbol RGLD. The Company s website is located at 3

6 For further information, please contact: Karli Anderson Vice President Investor Relations (303) Note: Management s conference call reviewing the first quarter results will be held on Thursday, November 3, 2016, followed by a conference call that day at noon Eastern Time (10:00 a.m. Mountain Time). The call will be webcast and archived on the Company s website for a limited time. First Quarter Earnings Call Information: Dial-In Numbers: Conference Title: Webcast URL: (U.S.); toll free (Canada); toll free (International) Royal Gold royalgold.com under Investors, Events & Presentations Cautionary Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: With the exception of historical matters, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein. Such forward-looking statements include statements about an additional royalty at Cortez providing exposure to one of the world s premier gold mines, Centerra s acquisition of Thompson Creek Metals adding a strong partner to the Company s portfolio and providing clarity for the Company s Mount Milligan interest; operators expectations about development; anticipated production and returns from our stream and royalty properties; estimated percentages of precious and base metals expected from Mount Milligan and from the Company s stream and royalty portfolio in the aggregate after transition to the amended Mount Milligan stream agreement; development and estimated start of production at Cortez Crossroads; operators production estimates for calendar year 2016 and statements about the opportunities for portfolio and investment growth and diversification and the Company s ability to pursue such opportunities. Factors that could cause actual results to differ materially from the projections include, among others, precious metals, copper and nickel prices; performance of and production at the Company's stream and royalty properties, including gold and copper production at Mount Milligan; the ability of operators of development properties to finance project construction to completion and bring projects into production as expected; operators delays in securing or inability to secure necessary governmental permits; decisions and activities of the operators of the Company's stream and royalty properties; unanticipated grade, environmental, geological, seismic, metallurgical, processing, liquidity or other problems the operators of the mining properties may encounter; changes in operators project parameters as plans continue to be refined; changes in estimates of reserves and mineralization by the operators of the Company s stream and royalty properties; contests to the Company s stream and royalty interests and title and other defects to the Company s stream and royalty properties; errors or disputes in calculating stream and royalty payments, or payments not made in accordance with stream and royalty agreements; economic and market conditions; risks associated with conducting business in foreign countries; changes in laws governing the Company and its stream and royalty properties or the operators of such properties, and other subsequent events; as well as other factors described in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission. Most of these factors are beyond the Company s ability to predict or control. The Company disclaims any obligation to update any forward-looking statement made herein. Readers are cautioned not to put undue reliance on forward-looking statements. 4

7 Statement Regarding Third Party Information: Certain information provided in this press release, including production estimates for calendar 2016, has been provided to us by the operators of those properties or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for, the accuracy, completeness or fairness of such third-party information and refers the reader to the public reports filed by the operators for information regarding those properties. 5

8 TABLE 1 First Quarter Fiscal 2017 Revenue and Reported Production for Principal Stream and Royalty Interests (In thousands, except reported production in oz. and lbs.) Three Months Ended Three Months Ended September 30, 2016 September 30, 2015 Reported Reported Stream/Royalty Metal(s) Revenue Production 1 Revenue Production 1 Stream: Mount Milligan Gold $ 38,386 28,900oz. $ 23,465 21,000oz. Pueblo Viejo $ 20,950 N/A N/A Gold 11,000oz. N/A N/A Silver 323,300oz. N/A N/A Andacollo Gold $ 20,169 15,200oz. $ 10,716 9,500oz. Wassa and Prestea Gold $ 5,999 4,500oz. $ 3,624 3,200oz. Other Gold $ - N/Aoz. $ oz. Total stream revenue $ 85,504 $ 37,857 Royalty: Peñasquito $ 5,821 $ 8,046 Gold 100,100oz. 226,500oz. Silver 5.2Moz. 7.3Moz. Lead 33.0Mlbs. 49.1Mlbs. Zinc 73.0Mlbs Mlbs. Cortez Gold $ 2,040 21,800oz. $ 1,812 22,600oz. Other Various $ 24,582 N/A $ 26,341 N/A Total royalty revenue $ 32,443 $ 36,199 Total revenue $ 117,947 $ 74,056 6

9 TABLE 2 Operators Historical Production Property Stream/Royalty Operator Metal(s) Sep. 30, 2016 Jun. 30, 2016 Stream: Mount 35.00% of payable Milligan 2 gold; 18.75% of Pueblo Viejo Andacollo Wassa and Prestea Reported Production For The Quarter Ended 1 Mar. 31, 2016 Dec. 31, 2015 Sep. 30, 2015 payable copper Centerra Gold 28,900oz. 23,800oz. 25,400oz. 38,700oz. 21,000oz. 7.5% of gold produced up to 990,000 ounces; Barrick 3.75% therafter (60%) Gold 11,000oz. 10,600oz. 11,800oz. 8,800oz. N/A 75% of payable silver up to 50 million ounces; 37.5% therafter Silver 323,300oz. 208,900oz. N/A N/A N/A 100% of gold produced Teck Gold 15,200oz. 13,500oz. 13,500oz. 5,200oz. 9,500oz. 9.25% of gold produced up to 240,000 ounces; 5.5% therafter Golden Star Gold 4,500oz. 4,600oz. 3,500oz. 8,800oz. 3,200oz. Royalty: Peñasquito 2.0% NSR Goldcorp Gold 100,100oz. 41,900oz. 120,300oz. 195,400oz. 226,500oz. Silver 5.2Moz. 2.6Moz. 4.8Moz. 6.8Moz. 7.3Moz. Lead 33.0Mlbs. 13.3Mlbs. 30.2Mlbs. 41.7Mlbs. 49.1Mlbs. Zinc 73.0Mlbs. 43.2Mlbs. 73.1Mlbs. 98.0Mlbs Mlbs. Cortez GSR1 and GSR2, GSR3, NVR1 Barrick Gold 21,800oz. 16,100oz. 18,400oz. 17,000oz. 22,600oz. FOOTNOTES Tables 1 and 2 1 Reported production relates to the amount of metal sales that are subject to our stream and royalty interests for the stated period, as reported to us by operators of the mines. 2 Reflects the October 20, 2016 amendment to our Mount Milligan streaming agreement. Prior to the amendment, Royal Gold had a 52.25% gold stream. Gold concentrate that is currently in transit will be delivered to us under the 52.25% gold stream. 7

10 TABLE 3 Calendar 2016 Operators Production Estimate vs Actual Production Stream: Calendar 2016 Operator s Production Calendar 2016 Operator's Production Estimate 1 Actual 2,3 Base Gold Silver Metals Gold Silver Base Metals Stream/Royalty (oz.) (oz.) (lbs.) (oz.) (oz.) (lbs.) Andacollo 4 57, , Mount Milligan 5 240, , , Pueblo Viejo 6 670, ,000 Not provided 511,000 Not provided - Wassa and Prestea 7 180, ,000 95,700 Royalty: Cortez GSR1 119, , Cortez GSR2 1, , Cortez GSR3 120, , Cortez NVR1 68, , Peñasquito 8 520, , million - 282, million - Lead million 79.8million Zinc million 184.6million 1 Production estimates received from our operators are for calendar There can be no assurance that production estimates received from our operators will be achieved. Please refer to our cautionary language regarding forward-looking statements preceding Table 1 above, as well as the Risk Factors identified in Part I, Item 1A, of our Fiscal K for information regarding factors that could affect actual results. 2 Actual production figures shown are from our operators and cover the period January 1, 2016 through September 30, 2016, unless otherwise noted. 3 Actual production figures for Andacollo and Cortez are based on information provided to us by the operators, and actual production figures for Andacollo, Mount Milligan, Pueblo Viejo, Peñasquito (gold), and Wassa and Prestea are the operators publicly reported figures. 4 The estimated and actual production figures shown for Andacollo are contained gold in concentrate. 5 The estimated and actual production figures shown for Mount Milligan are payable gold in concentrate. Actual production shown is for the six months ended June 30, Nine months ended September 30, 2016, information was not available from the operator as of the date of this report. 6 The estimated and actual production figures shown are payable gold in doré and represent Barrick s 60% interest in Pueblo Viejo. 7 The estimated production figure shown is payable gold in doré. Actual production shown is for the six months ended June 30, Nine months ended September 30, 2016, information was not available from the operator as of the date of this report. 8 The estimated gold and silver production figures reflect payable gold and silver in concentrate and doré, while the estimated lead and zinc production figures reflect payable metal in concentrate. 8

11 TABLE 4 Stream Summary Three months ended September 30, 2016 Three months ended September 30, 2015 As of September 30, 2016 As of June 30, 2016 Purchases Purchases Ounces in Ounces in Gold Stream (oz.) Sales (oz.) (oz.) Sales (oz.) inventory inventory Mount Milligan 29,900 28,900 23,800 21,000 8,500 7,500 Wassa and Prestea 4,500 4,500 6,300 3,200 1,300 1,300 Pueblo Viejo 13,700 11,000 N/A N/A 13,700 11,000 Andacollo 15,300 15,200 9,800 9, Phoenix Gold Total 63,400 59,600 40,000 33,800 23,600 19,800 Three months ended September 30, 2016 Three months ended September 30, 2015 As of September 30, 2016 As of June 30, 2016 Purchases Ounces in Ounces in Silver Stream (oz.) Sales (oz.) Purchases (oz.) Sales (oz.) inventory inventory Pueblo Viejo 543, ,300 N/A N/A 543, ,700 9

12 ROYAL GOLD, INC. Consolidated Balance Sheets As of September 30, (In thousands except share data) September 30, 2016 June 30, 2016 ASSETS Cash and equivalents $ 133,042 $ 116,633 Royalty receivables 23,951 17,990 Income tax receivable 21,028 20,043 Stream inventory 12,615 9,489 Prepaid expenses and other 1, Total current assets 191, ,769 Stream and royalty interests, net 2,898,094 2,848,087 Other assets 58,511 53,696 Total assets $ 3,148,591 $ 3,066,552 LIABILITIES Accounts payable $ 6,129 $ 4,114 Dividends payable 15,023 15,012 Other current liabilities 4,433 3,554 Total current liabilities 25,585 22,680 Debt 674, ,685 Deferred tax liabilities 120, ,867 Uncertain tax positions 23,370 16,996 Other long-term liabilities 6,391 6,439 Total liabilities 850, ,667 Commitments and contingencies EQUITY Preferred stock, $.01 par value, authorized 10,000,000 shares authorized; and 0 shares issued - - Common stock, $.01 par value, 100,000,000 shares authorized; and 65,142,812 and 65,093,950 shares outstanding, respectively Additional paid-in capital 2,180,815 2,179,781 Accumulated other comprehensive loss - - Accumulated earnings 63,349 48,584 Total Royal Gold stockholders equity 2,244,816 2,229,016 Non-controlling interests 53,728 56,869 Total equity 2,298,544 2,285,885 Total liabilities and equity $ 3,148,591 $ 3,066,552 10

13 ROYAL GOLD, INC. Consolidated Statements of Operations and Comprehensive Income (Loss) (In thousands except for per share data) For The Three Months Ended September 30, September 30, Revenue $ 117,947 $ 74,056 Costs and expenses Cost of sales 22,662 11,466 General and administrative 10,507 9,510 Production taxes 497 1,592 Exploration costs 3,288 3,156 Depreciation, depletion and amortization 40,102 27,147 Total costs and expenses 77,056 52,871 Operating income 40,891 21,185 Interest and other income 1, Interest and other expense (8,305) (7,214) Income before income taxes 34,143 14,236 Income tax expense (7,188) (59,177) Net income (loss) 26,955 (44,941) Net loss (income) attributable to non-controlling interests 2,832 (105) Net income (loss) attributable to Royal Gold common stockholders $ 29,787 $ (45,046) Net income (loss) $ 26,955 $ (44,941) Adjustments to comprehensive income (loss), net of tax Unrealized change in market value of available-for-sale securities - (449) Comprehensive income (loss) 26,955 (45,390) Comprehensive loss (income) attributable to non-controlling interests 2,832 (105) Comprehensive income (loss) attributable to Royal Gold stockholders $ 29,787 $ (45,495) Net income (loss) per share available to Royal Gold common stockholders: Basic earnings (loss) per share $ 0.46 $ (0.69) Basic weighted average shares outstanding 65,116,686 65,048,439 Diluted earnings (loss) per share $ 0.46 $ (0.69) Diluted weighted average shares outstanding 65,280,904 65,048,439 Cash dividends declared per common share $ 0.23 $

14 ROYAL GOLD, INC. Consolidated Statements of Cash Flows (In Thousands) For The Three Months Ended September 30, September 30, Cash flows from operating activities: Net income (loss) $ 26,955 $ (44,941) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, depletion and amortization 40,102 27,147 Amortization of debt discount and issuance costs 3,351 3,197 Non-cash employee stock compensation expense 4,144 4,227 Tax benefit of stock-based compensation exercises Deferred tax expense (1,030) 11,767 Other (153) (390) Changes in assets and liabilities: Royalty receivables (5,962) 13,142 Stream inventory (3,125) (1,981) Income taxes receivable (16,480) (17,192) Prepaid expenses and other assets (1,724) (2,682) Accounts payable 1,777 3,266 Uncertain tax positions 6, Other liabilities 879 6,704 Net cash provided by operating activities $ 55,132 $ 2,491 Cash flows from investing activities: Acquisition of stream and royalty interests (90,083) (1,300,881) Andacollo royalty termination - 345,000 Golden Star term loan - (20,000) Other (226) (228) Net cash used in investing activities $ (90,309) $ (976,109) Cash flows from financing activities: Borrowings from revolving credit facility 70, ,000 Net payments from issuance of common stock (2,038) - Common stock dividends (15,012) (14,341) Purchase of additional royalty interest from non-controlling interest (1,025) - Tax expense of stock-based compensation exercises (24) (150) Other (315) (430) Net cash provided by financing activities $ 51,586 $ 335,079 Net increase (decrease) in cash and equivalents 16,409 (638,539) Cash and equivalents at beginning of period 116, ,849 Cash and equivalents at end of period $ 133,042 $ 104,310 12

15 SCHEDULE A Non-GAAP Financial Measures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles ( GAAP ). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Our management uses Adjusted EBITDA and Adjusted Net Income as measures of operating performance to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the board of directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe that these measures are used by and are useful to investors and other users of our financial statements in evaluating our operating performance because they provide an additional tool to evaluate our performance without regard to special and noncore items, which can vary substantially from company to company depending upon accounting methods and book value of assets and capital structure. We have provided reconciliations of all non-gaap measures to their nearest U.S. GAAP measures and have consistently applied the adjustments within our reconciliations in arriving at each non-gaap measure. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment. Adjusted EBITDA Reconciliation Adjusted EBITDA is defined by the Company as net income (loss) plus depreciation, depletion and amortization, non-cash charges, income tax expense, interest and other expense, and any impairment of mining assets, less non-controlling interests in operating loss (income) of consolidated subsidiaries, interest and other income, and any royalty portfolio restructuring gains or losses. Other companies may define and calculate this measure differently. Adjusted EBITDA identifies the cash generated in a given period that will be available to fund the Company's future operations, growth opportunities, shareholder dividends and to service the Company's debt obligations. This information differs from measures of performance determined in accordance with U.S. generally accepted accounting principles and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. See the table below for a reconciliation of net income to Adjusted EBITDA. 13

16 SCHEDULE A For The Three Months Ended September 30, (Unaudited, in thousands) Net income (loss) $ 26,955 $ (44,941) Depreciation, depletion and amortization 40,102 27,147 Non-cash employee stock compensation 4,144 4,227 Interest and other, net 6,748 6,949 Income tax expense 7,188 59,177 Non-controlling interests in operating loss (income) of consolidated subsidiaries 2,984 (105) Adjusted EBITDA $ 88,121 $ 52,454 Adjusted Net Income (Loss) Reconciliation Management of the Company uses adjusted net income (loss) to evaluate the Company s operating performance, and for planning and forecasting future business operations. The Company believes the use of adjusted net income (loss) allows investors and analysts to understand the results relating to receipt of revenue from its royalty interests and purchase and sale of gold from its streaming interests by excluding certain items that have a disproportionate impact on our results for a particular period. The net income (loss) adjustments are presented net of tax generally at the Company s statutory effective tax rate. Management s determination of the components of adjusted net income (loss) are evaluated periodically and based, in part, on a review of non-gaap financial measures used by mining industry analysts. Net income (loss) attributable to Royal Gold stockholders is reconciled to adjusted net income (loss) as follows: September 30, (Unaudited, in thousands) Net income (loss) attributable to Royal Gold common stockholders $ 29,787 $ (45,046) Tax expense on Andacollo royalty sale and Chilean subsidiary liquidation - 56,000 Adjusted net income attributable to Royal Gold common stockholders $ 29,787 $ 10,954 Net income (loss) attributable to Royal Gold common stockholders per share $ 0.46 $ (0.69) Tax expense on Andacollo royalty sale and Chilean subsidiary liquidation Adjusted net income attributable to Royal Gold common stockholders per share $ 0.46 $

17 Fiscal First Quarter Results Royal Gold, Inc. November 3, 2016 EXHIBIT 99.2

18 2 November 3, 2016 Cautionary Statement This presentation contains certain forward - looking statements within the meaning of the Private Securities Litigation Reform Act of Such forward - looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from the projections and estimates contained herein and include, but are not limited to ; investing in long - lived properties ; investing at troughs and patience at the top ; paying a growing and sustainable dividend ; being the most valuable, not necessarily the largest ; gold price optionality and reserve upside leverage ; providing a portfolio of assets in some of the world s best gold districts ; capital allocation and shareholder return descriptions ; potential for additional reserves at Pueblo Viejo and Rainy River ; underground development at Wassa and Prestea ; improving production and grade at Peñasquito ; efforts to improve copper and gold recovery at Mount Milligan ; successful commissioning of secondary crusher at Mount Milligan ; exploration upside at Wassa and Prestea ; maintaining a fixed cost structure and expanding margins on per share metrics ; estimated revenue percentages from precious and other metals ; the amendment to the Mount Milligan stream being value - neutral to Royal Gold ; estimated value of our interests in the Cortez camp ; the estimated value of our interests and potential long term growth at Goldrush ; mine life and reserves estimates and production forecasts from the operators of our stream and royalty interests ; estimated gold equivalent production from amended Mount Milligan stream ; and access to and expected uses of capital. Factors that could cause actual results to differ materially from these forward - looking statements include, among others : the risks inherent in the operation of mining properties ; a decreased price environment for gold and other metals on which our stream and royalty interests are paid ; performance of and production at properties, and variation of actual performance from the production estimates and forecasts made by the operators of those properties ; decisions and activities of the Company s management affecting margins, use of capital and strategy ; unexpected operating costs, decisions and activities of the operators of the Company s royalty and stream properties ; changes in operators mining and processing techniques or royalty calculation methodologies ; resolution of regulatory and legal proceedings ; unanticipated grade, geological, metallurgical, environmental, processing or other problems at the properties ; revisions or inaccuracies in technical reports, reserve, resources and production estimates ; changes in project parameters as plans of the operators are refined ; the results of current or planned exploration activities ; errors or disputes in calculating royalty payments or stream deliveries, or payments or deliveries not made in accordance with royalty or stream agreements ; the liquidity and future financial needs of the Company ; economic and market conditions ; the impact of future acquisitions and royalty and stream financing transactions ; the impact of issuances of additional common stock ; and risks associated with conducting business in foreign countries, including application of foreign laws to contract and other disputes, environmental laws, enforcement and uncertain political and economic environments. These risks and other factors are discussed in more detail in the Company s public filings with the Securities and Exchange Commission. Statements made herein are as of the date hereof and should not be relied upon as of any subsequent date. The Company s past performance is not necessarily indicative of its future performance. The Company disclaims any obligation to update any forward - looking statements. Third - party information : Certain information provided in this presentation has been provided to the Company by the operators of those properties or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. The Company has not verified, and is not in a position to verify, and expressly disclaims any responsibility for the accuracy, completeness or fairness of such third - party information and refers readers to the public reports filed by the operators for information regarding those properties.

19 Today s Speakers Tony Jensen President and CEO Stefan Wenger CFO and Treasurer Bill Heissenbuttel VP Corporate Development 3 November 3, 2016

20 Royal Gold Vision and Strategy Gold Focused Invest at the Troughs and be Patient at the Top Reinvest Free Cash Flow in Long Lived Properties Be the Most Valuable, Not Necessarily the Largest Pay a Growing and Sustainable Dividend Value created by providing gold price optionality and reserve upside leverage, and» Providing a portfolio of assets in some of the best gold districts in the world» Capital allocation and shareholder return discipline» Maintaining a fixed cost structure and expanding margins on per share metrics 4 November 3, 2016

21 Record results driven by Pueblo Viejo, Mount Milligan and Andacollo 5 November 3, 2016 Record Performance in Q1 FY17 $40 $60 $80 $100 $120 $140 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Record Revenue $20 $40 $60 $80 $100 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Record Adjusted EBITDA 1 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Record Net Gold Equivalent Ounces (GEOs) 2,3 $USD Millions $USD Millions 1 Non - GAAP measure. See slide 15 for reconciliation. 2 Net GEOs are calculated as revenue less stream payments, divided by the average gold price for the same period. 3 Volume in Q2FY16 positively influenced by true - up deliveries from Wassa and Prestea.

22 Seizing unique opportunities to enhance diversity and drive growth 1 6 November 3, 2016 Long Lived, Quality Properties Acting as a catalyst for Centerra - Thompson Creek deal x Mount Milligan stream amended; 35% gold, 18.75% copper x Stream value - neutral on a discounted cash flow basis x Strong operator and balance sheet Increasing interest at Cortez Crossroads x 3.75% NVR royalty acquired x Total Crossroads interest = 5% G SR + 4.4% NVR x Waste stripping underway Completing the innovative Pueblo Viejo stream transaction x Barrick increased production guidance to koz for CY16 x Silver recoveries achieved best ever quarterly performance Supporting development at Rainy River x Final $75m advance payment to be made in November 2016 x 60% of capital spending complete x Production expected mid Project development as reported by the mine operators.

23 Operators innovation, capital and exploration at no incremental capital cost to Royal Gold 1 7 November 3, 2016 Long Lived, Quality Properties Peñasquito x Pyrite Leach under construction x Incremental annual production; k ozs Au, +4-6m ozs Ag x Goldcorp notes that grades are improving in current quarter Pueblo Viejo x Tailings expansion potential additional reserves (up to 7.7m ozs Au, 44m ozs Ag) Wassa and Prestea Underground x Underground development advancing well x Mampon deposit mining permit received Mount Milligan x Secondary crusher commissioning underway x A dditional floatation and regrind capacity, leaching of floatation tailings being considered to boost gold recovery 1 Project development as reported by the mine operators.

24 Cortez camp includes several royalty areas of interest to Royal Gold» Pipeline, South Pipeline, Gap, Crossroads and Goldrush 8 November 3, 2016 Cortez Summary The Cortez camp is located 100km southwest of Elko, Nevada. All photos from Barrick.

25 Table below describes Royal Gold s interests at Cortez» Summary includes our expanded interest at Crossroads» Majority of Crossroads will be heap leach with higher grade refractory ore shipped to Goldstrike for processing 9 November 3, 2016 Cortez Summary Deposit Subject to Royal Gold Interest Royalty Interest Nature of Royalty 1 Current Reserve 2 Pipeline South Pipeline Gap Yes Yes A portion of 4.83% NVR 744,000oz 5.71% GSR Crossroads Yes 4.43% NVR 2,963,000oz 5% GSR Pediment No Cortez Hills UG No Goldrush Yes, an interest near the south 1 % NVR N/A 1 Royalties are either a GSR=Gross Smelter Return Royalty; or NVR=Net Value Royalty: a defined percentage of the gross revenue from a resource extraction operation, less certain contract - defined costs. 2 Current reserve is estimated based on boundaries of Royal Gold s interests applied to Barrick s reserves reported in their report on March 21, 2016.

26 Goldrush offers long term potential for growth (Royal Gold s 1% NVR interest in green below) 1 10 November 3, 2016 Cortez Summary 1 Source: Barrick. Illustration is an estimate of Royal Gold s royalty interest. No landmarks or coordinates given in original image.

27 Date Item ($USD millions) September 30, 2016 Undrawn Revolver $305m September 30, 2016 Working Capital $166m September 30, 2016 Total Available Liquidity $471m Strong Operating Cash Flow Fiscal First Quarter Operating Cash Flow $55m Advances Post 9/30/16 Golden Star ($20 million was advanced on October 1, 2016) and Rainy River ($75 million to be advanced on or about November 16, 2016) $95m Few Near - Term Commitments Golden Star (Expected January 1, 2017) $10m Revenue of $117.9 million FQ1 tax rate of ~21% FQ1 DD&A of ~$455 per GEO, within guidance range of $450 - $500 for FY November 3, 2016 Financial Results and Liquidity

28 Royal Gold Vision and Strategy Gold Focused Invest at the Troughs and be Patient at the Top Reinvest Free Cash Flow in Long Lived Properties Be the Most Valuable, Not Necessarily the Largest Pay a Growing and Sustainable Dividend Value created by providing gold price optionality and reserve upside leverage, and» Providing a portfolio of assets in some of the best gold districts in the world» Capital allocation and shareholder return discipline» Maintaining a fixed cost structure and expanding margins on per share metrics 12 November 3, 2016

29 Gold Focused Invest at the Troughs and be Patient at the Top Reinvest Free Cash Flow in Long Lived Properties Be the Most Valuable, Not Necessarily the Largest Pay a Growing and Sustainable Dividend 13 November 3, 2016 Appendix

30 Directors (from left to right): Jamie Sokalsky, Independent Director; Former President and CEO, Barrick Gold Corporation Kevin McArthur, Independent Director; Executive Chair, Tahoe Resources and Former CEO and Director, Goldcorp, Inc. Gordon Bogden, Independent Director; Former Vice Chairman, Mining & Metals, Standard Chartered Bank Tony Jensen, Director; President and CEO, Royal Gold, Inc. M. Craig Haase, Independent Director; Former EVP and Chief Legal Officer, Franco - Nevada Mining Corporation William Hayes, Independent Director and Chairman of the Board; Former EVP, Placer Dome Inc. Ronald J. Vance, Independent Director; Former SVP Corporate Development, Teck Resources Christopher M.T. Thompson, Independent Director; Former Chairman and CEO, Gold Fields Limited November 3, 2016 Board of Directors 14

31 Adjusted EBITDA reconciliation Adjusted EBITDA Reconciliation: For The Three Months Ended 9/30/ /31/2015 3/31/2016 6/30/2016 9/30/2016 Net (loss) income $ (44,941) $ 13,920 $ (69,498) $ 18,082 $ 26,955 Depreciation, depletion and amortization 27,147 40,407 38,163 35,391 40,102 Non - cash employee stock compensation 4,227 1,222 2,340 2,250 4,144 Impairments of stream and royalty interests and royalty receivables - (386) 98, Interest and other, net 6,949 8,513 5,702 5,409 6,748 Income tax expense (benefit) 59,177 4,740 (8,262) 5,025 7,188 Non - controlling intrests in operating (income) loss of consolidated subsidiaries (105) 1,194 1,842 2,357 2,984 Adjusted EBITDA $ 52,454 $ 69,610 $ 69,260 $ 68,514 $ 88, November 3, 2016

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