Royal Gold (RGLD) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 12:47 PM CDT 42 min read

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DATE

May 7, 2026

CALL PARTICIPANTS

• President & Chief Executive Officer — William H. Heissenbuttel

• Executive Vice President & Chief Operating Officer — Martin Raffield

• Vice President & Chief Financial Officer — Paul K. Libner

• Vice President, Corporate Development — Daniel Breeze

• General Counsel & Corporate Secretary — Alistair Baker

Full Conference Call Transcript

William H. Heissenbuttel: Good morning, and convey you for joining the call. I volition statesman connected descent four. 2025 was a transformational twelvemonth for Royal Gold, Inc., and the benefits of past year's enactment are intelligibly seen successful this quarter's results, with materially higher records for revenue, operating currency flow, and earnings. Quarterly gross was $469 million, operating currency travel was $294 million, and net were $281 million. These were increases of 143%, 115%, and 148%, respectively, implicit the archetypal 4th of past year. After adjusting for antithetic items, nett income was $233 million, oregon $2.72 per share, an 80% summation implicit past year. Gold contributed 71% of full gross for the quarter.

This is little than what we person seen implicit the past fewer quarters, but it was driven by precise beardown metallic prices during the 4th and not weakness successful golden revenue. Our adjusted EBITDA borderline remained precocious astatine 83% for the quarter, reflecting our debased and unchangeable currency G&A. We paid dividends of $40 cardinal to shareholders successful the 4th astatine our caller yearly complaint of $1.90 per share, and we repaid $300 cardinal connected the revolver during the quarter, raising our full disposable liquidity to $1.1 billion. During the quarter, we besides completed the restructuring of the Bear Creek indebtedness and equity investments.

In keeping with our strategy, we program to rationalize non-core assets acquired done the Sandstorm transaction and, wherever possible, person those into holdings that are much accordant with our royalty and streaming business. The Bear Creek restructuring was a multi-step transaction, and we were palmy successful converting those interests into cash, Calibre Silver shares, and royalties connected the Corani task and Mercedes mine. We sold the Highlander shares during the quarter, leaving america with the royalty involvement only, which is successful enactment with our halfway business.

With respect to superior allocation, we provided an overview of our model during our Investor Day successful March, which is to reinvest successful our business, support a beardown equilibrium expanse and liquidity, and wage a increasing and sustainable dividend. We judge our outlook remains beardown with steadfast metallic prices and bully maturation wrong the portfolio, but we besides judge successful being flexible and prepared for changing marketplace conditions. With that successful mind, we person added 2 caller tools to support america positioned to proceed increasing our per stock metrics depending connected circumstances. The archetypal is simply a caller $600 cardinal accordion diagnostic nether our revolver. If exercised, this efficaciously increases the full revolver capableness to $2 billion.