Royal Gold NASDAQ: RGLD reported record first-quarter 2026 revenue, operating cash flow and earnings, as management said the company benefited from a larger portfolio following transactions completed in 2025 and stronger metals prices.
President and CEO Bill Heissenbuttel said quarterly revenue rose 143% from the prior-year period to $469 million, while operating cash flow increased 115% to $294 million. Earnings were $281 million, up 148% year over year. Adjusted net income was a record $233 million, or $2.72 per share, representing an 80% increase from the first quarter of 2025.
“2025 was a transformational year for Royal Gold,” Heissenbuttel said. “The benefits of last year’s activity are clearly seen in this quarter’s results.”
Gold accounted for 71% of total revenue in the quarter. Heissenbuttel said that percentage was lower than in recent quarters because of strong silver prices, not weakness in gold revenue. The company’s adjusted EBITDA margin was 83%, which management attributed to low and stable cash general and administrative costs.
Portfolio Adds Scale and Diversification
Martin Raffield, senior vice president of operations, said portfolio performance was “solid” in the quarter, with volume of 96,300 gold equivalent ounces and record revenue that included the first full quarter of contributions from the Sandstorm and Horizon interests.
Royalty revenue rose 120% year over year to $156 million, supported by strong revenue from Peñasquito and Cortez, including both the Legacy Zone and CC Zone. Stream revenue increased 155% to $313 million, with higher contributions from several assets, including Pueblo Viejo, Xavantina, Rainy River, Mount Milligan, Antapaccay, Khoemacau and Wassa, as well as a strong contribution from Kansanshi.
Raffield said metal sales are tracking well compared with 2026 guidance, though copper revenue in the first quarter was better than expected. He cited strong performance at Antamina, driven by higher grade and lower deductions, and at Caserones and Chapada, due to generally strong operating performance.
Heissenbuttel also highlighted the company’s increased diversification, saying no single asset contributed more than 12.5% of total revenue in the quarter.
Asset Updates Include Greenstone, Wassa and Platreef
Management provided updates on several portfolio assets. At Mount Milligan, Centerra reported first-quarter gold and copper production in line with its prefeasibility study mine plan and on track to meet full-year guidance. At Peñasquito, Raffield said first-quarter revenue was strong, though Newmont expects a ramp-down of mining at Peñasco phase 7 to result in lower production of gold, lead and zinc and higher silver in 2026 compared with last year.
At Greenstone, Equinox completed an updated technical report targeting average gold production of 320,000 ounces per year over the next decade, based on sustained milling capacity of 27,000 tons per day. Raffield said Equinox believes there is room to optimize production, increase throughput toward 30,000 tons per day and incorporate higher-grade underground resources into the mine plan.
At Wassa, Chifeng Gold announced a strategic investment agreement with a subsidiary of Zijin Mining. Zijin Gold International is expected to invest about $1.2 billion of new capital and take operating control, with roughly half earmarked for Chifeng’s overseas operations, including Wassa. Raffield said projects identified for investment at Wassa are covered by Royal Gold’s stream agreement.
At Platreef, Ivanhoe reported continued progress toward expanded production, including completion of shaft 3 construction and the phase 2 concentrator remaining on track for completion at year-end. Raffield said Royal Gold expects to see its first revenue from Platreef in the current quarter.
Liquidity Rebuilds as Debt Repayment Continues
Senior Vice President and CFO Paul Libner said Royal Gold ended March with total available liquidity of $1.1 billion, consisting of available revolver capacity and $295 million of working capital. The company repaid $300 million on its revolver during the quarter and made a further $75 million repayment in April. Libner said Royal Gold intends to make an additional $100 million repayment next week, which would leave $425 million outstanding and $975 million available under the credit facility.
Libner said the company expects to fully repay the outstanding revolver balance sometime in the fourth quarter, based on current metals prices and assuming no further significant acquisitions.
Royal Gold also added a $600 million accordion feature to its revolving credit facility, which, if exercised, would increase total revolver capacity to $2 billion. Heissenbuttel said the company does not see a current need to use the additional capacity but wants to be prepared if larger transactions come to market.
The company also announced a $500 million share repurchase program. Heissenbuttel said the program is intended as a tool to respond to potential valuation dislocations in Royal Gold shares, not as a mechanism to offset shares issued in the Sandstorm transaction. He also said the company does not plan to use expanded revolver capacity to buy back shares.
Costs, Taxes and Disclosure Changes
Libner said G&A expense was $17.5 million in the quarter, about $6.5 million higher than the prior-year period, mainly because of higher corporate costs related to 2025 transactions. He said first-quarter G&A, including non-cash compensation expense, is expected to be the highest for the year, with full-year G&A expected near the high end of the previously provided $50 million to $60 million range.
DD&A expense increased to $91 million from $33 million a year earlier, largely reflecting higher carrying values for the Kansanshi gold stream and the Sandstorm and Horizon interests acquired in 2025. Interest and other expense increased to $13.2 million from $1.2 million, primarily due to higher average borrowings under the revolving credit facility.
Royal Gold recorded tax expense of $25 million and an effective tax rate of 8% in the quarter. Excluding a $33.7 million discrete benefit, Libner said the effective tax rate was about 19.5%. The company continues to expect its full-year effective tax rate to range between 17% and 22%.
Libner also said Royal Gold will change its disclosure process beginning next quarter. During the third full week after each quarter-end, the company expects to issue a press release providing more detail on notable financial items, including revenue estimates from both the stream and royalty segments.
Management Addresses Guidance, Deals and Hod Maden
During the question-and-answer session, Heissenbuttel said Royal Gold will continue updating annual guidance during the year but does not plan to update the five-year guidance it provided at its March investor day. He said the next long-term guidance discussion is expected when the company provides five-year guidance for 2031 next year.
On business development, Daniel Breeze, senior vice president of corporate development, said the pipeline remains active, with opportunities involving base metal producers monetizing non-core precious metals, third-party royalties and new project development. He said deal sizes remain generally in the $300 million to $400 million range, though opportunities can vary.
Regarding Hod Maden, Heissenbuttel said SSR Mining’s strategic review complicates Royal Gold’s goal of rationalizing its 30% ownership interest, but the company still aims to work with partners on any outcome. Raffield said Royal Gold will continue funding its 30% share of project costs during the review, though management expects those costs to be relatively low compared with expected cash flow.
Heissenbuttel closed by emphasizing the company’s low exposure to operating cost inflation compared with mining operators, saying Royal Gold is “not directly exposed to the price of diesel, to tariffs, or to inflation in general.”
About Royal Gold NASDAQ: RGLD
Royal Gold, Inc, headquartered in Denver, Colorado, is a leading precious metals streaming and royalty company. Through its business model, Royal Gold provides upfront financing to mining operators in exchange for the right to purchase a percentage of future metal production at predetermined prices. This structure allows the company to participate in production upside while minimizing exposure to the operating and capital-intensive aspects of mine ownership.
The company's portfolio encompasses interests in over 200 streams and royalties on projects across North America, South America, Europe, Africa and Australia.
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