What Royal Gold (RGLD) Said on Its Q3 Earnings Call

Key Points

• Record results: Q3 revenue rose 84% year over year to $465 million, while operating cash flow nearly doubled to a record $344 million. Net income was $227 million, and adjusted net income reached a record $238 million.
• Debt-free with capital flexibility: Royal Gold repaid its remaining credit-facility debt, paid $40 million in dividends, and repurchased $49 million of shares. Management said pursuing new business opportunities remains its top capital-allocation priority.
• Guidance and portfolio updates: The company expects silver and copper sales at or above the top of guidance, with gold sales near the midpoint. It also expects about $43 million from Kinross’s planned Great Bear royalty buyback; Antamina production was suspended after a fatality.

Royal Gold NASDAQ: RGLD reported record sales volume and operating cash flow in the third quarter of 2026, as higher metals prices and contributions from acquired assets helped lift revenue 84% from a year earlier.

The precious metals royalty and streaming company said revenue reached $465 million on sales of 109,000 gold equivalent ounces, or GEOs. Operating cash flow rose 98% to $344 million, setting a record for the third consecutive quarter.

Net income was $227 million, or $2.68 per share, compared with $127 million, or $1.92 per share, a year earlier. Adjusted net income, excluding fair value changes in equity securities, was a record $238 million, or $2.80 per share.

Gold accounted for 73% of quarterly revenue, while silver contributed 14% and copper 10%. Chief Financial Officer Paul Libner said gold prices were up 23% from the prior-year quarter, silver prices rose 59% and copper prices increased 44%.

Debt repaid as cash flow grows

Royal Gold repaid $250 million on its revolving credit facility during the quarter and the remaining $150 million on October 19, leaving it debt-free. The full $1.4 billion facility is now available, President and CEO Bill Heissenbuttel said.

The company paid $40 million in dividends during the quarter and repurchased and canceled 190,000 shares for $49 million. Its annual dividend rate of $1.90 per share is 6% higher than last year’s rate.

Since closing the Sandstorm-Horizon transaction a year ago, Royal Gold has repaid more than $1.2 billion of debt, paid $121 million in dividends, repurchased $79 million of shares and funded $50 million for the Warintza project, Heissenbuttel said.

Asked about capital allocation, Heissenbuttel said new business opportunities remain the company’s first priority. He also said higher interest rates could make it beneficial to build liquidity so the company is less dependent on borrowing when it finds investments it likes. The board is scheduled to review the dividend in November.

Dan Breeze, senior vice president of corporate development, said the company was seeing opportunities across royalty packages, new royalties and streams for project development. He said the previously discussed transaction size range of $200 million to $500 million remained representative.

Portfolio guidance and operating updates

Senior Vice President of Operations Martin Raffield said Royal Gold raised its full-year guidance for other metals following strong year-to-date sales. The company expects silver and copper sales at or above the top of their respective guidance ranges, while gold sales remain on track around the midpoint of the original range.

Stream revenue rose 92% from a year earlier to $318 million, with materially higher contributions from Andacollo, Mount Milligan, Pueblo Viejo, Xavantina and Khoemacau. Royalty revenue increased 70% to $146 million, helped by increases at the Cortez Legacy Zone and Peñasquito and contributions from newer interests.

At Cortez, production from the Legacy Zone ramped up significantly in the third quarter. Royal Gold’s overlapping royalties there create an approximate 9% gross royalty rate. Its blended Cortez rate was 4.45% for the quarter and 3.85% year to date, compared with full-year guidance of 3.5% to 4%.

Raffield said he expects a good year for Cortez in 2027, as the operator’s focus on the Legacy Zone continues through at least part of the year. Management declined to provide a specific royalty-rate forecast for next year.

Royal Gold also said production at Antamina was suspended on October 27 following a fatality and to allow investigations by relevant authorities. At Andacollo, operator Teck reported that throughput recovered from earlier weather events and returned to full production by the end of September.

Growth projects and upcoming payments

Royal Gold expects approximately $43 million in the fourth quarter from Kinross Gold’s planned buyback of 25% of its Great Bear royalty, which would reduce Royal Gold’s interest to a 1.5% net smelter return royalty. Heissenbuttel said no other near-term operator royalty buyback rights came to mind when asked by an analyst.

Elsewhere in the portfolio, Raffield said Platreef’s Phase 1 concentrator operated at 70% of design capacity in October, while construction of its Phase 2 concentrator remained on schedule for completion by the end of 2027. At Hod Maden, the project was about 30% complete.

After quarter-end, Royal Gold sold deferred gold consideration received from Centerra under the Mount Milligan Cost Support Agreement for approximately $46 million. Libner said the proceeds will appear in fourth-quarter operating cash flow but will not be treated as revenue or included in GEO sales.

Libner also said Royal Gold expects to make its final $50 million advance payment for the Warintza stream and royalty shortly. For Hod Maden, the company expects to begin contributing its 15% share of project spending in mid-2027, assuming no changes to the timeline or scope and no debt financing.

About Royal Gold (NASDAQ:RGLD)

Royal Gold, Inc is a precious metals streaming and royalty company headquartered in Denver, Colorado. The company provides financing to mining companies in exchange for the right to purchase a portion of the gold, silver, copper, or other metals produced from their mines, typically at predetermined prices. It also holds royalty interests that entitle it to a percentage of revenue or production from mining operations without directly operating the mines.

Royal Gold's business is focused on acquiring and managing a diversified portfolio of streaming and royalty interests.

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