ROYAL GOLD INC

1. OPERATIONS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RECENT ACCOUNTING STANDARDS AND RECLASSIFICATION OF PRIOR PERIOD AMOUNTS

Royal Gold, Inc., together with its subsidiaries (“Royal Gold,” the “Company,” “we,” “us,” or “our”), is engaged in the business of acquiring and managing precious metals streams, royalties and similar interests. We seek to acquire existing stream and royalty interests or to finance projects that are in the production, development or exploration stage in exchange for stream or royalty interests. A metal stream is a purchase agreement that provides, in exchange for an upfront deposit payment, the right and obligation to purchase all or a portion of one or more metals in an amount determined by reference to production at a mining operation, at a price determined for the life of the transaction by the purchase agreement. A royalty is a non-operating interest in a mining project that provides the right to revenue or metals produced from the project after deducting contractually specified costs, if any.

Summary of Significant Accounting Policies

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in this Form 10-Q. Operating results for the three and nine months ended September 30, 2026 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2026. These interim unaudited consolidated financial statements should be read in conjunction with our Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on February 19, 2026 (“2025 10-K”).

Recently Adopted Accounting Standards

In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2025-12 Codification Improvements(“ASU 2025-12”) which addressed suggestions received from stakeholders on a broad range of topics arising from technical corrections, unintended application of the accounting standards codification, clarifications and other minor improvements. ASU 2025-12 is effective for fiscal years beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted.

ASU 2025-12 is permitted to be adopted on an issue by issue basis, and effective January 1, 2026, we elected to early adopt Issue 10 of ASU 2025-12 which clarifies methods to account for the retirement of treasury stock. The other issues within ASU 2025-12 that we elected not to early adopt will be effective for the Company’s fiscal year beginning January 1, 2027.

Recently Issued Accounting Standards

We have evaluated all the recently issued, but not yet effective, accounting standards that have been issued or proposed by the FASB or other standards-setting bodies through the filing date of these unaudited consolidated financial statements and except for ASU 2025-12, we do not believe the future adoption of any such standards will have a material impact on our consolidated financial statements.

Reclassification of Prior Period Amounts

Prior period amounts recorded within Equity method investment and Marketable securities in the Company’s consolidated balance sheets were reclassified to Investments to conform to the current period presentation. These reclassifications were made to improve comparability and did not affect previously reported total assets, total liabilities, stockholders' equity, net income or net cash provided by (used in) operating, investing or financing activities.

2. ACQUISITION OF SANDSTORM GOLD AND HORIZON COPPER

On October 20, 2025, we acquired all of the issued and outstanding common shares of Sandstorm Gold Ltd. (“Sandstorm”) and Horizon Copper Corp. (“Horizon”), collectively referred to as “the Transaction.” Sandstorm and Horizon were global resource-based companies based in Vancouver, British Columbia, that held interests in mining assets, including royalty and stream interests, on mining projects across various stages of development. For more detail on the Transaction, refer to the Company’s 2025 10-K.

During the quarter ended September 30, 2026, we completed the analysis to assign fair values to all assets acquired and liabilities assumed. The total purchase price of $4.148 billion has been allocated to the net assets acquired based on their respective fair values (in thousands) as follows:

(1)There were no measurement period adjustments made during the three months ended September 30, 2026.

3. STREAM AND ROYALTY INTERESTS, NET

The following tables summarize our stream and royalty interests, net as of September 30, 2026 and December 31, 2025.

During the three months ended June 30, 2026, the fair value of certain streams and royalties acquired as part of the Sandstorm and Horizon acquisition were adjusted by $120.0 million. Refer to Note 2 for more information on the acquisition of Sandstorm and Horizon.

Settlement of Fixed Delivery Obligation for the Relief Canyon Mine

On May 25, 2026, we reached an agreement with Americas Gold and Silver Corporation (“Americas”) to settle the remaining fixed gold delivery obligations on Relief Canyon for the immediate delivery of 5,000 ounces of gold and 2,652,532 common shares of Americas. As a result of the agreement, a $2.6 million gain recorded within Gain on settlement of Relief Canyon fixed obligation in the consolidated statement of operations was recognized, and the net book value of the Relief Canyon stream interest, $12.9 million, was reduced tozero. The value of the 2,652,532 Americas common shares received on the agreement date, $15.5 million, was recorded within Investmentsin the consolidated balance sheets.

4. INVESTMENTS

The Company’s investments as of September 30, 2026 and December 31, 2025 consist of the following (amounts in thousands):

(1)Fair value adjustment recorded within net income.

(2)Fair value adjustment recorded within other comprehensive income.

Available-for-sale Equity Securities

Entrée Resources Ltd.

The Company holds 50,297,717 Entrée Resources Ltd. (“Entrée”) common shares, representing approximately 24% of the issued and outstanding Entrée common shares on an undiluted basis. Entrée is a public Canadian mining company with a carried joint venture interest in the Hugo North Extension and Heruga deposits located in Mongolia. At acquisition, the Company elected the fair value option to account for the Entrée equity securities because it best reflects the underlying economics of the investment. At September 30, 2026 and December 31, 2025, the carrying value of the Entrée shares was $97.0 million and $76.7 million, respectively, and is included in available-for-sale equity securities.

Highlander Silver Corp.

On February 26, 2026, as part of the agreement with Bear Creek Mining Corporation (“Bear Creek”) to restructure equity, debt and other interests in Bear Creek (the “Bear Creek Transaction”), our shares of Bear Creek converted to shares of Highlander Silver Corp. (“Highlander”) at a conversion ratio of 0.1175 Highlander shares per one Bear Creek share. On March 27, 2026, we sold our shares in Highlander for a net realized gain of $9.9 million. This amount is recorded within

Gain on sale of marketable securities on our consolidated statements of operations and comprehensive income.

Hod Maden

On July 17, 2026, we completed a restructuring (the “Restructuring”) of our interest in Artmin Madencilik Sanayi ve Ticaret A.Ş. (“Artmin”), a privately held company incorporated in Türkiye which owns the Hod Maden project. The Restructuring included a 50% reduction in our direct equity ownership in Artmin from 30% to 15%, the grant of a new effective 2.5% net smelter return (“NSR”) royalty, and certain rights pertaining to new royalty interests granted to the Company and SSR Mining, Inc. over the Hod Maden project.

Investment in Artmin

Upon the loss of significant influence as a result of the 50% ownership reduction in Artmin, we reduced the carrying amount of the Artmin investment by $45.7 million and will no longer account for it as an equity method investment.

The Company elected to use the measurement alternative and measure the investment in Artmin at cost, adjusted for any impairment as applicable. The carrying value of the investment in Hod Maden as of September 30, 2026 and December 31, 2025 was $45.7 million and $0.0 million, respectively.

The new 2.5% NSR royalty received as part of the Restructuring was valued at $114.7 million and recorded as a development stage royalty interest (Note 3) within Stream and royalty interests, net on our consolidated balance sheets as of September 30, 2026.

Loans to Artmin

As of September 30, 2026 and December 31, 2025, the principal balance of loans outstanding to Artmin were $70.0 million and $51.4 million, respectively, and related to cash calls for ongoing development costs at Hod Maden. As part of the Restructuring, $66.1 million of the outstanding loans with an interest at 4% plus the credit default swap rate of Türkiye were deemed settled as of July 17, 2026. Additional loans were issued on May 22, 2026 and June 29, 2026 for $10.0 million and $60.0 million, respectively. The outstanding loans of $70.0 million as of September 30, 2026 bear interest at 4.13% per annum and have afive-year term.

Equity Method Investment

The Company applies the equity method to investments when it has the ability to exercise significant influence over the operating and financial policies of the investee. The Company’s share of the investee’s losses is included in Interest and other expense in the consolidated statement of operations.

The carrying value of the Hod Maden equity method investment as of September 30, 2026 and December 31, 2025, was $0.0 million and $249.5 million, respectively. During the three months ended June 30, 2026, the Hod Maden equity method investment was adjusted lower by $154.6 million as we refined our purchase price allocation. Refer to Note 2 for more information on the acquisition of Sandstorm and Horizon.

Available-for-sale Debt Securities

Bear Creek Convertible Debt Securities

During the quarter ended March 31, 2026, we closed the Bear Creek Transaction and settled outstanding debt obligations owed by Bear Creek of $49.5 million and terminated the gold and silver stream obligations between Bear Creek and Royal Gold in connection with the Mercedes Mine. In consideration for the debt settlement, we received $6.2 million cash, an incremental 1.75% NSR royalty on the Corani Project in Peru (bringing the Company’s total royalty interest to 2.75%), and a 2.0% NSR royalty on the Mercedes Mine. The royalties have been accounted for as asset acquisitions and are recorded as development stage royalty interests (Note 3) within Stream and royalty interests, net on our consolidated balance sheets. The impact of the debt settlement with Bear Creek in the consolidated statements of operations and comprehensive income was not material.

5. DEBT

The Company’s debt as of September 30, 2026 and December 31, 2025 consists of the following (amounts in thousands):

Revolving credit facility

On May 5, 2026, we entered into a seventh amendment to the revolving credit facility that added a new $600 million uncommitted accordion feature to the revolving credit facility. The new accordion feature permits the Company to request additional commitments from the credit facility bank syndicate that would increase aggregate commitments under the revolving credit facility to up to $2.0 billion, subject to customary conditions, including the consent of each lender providing an additional commitment.

During the nine months ended September 30, 2026, we repaid $750 million of outstanding borrowings on our revolving credit facility leaving $150 million outstanding and $1.25 billion available under our revolving credit facility as of September 30, 2026. We were in compliance with each financial covenant (leverage ratio and interest coverage ratio) under our revolving credit facility as of September 30, 2026.

Interest expense, which includes interest on outstanding borrowings and amortization of the debt issuance costs, was $3.7 million and $19.5 million for the three and nine months ended September 30, 2026, respectively, and $8.1 million and $8.7 million for the three and nine months ended September 30, 2025, respectively. The interest rate on borrowings under our credit facility as of September 30, 2026, was SOFR plus 1.2% for an all-in rate of 5.1%.

On October 19, 2026, we repaid the remaining $150 million of outstanding borrowings on our revolving credit facility leaving the entire $1.4 billion available as of the date of this report. We may repay borrowings under our revolving credit facility at any time without premium or penalty.

6. MOUNT MILLIGAN DEFERRED LIABILITY

On February 13, 2024, we entered into a Cost Support Agreement with Centerra Gold Inc. (“Centerra”) with respect to the Mount Milligan mine for cash consideration of $24.5 million,50,000 ounces of gold to be delivered in the future (“Deferred Gold Consideration”) and a free cash flow interest.

The value of the cash consideration and free cash flow interest received from Centerra, and proceeds from the sale of the Deferred Gold Consideration, is recorded as a deferred liability in our consolidated balance sheets. As of September 30, 2026, the balance of the deferred liability was $69.2 million and 38,889 ounces of Deferred Gold Consideration remain outstanding.

On October 2, 2026, we received 11,111 ounces of the Deferred Gold Consideration, leaving 27,778 gold ounces remaining. Proceeds of $46.1 million from the sale of the 11,111 ounces of gold will be recorded to the Mount Milligan Deferred Liability on our consolidated balance sheets and does not impact revenue.

7. STOCKHOLDERS’ EQUITY

Share Repurchase Program

On May 4, 2026, the Board of Directors approved a $500 million share repurchase program under which we may repurchase shares from time to time through open market purchases or by other means. The manner, timing, pricing and amount of any repurchases under the program will be subject to management’s discretion and may be based upon market conditions and alternative opportunities for the use or investment of capital. Although the Board of Directors has authorized the share repurchase program, we are not obligated to repurchase any specific dollar amount or to acquire any specific number of shares under the program.

During the three and nine months ended September 30, 2026, we repurchased 190,045 and 337,250 shares, respectively, at an average price of $259.83 and $235.37 per share, for total consideration of $49.4 million and $79.4 million, respectively. The repurchased shares were cancelled and 84,493,627 shares remain outstanding as of September 30, 2026.

8. REVENUE

Revenue by metal type attributable to each of our revenue sources is disaggregated as follows (amounts in thousands):

Revenue attributable to our principal stream and royalty interests is disaggregated as follows (amounts in thousands):

(1)Individually, no stream or royalty included within the“Other” category contributed greater than 10% of our total revenue for either period.

Please refer to Note 12 for the geographical distribution of our revenue by reportable segment.

9. STOCK-BASED COMPENSATION

We recognized stock-based compensation expense as follows (amounts in thousands):

Stock-based compensation expense is included within General and administrative expense in the consolidated statements of operations and comprehensive income.

We granted the following stock-based compensation awards:

As of September 30, 2026, unrecognized compensation expense (expressed in thousands below) and weighted-average vesting period for each of our stock-based compensation awards were as follows:

10. EARNINGS PER SHARE (“EPS”)

Basic EPS was computed using the weighted average number of shares of common stock outstanding during the period, considering the effect of participating securities. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of EPS pursuant to the two-class method. Our unvested restricted stock awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared. Our unexercised stock option awards, unexercised stock-settled stock appreciation rights and unvested performance stock do not contain rights to dividends. Under the two-class method, the earnings used to determine basic EPS are reduced by an amount allocated to participating securities. Use of the two-class method has an immaterial impact on the calculation of basic and diluted EPS.

The following table summarizes the effects of dilutive securities on diluted EPS for the periods shown below (amounts in thousands, except share data):

11. INCOME TAXES

The following table provides the income tax expense (amounts in thousands) and effective tax rates for the periods indicated:

The effective tax rate for the nine months ended September 30, 2026, included a $33.7 million discrete benefit for a change in a foreign tax rate. The effective tax rate for the nine months ended September 30, 2025, included a $12.0 million discrete benefit for additional recoverable basis in foreign jurisdictions, a $4.3 million discrete benefit attributable to the release of a valuation allowance, and a $11.0 million discrete benefit attributable to withholding tax refunds on foreign royalties.

12. SEGMENT INFORMATION

We manage our business undertwo reportable segments, consisting of the acquisition and management of stream interests and the acquisition and management of royalty interests. Our President and Chief Executive Officer serves as our Chief Operating Decision Maker (“CODM”) and is responsible for reviewing segment performance and making decisions regarding resource allocation. In addition to revenue, our CODM regularly reviews cost of sales, production taxes and depletion for each of our reportable segments. Royal Gold’s long-lived assets (stream and royalty interests, net) are geographically distributed as shown in the following table (amounts in thousands):

Our reportable segments for purposes of assessing performance are shown below (amounts in thousands):

(1)Excludes depreciation, depletion and amortization.

(2)Depletion amounts are included within Depreciation, depletion and amortization on our consolidated statements of operations and comprehensive income.

A reconciliation of total segment gross profit to the consolidated Income before income taxes is shown below (amounts in thousands):

Our revenue by reportable segment for the three and nine months ended September 30, 2026 and 2025, is geographically distributed as shown in the following table (amounts in thousands):

13. FAIR VALUE MEASUREMENTS

Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, we utilize a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Quoted prices for identical instruments in active markets;

Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

Level 3: Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The following table sets forth our financial assets measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy.

(1)Included in Investments on our consolidated balance sheets.

The carrying value of our revolving credit facility (Note 5) approximates fair value as of September 30, 2026 and December 31, 2025 and is measured using Level 2 inputs.

The fair value of the convertible debt securities due from Bear Creek at December 31, 2025 was determined using binomial lattice models based on the contractual terms and relevant inputs including the risk free interest rate, the USD to CAD currency swap rate, expected dividend yield, expected volatility and the discount yield, which are observable in active markets. The use of reasonably possible alternative assumptions would not significantly impact our results.

As of September 30, 2026, we had assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis like those associated with stream and royalty interests, investment in Artmin and other long-lived assets. For the investment in Artmin, the measurement alternative was elected, and it was recorded at cost. Fair value adjustments to the cost of this asset only occur for observable transactions and impairments. If recognition of these assets at their fair value becomes necessary, such measurements will be determined utilizing Level 3 inputs.

14. COMMITMENTS AND CONTINGENCIES

Warintza Project Conditional Funding

On April 14, 2026, after the technical approval ofthe environmental impact assessment and publication of a pre-feasibility study for the Warintza project, we advanced Solaris Resources, Inc. (“Solaris”) $50 million of the $100 million outstanding conditional funding. The $50 million advance was recorded as a development stage stream interest and included within Stream and royalty interests, net in the consolidated balance sheets. The remaining $50 million payable to Solaris is subject to the completion of all filings necessary to perfect security in Ecuador, which is underway, and payment is anticipated in the fourth quarter of 2026.

Ilovica Gold Stream Acquisition

As of September 30, 2026, our conditional funding schedule of $163.75 million, as part of the Ilovica gold stream acquisition entered into in October 2014, remains subject to certain conditions.