Royal Gold Reports Revenue Increase to $193.4 Million and Net Income Rise to $113.5 Million

Royal Gold, Inc. reported a significant increase in financial performance for the three months ended March 31, 2025, with total revenue reaching $193.4 million, up from $148.9 million in the same period last year. This growth was driven by higher stream revenue of $122.5 million and royalty revenue of $71 million, attributed to increased average prices for gold, silver, and copper. The average gold price rose to $2,860 per ounce, compared to $2,070 per ounce in the prior year, while silver and copper prices also saw notable increases.

The company's net income for the quarter was $113.5 million, or $1.72 per share, a substantial rise from $47.2 million, or $0.72 per share, reported in the previous year. This increase in profitability was primarily due to higher revenues and a decrease in income tax expense, which fell to $10.4 million from $27 million, resulting in a lower effective tax rate of 8.4% compared to 36.4% in the prior year. The company’s total assets increased to $3.46 billion, up from $3.39 billion at the end of 2024, reflecting a strong cash position with cash and equivalents of $240.8 million.

Strategically, Royal Gold made a significant acquisition by entering into an additional precious metals purchase agreement with Ero Gold Corporation for gold produced from the Xavantina mine, involving an advance payment of $50 million. This agreement is expected to enhance the company's stream deliveries significantly, increasing the threshold for deliveries at the current stream rate from 93,000 ounces to 160,000 ounces. The acquisition was funded using available cash, indicating a proactive approach to expanding its portfolio of stream and royalty interests.

Operationally, Royal Gold's stream interests accounted for approximately 63% of total revenue, while royalty interests made up 37%. The company holds interests in 33 producing properties, 17 development stage properties, and 116 exploration stage properties. The total number of shares outstanding as of April 30, 2025, was 65,816,496. The company continues to monitor market conditions and is positioned to capitalize on future acquisition opportunities, maintaining a strong liquidity position with no outstanding debt and approximately $1.2 billion in total liquidity.

Looking ahead, Royal Gold anticipates continued growth driven by favorable metal prices and strategic acquisitions. The company remains focused on optimizing its existing assets and exploring new opportunities in the precious metals sector, while also managing the inherent risks associated with metal price volatility and operational performance of its properties.