Aug 6, 2026 earnings call — Portfolio growth and strong second-quarter results
Revenue for the quarter was $451 million, a 115% increase versus the prior year.
Revenue $0.5B (est $0.5B) · EPS $2.56 (est $2.55)
Key quotes
"And after quarter end, we reduced our equity interest from 30% to 15% and return for additional royalty interests."
"We repaid $200 million on the revolver during the quarter, and we ended the quarter with total available liquidity of $1.2 billion."
"Lidya continues to target initial concentrate production in 2028, subject to completion of the schedule and execution plan review and timely execution of the remaining major construction and procurement packages."
Analyst Q&A 4
Entrée, Hod Maden timing, Mount Milligan trigger
Q (Brian MacArthur · Raymond James): Analyst asked about the latest plan for the Entrée stake. He also asked timing and size of remaining Hod Maden payments and asked when the Mount Milligan support payment tranches will trigger and arrive.
A: Management said they will hold the Entrée shares for now and be patient while Rio and the government of Mongolia discuss concessions. For Hod Maden, they expect remaining Royal Gold inputs to be split over the second half of 2027 and the first half of 2028. On Mount Milligan, the support payment tranches are tied to Greenstone production thresholds and the second tranche of 11,111 ounces is expected in late third quarter or early fourth quarter.
"Rio and the government of Mongolia have been having ongoing discussions regarding some of the mining concessions, we just think if that were to get solved." — William Heissenbuttel (CEO)
Other metals drivers; Hod Maden transition; sale timing
Q (Cosmos Chiu · CIBC): Analyst asked what is included in the $29 million in "other metals" and whether H1 results could be annualized. He also asked about copper mix comfort, how the Hod Maden operator transition has gone, and whether Royal Gold would seek to sell the 15% before the next payment or production.
A: Management said "other" includes lead, zinc and nickel from Antamina, Voisey's Bay and Peñasquito. They said it is possible to annualize H1, but Antamina's NPI is new and variable, so they are uncomfortable changing guidance now. They said the handover to Lidya at Hod Maden has gone well and communications are good. On the 15% interest, they said it is non-core and they would talk to buyers, but they are not running a formal sale tied to the next payment or production.
"I think to answer your question, clearly, yes, we do believe the transition has gone well." — Martin Raffield
Share buyback rules; Hod Maden CapEx; deal pipeline
Q (Daniel Major · UBS): Analyst asked how to model the buyback program and what criteria will guide buybacks. He also asked Royal Gold's remaining share of Hod Maden CapEx and how the deal pipeline looks, including base metal opportunities.
A: Management said they would not give a fixed modeling rule for buybacks because decisions depend on many factors and long-term priorities. For Hod Maden they used the technical report: a $900 million project, 15% equals $135 million, they've already invested $70 million, leaving $65 million to be invested over 2027 and 2028. On the deal pipeline, they said they are busy with a wide mix of opportunities including new streams, royalties and third-party royalties, and they are seeing base metal funding opportunities as well.
"And so 15% of that is $135 million, and we've already invested $70 million." — William Heissenbuttel (CEO)
Deal pipeline types and sizes; Hod Maden rights
Q (Tanya Jakusconek · Scotiabank): Analyst asked to confirm the types of deals in the pipeline (royalties, precious metal streams, mine builds) and whether deal sizes have increased. She also asked if Royal Gold has a right of first refusal and dilution protection at Hod Maden, and whether any assets stand out between Q3 and Q4.
A: Daniel Breeze confirmed the pipeline is skewed toward gold and includes royalties, streams and development projects, with some base-metal opportunities. He said the core deal size range is about $100 million to $500 million, with a few larger opportunities. Management confirmed the joint venture has the usual protections, including rights on transfers and standard dilution arrangements. They also said Q3 and Q4 currently look balanced, with no single asset standing out.
"Yes. I mean the joint venture has all usual protections you would find from the joint venture partners." — William Heissenbuttel (CEO)