Royal Gold Provides Update On Its Fiscal 2020 Second Quarter

DENVER, CO - Royal Gold, Inc. reported that its wholly owned subsidiary, RGLD Gold AG, sold approximately 60,000 gold equivalent ounces comprised of approximately 47,000 gold ounces, 514,000 silver ounces and 2,000 tonnes of copper related to its streaming agreements during its fiscal 2020 second quarter ended December 31, 2019. Second quarter stream sales were in line with previous guidance of 60,000 gold equivalent ounces. The Company had approximately 39,000 gold equivalent ounces in inventory at the end of the second quarter consisting of 32,000 gold ounces, 466,000 silver ounces and 400 tonnes of copper. Inventory at the end of the second quarter was higher than the previous guidance range of 20,000 to 25,000 gold equivalent ounces primarily due to deliveries that were received earlier than previously expected.

RGLD Gold AG’s average realized gold, silver and copper prices for the second quarter were $1,482 per ounce, $17.38 per ounce, and $5,920 per tonne ($2.69 per pound), respectively, compared to $1,458, $16.54, and $5,798 ($2.63 per pound), respectively, in the prior quarter ended September 30, 2019. Cost of sales was approximately $349 per gold equivalent ounce for the second quarter using the quarterly average silver-gold ratio of approximately 86 to 1 and copper-gold ratio of approximately 0.25 tonnes per ounce, compared to cost of sales of $337 per gold equivalent ounce in the prior quarter ended September 30, 2019. Cost of sales is specific to the Company’s streaming agreements and is the result of the purchase of gold, silver or copper for cash payments at a set contractual price, or a percentage of the prevailing market price of gold, silver or copper when purchased.

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