Q2 2024 Royal Gold Inc Earnings Call

August 8, 2024

Seb: Hello everyone, and welcome to the Royal Gold 2024 second quarter conference call. My name is Seb, and I'll be the operator for your call today. If you would like to ask a question during the Q&A session, please press star 1 on your telephone keypad. If you would like to withdraw your question, please press star 2. I will now hand the floor to Alistair Baker to begin, please go ahead.

Operator: Hello everyone and welcome to the Royal Gold 2024 Second Quarter conference call.

Hello everyone and welcome to the Royal Gold 2024 second quarter conference call.

Seb: Call to Conference call. My name is Seb, and I'll be the operator for your call today. If you would like to ask a question during the Q&A session, please press star 1 on your telephone keypad. If you would like to withdraw your question, please press star 2. I will now hand the floor to Alistair Baker to begin. Please go ahead.

Operator: My name is Seb, and I'll be the operator for your call today.

Operator: If you would like to ask a question during the Q&A session, please press star one on your telephone keypad. If you would like to withdraw your question, please press star two.

Seb: My name is Seb and I'll be the operator for your call today. If you would like to ask a question during the Q&A session, please press star 1 on your telephone keypad. If you would like to withdraw your question, please press star 2. I will now hand the floor to Alistair Baker to begin. Please go ahead.

Alistair Baker: I'll now have the floor. Two, Alistair Baker, to begin. Please go ahead.

Bill Heisenbuttel: Thank you, operator.

Alistair Baker: Thank you, operator. Good morning and welcome to our discussion of Royal Gold's second quarter 2024 results. This event is being webcast live, and a replay of this call will be available on our website. Speaking on the call today are Bill Heissenbuttel, President and CEO, Paul Libner, Senior Vice President and CFO, Martin Raffield, Senior Vice President of Operations, and Dan Breeze, Senior Vice President, Corporate Development, RGAG. Randy Shepman, Senior Vice President and General Counsel, is also available for questions.

Alistair Baker: Thank you, operator. Good morning and welcome to our discussion of Royal Gold's second quarter 2024 results. This event is being webcast live, and a replay of this call will be available on our website. Speaking on the call today are Bill Heissenbuttel, President and CEO, Paul Libner, Senior Vice President and CFO, Martin Raffield, Senior Vice President of Operations, and Dan Breeze, Senior Vice President and Corporate Development of RGAG. Randy Shuffman, Senior Vice President and General Counsel, is also available for questions.

Bill Heisenbuttel: Good morning and welcome to our discussion of Royal Gold second quarter 2024 results. This event is being broadcast live, and the replay of this call will be available on our website.

Alistair Baker: Thank you, Operator. Good morning and welcome to our discussion of Royal Gold's second quarter 2024 results. This event is being webcast live and a replay of this call will be available on our website.

Bill Heisenbuttel: Speaking on the call today are Bill Heisenbuttel, President and CEO, Paul Libner, Senior Vice President and CFO, Martin Raffield, Senior Vice President of Operations, and Dan Breeze, Senior Vice President, Covert Development of RGAG. Randy Schuffman, Senior Vice President and General Counsel, is also available for questions.

Seb: Speaking on the call today are Bill Heissenbuttel, President and CEO .

Speaker Change: Paul Libner, Senior Vice President of CFO , Martin Raffield, Senior Vice President of Operations.

and Dan Breeze, Senior Vice President, Corporate Development of RGAG. Randy Sheffman, Senior Vice President and General Counsel is also available for questions.

Bill Heisenbuttel: During today's call, we will make forward statements, including statements about our projections and expectations for the future. These statements are subject to risk and uncertainty, as it could cause actual results to differ materially from these statements. These risks and uncertainties are discussed in yesterday's press release and our following for the SEC.

Alistair Baker: During today's call, we will make forward a few statements, including statements about our projections and expectations for the future. These statements are subject to risks and uncertainties that could cause actual results to differ materially from these statements. These risks and uncertainties are discussed in yesterday's press release and our filings with the SEC. We will also refer to certain non-GAAP financial measures, including adjusted net income, adjusted net income per share, adjusted EBITDA, and net cash.

Alistair Baker: During today's call, we will make forwarding statements, including statements about our projections and expectations for the future. These statements are subject to risks and uncertainties that could cause actual results to differ materially from these statements. These risks and uncertainties are discussed in yesterday's press release and our filings with the SEC. We will also refer to certain non-GAAP financial measures, including adjusted net income, adjusted net income per share, adjusted EBITDA, and net cash.

During today's call, we will make forward a few statements, including statements about our projections and expectations for the future. These statements are subject to risks and uncertainties that could cause actual results to differ materially from these statements.

Seb: These risks and uncertainties are discussed in yesterday's press release and are followings of the SEC.

Bill Heisenbuttel: We will also refer to certain non-GAAP financial measures, including adjusted ben income, adjusted ben income for share, adjusted EBITDAH, and net cash. Reconciliation of these measures to the most directly comparable gap measures is available in yesterday's press release, which can be found on our website.

Seb: We will also refer to certain non-GAAP financial measures, including adjusted net income, adjusted net income per share, adjusted EBITDA, and net cash.

Seb: Reconciliations of these measures to the most directly comparable GAAP measures are available in yesterday's press release, which can be found on our website.

Bill Heisenbuttel: Bill will start with an overview of the quarter and will provide an overview of our most recent acquisition. Martin will get some commentary on the portfolio, and Paul will provide a financial update.

Alistair Baker: Reconciliations of these measures to the most directly comparable gap measures are available in yesterday's press release, which can be found on our website. So we'll start with an overview of the quarter, then we'll provide an overview of our most recent acquisition. Martin will give some commentary on the portfolio, and Paul will provide a financial update. After the formal remarks, we'll open the lines for a Q&A session. I'll now turn the call over to Bill.

Alistair Baker: Reconciliations of these measures to the most directly comparable gap measures are available in yesterday's press release, which can be found on our website. So we'll start with an overview of the quarter, then we'll provide an overview of our most recent acquisition, Martin will give some commentary on the portfolio, and Paul will provide a financial update. After the formal remarks, we'll open the lines for a Q&A session. I'll now turn the call over to Bill.

Speaker Change: Bill will start with an overview of the quarter, Dan will provide an overview of our most recent acquisition, Martin will give some commentary on the portfolio, and Paul will provide a financial update. After the formal remarks, we'll open the lines for a Q&A session. I'll now turn the call over to Bill.

Bill Heisenbuttel: After the formal remarks, we'll open the lines for a Q&A session.

Bill Heisenbuttel: I'll now turn the call over to Bill.

Bill Heisenbuttel: Good morning. Thank you for joining the call.

Bill Heissenbuttel: Good morning. Thank you for joining us on the call. I'll begin on slide four. We had strong financial performance during the quarter with near record revenue of $174 million, a 21% increase over the same period last year, operating cash flow of $114 million, and earnings of $81 million, or $1.23 per share. After minor adjustments, earnings were a record $1.25 per share. Revenue was 74% gold, and over 56% of our revenue was generated from the US, Canada, and Australia.

Bill Heisenbuttel: I'll begin on slide four. We had strong financial performance during the quarter with near-record revenue of $174 million. A 21% increase over the same period last year. Operating cash flow of $114 million, earnings of $81 million, or $1.23 per share. After minor adjustments, earnings were record $1.25 per share. Revenue was 74% gold and over 56% of our revenue was generated from the US, Canada, and Australia. Our electricity bidon margin remains strong and steady at 81% for the quarter. And despite a 21% increase in revenue, our cash TNA was flat, providing further evidence of the scalability of our business model.

Speaker Change: yeah

Bill Heissenbuttel: Good morning. Thank you for joining the call. I'll begin on slide four. We had strong financial performance during the quarter with near record revenue of $174 million, a 21% increase over the same period last year. Operating cash flow of $114 million and earnings of $81 million, or $1.23 per share.

Speaker Change: After minor adjustments, earnings were a record $1.25 per share.

Revenue was 74% gold and over 56% of our revenue was generated from the U.S., Canada, and Australia.

Bill Heissenbuttel: Our adjusted EBITDA margin remained strong and steady at 81% for the quarter, and despite a 21% increase in revenue, our cash G&A was flat, providing further evidence of the scalability of our business model. Solid portfolio performance and the strong gold price helped us generate significant cashflow during the quarter that we allocated in line with our long-held strategy, which included payment of our regular quarterly dividend of $26 million, and repayment of $100 million of the balance outstanding on the revolving credit facility. We ended the quarter with $50 million of debt outstanding, and we have now returned to a net cash position. After quarter end, we made a further repayment of $25 million.

Bill Heissenbuttel: Our adjusted EBITDA margin remained strong and steady at 81% for the quarter, and despite a 21% increase in revenue, our cash G&A was flat, providing further evidence of the scalability of our business model. Solid portfolio performance and the strong gold price helped us generate significant cash flow during the quarter that we allocated in line with our long-held strategy, which included payment of our regular quarterly dividend of $26 million, and repayment of $100 million of the balance outstanding on the revolving credit facility. We ended the quarter with $50 million of debt outstanding, and we have now returned to a net cash position. After quarter end, we made a further repayment of $25 million.

Seb: Hello everyone and welcome to the Royal Gold 2024 second quarter conference call. My name is Seb and I'll be the operator for your call today. If you would like to ask a question during the Q&A session, please press star one on your telephone keypad. If you would like to withdraw your question, please press star two.

Our adjusted EBITDA margin remained strong and steady at 81% for the quarter, and despite a 21% increase in revenue, our cash G&A was flat, providing further evidence of the scalability of our business model.

Bill Heisenbuttel: Solid portfolio performance and the strong gold price helped us generate significant cash flow during the quarter that we allocated in line with our long-held strategy, which included payment of our regular quarterly dividend of $26 million. Repayment of $100 million of the balance outstanding on the revolving credit facility. We ended the quarter with $50 million of debt outstanding, and we have now returned to a net cash position. After quarter end, we made a further repayment of $25 million, and so far in 2024, we have repaid $225 million of debt.

Speaker Change: Solid portfolio performance and the strong gold price helped us generate significant cash flow during the quarter that we allocated in line with our long-held strategy, which included payment of our regular quarterly dividend of $26 million.

Alistair Baker: I'll now have the floor two, Alistair Baker to begin, please go ahead. Thank you, operator. Good morning and welcome to our discussion Royal Gold second quarter 2024 results. This event is being broadcast live and the replay of this call will be available on our website. Speaking on the call today are Bill Heissenbuttel, President and CEO, Paul Libner, Senior Vice President and CFO, Martin Raffield, Senior Vice President of Operations, and Dan Breeze, Senior Vice President, Covert Development of RGAG.

Repayment of $100 million of the balance outstanding on the revolving credit facility. We ended the quarter with $50 million of debt outstanding and we have now returned to a net cash position.

Bill Heissenbuttel: And so far in 2024, we have repaid $225 million of debt. And finally, we reinvested in the business with the acquisition of two more royalties in the Back River Gold District, which increases our exposure to the Goose Gold Development Project in Nunavut, Canada. We'd like to give you a brief overview of this acquisition, and I'll turn the call over to Dan to review the ad. Thanks, Bill.

Speaker Change: After Quarter End, we made a further repayment of $25 million, and so far in 2024, we have repaid $225 million of debt.

Bill Heisenbuttel: And finally, we reinvested in the business with the acquisition of two more royalties on the Back River Gold District, which increases our exposure to the Goose Gold Development Project in Nunavut, Canada.

Speaker Change: And finally, we reinvested in the business with the acquisition of two more royalties on the Back River Gold District, which increases our exposure to the Goose Gold Development Project in Nunavut, Canada. We'd like to give you a brief overview of this acquisition, and I'll turn the call over to Dan to review the asset.

Alistair Baker: Randy Schuffman, Senior Vice President and General Counsel is also available for questions. During today's call, we will make forward to these statements, including statements about our projections and expectations for the future. These statements are subject to risk and uncertainty as it could cause actual results to differ materially from these statements. These risks and uncertainties are discussed in yesterday's press release and our following for the SEC. We will also refer to certain non-GAP financial measures, including adjusted bed income, adjusted recommendations of these measures to the most directly comparable GAP measures are available in yesterday's press release, which can be found on our website.

Dan Breeze: We'd like to give you a brief overview of this acquisition, and I'll turn the call over to Dan to review the S.

Dan Breeze: Thanks, Bill.

Dan Breeze: I'll turn to slide five and spend a few minutes on the Back River royalty purchase. In late June, we completed the acquisition of two royalties that cover the entirety of the Back River District for cash consideration of $51 million. Back River is an 80-kilometer gold belt in Nunavut being developed by B2 Gold. Most of the development activity underway is at the Goose Project, and the deposits to the north, including the George Project, are at an earlier stage.

Dan Breeze: I'll turn to slide five and spend a few minutes on the back-river royalty purchase. In late June, we completed the acquisition of two royalties that cover the entirety of the back-river districts for cash consideration of $51 million. Backriver is an 80-kilometer gold belt in Nunavut being developed by B2 Gold. Most of the development activity underway is not the Goose project, and the deposits to the north, including the George projects, are at an earlier stage. The royalties we acquired cover all reserves, resources, and potential extensions thereof in the district. The first royalty is a 0.7 percent net snultory turn or NSR royalty that starts pain immediately and declines to a 0.35 percent NSR royalty after Canadian $5 million of revenue has been delivered.

Dan: Thanks Bill. I'll turn to slide 5 and spend a few minutes on the Back River Royalty Purchase.

Dan Breeze: The royalties we acquired cover all reserves, resources, and potential extensions thereof in the district. The first royalty is a 0.7% net smelter return or NSR royalty that starts paying immediately and declines to a 0.35% NSR royalty after Canadian $5 million of revenue has been delivered. The second royalty is an approximate 1.3% gross smelter return or GSR royalty that begins paying after about 780,000 ounces are delivered. The first royalty is a deduction against the second.

Dan: In late June , we completed the acquisition of two royalties that cover the entirety of the Back River District for cash consideration of $51 million.

Speaker Change: Back River is an 80-kilometer gold belt in Nunavut being developed by B2 Gold.

Speaker Change: Most of the development activity underway is at the Goose Project, and the deposits to the north, including the George Project, are at an earlier stage. The royalties we acquired cover all reserves, resources, and potential extensions thereof in the district.

Bill Heissenbuttel: Bill will start with an overview of the quarter, Dan will provide an overview of our most recent acquisition. Martin will get some commentary on the portfolio, and Paul will provide a financial update.

Bill Heissenbuttel: After the formal remarks, we'll open the lines for a Q&A session.

Speaker Change: The first royalty is a 0.7% net small-to-return, or NSR, royalty that starts paying immediately and declines to a 0.35% NSR royalty after Canadians $5 million of revenue has been delivered.

Bill Heissenbuttel: I'll now turn the call over to Bill. Good morning. Thank you for joining the call. I'll open the financial performance during the quarter with near-record revenue of $174 million. A 21% increase over the same period last year. Operating cash flow of $114 million, earnings of $81 million, or $1.23 per share. After minor adjustments, earnings were a record $1.25 per share. Revenue was 74% gold, and over 56% of our revenue was generated from the U.S., Canada, and Australia.

Dan Breeze: The second royalty is an approximate 1.3 percent gross snultory turn or GSR royalty that begins pain after about 780,000 ounces are delivered. The first royalty is a deduction against the second, so while we have acquired two royalties, the interaction between the royalties allows us to account for purchase as one asset. Together, the royalties are equivalent to an approximate 1.1 percent GSR royalty. If you recall, we already had exposure to the Back River project through ownership of other royalties that we acquired in 2008, so these royalties complement and add to that existing position.

Speaker Change: The second royalty is an approximate 1.3% gross mental return, or GSR royalty, that begins paying after about 780,000 ounces are delivered.

Dan Breeze: So while we have acquired two royalties, the interaction between the royalties allows us to account for the purchase as one asset. Together, the royalties are equivalent to an approximate 1.1% GSR royalty. If you recall, we already had exposure to the Back River Project through ownership of other royalties that we acquired in 2008. So these royalties complement and add to that existing position. Turning to slide six, I'll give a brief overview of the Back River Project.

Speaker Change: The first royalty is a deduction against the second, so while we have acquired two royalties, the interaction between the royalties allows us to account for the purchase as one asset.

Dan Breeze: Together, the royalties are equivalent to an approximate 1.1% GSR royalty. As you recall, we already had exposure to the Back River Project through ownership of other royalties that we acquired in 2008. So these royalties complement and add to that existing position.

Speaker Change: Together, the royalties are equivalent to an approximate 1.1% GSR royalty. If you recall, we already had exposure to the Back River project through ownership of other royalties that we acquired in 2008, so these royalties complement and add to that existing position.

Bill Heissenbuttel: All right, just to the bidon margin remains strong and steady at 81% for the quarter, and despite a 21% increase in revenue, our cash DNA was flat, providing further evidence of the scalability of our business model. Solid portfolio performance and the strong gold price helped us generate significant cash flow during the quarter that we allocated in line with our long-held strategy, which included payment of our regular quarterly dividend with $26 million.

Dan Breeze: Turning to slide 6, I'll give a brief overview of the Back-River project. B2 Gold is currently advancing construction of the Goose project, which will be a combined open pit and underground operation feeding the 4,000 ton per day conventional gold age process plant. B2 currently expects first gold production in the second quarter of 2025, and their estimated production at between 120,000 and 150,000 ounces in 2025, increasing to over 310,000 ounces per year from 2026 to 2030. B2 is forecasting total production of 3.3 million ounces over a 15-year mine life. Total measured and indicated resources contain approximately 6.3 million ounces of gold, which includes approximately 3.6 million ounces improvement in probable reserves.

Martin Raffield: Turning to slide six, I'll give a brief overview of the Back River Project. B2 Gold is currently advancing construction of the Goose Project, which will be a combined open pit and underground operation feeding the 4,000 ton per day conventional gold leach process plant. B2 currently expects first gold production in the second quarter of 2025, and they are estimating production between 120,000 and 150,000 ounces in 2025, increasing to over 310,000 ounces per year from 2026 to 2030.

Turning to slide 6, I'll give a brief overview of the Back River Project.

Martin Raffield: B2 Gold is currently advancing construction of the Goose project, which will be a combined open pit and underground operation feeding a 4,000 ton per day conventional gold leach process plant. B2 currently expects first gold production in the second quarter of 2025, and they are estimating production between 120,000 and 150,000 ounces in 2025, increasing to over 310,000 ounces per year from 2026 to 2030. B2 is forecasting a total production of 3.3 million ounces over a 15-year mine life.

Speaker Change: B2 Gold is currently advancing construction of the Goose Project, which will be a combined open-pit and underground operation feeding a 4,000-ton-per-day conventional gold-each process plant.

Martin Raffield: B2 is forecasting total production of 3.3 million ounces over a 15-year mine life. Total measured and indicated resources contain approximately 6.3 million ounces of gold, which includes approximately 3.6 million ounces in proven and probable reserves. Inferred resources contain an additional 2.9 million ounces, and according to B2Gold, the average historical resource conversion rate from inferred to measured and indicated has been 73%. The area is highly prospective, and B2Gold has an extensive exploration campaign underway to add to this resource base.

Dan: B2 currently expects first gold production in the second quarter of 2025, and they are estimating production at between 120,000 and 150,000 ounces in 2025, increasing to over 310,000 ounces per year from 2026 to 2030.

Bill Heissenbuttel: Repayment of $100 million of the balance outstanding on the revolving credit facility. We ended the quarter with $50 million of debt outstanding, and we have now returned to a net cash position. After quarter end, we made a further repayment of $25 million, and so far in 2024, we have retained $225 million of debt.

Dan: B2 is forecasting total production of 3.3 million ounces over a 15-year mine life.

Martin Raffield: Total measured and indicated resources contain approximately 6.3 million ounces of gold, which includes approximately 3.6 million ounces of proven and probable reserves. Inferred resources contain an additional 2.9 million ounces, and according to B2Gold, the average historical resource conversion rate from inferred to measured and indicated has been 73%. The area is highly prospective, and B2 has an extensive exploration campaign underway to add to this resource base. Royal Gold's exposure to the Back River District increases significantly with this transaction, and the summary royalty rates on slide six should help you understand how the royalty rates on the Goose project change as various production levels are achieved.

Bill Heissenbuttel: And finally, we reinvested in the business with the acquisition of two more royalties on the back river gold district, which increases our exposure to the Goose Gold Development project in Nunavut, Canada.

Dan: Total measured and indicated resources contain approximately 6.3 million ounces of gold, which includes approximately 3.6 million ounces in proven and probable reserves.

Dan Breeze: Inferred resources contain an additional 2.9 million ounces, and according to B2 Gold, the average historical resource conversion rate from inferred to measured and indicated has been 73 percent. The area is highly prospective, and B2 has an extensive exploration campaign underway to add to this resource space. Real Gold's exposure to the Back-River District increases significantly with this transaction, and the summary royalty rates and slide six should help you understand how the royalty rates on the goods project change as various production levels are achieved. We expect that the threshold for the first royalty rate increase will be reached at 2026, and the threshold to reach the GSR royalty rate at 3.3 percent will be reached in 2028 based on B2 Gold's production forecast.

Dan Breeze: We'd like to give you a brief overview of this acquisition, and I'll turn the call over to Dan to review the S. Thanks, Bill. I'll turn to slide five and spend a few minutes on the back-river royalty purchase. In late June, we completed the acquisition of two royalties that cover the entirety of the back-river districts or cash consideration of $51 million. Backriver is an 80-kilometer gold belt in Nunavut being developed by B2 Gold.

Dan: Inferred resources contain an additional 2.9 million ounces and according to B2 Gold the average historical resource conversion rate from inferred to measured and indicated has been 73%. The area is highly prospective and B2 has an extensive exploration campaign underway to add to this resource base.

Martin Raffield: Royal Gold's exposure to the Back River District increases significantly with this transaction, and the summary royalty rates on slide six should help you understand how the royalty rates on the Goose Project change as various production levels are achieved. We expect that the threshold for the first royalty rate increase will be reached in 2026, and the threshold to reach the GSR royalty rate of 3.3% will be reached in 2028, based on B2 Gold's production forecast. We are pleased with this transaction as it increases our exposure to a very attractive project in a stable jurisdiction being developed by an experienced operator. I'll now turn the call over to Martin.

Speaker Change: Royal Gold's exposure to the Back River District increases significantly with this transaction, and the summary royalty rates on slide 6 should help you understand how the royalty rates on the Goose Project change as various production levels are achieved.

Dan Breeze: Most of the development activity underway is at the Goose project, and the deposits to the North, including the George projects are at an earlier stage. The royalties we acquired cover all reserves, resources, and potential extensions thereof in the district. The first royalty is a 0.7% net snoutary turn or NSR royalty that starts paying immediately and declines to a 0.35% NSR royalty after Canadian $5 million of revenue has been delivered. The second royalty is an approximate 1.3% gross snoutary turn or GSR royalty that begins paying after about 780,000 ounces of delivered.

Martin Raffield: We expect that the threshold for the first royalty rate increase will be reached in 2026, and the threshold to reach the GSR royalty rate of 3.3% will be reached in 2028 based on B2 Gold's production forecast. We are pleased with this transaction as it increases our exposure to a very attractive project, a stable jurisdiction, being developed by an experienced operator. I'll now turn the call over to Martin.

Speaker Change: We expect that the threshold for the first royalty rate increase will be reached in 2026. And the threshold to reach the GSR royalty rate of 3.3% will be reached in 2028 based on B2 Gold's production forecast.

Dan Breeze: We are pleased with this transaction as it increases our exposure to a very attractive project and stable jurisdiction being developed by an experienced operator.

Speaker Change: We are pleased with this transaction as it increases our exposure to a very attractive project in stable jurisdiction being developed by an experienced operator. I'll now turn the call over to Martin.

Martin Raffield: I'll now turn the call over to Martin.

Martin Raffield: Thanks Dan. Turning to slide 7, I'll give some comments on second quarter revenue. Overall revenue for the quarter was a near record $174 million, with volume of 74,500 GEOs. Higher prices were the primary driver for the increased revenue. Our royalty segment contributed $51 million, about 29% of total revenue for the quarter. Royalty revenue was up about 34% from the prior year quarter, with higher contributions from Penesquito and Robinson, and approximately $2 million in new revenue from Mara Rosa, Bellevue, and Northern Stars Wonder Underground. These increases were partially offset by lower revenue from the Cortez Legacy Zone.

Martin Raffield: Thanks, Dan. Turning to slide seven, I'll give some comments on second quarter revenue. Overall revenue for the quarter was near record $174 million, with volume of 74,500 GEOs.

Martin Raffield: Thanks, Dan. Turning to slide seven, I'll give some comments on second quarter revenue. Overall revenue for the quarter was a near record $174 million, with volume of 74,500 GEOs. Higher prices were the primary driver for the increased revenue. Our royalty segment contributed $51 million, about 29% of total revenue for the quarter. Royalty revenue was up about 34% from the prior year quarter, with higher contributions from Penesquito and Robinson, and approximately $2 million in new revenue from Mara Rosa, Bellevue, and Northern Stars Wonder Underground. These increases were partially offset by lower revenue from the Cortez Legacy Zone.

Martin: Thanks, Dan. Turning to slide seven, I'll give some comments on second quarter revenue.

Dan Breeze: The first royalty is a deduction against a second, so while we have acquired two royalties, the interaction between the royalties allows us to account to the purchase as one asset. Together, the royalties are equivalent to an approximate 1.1% GSR royalty. If you recall, we already had exposure to the back-river project through ownership of other royalties that we acquired in 2008, so these royalties complement and add to that existing position.

Martin: Overall revenue for the quarter was near record $174 million with volume of 74,500 GEOs.

Martin Raffield: Price. Higher prices were the primary driver for the increased revenue. Our royalty segment contributed $51 million, about 29% of total revenue for the quarter. royalty revenue was up about 34% from the prior year quarter, with higher contributions from Penisquito and Robinson and approximately $2 million in new revenue from Mara Rosa Bellevue and Northern Stars Wunder Underground. These increases were partially offset by lower revenue from the quarter's legacy zone. Revenue from our stream segment was $123 million, up by about 16% from last year, with increased contributions from Mount Milligan, Savanchina, Wasseren, and Acoyo, partially offset by lower revenue from Pueblo Viejo.

Speaker Change: Higher prices were the primary driver for the increased revenue.

Speaker Change: Our royalty segment contributed $51 million, about 29% of total revenue for the quarter.

Speaker Change: Royalty revenue was up about 34% from the prior year quarter, with higher contributions from Pendosquito and Robinson, and approximately $2 million in new revenue from Mara Rosa, Bellevue, and Northern Stars Wonder Underground.

Dan Breeze: Turning to slide 6, I'll give a brief overview of the back-river project. B2 Gold is currently advancing construction of the Goose project, which will be a combined open-pid and underground operation feeding the 4,000 ton per day conventional gold each process plant. B2 currently expects first gold production in the second quarter of 2025, and their estimated production at between 120,000 and 150,000 ounces in 2025, increasing to over 310,000 ounces per year from 2026 to 2030.

These increases were partially offset by lower revenue from the Cortez Legacy Zone.

Martin Raffield: Revenue from our stream segment was $123 million, up by about 16% from last year, with increased contributions from Mount Milligan, Savoncina, Wasa, and Andecoyo, partially offset by lower revenue from Pueblo Viejo. I'll turn to slide 8 and give some comments on notable developments at our principal properties. At Mount Milligan, Sentara reported last week that they're on track for completion of the PEA in the first half of next year to evaluate opportunities to extend the mine life beyond 2035.

Martin Raffield: Revenue from our stream segment was $123 million, up by about 16% from last year, with increased contributions from Mount Milligan, Savoncina, Wassa, and Andecoyo, partially offset by lower revenue from Pueblo Viejo. I'll turn to slide 8 and give some comments on notable developments at our principal properties. At Mount Milligan, Sentara reported last week that they're on track for completion of the PEA in the first half of next year to evaluate opportunities to extend the mine life beyond 2035.

Speaker Change: Revenue from our stream segment was $123 million, up by about 16% from last year, with increased contributions from Mt. Milligan, Savoncina, Wasa, and Andecoyo, partially offset by lower revenue from Pueblo Viejo.

Martin Raffield: I'll tend to slide eight and give some comments on notable developments at our principal properties. At Mount Milligan Center, a reported last week that they're on track for completion of a PEA in the first half of next year to evaluate opportunities to extend the mine life beyond 2035. They also reported progress on the site-wide optimisation programme, with significant reductions to date on milling costs and improvements in mining costs expected in 2025. At Pueblo Viejo, Barrett reported in mid-July that production in the second quarter was flat compared to the prior quarter, and a shift to recovery rate optimisation will occur in the second half of the year as throughput is ramped up.

Martin Raffield: They also reported progress on the Sitewide Optimization Program, with significant reductions to date on milling costs and improvements in mining costs expected in 2025. Pueblo Viejo Barrett reported in mid-July that production in the second quarter was flat compared to the prior quarter, and a shift to recovery rate optimization will occur in the second half of the year as throughput is ramped up. Silver recovery remains lower than target, and while we received deliveries of 333,000 ounces, we saw a further deferral of 143,000 ounces in that second quarter. At Andacoya, tech reported an improvement during the second quarter in the drought conditions that have caused water restrictions and limited throughput rates. Tech expects the improvement to continue in the second half of the year.

Speaker Change: I'll turn to slide 8 and give some comments on notable developments at our principal properties.

Dan Breeze: B2 is forecasting total production of 3.3 million ounces over a 15-year-mile life. Total measured and indicated resources contain approximately 6.3 million ounces of gold, which includes approximately 3.6 million ounces in proven and probable reserves. Inferred resources contain an additional 2.9 million ounces and according to B2 Gold, the average historical resource conversion rate from inferred to measured and indicated has been 73%. The area is highly prospective, and B2 has an extensive exploration campaign underway to add to this resource base.

Speaker Change: At Mount Milligan, Senterra reported last week that they're on track for completion of the PEA in the first half of next year to evaluate opportunities to extend the mine life beyond 2035.

Martin Raffield: They also reported progress on the Sitewide Optimization Program, with significant reductions to date on milling costs and improvements in mining costs expected in 2025. Pueblo Viejo Barrett reported in mid-July that production in the second quarter was flat compared to the prior quarter, and a shift to recovery rate optimization will occur in the second half of the year as throughput is ramped up. Silver recovery remains lower than target, and while we received deliveries of 333,000 ounces, we saw a further deferral of 143,000 ounces in that second quarter. At Andacoya, TEC reported an improvement during the second quarter in the drought conditions that have caused water restrictions and limited throughput rates.

Speaker Change: They also reported progress on the Sitewide Optimization Program, with significant reductions to date on milling costs and improvements in mining costs expected in 2025.

Speaker Change: At Pueblo Viejo, Barrett reported in mid-July that production in the second quarter was flat compared to the prior quarter, and a shift to recovery rate optimization will occur in the second half of the year as throughput is ramped up.

Martin Raffield: Silver recovery remains lower than target, and while we received deliveries of the 333,000 ounces, we saw a further deferral of 143,000 ounces in the second quarter. At Andacoia, tech reported an improvement during the second quarter in the drought conditions that have caused water restrictions and limited throughput rates. Tech expects the improvement to continue in the second half of the year. Turning to slide nine at Penisquito, second quarter production was strong, driven by high-gold and zinc production resulting from higher grades in the Chili Colorado pit and good mill throughput and recoveries. New Montexpect production levels to remain steady in the third quarter with an increasing gold production in the fourth quarter, as mining returns to the high-gold rate and nascopit later in the year.

Dan Breeze: Royal Gold's exposure to the back-river district increases significantly with this transaction, and the summary royalty rates in slide 6 should help you understand how the royalty rates on the goods project change as various production levels are achieved. We expect that the threshold for the first royalty rate increase will be reached at 2026, and the threshold to reach the GSR royalty rate at 3.3% will be reached in 2028 based on B2 Gold's production forecast.

Speaker Change: Silver recovery remains lower than target, and while we received deliveries of 333,000 ounces, we saw a further deferral of 143,000 ounces in that second quarter.

Speaker Change: At Andocoyo, TEC reported an improvement during the second quarter in the drought conditions that have caused water restrictions and limited throughput rates. TEC expects the improvement to continue in the second half of the year.

Martin Raffield: Tech expects the improvement to continue in the second half of the year. Turning to slide nine, at Penosquito, second quarter production was strong, driven by high gold and zinc production resulting from higher grades in the Chile-Colorado pit and good mill throughput and recovery. Newmont expects production levels to remain steady in the third quarter, with an increase in gold production in the fourth quarter, as mining returns to the high-grade Penasco pit later in the year. At Comacao, M&G reported the first full quarter of results at the Zone 5 mine since the ownership transition. Production was impacted by equipment availability and high turnover of skilled labor.

Martin Raffield: Turning to slide nine, at Penosquito, second quarter production was strong, driven by high gold and zinc production resulting from higher grades in the Chile-Colorado pit and good mill throughput and recovery. Newmont expects production levels to remain steady in the third quarter, with an increase in gold production in the fourth quarter, as mining returns to the high-gold-grade Penasco pit later in the year. At Comacao, M&G reported the first full quarter of results at the Zone 5 mine since the ownership transition, but production was impacted by equipment availability and high turnover of skilled labor.

Dan Breeze: We are pleased with this transaction as it increases our exposure to a very attractive project and stable jurisdiction being developed by an Thanks Dan.

Speaker Change: Turning to slide 9, at Penosquito, second quarter production was strong, driven by high gold and zinc production resulting from higher grades in the Chile-Colorado pit and good mill throughput and recoveries.

Martin Raffield: Turning to slide 7, I'll give some comments on second quarter revenue. Overall revenue for the quarter was near record $174 million, with volume of 74,500 Geo.

Newmont: Newmont expects production levels to remain steady in the third quarter with an increase in gold production in the fourth quarter as mining returns to the higher gold grade Paniasco pit later in the year.

Martin Raffield: At Comical, M&G reported the first full quarter of results at the Zone Five mines since the ownership transition. Production was impacted by equipment availability and high turnover of skilled labour. M&G reported that it is hired and is training a significant number of replacement workers. There are also measures being taken to reduce dilution, with the expectation of achieving better all grades in the coming quarters. In addition, M&G reported their intention to complete an expansion of Comical by 2028, with the target of producing 130,000 tonnes of copper per year. Recall that raw gold silvery stream interest covers expanded production from the Zone Five mine and the Mango Northeast deposit.

Martin Raffield: Price. Higher prices were the primary driver for the increased revenue. Our royalty segment contributed $51 million, about 29% of total revenue for the quarter, royalty revenue was up about 34% from the prior year quarter, with higher contributions from Penisquito and Robinson and approximately $2 million in new revenue from Mara Rosa Bellevue and Northern stars Wunder Underground. These increases were partially offset by lower revenue from the quarter's legacy zone. Revenue from our stream segment was $123 million, up by about 16% from last year, with increased contributions from Mount Milligan, Savanchina, Wassar and Andacoio, partially offset by lower revenue from Pueblo Viejo.

Speaker Change: At Comacao, M&G reported the first full quarter of results at the Zone 5 mine since the ownership transition. Production was impacted by equipment availability and high turnover of skilled labour.

Paul Libner: MMG reported that it has hired and is training a significant number of replacement workers. There are also measures being taken to reduce dilution with the expectation of achieving better ore grades in the coming quarters. In addition, MMG reported its intention to complete an expansion of Co-Macao by 2028 with the target of producing 130,000 tons of copper per year. Recall that Royal Gold Silver Stream's interest covers expanded production from the Zone 5 mine and the Mango Northeast deposit.

Martin Raffield: MMG reported that it has hired and is training a significant number of replacement workers. There are also measures being taken to reduce dilution with the expectation of achieving better ore grades in the coming quarters. In addition, MMG reported its intention to complete an expansion of Co-Macao by 2028 with the target of producing 130,000 tons of copper per year. Recall that Royal Gold Silver Stream's interest covers expanded production from the Zone 5 mine and the Mango Northeast deposit.

MMG: MMG reported that it has hired and is training a significant number of replacement workers.

Speaker Change: There are also measures being taken to reduce dilution with the expectation of achieving better ore grades in the coming quarters.

Speaker Change: In addition, MMG reported their intention to complete an expansion of Comacao by 2028 with the target of producing 130,000 tonnes of copper per year.

Speaker Change: Recall that Royal Gold Silver Stream interest covers expanded production from the Zone 5 mine and the Mango Northeast deposit.

Martin Raffield: We're pleased to see progress at some of our newer assets in the portfolio and note the initial gold port man show and the achievement of commercial production at both Cote and Mara Rosa. And finally, it's worth noting some positive developments at a couple of our Australian royalty properties. At Bellevue, a five-year plan was announced to significantly grow production by increasing underground all movement and processing capacity. Velview has a June 30th fiscal year end, and goal production levels are expected to increase steadily from 165,000 to 180,000 ounces in fiscal year 2025 to 240,000 to 260,000 ounces in fiscal year 2029.

Paul Libner: We're pleased to see progress at some of our newer assets in the portfolio and note the initial gold pour at Manchot and the achievement of commercial production at both Cote and Mara Rosa. And finally, it's worth noting some positive developments at a couple of our Australian royalty properties. At Bellevue, a five-year plan was announced to significantly grow production by increasing underground oil movement and processing capacity. Bellevue has a June 30th fiscal year end, and gold production levels are expected to increase steadily from 165,000 to 180,000 ounces in fiscal year 2025 to 240,000 to 260,000 ounces in fiscal year 2029.

Martin Raffield: We're pleased to see progress at some of our newer assets in the portfolio and note the initial gold pour at Manchot and the achievement of commercial production at both Cote and Mara Rosa. And finally, it's worth noting some positive developments at a couple of our Australian royalty properties. At Bellevue, a five-year plan was announced to significantly grow production by increasing underground oil movement and processing capacity. Bellevue has a June 30th fiscal year end, and gold production levels are expected to increase steadily from 165,000 to 180,000 ounces in fiscal year 2025 to 240,000 to 260,000 ounces in fiscal year 2029.

Speaker Change: We're pleased to see progress at some of our newer assets in the portfolio and note the initial gold pour at Manchot and the achievement of commercial production of both Cote and Mara Rosa.

Speaker Change: And finally, it's worth noting some positive developments at a couple of our Australian royalty properties.

Speaker Change: At Bellevue, a five-year plan was announced to significantly grow production by increasing underground ore movement and processing capacity.

Speaker Change: Bellevue has a June 30th fiscal year end and gold production levels are expected to increase steadily from 165,000 to 180,000 ounces in fiscal year 2025 to 240,000 to 260,000 ounces in fiscal year 2029.

Martin Raffield: At Pueblo Viejo, Barrett reported in mid July that production in the second quarter was flat compared to the prior quarter, and a shift to recovery rate optimization will occur in the second half of the year as throughput is ramped up. Silver recovery remains lower than target, and while we received deliveries of the 333,000 ounces, we saw a further deferral of 143,000 ounces in the second quarter.

Martin Raffield: And at Wunder Underground in Western Australia, we received our first royalty revenue in the quarter from high grade development or being blended into the Thunderbox mill. Northern Star was referred to an initial reserve containing approximately 455,000 ounces and expects the underground ramp up to continue, with production stoping to start later this year.

Paul Libner: And at Wunder Underground in Western Australia, we received our first royalty revenue in the quarter from high-grade development ore being blended into the Thunderbox mill. Northern Star is referring to an initial reserve containing approximately 455,000 ounces and expects the underground ramp-up to continue with production stopping to start later this year. I'll now turn the call over to Paul for a review of our financial results.

Martin Raffield: And at Wunder Underground in Western Australia, we received our first royalty revenue in the quarter from high-grade development ore being blended into the Thunderbox mill. Northern Star is referring to an initial reserve containing approximately 455,000 ounces and expects the underground ramp-up to continue with production stopping to start later this year.

Speaker Change: yeah

Speaker Change: And at Wonder Underground in Western Australia, we received our first royalty revenue in the quarter from high-grade development ore being blended into the Thunderbox mill. Northern Star is referred to an initial reserve containing approximately 455,000 ounces.

Martin Raffield: At Andacoio, tech reported an improvement during the second quarter in the drought conditions that have caused water restrictions and limited throughput rates. Tech expects the improvement to continue in the second half of the year.

Speaker Change: and expects the Underground Ramp-Up to continue with production stoping to start later this year.

Paul Libner: I'll now turn the call over to Paul for a review of our financial results. Thanks, Martin. I now turn to slide 10 and give an overview of the financial results for the quarter for this discussion. I'll be comparing the quarter and a June 30, 2024, to the prior quarter. Revenue was up 21% to $174 million for the quarter, which is the second highest quarterly revenue in the history of the company. As Martin covered in his remarks, one of the primary drivers for the near record revenue in this quarter was higher metal prices, as gold was up 18%.

Paul Libner: Thanks, Martin. I'll now turn to slide 10 and give an overview of the financial results for the quarter. For this discussion, I'll be comparing the quarter ended June 30, 2024 to the prior quarter. Revenue was up 21% to $174 million for the quarter, which is the second highest quarterly revenue in the history of the company. As Martin covered in his remarks, one of the primary drivers for the near-record revenue this quarter was higher metal prices, as gold was up 18%, silver was up 20%, and copper was up 15% over the prior year.

Speaker Change: I'll now turn the call over to Paul for a review of our financial results.

Paul Libner: As Bill mentioned, gold continues to be the dominant revenue source, making up 74% of our total revenue for the quarter, followed by silver at 13% and copper at 10%. Royal Gold continues to have the highest gold revenue percentage when compared to our major peers in the royalty and streaming sector.

Martin Raffield: Turning to slide nine at Penisquito, second quarter production was strong driven by high gold and zinc production resulting from higher grades in the chili Colorado pit and good mill throughput and recoveries. New Montexpect production levels to remain steady in the third quarter with an increasing gold production in the fourth quarter, as mining returns to the high gold rate and nascopit later in the year.

Paul: Thanks Martin. I'll now turn to slide 10 and give an overview of the financial results for the quarter.

Paul: For this discussion, I will be comparing the quarter ended June 30, 2024 to the prior quarter.

Paul Libner: Revenue was up 21% to $174 million for the quarter, which is the second highest quarterly revenue in the history of the company.

Paul: As Martin covered in his remarks, one of the primary drivers for the near record revenue this quarter was higher metal prices as gold was up 18%, silver was up 20%, and copper was up 15% over the prior year.

Martin Raffield: At ComaCow, MNG reported the first full quarter of results at the zone five mines as the ownership transition. Production was impacted by equipment availability and high turnover of skilled labour. MNG reported that it is hired and is training a significant number of replacement workers. There are also measures being taken to reduce dilution with the expectation of achieving better all grades in the coming quarters.

Paul Libner: Silver was up 20% and copper was up 15% over the prior year. As Bill mentioned, gold continues to be the dominant revenue source, making up 74% of our total revenue for the quarter, followed by silver at 13% and copper at 10%. Roll of gold continues to have the highest full revenue percentage when compared to our major peers in the royalty and string sector.

Paul Libner: As Bill mentioned, gold continues to be the dominant revenue source, making up 74% of our total revenue for the quarter, followed by silver at 13% and copper at 10%. Royal Gold continues to have the highest pooled revenue percentage when compared to our major peers in the royalty and streaming sectors.

Paul: As Bill mentioned, gold continues to be the dominant revenue source, making up 74% of our total revenue for the quarter, followed by silver at 13% and copper at 10%.

Speaker Change: Royal Gold continues to have the highest gold revenue percentage when compared to our major peers in the royalty and streaming sector.

Paul Libner: Trinx slide 11, I'll provide a bit more detail on specific financial items for the quarter. GNA expense increased to $10.5 million from $9.1 million in the prior year. The increase was due to higher non-cash compensation expense. Excluding non-cash compensation expense, our cash GNA was $7.2 million, which was unchanged from the prior year quarter. Our cash GNA costs as a percentage of total revenue have remained low, despite inflationary pressures that have impacted the metals and mining sector in recent quarters. Our GNA expense decreased slightly to $36 million from $38 million in the prior year. On a unit basis, this expense was $480 per GEO for the quarter compared to $527 per GEO in the prior year.

Paul Libner: Turn to slide 11, and I'll provide a bit more detail on specific financial line items for the quarter. G&A expense increased to $10.5 million from $9.1 million in the prior year. The increase was due to higher non-cash stock compensation expense.

Martin Raffield: In addition, MNG reported their intention to complete an expansion of ComaCow by 2028 with the target of producing 130,000 tons of copper per year. Recall that raw gold silvery stream interest covers expanded production from the zone five mine and the mango northeast deposit.

Speaker Change: Turn to slide 11, I'll provide a bit more detail on specific financial line items for the quarter.

Speaker Change: G&A expense increased to $10.5 million from $9.1 million in the prior year. The increase was due to higher non-cash stock compensation expense. Excluding non-cash stock compensation expense, our cash G&A was $7.2 million, which was unchanged from the prior year quarter.

Paul Libner: Excluding non-cash stock compensation expense, our cash G&A was $7.2 million, which was unchanged from the prior year quarter. Our cash Q&A costs as a percentage of total revenue have remained low despite inflationary pressures that have impacted the metals and mining sector in recent quarters. Our DDNA expense decreased slightly to $36 million from $38 million in the prior year. On a unit basis, this expense was $480 per GEO for the quarter compared to $527 per GEO in previous years.

Paul Libner: Excluding non-cash stock compensation expense, our cash G&A was $7.2 million, which was unchanged from the prior year quarter. Our cash G&A costs as a percentage of total revenue have remained low despite inflationary pressures that have impacted the metals and mining sector in recent quarters. Our DDNA expense decreased slightly to $36 million from $38 million in the prior year. On a unit basis, this expense was $480 per GEO for the quarter compared to $527 per GEO in previous years.

Martin Raffield: We're pleased to see progress at some of our newer assets in the portfolio and note the initial gold porate man show and the achievement of commercial production at both Cote and Mara Rosa.

Speaker Change: Our cash G&A costs, as a percentage of total revenue, have remained low despite inflationary pressures that have impacted the metals and mining sector in recent quarters.

Martin Raffield: And finally, it's worth noting some positive developments at a couple of our Australian royalty properties. At Bellevue, a five-year plan was announced to significantly grow production by increasing underground all movement and processing capacity. Velview has a June 30th fiscal year end and goal production levels are expected to increase steadily from 165,000 to 180,000 ounces in fiscal year 2025 to 240,000 to 260,000 ounces in fiscal year 2029.

Speaker Change: Our DDNA expense decreased slightly to $36 million from $38 million in the prior year. On a unit basis, this expense was $480 per GEO for the quarter, compared to $527 per GEO in the prior year.

Paul Libner: The lower overall depletion expense and DDA per GEO this quarter was due to three primary factors. First, a decrease in our promo count depletion rate from $17.41 to $15.21 per ounce. Second, lower gold and silver sell to Pueblo Viejo. And finally, higher contributions from our royalty segment, specifically Pinesquito, which royalty has a lower overall carrying value and depletion rates.

Paul Libner: The lower overall depletion expense and DDNA per GEO this quarter were due to three primary factors. First, a decrease in our pomo cow depletion rate from $17.41 to $15.21 per ounce. Second, lower gold and silver sales to Pueblo Viejo.

Speaker Change: The lower overall depletion expense and DDNA per GEO this quarter was due to three primary factors.

Speaker Change: First, a decrease in our comal cow depletion rate from $17.41 to $15.21 per ounce.

Paul Libner: And finally, higher contributions from our royalties segment, specifically Penosquito, which royalties has a lower overall carrying value and depletion rate. We continue to forecast that our total DDNA expense will be within our previously guided range of $141 million to $157 million. Interest expense decreased significantly to $2.5 million from $8.4 million in the prior year. The decrease was primarily due to lower average amounts outstanding under the revolving credit facility when compared to the prior year. The all-in interest rate for outstanding borrowings under our credit facility was 6.5% at the end of June.

Paul Libner: And finally, higher contributions from our royalty segment, specifically Penasquito, which royalty has a lower overall carrying value and depletion rate. We continue to forecast that our total DDNA expense will be within our previously guided range of $141 million to $157 million. Interest expense decreased significantly to $2.5 million from $8.4 million in the prior year. The decrease was primarily due to lower average amounts outstanding under the revolving credit facility when compared to the prior year. The all-in interest rate for outstanding borrowings under our credit facility was 6.5% at the end of June.

Speaker Change: Second, lower gold and silver sell to Pueblo Viejo. And finally, higher contributions from our royalty segment, specifically Penosquito, which royalty has a lower overall carrying value and depletion rates.

Martin Raffield: And at Wunder Underground in Western Australia, we received our first royalty revenue in the quarter from high grade development or being blended into the Thunder Box Mill. Northern Star was referred to an initial reserve containing approximately 455,000 ounces and expects the underground ramp up to continue with production stoping to start later this year.

Paul Libner: We continue to forecast that our total DDA expense will be within our previously guided range of $141 million to $157 million. Interest expense decreased significantly to $2.5 million from $8.4 million in the prior year. The decrease was primarily due to lower average amounts outstanding under the revolving credit facility when compared to the prior year. The only interest rate for outstanding borrowings under our credit facility was 6.5% at the end of June. Tax expense for the quarter was $19 million, resulting in an effective tax rate of 18.9%. This compares to a tax expense of $2 million, and an effective tax rate of 3.1% in the prior year.

Speaker Change: We continue to forecast that our total DDNA expense will be within our previously guided range of $141 million to $157 million.

Speaker Change: Interest expense decreased significantly to $2.5 million from $8.4 million in the prior year. The decrease was primarily due to lower average amounts outstanding under the revolving credit facility when compared to the prior year.

Paul Libner: I'll now turn the call over to Paul for a review of our financial results. Thanks, Martin. I now turn to slide 10 and give an overview of the financial results for the quarter.

Speaker Change: The all-in interest rate for outstanding borrowings under our credit facility was 6.5% at the end of June .

Paul Libner: For this discussion, I'll be comparing the quarter and a June 30, 2024 to the prior quarter. Revenue was up 21% to $174 million for the quarter, which is the second highest quarterly revenue in history of the company. As Martin covered in his remarks, one of the primary drivers for the near record revenues quarter was higher metal prices as gold was up 18%. Silver was up 20% and copper was up 15% over the prior year.

Paul Libner: Tax expense for the quarter was $19 million, resulting in an effective tax rate of 18.9%. This compares to tax expense of $2 million and an effective tax rate of 3.1% in the prior year. The lower tax expense in the prior year period was due to a discrete tax benefit of $8.5 million attributable to the release of a valuation allowance on certain foreign deferred tax assets. The 19% effective tax rate for the quarter was in line with our expectations for the full year.

Speaker Change: Tax expense for the quarter was $19 million, resulting in an effective tax rate of 18.9%. This compares to a tax expense of $2 million and an effective tax rate of 3.1% in the prior year.

Paul Libner: The lower tax expense in the prior year period was due to a discrete tax benefit of eight and a half million dollars, a trivial to the release of a valuation allowance on certain foreign deferred tax assets. The 19% effective tax rate for the quarter was in line with our expectations for the full year. That income for the quarter was up over the prior year to $81 million, or $1.23 per share. The increase in net income was primarily a tribute to higher revenue and lower interest expense. After adjusting for a small discrete tax item and other minor adjustments, that income for the quarter was a record $82.6 million, or $1.25 per share.

Speaker Change: The lower tax expense in the prior year period was due to a discrete tax benefit of $8.5 million attributable to the release of a valuation allowance on certain foreign deferred tax assets.

Paul Libner: As Bill mentioned, gold continues to be the dominant revenue source, making up 74% of our total revenue for the quarter, followed by silver at 13% and copper at 10%. Roll of gold continues to have the highest full revenue percentage when compared to our major peers in the royalty and string sector.

Speaker Change: The 19% effective tax rate for the quarter was in line with our expectations for the full year.

Paul Libner: That income for the quarter was up over the prior year to $81 million, or $1.23 per share. The increase in net income was primarily attributable to higher revenue and lower interest expense. After adjusting for a small discrete tax item and other minor adjustments.

Paul Libner: Income for the quarter was up over the prior year to $81 million, or $1.23 per share. The increase in net income was primarily attributable to higher revenue and lower interest expense. After adjusting for a small discrete tax item and other minor adjustments... Our income for the quarter was a record $82.6 million, or $1.25 per share. Our operating cash flow this quarter was nearly $114 million, up 5% over the prior year. The increase in operating cash flow was primarily due to higher cash receipts from stream segments when compared to the prior year period.

Speaker Change: That income for the quarter was up over the prior year to $81 million, or $1.23 per share.

Speaker Change: The increase in net income was primarily attributable to higher revenue and lower interest expense.

Paul Libner: Trends slide 11, I'll provide a bit more detail on specific financial items for the quarter. GNA expense increased to $10.5 million from $9.1 million in the prior year. The increase was due to higher non-cash.compensation expense. Excluding non-cash.compensation expense, our cash GNA was $7.2 million, which was unchanged from the prior year quarter. Our cash GNA costs as a percentage of total revenue have remained low despite inflationary pressures that have impacted the metals and mining sector in recent quarters. Our GNA expense decreased slightly to $36 million from $38 million in the prior year. On a unit basis, this expense was $480 per GEO for the quarter compared to $527 per GEO in the prior year.

Paul Libner: That income for the quarter was a record $82.6 million, or $1.25 per share. Our operating cash flow this quarter was nearly $114 million, up 5% over the prior year. The increase in operating cash flow was primarily due to higher cash receipts from stream segments when compared to the prior year period.

Speaker Change: After adjusting for a small discrete tax item and other minor adjustments, that income for the quarter was a record $82.6 million, or $1.25 per share.

Paul Libner: Our operating cash flow as quarter was nearly $114 million, a 5% over the prior year. The increase in operating cash flow was primarily due to higher cash receipts from stream segments when compared to the prior year period.

Speaker Change: Our operating cash flow this quarter was nearly $114 million, up 5% over the prior year.

Speaker Change: The increase in operating cash flow was primarily due to higher cash receipts from stream segments when compared to the prior year period.

Paul Libner: I will now turn aside 12 and provide a summary of our financial position as of June 30. During the quarter, we returned the balance sheet to a net cash position with a repayment of $100 million on our outstanding credit facility balance. As of June 30, we had 50 million of debt outstanding and total available liquidity of approximately $1 billion made up of the undrawn revolver balance and our working capital. I will also note that our working capital at quarter end was abnormally low. The lower working capital is quarter resulted from the acquisition of the back river royalties from our available cash and also from the reclassification of the remaining $50 million revolver balance from a long term liability to a current liability.

Paul Libner: I will now turn to slide 12 and provide a summary of our financial position as of June 30th. During the quarter, we returned the balance sheet to a net cash position with a repayment of $100 million on our outstanding credit facility balance. As of June 30th, we had $50 million of debt outstanding and total available liquidity of approximately $1 billion made up of the undrawn revolver balance and our working capital. I will also note that our working capital at quarter end was abnormally low.

Speaker Change: I will now turn to slide 12 and provide a summary of our financial position as of June 30th.

Speaker Change: During the quarter, we returned the balance sheet to a net cash position, with a repayment of $100 million on our outstanding credit facility balance.

Speaker Change: As of June 30th, we had $50 million of debt outstanding and total available liquidity of approximately $1 billion, made up of the undrawn revolver balance and our working capital.

Paul Libner: The lower working capitalist quarter resulted from the acquisition of the back-river royalties from our available cash and also from the reclassification of the remaining $50 million revolver balance from a long-term liability to a current liability. We reclassify this amount as a current liability given the $25 million repayment we made in early July and the final $25 million payment we intend to make early next week. With the repayment expected early next week, we will have zero debt outstanding. That concludes my comments on our financial performance for the quarter, and I will now turn the call back to Bill for closing comments.

Paul Libner: The lower working capital this quarter resulted from the acquisition of the back-river royalties from our available cash and also from the reclassification of the remaining $50 million revolver balance from a long-term liability to a current liability. We reclassified this amount as a current liability given the $25 million repayment we made in early July and the final $25 million payment we intend to make early next week. With the repayment expected early next week, we will have zero debt outstanding. That concludes my comments on our financial performance for the quarter, and I will now turn the call back to Bill for closing comments.

Speaker Change: I will also note that our working capital at quarter end was abnormally low. The lower working capital this quarter resulted from the acquisition of the back-river royalties from our available cash and also from the reclassification of the remaining $50 million revolver balance from a long-term liability to a current liability.

Paul Libner: We reclassified this amount as a current liability given the $25 million repayment we made in early July and a final $25 million payment we intend to make early next week. With the repayment expected early next week, we will have zero debt outstanding.

Speaker Change: We reclassify this amount as a current liability given the $25 million repayment we made in early July and the final $25 million payment we intend to make early next week.

Speaker Change: With the repayment expected early next week, we will have zero debt outstanding.

Bill Heisenbuttel: That concludes my comments on our financial performance for the quarter, and I will now turn the call back to Bill proposing comments.

Speaker Change: That concludes my comments on our financial performance for the quarter and I will now turn the call back to Bill for closing comments.

Bill Heisenbuttel: Thanks, Paul. Our second quarter was strong, and we were diligent in sticking to our long-standing strategy of allocating capital to our dividend, the balance sheet, and new business. I'm particularly pleased with our progress on debt reduction. With the coming $25 million repayment that Paul noted, we will have repaid all the borrowings we incurred to fund some of our recent portfolio additions.

Bill Heissenbuttel: Thanks, Paul. Our second quarter was strong, and we were diligent in sticking to our long-standing strategy of allocating capital to our dividend, the balance sheet, and new business. I'm particularly pleased with our progress on debt reduction. With the coming $25 million repayment that Paul noted, we will have repaid all the borrowings we incurred to fund some of our recent portfolio additions. Looking back over the past two years, we have spent over $900 million to acquire royalties on Cortez, Great Bear, and Back River.

Bill Heissenbuttel: Thanks, Paul. Our second quarter was strong, and we were diligent in sticking to our long-standing strategy of allocating capital to our dividend, the balance sheet, and new business. I'm particularly pleased with our progress on debt reduction. With the coming $25 million repayment that Paul noted, we will have repaid all the borrowings we incurred to fund some of our recent portfolio additions. Looking back two years, we have spent over $900 million to acquire royalties on Cortez, Great Bear, and Back River, and we did not dilute our shareholders by issuing equity to finance these transactions and a fully replenished liquidity available for future acquisitions.

Bill Heissenbuttel: Thanks, Paul. Our second quarter was strong, and we were diligent in sticking to our longstanding strategy of allocating capital to our dividend, the balance sheet, and new business.

Bill Heissenbuttel: I'm particularly pleased with our progress on debt reduction.

Paul Libner: Tax expense for the quarter was $19 million, resulting in an effective tax rate of 18.9%. This compares to a tax expense of $2 million, and an effective tax rate of 3.1% in the prior year. The lower tax expense in the prior year period was due to a discreet tax benefit of $8.5 million, the trivial to the release of a valuation allowance on certain foreign deferred tax assets. The 19% effective tax rate for the quarter was in line with our expectations for the full year. That income for the quarter was up over the prior year to $81 million, or $1.23 per share. The increase in net income was primarily attributable to higher revenue and lower interest expense.

Bill Heissenbuttel: With the coming $25 million repayment that Paul noted, we will have repaid all the borrowings we incurred to fund some of our recent portfolio additions.

Bill Heisenbuttel: Looking back two years, we have spent over $900 million to require royalties on Cortez, Great Bear and Back River, and we did not pollute our shareholders by issuing equity to finance these transactions, and a fully replenished liquidity available for future acquisitions. These are high-quality gold royalties and tier one jurisdictions, and I expect them to offer significant upside over the coming decades. Our financing choices being that our shareholders will enjoy the full benefit of that upside. As one considers the current state of political instability and market volatility, we are very well positioned for this uncertainty. We are tracking well toward our full-year guidance for overall sales, DDA, and effective tax rate.

Speaker Change: Looking back two years, we have spent over $900 million to acquire royalties on Cortez, Great Bear, and Back River, and we did not dilute our shareholders by issuing equity to finance these transactions and a fully replenished liquidity available for future acquisitions.

Bill Heissenbuttel: And we did not dilute our shareholders by issuing equity to finance these transactions, and we have fully replenished liquidity available for future acquisitions. These are high-quality gold royalties in Tier 1 jurisdictions, and I expect them to offer significant upside over the coming decade. Our financing choices mean that our shareholders will enjoy the full benefit of that upside. As one considers the current state of political instability and market volatility, we are very well positioned for this uncertainty.

Bill Heissenbuttel: These are high-quality gold royalties in tier one jurisdictions, and I expect them to offer significant upside over the coming decade, with our financing choices being that our shareholders will enjoy the full benefit of that upside. As one considers the current state of political instability and market volatility, we are very well positioned for this uncertainty. We are tracking well toward our full-year guidance for overall sales, dDNA, and effective tax rates. Our balance sheet is solid, and we have excellent liquidity available to take advantage of business development opportunities that may present themselves. Operator, that concludes our prepared remarks. I'll now open the line for questions.

Speaker Change: These are high-quality gold royalties in Tier 1 jurisdictions, and I expect them to offer significant upside over the coming decades. Our financing choices mean that our shareholders will enjoy the full benefit of that upside.

Paul Libner: After adjusting for a small discreet tax item and other minor adjustments, that income for the quarter was a record $82.6 million, or $1.25 per share. Our operating cash flow as quarter was nearly $114 million, a 5% over the prior year. The increase in operating cash flow was primarily due to higher cash receipts from stream segments when compared to the prior year period.

Speaker Change: As one considers the current state of political instability and market volatility, we are very well positioned for this uncertainty.

Bill Heissenbuttel: We are tracking well toward our full-year guidance for overall sales, dDNA, and effective tax rates. Our balance sheet is solid, and we have excellent liquidity available to take advantage of business development opportunities that may present themselves. Operator, that concludes our prepared remarks. I'll now open the line for questions.

Speaker Change: We are tracking well toward our full year guidance for overall sales, DD&A, and effective tax rate. Our balance sheet is solid and we have excellent liquidity available to take advantage of business development opportunities that may present themselves.

Bill Heisenbuttel: Our balance sheet is solid, and we have excellent liquidity available to take advantage of business development opportunities that may present themselves.

Operator: Operator, that concludes our prepared remarks. I'll now open the line for questions.

Speaker Change: Operator, that concludes our prepared remarks. I'll now open the line for questions.

Paul Libner: I will now turn aside 12 and provide a summary of our financial position as of June 30th. During the quarter, we returned the balance sheet to a net cash position, with a repayment of $100 million on our outstanding credit facility balance. As of June 30th, we had 50 million of debt outstanding, and total available liquidity of approximately $1 billion, made up of the undrawn revolver balance and our working capital.

Operator: Thank you.

Seb: Thank you. Our first question on the call comes from Tanya Jakusconek from Scotiabank. Please go ahead.

Operator: Thank you. Our first question on the call comes from Tanya Jakusconek from Scotiabank. Please go ahead.

Tanya Jakusconek: Our first question on the call comes from Tanya, Yaks Konex from Scotia Bank. Please go ahead. Good morning, everyone. Thank you for taking my questions. Congrats on your deal. Maybe I will just start on Back River. I'm just interested in the royalties you purchased. Were they from existing individuals? I wasn't aware that other companies had little royalties. So maybe just starting off with who was the seller of these royalties? Individuals are so easy.

Speaker Change: Thank you. Our first question on the call comes from Tanya Jakusconek from Scotiabank. Please go ahead.

Tanya Jakusconek: Okay, great. Good morning, everyone. Thank you for taking my questions. Congratulations on your deal. Maybe I will just start on Back River.

Tanya Jakusconek: Okay, great. Good morning, everyone. Thank you for taking my questions. Congrats on your deal. Maybe I will just start on Back River. I'm just interested on the royalties you purchased.

Tanya Jakusconek: I'm just interested in the royalties you purchased. Were they from existing, like, individuals? Like, I wasn't aware that other companies had royalties. So maybe just starting off with who is the seller of these royalties? Individuals or companies or...

Tanya Jakusconek: I'm just interested in the royalties you purchased. Were they from existing, like, individuals? Like, I wasn't aware that other companies had any royalties at all. So maybe just starting off with who is the seller of these royalties? Individuals or companies or...

Paul Libner: I will also note that our working capital at quarter end was abnormally low. The lower working capital as quarter resulted from the acquisition of the back river royalties from our available cash and also from the reclassification of the remaining $50 million revolver balance from a long-term liability to a current liability. We reclassified this amount as a current liability given the $25 million repayment we made in early July and a final $25 million payment we intend to make early next week. With the repayment expected early next week, we will have zero debt outstanding.

Speaker Change: Were they from existing individuals? I wasn't aware that other companies had...

Speaker Change: A little royalties, so maybe just starting off with who is the seller of these royalties.

Speaker Change: Individuals or companies or...

Dan Breeze: Yeah, thanks, Tanya.

Bill Heissenbuttel: Yeah, thanks Tanya. Dan, do you want to take that one on? Sure, Bill. Hi Tanya. Yeah, thanks for the question. The Hill Royalty came from a private trust. And the cam royalty was from a subsidiary of a US company, third-party royalties. And it was a competitive situation

Bill Heissenbuttel: Yeah, thanks, Tanya. Dan, do you want to take that one on? Sure, Bill. Hi Tanya. Yeah, thanks for the question. The Hill Royalty came from a private trust, and the CAM royalty was from a subsidiary of a U.S. company, third-party royalties, and it was a competitive process as well.

Dan Breeze: Dan, do you want to take that one on? Sure, Bill.

Speaker Change: Yeah. Thanks, Tanya. Dan, do you want to take that one on?

Tanya Jakusconek: Okay. Does that help? Does it help with that? Okay. All right, are there more of these royalties then available on this property?

Dan Breeze: Hi, Tanya. Thanks for the question. The Hill royalty, Tanya, came from a private trust. And the Cam royalty was from a subsidiary of a U.S. company, third party royalties. And it was a competitive process as well. Okay. Is that helped with that? Are there more of these royalties than available on this property? Or are these that there? So the property itself has a few royalties, Tanya. This is the bulk of the royalties. There are a couple of smaller royalties. I don't think they're available to purchase. But this is the bulk that we're talking about here in terms of our ownership health.

Dan: Sure, Bill. Hi, Tanya. Yeah, thanks for the question. The Hill Royalty, Tanya, came from a private trust?

Bill Heissenbuttel: That concludes my comments on our financial performance for the quarter, and I will now turn the call back to Bill for closing comments. Thanks, Fall. Our second quarter was strong, and we were diligent in sticking to our long-standing strategy of allocating capital to our dividend, the balance sheet, and new business. I'm particularly pleased with our progress on debt reduction. With the coming $25 million repayment that Paul noted, we will have repaid all the borrowings we incurred to fund some of our recent portfolio additions.

Speaker Change: And the CAM royalty was from a subsidiary of a U.S. company, third-party royalties, and it was a competitive process as well.

Dan Breeze: Okay, does that help? Does it help with that?

Speaker Change: Okay. Does that help? Does it help with that? Okay.

Tanya Jakusconek: All right, are there more of these royalties then available on this property?

Speaker Change: All right, are there more of these royalties then available on this property?

Dan Breeze: So the property itself has a few royalties, Tanya. This is the bulk of the royalties. There are a couple of small royalties, but I don't think they're available to purchase. But this is the bulk that we're talking about here in terms of our ownership, and I know you are.

Speaker Change: Or are these X's?

Speaker Change: So the property itself has a few royalties, Tanya. This is the bulk of the royalties. There are a couple of smaller royalties. I don't think they're available to purchase. But this is the bulk that we're talking about here in terms of our ownership now.

Bill Heissenbuttel: Looking back two years, we have spent over $900 million to require royalties on Cortez, Great Bear, and Backriver, and we did not pollute our shareholders by issuing equity to finance these transactions and a fully replenished liquidity available for future acquisitions. These are high-quality gold royalties and tier one jurisdictions, and I expect them to offer significant upside over the coming decades. Our financing choices being that our shareholders will enjoy the full benefit of that upside.

Dan Breeze: I know yours, and I know there's other companies as well that have exposure. I'm just always intrigued on how many pop up. And I wasn't sure whether this is the end of it. You said there's a couple of smaller royalties that are not available. Are those individuals as well? Again, without having all the detail in front of me here, Tanya, I believe that some or at least one is held by an individual. And another is held by a company off the top of my head here. But I do agree with you. It's interesting that we see these things sometimes pop up, and sometimes they surprise us as well.

Tanya Jakusconek: And I know yours, and I know there's other companies as well that have exposure. I'm just always intrigued by how many pop up, and I wasn't sure whether this was the end of it. You said there were a couple of smaller royalties that are not available. Are those individuals as well?

Speaker Change: I know yours, and I know there's other companies as well that have exposure. I'm just always intrigued on how many pop up, and I wasn't sure whether this is the end of it. You said there's a couple of smaller royalties that are not available. Are those individuals as well?

Bill Heissenbuttel: As one considers the current state of political instability and market volatility, we are very well positioned for this uncertainty. We are tracking well toward our full-year guidance for overall sales, DDNA, and effective tax rate. Our balance sheet is solid and we have excellent liquidity available to take advantage of business development opportunities that may present themselves.

Dan Breeze: Again, without having all the details in front of me here, Tanya, I believe that some, or at least one, is held by an individual, and another is held by a company, off the top of my head here. But I do agree with you.

Speaker Change: Again, without having all the detail in front of me here, Tanya, I believe that some or at least one is held by an individual and another is held by a company off the top of my head here. But I do agree with you. It's interesting that...

Seb: Operator, that concludes our prepared remarks. I'll now open the line for questions. Thank you.

Tanya: We see these things sometimes pop up, and sometimes they surprise us as well. I think what we're seeing right now in the market, Tanya, is...

Dan Breeze: I think what we're seeing right now in the market, Tanya, is a pretty robust market for these third-party royalties. There's been a number of transactions announced, as you've seen already this year. And I think it's a combination of stronger commodity prices that's motivating sellers. And then a pretty robust buyer market. So all of us in the sector have lots of capital to deploy. It's pretty competitive. So it's a good market to sell into. So, in general, I wouldn't be surprised to see more. Okay.

Dan Breeze: It's interesting that we see these things sometimes pop up, and sometimes they surprise us as well. I think what we're seeing right now in the market, Tanya, is a pretty robust market for these third-party royalties. There's been a number of transactions announced, as you've seen already this year, and I think it's a combination of higher commodity prices that's motivating sellers, and then a pretty robust buyer market. So all of us in the sector have lots of capital to deploy. It's pretty competitive. So it's a good market to sell.

Dan Breeze: It's interesting that we see these things sometimes pop up, and sometimes they surprise us as well. I think what we're seeing right now in the market, Tanya, is... a pretty robust market for these third-party royalties. There's been a number of transactions announced, as you've seen already this year, and I think it's a combination of higher commodity prices that's motivating sellers and then a pretty robust buyer market. So all of us in the sector have lots of capital to deploy. It's pretty competitive. So it's a good market to sell.

Tanya Yaksko-Nex: Our first question on the call comes from Tanya Yaksko-Nex from Scotia Bank. Please go ahead.

Tanya: a pretty robust market for these third-party royalties. There's been a number of transactions announced, as you've seen already this year.

Bill Heissenbuttel: Good morning everyone. Thank you for taking my questions. Congrats on your deal. Maybe I will just start on back river. I'm just interested on the royalties you purchased. Were they from existing individuals, like I wasn't aware that other companies had little royalties. So maybe just starting off with who is the seller of these royalties? Individuals are starting to be easier. Yeah, thanks Tanya.

Tanya: And I think it's a combination of stronger commodity prices that's motivating sellers and then a pretty robust buyer market. So all of us in the sector have lots of capital to deploy. It's pretty competitive, so it's a good market to sell into.

Dan Breeze: So, in general, I wouldn't be surprised to see more. Okay.

Tanya Jakusconek: So, in general, I wouldn't be surprised to see more. Okay.

Speaker Change: So, in general, I wouldn't be surprised to see more.

Tanya Jakusconek: And so historically, we talked about this 100 to 300 million range. So the first thing I need to ask is, is that still the range of, you know, obviously you did something in 50, but would you say that these royalties are obviously smaller? And you're saying that you're seeing more of them. So maybe we can see this range go down to 50 to 300 million versus 100 to 300, which may be more the stream. I'm just trying to differentiate now what you're seeing more. One of your competitors mentioned a much higher range on the upward side. So I'm wondering if you're seeing a wider range.

Bill Heisenbuttel: And historically, we had talked about this 100 to 300 million range. So the first thing I need to ask is, is that still the range of, you know, obviously you did something in 50, but would you say that these royalties obviously are smaller, and you're saying that you're seeing more of them. So maybe we can see this range go down to 50 to 300 million versus 100 to 300, which maybe be more the stream. I'm just trying to differentiate now what you're seeing more. One of your competitors mentioned a much wider range on the upward side.

Speaker Change: Okay, and so historically we have talked about this.

Speaker Change: 100 to 300 million range. So the first thing I need to ask is, is that still the range of, you know, obviously you did something in 50, but

Dan Breeze: Dan, do you want to take that one on? Sure Bill, hi, Tanya. Thanks for the question. The Hill royalty Tanya came from a private trust and the Cam royalty was from a subsidiary of a U.S, company, third party royalties, and it was a competitive process as well. Okay. Does that help with that? Are there more of these royalties than available on this property? Or are these that? So the property itself has a few royalties, Tanya.

Speaker Change: Would you say that these royalties obviously are smaller and you're saying that you're seeing more of them, so maybe we can see this range go down to $50 to $300 million?

Speaker Change: versus 100 to 300, which may be more the stream. I'm just trying to differentiate now what you're seeing more. One of your competitors mentioned a much higher range on the upward side, so I'm wondering if you're seeing a larger range but on the downward side.

Bill Heisenbuttel: So I'm wondering if you're seeing a larger range, but on the down. I think the way that we see the market right now is, and I think I mentioned this perhaps in the last caller too, is that $100 million level. That's been pretty busy for us in general, and I think the Back River royalties are an example of that category of opportunities. Good size, good quality transactions; those are the things we're looking at in portfolio. I think when we're talking more in the 100 to $300 million range, which I think is still fair to say, I know we always give you kind of the same answer, but that's what we continue to see.

Dan Breeze: Ben, why don't you keep going? Then I might ask you some questions. Yeah, go ahead. Sure.

Dan Breeze: Then why don't you keep going? Then I might ask you some questions. Yeah, go ahead. Sure.

Tanya Jakusconek: So yeah, Tony, I think the way we see the market right now is, and I think I mentioned this, perhaps in the last call or two, the sub $100 million level. That's where it's been pretty busy for us in general. And I think the Back River Royalties are an example of that category of opportunities, good size, good quality transactions; those are the things we're looking at in the portfolio.

Dan Breeze: So yeah, Tony, I think the way we see the market right now is, and I think I mentioned this, perhaps in the last call or two, the sub $100 million level. That's where it's been pretty busy for us in general. And I think the Back River royalties are an example of that category of opportunities. Good size, good quality transactions; those are the things we're looking at in the portfolio.

Speaker Change: and want to keepase govern extre

Speaker Change: Yeah, go ahead. Sure, sure. So I think, Tanya, I think the way that we see the market right now is

Dan Breeze: This is the bulk of the royalties. There are a couple of smaller royalties. I don't think they're available to purchase, but this is the bulk that we're talking about here in terms of our ownership now. I know yours and I know there's other companies as well that have exposure. I'm just always intrigued on how many pop up and I wasn't sure whether this is the end of it. You said there's a couple of smaller royalties that are not available.

Speaker Change: And I think I mentioned this perhaps in the last call or two is that sub 100 million dollar leveled

Speaker Change: that's we've been pretty busy for us in general and i think the back of royales are an example of of that categoryum of opportunities

Speaker Change: 's good size good quality transactions so those are the things we're at the portfolio

Dan Breeze: I think when we're talking more in the $100 to $300 million range, which I think is still fair to say, I know we always give you kind of the same answer, but that's what we continue to see. We are aware of a couple of larger opportunities outside of that range. But I think in general, it's fair to say the $100 to $300 million range is still very consistent in the broad sort of range that we see across both royalties and some royalties, but mostly on the streaming side.

Tanya Jakusconek: I think when we're talking more in the $100 to $300 million range, which I think is still fair to say, I know we always give you kind of the same answer, but that's what we continue to see. We are aware of a couple of larger opportunities outside of that range. But I think in general, it's fair to say the $100 to $300 million range is still very consistent in the broad sort of range that we see across both royalties and some royalties, but mostly on the streaming side.

Speaker Change: i think when we're talking more in one hundred to three million dollarrange

Dan Breeze: Are those individuals as well? Again, without having all the detail in front of me here, Tanya, I believe that some or at least one is held by an individual and another is held by a company off the top of my head here. But I do agree with you. It's interesting that we see these things sometimes pop up and sometimes they surprise us as well. I think what we're seeing right now in the market, Tanya, is a pretty robust market for these third-party royalties.

Speaker Change: which I think is still fair to say. I know we always give you kind of the same answer, but that's what we continue to see. We are aware of a couple of larger opportunities outside of that range.

Bill Heisenbuttel: We are aware of a couple of larger opportunities outside of that range, but I think in general it's fair to say the $100 to $300 million range is still very consistent in the broad range that we see across both royalties, some royalties, but mostly in the streaming side.

Speaker Change: But I think in general, it's fair to say the $100-$300 million range is still very consistent in the broad sort of range that we see across both royalties, some royalties, but mostly on the streaming side.

Bill Heisenbuttel: Okay, and then maybe Bill, can you talk to me a little bit about how we hear about all of these deals, and everyone is super busy and has a lot of opportunities out there, but maybe you can walk us through from the time you are approached on an opportunity or you're proactive and start looking at opportunities. Can you just walk us through what it takes to get the deal announced and sort of the timeline so that all of us are aware that we hear all of these deals that they're not going to be completed tomorrow?

Tanya Jakusconek: Okay, and then maybe Bill, can you talk to me a little bit about, you know, how this, you know, we hear about all of these deals and everyone is super busy, and there are a lot of opportunities out there, but maybe you can walk us through from the time you are approached on an opportunity or you're proactive and start looking at opportunities. Can you just walk us through, like, what it takes to get the deal announced and sort of the timeline so that all of us are aware that we hear all of these deals, but they're not gonna be completed tomorrow.

Bill Heissenbuttel: Okay, and then maybe Bill, can you talk to me a little bit about, you know, how this, you know, we hear about all of these deals and everyone has been super busy, and there are a lot of opportunities out there, but maybe you can walk us through from the time you are approached on an opportunity or you're proactive and start looking at opportunities. Can you just walk us through, like, what it takes to get the deal announced and sort of the timeline so that all of us are aware that we hear all of these deals, but they're not gonna be completed tomorrow.

Speaker Change: Okay and then maybe Bill can you talk to me a little bit about you know how this you know we hear about all of these deals and everyone has been super busy and

Dan Breeze: There's been a number of transactions announced as you've seen already this year. I think it's a combination of stronger commodity prices that's motivating sellers and then a pretty robust buyer market. So all of us in the sector have lots of capital deploy. It's pretty competitive. So it's a good market to sell into. I will talk about that. So in general, I wouldn't be surprised to see more. Okay. Historically, we had talked about this 100 to 300 million range.

Bill: There's a lot of opportunities out there, but maybe you can walk us through, from the time you, you know, you are approached on an opportunity, or you're proactive.

Bill: start looking at opportunities. Can you just walk us through what it takes to get the deal announced and sort of the timeline so that all of us are aware that we hear all of these deals but like they're not gonna be completed tomorrow?

Bill Heisenbuttel: Yeah, I'm happy to. And just to be clear, when we talk about our business level of activity, we're not trying to sort of handicap the likelihood of closing a transaction. We're not looking to signal anything to anybody about a timing something coming up in six weeks or six months. We're just trying to tell you that we're busy; we're looking at things that could be, that we're looking at a number of earlier stage opportunities. And there are many exit grabs in this process going from first looking at a transaction to the point of signing one in the best of all worlds.

Bill Heissenbuttel: Yeah, I'm happy to. And, just to be clear, when we talk about our business level of activity, we're not trying to sort of handicap the likelihood of closing a transaction. We're not looking to signal anything to anybody about timing for something coming up in six weeks or six months. We're just trying to tell you that we're busy, we're looking at things, and it could be that we're looking at a number of earlier stages and opportunities.

Bill Heissenbuttel: Yeah, I'm happy to. And, just to be clear, when we talk about our business level of activity, we're not trying to sort of handicap the likelihood of closing a transaction. We're not looking to signal anything to anybody about a timing for something coming up in six weeks or six months. We're just trying to tell you that we're busy, we're looking at things, and it could be that we're looking at a number of earlier stages and opportunities.

Dan Breeze: So the first thing I need to ask is that still the range of obviously you did something in 50, but would you say that these royalties are obviously smaller and you're saying that you're seeing more of them. So maybe we can see this range go down to 50 to 300 million versus 100 to 300 which maybe be more the stream. I'm just trying to differentiate now what you're seeing more. One of your competitors mentioned a much wider range on the upward side.

Speaker Change: Yeah, I'm happy to and and just to be clear when we talk about our business level of activity We're not trying to sort of handicap the likelihood of closing a transaction. We're

Bill: We're not looking to signal anything to anybody about timing something coming up in six weeks or six months. We're just trying to tell you that we're busy, we're looking at things. It could be that we're looking at a number of earlier states.

Bill Heissenbuttel: And, you know, there are many exit ramps in this process going from first looking at a transaction to the point of signing one. In the best of all worlds, this thing takes six to eight weeks to close. Everything is lined up, all the information is available. That would be, you know, that would be ideal for us.

Bill: opportunities and you know there are many exit ramps.

Bill: In this process, going from first looking at a transaction

Speaker Change: to the point of signing one.

Bill Heisenbuttel: This thing takes six, eight weeks to close. Everything is lined up, all the information is available. That would be ideal for us. It never happens that way. And I will share with you that over the last 18 months, we were the preferred bidder on three different transactions that did not close, one of which the market knows about: ACG. I'm not going to go into the other two that are not public, but just to give you a flavor, what can derail these things, even when you want to contest amongst our peers. And yet they still don't close, and it could fail you to achieve the CVs; that was ACG.

Speaker Change: in the best of all worlds.

Speaker Change: This thing takes six to eight weeks to close. Everything is lined up, all the information's available. That would be, you know, that would be ideal for us. It never happens that way. And I will share with you that over the last 18 months,

Dan Breeze: So I'm wondering if you're seeing a larger range but on the down. I think the way that we see the market right now is, and I think I mentioned this perhaps in the last caller too, is that $100 million level, that's been pretty busy for us in general. And I think the back river royalties are an example of that category of opportunities. Good size, good quality transactions, those are the things we're looking at in portfolio.

Bill Heissenbuttel: It never happens that way, and I will share with you that over the last 18 months, we were the preferred bidder on three different transactions that did not close. One of which the market knows about, that's ACG. I'm not gonna go into the other two that are not public, but just to give you a flavor of what can derail these things, even when you've won the contest amongst your peers.

Bill Heissenbuttel: And I will share with you that over the last 18 months, we were the preferred bidder on three different transactions that did not close, one of which the market knows about. That's ACG.

Bill Heissenbuttel: I'm not going to go into the other two that are not public, but just to give you a flavor of what can derail these things, even when you've won the contest amongst your peers. And yet, they still don't close. And it could, you know, failure to achieve the CPs that was ACG. Metal price changes, right? You've been working on something for six months. And, you know, a company looks at the gold price going from 1900 to 2400. Evaluation Expectations

Speaker Change: We were the preferred bidder on three different transactions.

Speaker Change: That did not close. One of which the market knows about, that's ACG. I'm not going to go into the other two that are not public, but just to give you a flavor, what can derail these things? Even when you've won the contest amongst your peers,

Dan Breeze: I think when we're talking more than $100 to $300 million range, which I think is still fair to say, I know we always give you kind of the same answer, but that's what we continue to see. We are aware of a couple of larger opportunities outside of that range, but I think in general, it's fair to say the $100 to $300 million range is still very consistent in the broad range that we see across both royalties, some royalties, but mostly in the streaming side.

Bill Heissenbuttel: And yet they still don't close, and it could, you know, failure to achieve the CP if that was ACG. Metal price changes, right? You've been working on something for six months, and, you know, a company looks at the gold price going from 1900 to 2400. Evaluation Expectations.

Speaker Change: And yet they still don't close and it could, you know, failure to achieve the CPs, that was ACG. Metal price changes, right? You've been working on something for six months and, you know, a company looks at the gold price going from $1,900 to $2,400.

Bill Heisenbuttel: Metal price changes, right? You've been working on something for six months. And, you know, a company looks at the gold price going from 1900 to 2400. Valuation expectations change, but the bigger issue for us, I would say, are the capital markets, debt and equity. I think are biggest competitor. And as things go along, if interest rates come down, and they said, oh, the debt markets are open. You know, we'd rather do that, or the equity markets just open, where we can do that. And we see these things happen. Even coming down to the management and the board may not be on the same side of looking at our product.

Bill Heissenbuttel: But the bigger issue for us, I would say, are the capital markets. Debt and equity, I think, are our biggest competitors. And as things go along, if interest rates come down, and they say, well, oh, the debt markets are open, you know, we'd rather do that, or the equity markets just open, well, we can do that.

Bill Heissenbuttel: But the bigger issue for us, I would say, are the capital markets. Debt and equity, I think, are our biggest competitors. And as things go along, if interest rates come down, and they say, well, all the debt markets are open, you know, we'd rather do that. Or if the equity markets just open, well, we can do that.

Speaker Change: Valuation expectations change.

Speaker Change: But the bigger issue for us, I would say, are the capital markets. Debt and equity, I think, are our biggest competitor.

Bill Heissenbuttel: And we've seen these things happen, even coming down to management and the board may not be on the same side of looking at our product. So, you know, it's really, really hard. I would say, you know, Six months is probably a good estimate, but Dan, I think you have a couple of examples. It can take a lot longer, but it can also be a lot shorter where things come up that we didn't even know about. So, I don't know. Dan, is there anything you want to add?

Speaker Change: And as things go along, if interest rates come down and they said, oh, the debt markets are open, you know, we'd rather do that. Or the equity market's just open. Well, we can do that. And we've seen these things happen. Even coming down to the management and the board may not be on the same side of.

Dan Breeze: And then maybe Bill, can you talk to me a little bit about how we hear about all of these deals and everyone has super busy and has a lot of opportunities out there, but maybe you can walk us through from the time you are approached on an opportunity or you're proactive and start looking at opportunities. Can you just walk us through like what it takes to get the deal announced and sort of the timeline so that all of us are aware that we hear all of these deals that like they're not going to be completed tomorrow.

Dan Breeze: So, you know, it's really, really hard. I would say, you know, six months is probably a good estimate. But, and Dan, I think you have a couple of examples. It can take a lot longer, but it can also be a lot shorter where things come up that we didn't even know about. So, Dan, is there anything you want to add there? Yeah, but I think that we're just trying to, you know, just stepping back, we try not to over-promise on what may come out of our pipeline. And, you know, we, that's why we tend to keep our BD environment comments at a high level.

Speaker Change: of looking at our product. So, you know, it's really, really hard. I would say, you know.

Speaker Change: 6 months is probably a good estimate, but Dan, I think you have a couple of examples. It can take a lot longer, but it can also be a lot shorter where things come up that we didn't even know about. So, I don't know, Dan, is there anything you want to add there?

Dan Breeze: Yeah, but I think I would just add Tanya, you know, just stepping back, we try not to over promise on what may come out of our pipeline. That's why we tend to keep our BD environment comments at a high level, and I appreciate that's a little bit frustrating for the analyst community. It's just a very fluid part of our business, and it can be very uncertain. Just thinking about our own transactions, recent transactions, if you look at Comacao as an example, I think we learned about that opportunity in early 2016, and we didn't agree on a transaction until early 2019, after the team there decided to do some further technical studies and whatnot.

Dan: Yeah, I think I would just add, Tanya, you know, just stepping back, we try not to over promise on what may come out of our pipeline.

Dan Breeze: Yeah, I'm happy to and just to be clear, when we talk about our business level of activity, we're not trying to sort of handicap the likelihood of closing a transaction. We're not looking to signal anything to anybody about a timing something coming up in six weeks or six months. We're just trying to tell you that that we're busy. We're looking at things that could be that we're looking at a number of earlier stage opportunities and there are many exit ramps in this process going from first looking at a transaction to the point of signing one in the best of all worlds.

Dan Breeze: And I appreciate that’s a little bit frustrating for the Alistair community. It's just a very fluid part of our business. It can be very uncertain in just thinking about our own transactions, the recent transactions. If you look at Comical as an example, I think we learned about that opportunity in early 2016. And we didn't agree on the transaction until early, I guess it was early 2019, after the team there decided to do some further technical studies and whatnot. So we may not see something come through for a number of years. And you know, thinking about looking at, say, Red Chris, the royalty that we acquired there.

Dan: That's why we tend to keep our BD environment comments at a high level. And I appreciate that's a little bit frustrating for the analyst community. It's just a very fluid.

Dan Breeze: And just thinking about our own transactions, recent transactions, if you look at Comacao as an example, I think we learned about that opportunity in early 2016. And we didn't agree on a transaction until early, I guess it was early 2019, after the team there decided to do some further technical studies and whatnot. So, we may not see something come through for a number of years. And thinking about looking at, say, Red Crest, the royalty that we acquired there, sometimes we knew about that royalty well in advance, but the chance to acquire it came very quickly.

Dan: Part of our business it can be very uncertain and just thinking about our own Transactions recent transactions if you look at Comacao as an example

Speaker Change: I think we learned about that opportunity in early 2016, and we didn't agree on a transaction until early, I guess it was early 2019, after the team there decided to...

Dan Breeze: We may not see something come through for a number of years, and thinking about looking at Red Chris, the royalty that we acquired there, sometimes we knew about that royalty well in advance, but the chance to acquire it came very quickly. And so we had to act very quickly on that one. And looking at Cortez, after we acquired the Rio Tinto royalty there in 2022, the additional Cortez Idol royalty came as a result of the private sellers that we had a relationship with for many years deciding that that was the right time for them to sell.

Speaker Change: to do some further technical studies and whatnot. So we may not see something come through for a number of years and thinking about.

Dan Breeze: This thing takes six to eight weeks to close everything is lined up all the information is available that would be, you know, that would be ideal for us. It never happens that way and I will share with you that over the last 18 months, we were the preferred bidder on three different transactions that did not close. One of which the market knows about that's ACG. I'm not going to go into the to the other two that are not public.

Dan Breeze: Sometimes we know about that royalty. We know it in advance, but the chance to acquire it came very quickly. And so we had to act very quickly on that one. And looking at Cortez, after we acquired the Repotential Royalty there in 2022, the additional court says, Idol Royalty, that came as a result of the private sellers that we had a relationship with for many years deciding that that was the right time for them to sell. The market didn't even know about that opportunity. I just kind of surprised the market of some degree. So, to Bill's point, it's very hard to predict.

Speaker Change: Looking at, say, Red Crest, the royalty that we acquired there, sometimes we knew about that royalty well in advance, but the chance to acquire it came very quickly.

Dan Breeze: And so we had to act very quickly on that one. And looking at Cortez, after we acquired the Rio Tinto royalty there in 2022, the additional Cortez Idol royalty came as a result of the private sellers that we had a relationship with for many years, deciding that that was the right time for them to sell. The market didn't even know about that; that opportunity just kind of surprised the market to some degree.

Speaker Change: And so we had to act very quickly on that one.

Speaker Change: Looking at Cortez, after we acquired the Rio Tinto Royalty there in 2022, the additional Cortez Idol Royalty...

Dan Breeze: But just to give you a flavor, what can derail these things, even when you want the contest amongst our peers. And yet they still don't close and it could, you know, failure to achieve the CVs, that was ACG, middle price changes, right? You've been working on something for six months and, you know, a company looks at the gold price going from 1900 to 2400. Valvation expectations change, but the bigger issue for us, I would say, are the capital markets, debt and equity, I think are biggest competitor.

Speaker Change: That came as a result of the private sellers that we had a relationship with for many years deciding that that was the right time for them to sell. The market didn't even know about that, that opportunity. I just kind of surprised the market to some degree. So to Bill's point, it's very hard to predict.

Dan Breeze: The market didn't even know about that opportunity. That just kind of surprised the market to some degree. So to Bill's point, it's very hard to predict. And I think Bill's comment there about sort of two quarters at a minimum. We can do things quicker, but I think that's a reasonable general timeline to consider.

Dan Breeze: So to Bill's point, it's very hard to predict, and I think Bill's comment there about sort of two quarters at a minimum. We can do things quicker, but I think that's a reasonable general timeline to consider.

Tanya Jakusconek: And I think Bill's comment there about sort of two quarters at a minimum; we can do things quicker, but I think that's a reasonable general timeline to consider. Okay, those two to six months sort of benchmarking ourselves, two optimistic six on average. Okay, yeah, yeah, go ahead. Sorry. No, no, just for ourselves, you know, to just benchmark, you know, when you hear about these things, you know, somewhere between two to six months of sort of a reasonable time range. Yeah, two months is an ideal world. Six months, probably closer to reality. Reality. Okay.

Speaker Change: And I think Bill's comment there about sort of two quarters at a minimum, we can do things quicker, but I think that's a reasonable general timeline to consider.

Dan Breeze: And as things go along, if interest rates come down and they said, oh, the debt markets are open, you know, we'd rather do that or the equity markets just open, where we can do that. And we've seen these things happen, even coming down to the management and the board may not be on the same side of looking at our product. So, you know, it's really, really hard. I would say, you know, six months is probably a good estimate.

Tanya Jakusconek: Okay, so two to six months, sort of benchmarking ourselves to an optimistic six months on average. Yeah, yeah, go ahead. Sorry. No, no, just for ourselves, you know, to just benchmark, you know, when you hear about these things, you know, somewhere between two to six months is sort of a reasonable time range.

Tanya Jakusconek: Okay, so two to six months, sort of benchmarking ourselves to an optimistic six months on average. That's a helpful thing. Yeah. Yeah. Go ahead. No, no, just for ourselves, you know, to just benchmark, you know, when you hear about these things, you know, somewhere between two to six months is sort of a reasonable time range.

Bill Heissenbuttel: Okay, so two to six months sort of benchmarking ourselves, two optimistic, six on average.

Speaker Change: Okay, that's all we'll take. Yeah, go ahead. Sorry.

Speaker Change: No, no, just for ourselves, you know, to just benchmark, you know, when you hear about these things, you know, somewhere between two to six months of sort of a reasonable time range.

Bill Heissenbuttel: Yeah, two months is an ideal world. Six months is probably closer to reality.

Dan Breeze: But, and Dan, I think you have a couple of examples, it can take a lot longer, but it can also be a lot shorter where things come up that we didn't even know about. So, I don't, Dan, is there anything you want to add there? Yeah, but I think that we're just trying to, you know, just stepping back, we try not to over promise on what may come out of our pipeline.

Speaker Change: Yeah, two months is an ideal world. Six months is probably closer to reality.

Tanya Jakusconek: Reality. Okay. Well, we live in reality, but I wish I lived in an ideal world. If I could squeeze one more in. Just on the back river, I haven't had a chance to model the additional royalties that were purchased, but just as a benchmark, if we were to use your guidance pricing and look at this project, would it be safe to assume, I'm assuming that the income rate return would be sort of double digits. But again, I haven't done that. I'm just trying to benchmark myself.

Tanya Jakusconek: Well, we live in reality. I wish I lived in an ideal world. If I could, yeah, well, maybe I am living in an ideal world. If I could squeeze one more in, just on the back river, I haven't had a chance to model it under the Additional Royalties that were purchased.

Tanya Jakusconek: Reality. Okay.

Tanya Jakusconek: Well, we leave it in reality. I wish I lived in an ideal world. If I can see, yeah, well, maybe I am living in an ideal world.

Speaker Change: Reality. Okay.

Speaker Change: Well, we live in reality. I wish I lived in an ideal world. If I could see, yeah, well, maybe I am living in an ideal world. If I could squeeze one more in, just on the back river, I haven't had a chance to model the...

Brian Macarthur: If I can squeeze one more in, just on the back, wherever I haven't had a chance to model the additional royalties that were purchased. But, you know, just as a benchmark, if we were to use your guidance pricing and look at asset projects, would it be safe to assume? I'm assuming the inflow rate of return would be, you know, sort of, you know, double digit, but again, I haven't done that. I'm just trying to benchmark myself. Yeah, Dan, I think you've got that number. I think we would be looked at it on a spot price basis here.

Dan Breeze: And, you know, we, that's why we tend to keep our BD environment comments at a high level. And I appreciate that's a little bit frustrating for the Alistair community. It's just a very fluid part of our business. It can be very uncertain in just thinking about our own transactions, the recent transactions. If you learned about that opportunity in early 2016, and we didn't agree on a transaction until early, I guess it was early 2019, after the team, they decided to do some further technical studies and whatnot.

Tanya Jakusconek: But, you know, just as a benchmark, if we were to use your guidance pricing and look at this project, would it be safe to assume? I'm assuming that the rate of return would be, you know, sort of, you know, double-digit. But again, I haven't done that. I'm just trying to benchmark myself.

Speaker Change: the additional royalties that were purchased. But, you know, just as a benchmark, if we were to use your guidance pricing.

Speaker Change: and look at this project. Would it be safe to assume, I'm assuming that the income rate of return would be sort of double digits. But again, I haven't done that. I'm just trying to benchmark myself.

Dan Breeze: Yeah, Dan, I think you've got that number. I think we looked at it on a spot price basis.

Speaker Change: Dan, I think you've got that number. I think we looked at it on a spot price basis here.

Dan Breeze: Okay, it's even a spot. Yes, on you. I think the mid to upper single digits is a reasonable way to think about it at the moment. Thank you.

Dan Breeze: Okay, even at class? Yes, Tanya.

Bill Heissenbuttel: Okay, even at the boss. Yes, Tanya.

Dan Breeze: So we may not see something come through for a number of years. And you know, thinking about looking at, say, Red Chris, the royalty that we acquired there, sometimes we know about that royalty, we knew about that royalty well in advance, but the chance to acquire it came very quickly. And so we had to act very quickly on that one. And looking at Cortez, after we acquired the Reotential Royalty there in 2022, the additional court says, Idle Royalty, that came as a result of the private sellers that we had a relationship with for many years deciding that that was the right time for them to sell.

Tanya Jakusconek: I think the mid to upper single digits is a reasonable way to think about it at the moment.

Dan Breeze: I think the mid to upper single digits is a reasonable way to think about it at the moment.

Dan: I think the mid to upper single digits is a reasonable way to think about it at the moment.

Dan Breeze: I tend to think okay after a single digit, and that's on point pricing. Yeah, upper single digit. Yes. Yes, somewhere around that $2,350, $2,400 spot price.

Unknown Speaker: Unknown Speaker, Unknown Speaker, Unknown Speaker, Unknown Speaker, Yes. Yes, somewhere around that $2,350, $2,400 spot price.

Dan: meant to think, okay, after a single digit. And that's on top pricing of 24. Yeah, upper single digit.

Speaker Change: Yes, somewhere around that $2,350, $2,400 spot price.

Tanya Jakusconek: That's very helpful. Thank you. I appreciate all the time you spent with me. I'll let someone else ask questions. Thank you so much.

Speaker Change: That's very helpful. Thank you. I appreciate all the time you spent with me. I'll let someone else ask questions. Thank you so much.

Brian Macarthur: As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Next question today comes from Brian MacArthur, Raymond, Jane. Please go ahead. Good morning, and thank you for taking my question. And it sort of follows on Tanya's last one. So I thought I worked this out, but giving your guidance on the slide. Slide, sorry, slide six, which is the Back River royalty.

Seb: As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad. The next question today comes from Brian MacArthur at Raymond Jane. Please go ahead.

Operator: As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad. The next question today comes from Brian MacArthur at Raymond Jane. Please go ahead.

Anna: Thanks, Anna.

Dan Breeze: The market didn't even know about that opportunity. I just kind of surprised the market some degree. So to Bill's point, it's very hard to predict. And I think Bill's comment there about sort of two quarters at a minimum, we can do things quicker, but I think that's a reasonable general timeline to consider. Okay, those two to six months sort of bench-marking ourselves to optimistic fix on average. Okay. Yeah, go ahead. Sorry.

Speaker Change: As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad.

Anna: Next question today comes from Brian MacArthur at Raymond Jane. Please go ahead.

Brian Macarthur: Good morning, and thank you for taking my question. And it sort of follows Tanya's last one, so I thought I had figured this out, but for your guidance. Live, slide, Sorry, slide six, which is the Back River Royals.

Brian Macarthur: Good morning, and thank you for taking my question. And it sort of follows Tanya's last one, so I thought I had worked this out, but for your guidance. Live, slide, Sorry, slide six, which is the Back River Royal.

Brian Macarthur: Good morning and thank you for taking my question and it sort of follows on Tanya's last one so I thought I worked this out but

Speaker Change: Giving your guidance on the slide.

Speaker Change: slide

Brian Macarthur: So if I read this from zero to 400,000 ounces, do you just get the point seven NSR and then from 400 to 780, you get the 2.5, less to 0.7 because you deduct it. And then after 780, you get 3.3, less to 0.7, which eventually goes down to 0.3. You want to get 5 million royalty on that thing; is that's why I'm supposed to think about it. And secondly, if that's true, I'm trying to figure out how we get to the 1.3% GSR that you comment on for KM, post 780. Look, and maybe it's easier offline, but any guidance on how that works, because when we're doing these IRRs, obviously, if this thing ramps up more over time, it makes a big difference from what you get here.

Brian Macarthur: So if I read this from zero to 400,000 ounces, do you just get the 0.7 NSR, and then from 400 to 780, you get the 2.5 less the 0.7 because you deduct it? And then after 780, you get 3.3 less the 0.7, which eventually goes down to 0.3 once you get 5 million royalties on that thing. Is that the way I'm supposed to think about it? And secondly, if that's true, I'm trying to figure out how we get to the 1.3% GSR that you comment on for KM post 780. Look, maybe it's easier offline, but any guidance on how that works, because when we're doing these IRRs, obviously, if this thing ramps up more, Time.

Speaker Change: Sorry, slide six, which is the Back River Royalty.

Speaker Change: So, if I read this from 0 to 400,000 ounces,

Dan Breeze: No, no, just for ourselves, you know, to just bench-mark, you know, when you hear about these things, you know, somewhere between two to six months of sort of a reasonable time range. Yeah, two months is an ideal world. Six months probably closer to reality. Reality. Okay. Well, we leave in reality I wish I lived in an ideal world. If I could see, yeah, or maybe I am living in an ideal world.

Speaker Change: Do you just get the 0.7 NSR and then from 400 to...

Speaker Change: $7.80 you get the $2.5 less to $0.7 because you deduct it and then after $7.80 you get $3.3 less to $0.7 which eventually goes down to $0.3 once you get $5 million royalty on that thing. Is that the way I'm supposed to think about it and secondly if that's true

Speaker Change: I'm trying to figure out how we get to the 1.3% GSR.

Dan Breeze: If I could squeeze one more in, just on the back river, I haven't had a chance to model the the additional royalties that were purchased, but, you know, just as a bench-mark, if we were to use your guidance pricing and look at asset projects, would it be safe to assume? I'm assuming that the inflow rate of return would be, you know, sort of, you know, double digit. But, again, I haven't done that.

Speaker Change: that you comment on for KM post 780. Look, and maybe it's easier offline, but any guidance on how that works, because when we're doing these IRRs, obviously, if this thing ramps up more over time, it makes a big difference in what you get here.

Bill Heissenbuttel: It makes a big difference in what you get here. Yeah, Brian, let me take a crack at it. But we might want to take this offline just to walk through it.

Dan Breeze: Yeah, Brian, let me, let me take a crack at it, but we might want to take this offline just to walk through it. I think what we were trying to do with the charts. And it's exactly, I think, what we tried to do with Cortez is take up a really, really complicated royalty situation where you've got deductions and sort of boil it down for you to say, this is the rate you should apply to the production to do your forecast. And we're trying to do the deductions for you and tell you what the effective rate is.

Bill Heissenbuttel: I think what we were trying to do with the chart, and it's exactly what we tried to do with Cortez, is take a really, really complicated royalty situation where you've got deductions and sort of boil it down for you to say this is the rate you should apply to production to do your forecast. And we're trying to do the deductions for you and tell you what the effective rate is. Dan, if I stepped in the wrong direction, please correct me.

Speaker Change: Yeah, Brian , let me take a crack at it, but we might want to take this offline just to walk through it. I think what we were trying to do with the chart, and it's exactly I think what we tried to do with Cortez, is take a really, really complicated royalty situation.

Dan Breeze: I'm just trying to benchmark myself. Yeah, Dan, I think you've got that number. I think we looked at it on a spot price basis here. Okay, it's even a spot. Yes, don't you? I think the mid to upper single digits is a reasonable way to think about it at the moment. Thank you. As a reminder, if you would like to ask a question, please press star one on your telephone keypad.

Speaker Change: We've got deductions and sort of boil it down for you to say, this is the rate you should apply.

Speaker Change: to the production to do your forecast. We're trying to do the deductions for you and tell you what the effective rate is. Dan, if I stepped in the wrong direction, please correct me.

Bill Heissenbuttel: Dan, if I stepped in the wrong direction, please correct me. Yeah, I think that's right. And Brian, it is, it is fairly complicated, just the tiniest question about loyalties on the property and their deductions and things like that.

Dan Breeze: Then, if I stepped in the wrong direction, please correct me. Yeah, I think that's right. And Brian, it is, it is fairly complicated, just a tiny question about royalties on the property and their deductions and things like that. So that's exactly what we try to do: just to make it as simple as possible. And just think about it in those three buckets, ultimately getting to that 3.3% GSR rate and very early in the mind plan as well.

Dan Breeze: Yeah, I think that's right. And Brian, it is, it is fairly complicated, just the tiniest question about royalties on the property and their deductions and things like that. So that's exactly what we tried to do, just to make it as simple as possible.

Dan: Yeah, I think that's right. And Brian , it is, it is fairly complicated. Just to Tanya's question about...

Dan Breeze: So that's exactly what we try to do, just to make it as simple as possible. And just think about it in those three buckets, ultimately getting to that 3.3% GSR rate, and very early in the mine plan as well. Okay, but you also say... That's what I'm trying to get at. You'll say that together they're equivalent to a 1% GSR early on. And that's a lot different than getting up to two or 3% early on. That's all I'm really asking. I don't need all the details. So should I be using 1.1% through the whole thing? Or should I be higher in the early years and drop it off later?

Speaker Change: Royalties on the property and and their deductions and things like that. So that's exactly what we tried to do is just to make it as simple as possible and And just think about it in those three buckets ultimately getting to that 3.3% GSR rate and and and very early in the mine plan as well

Brian Macarthur: And just think about it in those three buckets, ultimately getting to that 3.3% GSR rate, and very early in the mine plan as well. Okay, but you also say... That's what I'm trying to get at. You'll say together they're equivalent to a 1% GSR early on, and that's a lot different than getting up to 2% or 3% early on. That's all I'm really asking. I don't need all the details. So should I be using 1.1% through the whole thing? Or should I be higher in the early years and drop it off later?

Brian Macarthur: Next question today comes from Brian MacArthur, Raymond Jane. Please go ahead. Good morning and thank you for taking my question. And it sort of follows on Tanya's last one. So I thought I worked this out, but giving your guidance on the slide, slide 6, which is the back river royalty. So if I read this from zero to 400,000 ounces, do you just get the point seven NSR and then from 400 to 780, you get the 2.5, less to 0.7 because you deduct it.

Dan Breeze: Okay, but you also say that's on trying to get that you'll stay together to equivalent to a 1% GSR early on. And that's a lot different than getting up to 2 or 3% early on. That's all I'm really asking. I don't need all the details. So should I be using 1.1% through the whole thing, or should I be higher in the early years and dropping it off later? Because that's, I think, goes to Tonya's question too. Sure. So Brian, the 3.3% is the combined KM and Hill royalties. So that's the 1.1% plus our existing royalty there, which is 2.2%.

Dan: Thank you.

Speaker Change: Okay, but you also say...

Speaker Change: That's what I'm trying to get at, because you'll say together they're equivalent to a 1% GSR early on, and that's a lot different than getting up to 2% or 3% early on. That's all I'm really asking. I don't need all the details. So should I be using 1.1% through the whole thing, or should I be higher in the...

Brian Macarthur: And then after 780, you get 3.3, less to 0.7, which eventually goes down to 0.3, once you get 5 million royalty on that thing. Is that's why I'm supposed to think about it? And secondly, if that's true, I'm trying to figure out how we get to the 1.3% GSR that you comment on for KM, post 780. And look, and maybe it's easier offline, but any guidance on how that works because when we're doing these IRRs, obviously, if this thing ramps up more over time, it makes a big difference from what you get here.

Brian Macarthur: Because that's what goes to Tanya's question too, I think. Sure. So Brian, the 3.3% is the combined KM and Hill royalties. So that's the 1.1% plus our existing royalty there, which is 2.2%. So that's how you get to the 3.3%. So just to step back, this chart is all of our royalties combined into one rate. Right, which is basically the footnote that talks about you already own 51.25% of it or whatever. So you're bringing that into it as well when you do all that. That's right. Yeah, that's right. Got it. Okay. Thank you. That's very, very helpful. Thank you. Thank you very much. Thanks, Brian.

Speaker Change: early years and dropping it off later because that's I think goes to Tanya's question too.

Dan Breeze: Because that's what goes to Tanya's question too, I think. Sure. So Brian, the 3.3% is the combined KM and Hill royalties. So that's the 1.1% plus our existing royalty there, which is 2.2%. So that's how you get to the 3.3%. So just to step back, this chart is all of our royalties combined into one race. Right, which is basically the footnote that talks about you already own 51.25% of it or whatever. So you're bringing that into it as well when you do this.

Speaker Change: yeah

Speaker Change: Sure, so Brian , the 3.3% is the combined KM and Hill royalties, so that's the 1.1% plus our existing royalty there, which is 2.2%.

Dan Breeze: So that's how you get to the 3.3%. So just to get back, this chart is all of our royalties combined in the one race. Right, which is basically the, we get that footnote that talks about Eoreal 51.25% of it or whatever. So you're bringing that into it as well when you do all that. That's right. Yeah, that's right. Got it. Okay.

Speaker Change: So that's how you get to the 3.3%. So just to step back, this chart is all of our royalties combined.

Speaker Change: ...into one race.

Speaker Change: Right, which is basically the, we got that footnote that talks about the ERE on 51.25% of it or whatever. So you're bringing that into it as well when you do all that.

Brian Macarthur: That's right. Yeah, that's right. Got it. Okay. Thank you. That's very, very helpful. Thank you. Thank you very much.

Brian Macarthur: Thank you. That that's very, very helpful. Thank you. Thank you very much. Thanks, Brian.

Speaker Change: That's right. Yeah, that's right. Got it. Okay. Thank you. That's very, very helpful. Thank you. Thank you very much.

Operator: That's one final reminder. For any further questions, please press star one on your telephone keypad now.

Seb: As one final reminder, for any further questions, please press star 1 on your telephone keypad now. All right, we have no further questions on the call, so I'll hand the floor back to Bill to conclude.

Operator: As one final reminder, for any further questions, please press star 1 on your telephone keypad now. All right, we have no further questions on the call, so I'll hand the floor back to Bill to conclude.

Brian Macarthur: Yeah, Brian, let me take a crack at it, but we might want to take this offline just to watch through it. I think what we were trying to do with the chart, and it's exactly, I think what we tried to do with Cortez is take up really, really complicated royalty situation where you've got deductions and sort of boil it down for you to say, this is the rate you should apply to the production to do your forecast.

Brian: Thanks, Brian .

Speaker Change: As one final reminder, for any further questions, please press star 1 on your telephone keypad now.

Operator: Alright, we have no further questions on the call.

Bill Heisenbuttel: So hand the floor back to Bill to conclude. Well, everyone, thank you for joining, taking the time to join us today. We certainly appreciate your interest in Royal Gold, and we look forward to updating you on our progress during our next quarter.

Speaker Change: All right, we have no further questions on the call, so I'll hand the floor back to Bill to conclude.

Bill Heissenbuttel: Well, everyone, thank you for joining us and taking the time to join us today. We certainly appreciate your interest in Royal Gold, and we look forward to updating you on our progress during our next quarterly call. Take care.

Operator: This concludes the conference. Thank you all very much for joining us.

Bill Heissenbuttel: Well, everyone, thank you for joining, taking the time to join us today. We certainly appreciate your interest in Royal Gold and we look forward to updating you on our progress during our next quarterly call. Take care.

Brian Macarthur: And we're trying to do the deductions for you and tell you what the effective rate is. Dan, if I stepped in the wrong direction, please correct me. Yeah, I think that's right. And Brian, it is fairly complicated, just a timeless question about royalties on the property and their deductions and things like that. So that's exactly what we try to do is just to make it as simple as possible and just think about those three buckets ultimately getting to that 3.3% GSR rate and very early in the mine plan as well.

Bill Heisenbuttel: We call take care.

Operator: This concludes the conference. Thank you all very much for joining.

Unknown Speaker: This concludes the conference. Thank you all very much for joining us.

Speaker Change: This concludes the conference. Thank you all very much for joining.

Speaker Change: and many more. Thank you for watching! Please subscribe to my channel for more videos. If you like this video, please click on the like button and share it with your friends. See you in the next video!

Brian Macarthur: Okay, but you also say that's on trying to get asked. You'll say together there are equivalent to a 1% GSR early on. And that's a lot different than getting up to 2% or 3% early on. That's all I'm really asking. I don't need all the details. So should I be using 1.1% through the whole thing or should I be higher in the early years and dropping it off later? Because that's, I think, goes to Tonja's question too.

Brian Macarthur: Sure. So Brian, the 3.3% is the combined KM and Hill royalties. So that's the 1.1% plus our existing royalty there, which is 2.2%. So that's how you get to the 3.3%. So just to get that, this chart is all of our royalties combined in the one race. Right, which is basically the, we get that footnote that talks about eoreal and 51.25% of it or whatever. So you're bringing that into it as well when you do all that.

Brian Macarthur: That's right. Yeah, that's right. Got it. Okay. Thank you. That's very, very helpful. Thank you. Thank you very much. Thanks, Brian. That's one final reminder. For any further questions, please press star 1 on your telephone keypad now. All right, we have no further questions on the call.

Bill Heissenbuttel: So hand the floor back to Bill to conclude.

Bill Heissenbuttel: Well, everyone, thank you for joining, taking the time to join us today. We certainly appreciate your, your interest in royal gold. And we look forward to updating you on our progress during our next quarter. We call take care.

Seb: This concludes the conference. Thank you all very much for joining.

Q2 2024 Royal Gold Inc Earnings Call

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