Q1 2026 Royal Gold Inc Earnings Call

May 7, 2026

Operator 3: Hello, everyone. Thank you for joining us and welcome to Royal Gold Inc's 2026 Q1 Conference Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Alistair Baker, Senior Vice President, Investor Relations and Business Development. Alistair, go ahead.

Operator: Hello, everyone. Thank you for joining us and welcome to Royal Gold Inc's 2026 Q1 Conference Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Alistair Baker, Senior Vice President, Investor Relations and Business Development. Alistair, go ahead.

Alistair Baker: Thank you, operator. Good morning, and welcome to our discussion of Royal Gold's Q1 2026 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, and Martin Raffield, Senior Vice President of Operations. Other members of the management team are also available for questions. During today's call, we will make forward-looking 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 cash G&A.

Alistair Baker: 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 will start with an overview of the quarter, Martin will provide portfolio commentary, and Paul will give 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.

William Heissenbuttel: Good morning and thank you for joining the call. I'll begin on slide 4. 2025 was a transformational year for Royal Gold, and the benefits of last year's activity are clearly seen in this quarter's results, with materially higher records for revenue, operating cash flow, and earnings. Quarterly revenue was $469 million. Operating cash flow was $294 million, and earnings were $281 million. These were increases of 143%, 115%, and 148% respectively over Q1 of last year. After adjusting for unusual items, net income was a record $233 million, or $2.72 per share, an 80% increase over last year. Gold contributed 71% of total revenue for the quarter.

Bill Heissenbuttel: Good morning and thank you for joining the call. I'll begin on slide four. 2025 was a transformational year for Royal Gold, and the benefits of last year's activity are clearly seen in this quarter's results, with materially higher records for revenue, operating cash flow, and earnings. Quarterly revenue was $469 million. Operating cash flow was $294 million, and earnings were $281 million. These were increases of 143%, 115%, and 148% respectively over the Q1 of last year. After adjusting for unusual items, net income was a record $233 million, or $2.72 per share, an 80% increase over last year. Gold contributed 71% of total revenue for the quarter.

William Heissenbuttel: This is lower than what we've seen over the past few quarters, but it was driven by very strong silver prices during the quarter and not weakness in gold revenue. Our adjusted EBITDA margin remained high at 83% for the quarter, reflecting our low and stable cash G&A. We paid dividends of $40 million to shareholders in the quarter at our new annual rate of $1.90 per share. We repaid $300 million on the revolver during the quarter, raising our total available liquidity to $1.1 billion. During the quarter, we also completed the restructuring of the Bear Creek debt and equity investment. In keeping with our strategy, we plan to rationalize non-core assets acquired through the Sandstorm transaction and, where possible, convert those into holdings that are more consistent with our royalty and streaming business.

Bill Heissenbuttel: This is lower than what we've seen over the past few quarters, but it was driven by very strong silver prices during the quarter and not weakness in gold revenue. Our adjusted EBITDA margin remained high at 83% for the quarter, reflecting our low and stable cash G&A. We paid dividends of $40 million to shareholders in the quarter at our new annual rate of $1.90 per share. We repaid $300 million on the revolver during the quarter, raising our total available liquidity to $1.1 billion. During the quarter, we also completed the restructuring of the Bear Creek debt and equity investment. In keeping with our strategy, we plan to rationalize non-core assets acquired through the Sandstorm transaction and, where possible, convert those into holdings that are more consistent with our royalty and streaming business.

Our adjusted EBA margin remained high at 83% for the quarter, reflecting our low and stable cash DNA.

We pay dividends of 40 million dollars to shareholders in the quarter at our new annual rate of 1.90 cents per share.

And we repaid $300 million on the revolver during the quarter, raising our total available liquidity to 1.1 billion dollars.

during the quarter, we also

William Heissenbuttel: The Bear Creek restructuring was a multi-step transaction. We were successful in converting those interests into cash, Highlander Silver shares, and royalties on the Corani project and Mercedes mine. We sold the Highlander shares during the quarter, leaving us with the royalty interest only, which is in line with our core business. With respect to capital allocation, we provided an overview of our framework during our Investor Day in March, which is to reinvest in our business, maintain a strong balance sheet and liquidity, and pay a growing and sustainable dividend. We believe our outlook remains strong with healthy metal prices and good growth within the portfolio. We also believe in being flexible and prepared for changing market conditions. With that in mind, we have added two new tools to keep us positioned to continue growing our per-share metrics depending on circumstances.

Bill Heissenbuttel: The Bear Creek restructuring was a multi-step transaction. We were successful in converting those interests into cash, Highlander Silver shares, and royalties on the Corani project and Mercedes mine. We sold the Highlander shares during the quarter, leaving us with the royalty interest only, which is in line with our core business. With respect to capital allocation, we provided an overview of our framework during our Investor Day in March, which is to reinvest in our business, maintain a strong balance sheet and liquidity, and pay a growing and sustainable dividend. We believe our outlook remains strong with healthy metal prices and good growth within the portfolio. We also believe in being flexible and prepared for changing market conditions. With that in mind, we have added two new tools to keep us positioned to continue growing our per-share metrics depending on circumstances.

structuring of the Bear Creek, debt, and Equity investments, in keeping with our strategy, we plan to rationalize non-core assets acquired through the sandstorm transaction and where possible convert those into Holdings that are more consistent with our royalty and streaming business.

The Bear Creek. Restructuring was a multi-step transaction and we were successful in converting, those interests Into Cash, Highlander silver, shares and royalties on the karani project and Mercedes mine.

We sold the Highlander shares during the quarter leaving us with the royalty interest only, which is in line with our Core Business.

With respect to Capital allocation, we provided an overview of our framework during our investor day in March.

Which is to reinvest in our business, maintain a strong balance sheet, and liquidity, and pay a growing and sustainable dividend.

We believe our Outlook remains strong with healthy metal prices, and good growth within the portfolio. But we also believe in being flexible and prepared for changing market conditions.

William Heissenbuttel: The first is a new $600 million accordion feature under our revolver. If exercised, this effectively increases the total revolver capacity to $2 billion. We don't see a need to use this today, but we are in a healthy business development environment, and this additional source of non-dilutive capital may be helpful if more large transactions come to market. The second is the authorization by the board for a $500 million share repurchase program. At times, we believe Royal Gold shares trade at a discount to what we perceive to be a fair value, and putting this program in place now will allow us to act quickly if we see a significant disconnect between the market value of Royal Gold shares and our view of that intrinsic value.

Bill Heissenbuttel: The first is a new $600 million accordion feature under our revolver. If exercised, this effectively increases the total revolver capacity to $2 billion. We don't see a need to use this today, but we are in a healthy business development environment, and this additional source of non-dilutive capital may be helpful if more large transactions come to market. The second is the authorization by the board for a $500 million share repurchase program. At times, we believe Royal Gold shares trade at a discount to what we perceive to be a fair value, and putting this program in place now will allow us to act quickly if we see a significant disconnect between the market value of Royal Gold shares and our view of that intrinsic value.

With that in mind we have added 2 new tools to keep us positioned to continue growing our per share metrics depending on circumstances.

The first is a new $600 million accordion feature under our revolver.

if exercise, this effectively increases the total of over capacity to 2 billion dollars,

We don't see a need to use this today, but we are in a healthy business development environment, and this additional source of non-dilutive capital may be helpful. If more large transactions come to market,

William Heissenbuttel: I want to be clear that we view these tools that will be used separately and in different circumstances, and we do not plan to use expanded revolver capacity to buy back shares. We are putting both in place today to make sure we are positioned to respond to opportunities quickly and help us continue to execute our capital allocation strategy and grow per share value in any market environment. I'll now turn the call over to Martin to discuss portfolio performance in the quarter.

Bill Heissenbuttel: I want to be clear that we view these tools that will be used separately and in different circumstances, and we do not plan to use expanded revolver capacity to buy back shares. We are putting both in place today to make sure we are positioned to respond to opportunities quickly and help us continue to execute our capital allocation strategy and grow per share value in any market environment. I'll now turn the call over to Martin to discuss portfolio performance in the quarter.

The second is the authorization by the board for a hundred million dollar share of purchase programs. At times, we believe, Royal gold shares trade at a discount to what we perceive to be a fair value. And putting this program in place now will allow us to act quickly. If we see a significant disconnect between the market value of Royal gold shares, and our view of that intrinsic value.

I want to be clear that we view these tools that will be used separately and in different circumstances, and we do not plan to use expanded revolver capacity to buy back shares.

We are putting both in place today, to make sure we are positioned to respond to Opportunities. Quickly and help us continue to execute our Capital, allocation strategy, and grow per share value in any Market environment.

I'll now turn the call over to Martin to discuss portfolio performance in the quarter.

Martin Raffield: Thanks, Bill. Turning to slide 5, portfolio performance was solid for the quarter. Volume was 96,300 GEOs with record revenue of $469 million, which included the first full quarter from the Sandstorm Horizon interests. Royalty revenue was up by 120% from the prior year quarter to $156 million. We saw very strong revenue from Peñasquito and at Cortez from both the Legacy Zone and the CC Zone. Stream revenue was also up strongly by 155% from the prior year to $313 million. We saw higher contributions from all our stream interests, with materially higher sales year-over-year from Pueblo Viejo, Xavantina, Rainy River, Mount Milligan, Khoemacau, and Wassa, and a strong contribution from Kansanshi.

Thanks Bill.

To any to slide 5 portfolio, performance was solid for the quarter volume was 96,300 GEOS with record revenue of 469 million, which included the First full quarter from the sandstorm Horizon interests.

Revenue was up by 120% from the prior year quarter to 156 million.

We saw very strong revenue from pensko and at Cortez from both the Legacy Zone. And the CC Zone stream Revenue was also up strongly by 155% from the prior year to 313 million.

We saw higher contributions from all our stream interests, with materially higher sales year-over-year from Pueblo Viejo, Rainy River, Mount Milligan, and the Khoemacau and Wassa, and a strong contribution from Constancia.

Martin Raffield: Metal sales are tracking well at this point compared to our 2026 guidance, although Q1 copper revenue was better than expected. This was led by strong performance at Antamina due to higher grade and lower deductions and from Caserones and Chapada due to generally strong operating performance. I'll now turn to slide 6 and give some high-level commentary on notable developments within the portfolio. I gave detailed updates on several assets during the Investor Day at the end of March, so I'll limit my comments to more recent developments. At Mount Milligan, Centerra reported that Q1 gold and copper production was in line with the PFS mine plan and is on track to meet full-year guidance.

Metal sales are tracking well at this point compared to our 2026 guidance, although q1 copper Revenue was better than expected. This was led by strong performance at antonina due to higher grade and lower deductions and from cerona and chapada due to generally strong operating performance.

I'll now turn to slide 6 and give some high-level commentary on notable developments within the portfolio. I gave detailed updates on several assets during the investor day at the end of March. So I'll limit my comments to more recent developments.

Martin Raffield: At Peñasquito, Q1 revenue was strong. Newmont expects that the ramp down of mining at Peñasquito Phase 7 will lead to lower production of gold, lead, and zinc and higher silver in 2026 compared to last year. Newmont expects to increase processing of stockpiles during the transition from Phase 7 to Phase 8, with higher grades expected to begin in 2028. At Greenstone, Equinox completed an updated technical report which targets average gold production of 320,000 ounces per year over the next decade, based on a sustained milling capacity of 27,000 tons per day. Equinox believes there is scope to further optimize production and increase throughput towards 30,000 tons per day and to incorporate higher-grade underground resources into the mine plan.

At Mount Milligan, Sentara recorded that Q1 gold and copper production was in line with the PFS mine plan and is on track to meet full-year guidance.

To first quarter Revenue was strong, but Newmont expects that the ramp down of mining at Penasco phase. 7 will lead to lower production of gold lead and zinc and higher silver in 2026 compared to last year.

Newmont expects to increase processing of stock piles. During the transition from phase 7 to phase 8 with higher grades expected to begin in 2028.

At Greenstone, Equinox completed an updated technical report, which targets average gold production of 320,000 ounces per year over the next decade, based on a sustained milling capacity of 27,000 tons per day.

Equinox believes there is scope to further optimize production and increase throughput towards 30,000 tons per day and to incorporate higher grade underground resources into the mine plan.

Martin Raffield: At Voisey's Bay, Vale reported record production in Q1 at the Long Harbour refinery, supported by stable operations at the new underground mines. At Xavantina, Ero expects gold production to be weighted towards H2 of the year as upgrades to ventilation and cooling infrastructure become fully operational. Ero also expects gold concentrate sales to be higher over the remainder of the year, with drier conditions following the end of the rainy season. At Kansanshi, First Quantum confirmed 2026 production guidance and reported that S3 throughput increased steadily during the quarter, driven by higher operating time, strong utilization, and milling rates stabilizing approximately 25% above the de-design capacity.

At voices, Bay Valley, reported record production in q1 at the Long Harbor Refinery supported by stable operations at the new underground mines.

Davina, Aero expects, gold production to be weighted towards the second half of the year as upgrades to ventilation and cooling infrastructure become fully operational.

Hero also expects gold concentrate sales to be higher over the remainder of the year with drier conditions, following the end of the rainy season.

At cannae first Quantum confirmed 2026 production, guidance and reported that S3, throughput increased steadily, during the quarter driven by higher operating time, strong, utilization, and Milling rates stabilizing approximately 25% above the design capacity.

Martin Raffield: At Khoemacau, MMG reported that the expansion to 130,000 tonnes of copper per year remains on track for concentrate production in H1 2028. Work started on a PFS for the next expansion phase up to 200,000 tonnes of copper per year. At Wassa, Chifeng announced a strategic investment agreement with a subsidiary of Zijin Mining. Zijin Gold will invest approximately $1.2 billion of new capital and take operating control. Approximately half of this amount is earmarked for investment in Chifeng's overseas operations, including Wassa. Projects at Wassa identified for investment include infill drilling, expansion and upgrade of the existing processing plant, and further development outside Wassa Mine, including construction of a decline at the Father Brown deposit, open pit development at Benso, and a new processing plant in the southern area.

At comel MMG reported that the expansion to 130,000 tons of copper per year. Remains on track for concentrate production in the first half of 2028.

And work started on a PFS for the next expansion phase up to 200,000 tons of copper per year.

At were Chong announced a Strategic investment agreement with a subsidiary of vision mining.

Vision Gold will invest approximately $1.2 billion of new capital and take operating control.

Approximately half of this amount is earmarked for investment in Chief funds overseas operations, including Wasa.

Martin Raffield: All of these are covered in by our stream agreement. Zijin is one of the world's largest mining companies, and we think this investment agreement is a positive development for the future of Wassa. At Platreef, Ivanhoe reported continued progress towards expanded production, with Shaft 3 construction completed on schedule and the Phase II concentrator on track for completion at the end of the year. We expect to see our first revenue from Platreef in the current quarter. At Hod Maden, SSR reported on Tuesday that the strategic review of its Hod Maden joint venture ownership is continuing, and it intends to incur minimal capital costs at the project while that review is ongoing. We will continue to fund our 30% of project costs through this period, but we expect these to be relatively low and not significant compared to our expected cash flow.

Projects at were identified for investment include infill, drilling expansion and upgraded the existing processing plant. And further development outside was mine including construction of a decline at the farther ground deposit openfit development of benzo and a new processing plant in the southern area.

All of these are covered in by our stream agreement.

Vision is 1 of the world's largest mining companies. And we think this investment agreement is a positive development for the future of Vasa.

At Platte Reef, ivanho reported continued progress towards expanded production, with shaft 3, construction completed on schedule and the phase 2 concentrator on track for completion at the end of the year.

We expect to see our first revenue from Flat Reef in the current quarter.

At hod, Martin SSR reported on Tuesday that the Strategic review of its hot mud and joint venture ownership is continuing and it intends to incur minimal Capital costs that the project while that review is ongoing.

Martin Raffield: Finally, with respect to development projects, Solaris received technical approval of the Warintza EIA in April and is targeting receipt of full permits by the end of 2026 and a final investment decision in 2027. I'll now turn the call over to Paul.

And not significant compared to our expected cash flow.

And finally, with respect to development projects, Solaris received technical approval of the war Ina eia in April and is targeting receipt of full permits by the end of 2026 and a final investment decision in 2027

I'll now turn the call over to Paul.

Paul Libner: Thanks, Martin. I'll turn to slide 7 and give an overview of the financial results for the Q. For the discussion of slides 7 and 8, I'll be comparing the Q ending 31 March 2026 to the prior year Q. Revenue for the Q was up strongly by 143% to $469 million, which is a new record. The strong increase was driven by higher volumes from some of our largest legacy interests, new contributions from our latest portfolio additions, and increased metal prices. Metal price increases were significant, with gold up 70%, silver up 165%, and copper up 38% over the prior year.

Thanks, pardon. I'll turn to slide 7 and give an overview of the financial results. For the quarter,

For this discussion is slides 7, and 8, I'll be comparing the quarter and in March 3120 to the prior year quarter.

Governance for the quarter was up strongly by 143%, to $469 million, which is a new record.

The strong increase was driven by higher volumes from some of our largest Legacy interests, new contributions from our latest portfolio, additions and increased metal prices.

Metal price increases were significant, with gold up 70%, silver up 165%, and copper up 38% over the prior year.

Paul Libner: Gold remains our dominant revenue driver. Given the significantly higher increase in the silver price during the quarter, the split of our gold revenue decreased to 71% and silver rose to 16% as compared to the prior year contributions of 75% and 12% respectively. Copper revenue was approximately 10% and in line with the last year. Turning to slide 8, I'll provide more detail on certain financial line items for the quarter. G&A expense was seventeen and a half million dollars, which is approximately six and a half million dollars higher than the prior year. The higher expense this period was mostly due to higher corporate costs. These corporate costs included employee-related costs, legal, audit, and other minor costs that were attributable to the 2025 transactions, but with the service or expense recognized in Q1.

Gold remains our dominant Revenue driver, a given, the significantly higher increase in the silver price during the quarter, the split of our gold Revenue decreased to 71% and silver rose to 16% as compared to the prior year contributions of 75% and 12% respectively.

Copper Revenue was approximately 10%. And in line with the last year.

Change the slide 8, I'll provide more detail on certain Financial line items for the quarter.

Gina expense was 17.5 million, which is approximately 6 and a half million dollars higher than the prior year.

The higher expenses period was mostly due to higher corporate costs.

Paul Libner: We expect that Q1 G&A costs, which includes non-cash compensation expense, will be the highest for the year, and our total G&A expense for the year will finish near the high end of the $50 to 60 million range we provided on our last call. Our G&A expense increased to $91 million from $33 million in the prior year. On a unit basis, this expense was $944 per GEO for the quarter, compared to $488 per GEO last year. The overall expense is in line with our guidance and is mainly driven by the higher carrying values of the Kansanshi gold stream and the Sandstorm Horizon interest we acquired in 2025. These increases were partially offset by lower gold sales and depletion rates at Mount Milligan.

These corporate costs included, employee related costs legal audit, and other minor costs that were attributable to the 2025 transactions. But with the service or expense recognized in the first quarter,

We expect that first quarter GNA costs, which includes non-cash compensation, expense, will be the highest for the year and our total Gene expense for the year. Will finish near the high end of the 50 to 60 million range. We provided on our last call.

Our DNA expense increased to 91 million from 33 million in the prior year.

On a unit basis. This expense was 944 per Geo for the quarter compared to 488 for geo last year.

The overall expenses in line with our guidance and is mainly driven by the higher caring values of the canani Gold Stream and the sandstorm Horizon interest. We acquired in 2025,

These increases were partially offset by lower gold sales and depletion rates at Mount Milligan.

Paul Libner: We recognized a $14 million gain on the sale of marketable securities during the quarter, most of which was due to the sale of the Highlander Silver shares that Bill mentioned in his remarks. We have made substantial progress on divesting the equity positions we inherited from Sandstorm, and most of the remaining position is the block of Entrée Resources. As we said during our investor day, we don't see this position as a core investment, but it may have some strategic value, and we are happy to hold it until there is more clarity on what may happen at Oyu Tolgoi between the government of Mongolia, Rio Tinto, and Entrée. Interest and other expense increased to $13.2 million from $1.2 million, primarily due to higher average amounts outstanding on the revolving credit facility in the current quarter.

We recognize the 14 million gain on the sale of marketable Securities. During the quarter, most of which was due to the sale of the Highlander silver share that bill mentioned in his remarks.

We have made substantial progress, on, divesting the equity positions, We inherited from Sandstorm. And most of the remaining position is the block of entree resources.

As we said during our investor days, we don't see this position as a core investment.

But it may have some strategic value and we are happy to hold it, until there is more clarity on what may happen at all. Your toy boy, between the government of Mongolia Rio Tinto and entree,

Interest in other expense increased to 13.2 million from 1.2 million dollars, primarily due to higher average amounts outstanding on the revolving credit facility in the current quarter.

Paul Libner: Tax expense for the quarter was $25 million, resulting in an effective tax rate of 8%, compared to tax expense of $10 million in the prior year. We recognized a $33.7 million discrete benefit during the quarter, and excluding this benefit, our effective tax rate was approximately 19.5%. We continue to expect our effective tax rate for the full year will range between 17% and 22%. Net income for the quarter was $281 million or $3.30 per share, which compares to $113 million or $1.72 per share in the prior year. The increase in net income was largely due to higher revenue and gains from the sale of marketable securities, offset by the higher cost of sales, DD&A, interest, and income tax expense.

Tax expense, for the quarter went 25 million resulting in an effective tax rate of 8% compared to tax expense of 10 million in the prior year.

We recognize that 33.7 million discrete benefits during the quarter. And excluding this benefit are specific tax. Rate was approximately 19 and 1.5%.

We continue to expect our effective tax rate. For the full year will range between 17% and 22%.

That income for the quarter was 281 million or 3.30 cents per share.

Which compares to $113 million, or $1.72 per share, in the prior year.

The increase in net income was largely due to higher revenue and gains from the sale of marketable securities.

Offset by the higher cost of sales ddna interest and income tax expense.

Paul Libner: After adjusting for the fair value changes in equity securities, the gain on sale of equity securities, and the discrete tax benefit, adjusted net income was a record $233 million or $2.72 per share. Finally, our operating cash flow this quarter was a record $294 million, up significantly from $136 million in the prior year. The increase was primarily due to higher stream and royalty revenue, offset by higher income tax payments, cash G&A costs, and interest payments. In summary, it was a very strong financial quarter that reflects a significant increase in the scale of our business. On that note, and recognizing the challenge of accurately estimating the quarterly performance of our larger portfolio, we will make a change to our disclosure heading into quarterly results.

After adjusting, for the fair value, changes in equity, Securities to gain on sale of equity Securities and the discrete tax benefit.

Adjusted at income, was a record 233 million or $2.72 for shared.

Finally, our operating cash flow this quarter was a record $294 million, up significantly from $136 million in the prior year.

The increase was primarily due to higher stream and relative to revenue offset by higher income tax payments, cash DNA costs and increased payments.

in summary, it was a very strong financial quarter, that reflects the significant increase in the scale of our business,

on that note and recognizing the challenge of accurately estimating, the quarterly performance of our larger portfolio.

Paul Libner: Starting with the next quarter and sometime during the 3rd full week after each quarter end, we expect to issue a press release that will provide more detail on notable financial items, including revenue estimates from both our stream and royalty segments. We hope this provides further transparency to the market in the weeks leading up to the release of our full quarterly results. I want to slide 9 and summarize our financial position. We have quickly rebuilt our liquidity. At the end of March, we had total available liquidity of $1.1 billion between the available amounts on the revolver and $295 million of working capital. After quarter end, we continued our focus on debt servicing. In April, we made a $75 million repayment, and we intend to make an additional $100 million repayment next week.

We will make a change to our disclosure heading into quarterly results.

Starting with the next quarter and sometime during the third full week after each quarter ends.

We expect to issue a press release that will provide more detail on notable financial items, including revenue estimates from both our stream and royalty segments.

We hope this provides further transparency to the market, in the weeks, leading up to the release of our full quarterly results.

I went on slide 9 and summarize our financial position.

We have quickly rebuilt our liquidity. At the end of March, we had total available liquidity of $1.1 billion, between the available amounts on the revolver and $295 million of working capital.

After quarter end, we continued our focus on debt servicing in April, we made a 75 million dollar repayment.

Paul Libner: Upon next week's payment, we will have $425 million outstanding and $975 million available under the credit facility. As I said during our Investor Day, we expect to fully repay the outstanding balance by sometime in Q4 based on current metal prices and absent further significant acquisitions. With respect to financial commitments, at the end of March, we had $100 million of funding outstanding for the Warintza acquisition. We made a $50 million payment in April upon technical approval of the EIA and expect to fund the remaining $50 million on the anniversary of the transaction closing date in May, subject to the satisfaction of outstanding conditions.

And we intend to make an additional $100 million repayment next week.

Upon next week's payment, we will have 425 million dollars outstanding and 9375 million available under the credit facility.

As I said, during our investor day, we accept a fully repaid, the outstanding balance by sometime, in the fourth quarter, based on current metal prices and absent further significant acquisitions.

With respect to financial commitments. At the end of March, we had a 100 million dollars of funding outstanding for the Warren's acquisition.

Paul Libner: The only other financial commitment is the funding of our share of any Hod Maden project costs during the year in order to maintain our 30% ownership interest. That concludes my comments on our financial performance for the quarter. I'll now turn the call back to Bill for closing comments.

We made a $50 million payment in April, upon technical approval of the EIA and expected fund. The remaining $50 million is due on the anniversary of the transaction closing date in May, subject to the satisfaction of outstanding conditions.

The only other Financial commitment is the funding of our share of any hard Matter project costs during the year in order to maintain our 30% ownership interest.

that concludes my

For the quarter. And I'll now turn the call back to bill for closing comments.

William Heissenbuttel: Thanks, Paul. I wanted to close with a brief overview of our thoughts on our post-acquisition progress, changes in our business development environment, and capital allocation. At our Investor Day in March, we attempted to provide the market with both a sense for the scale, cash flow generating ability of our expanded company, as well as the diversification and growth prospects of the company. In Q1, we achieved record revenue, earnings, and cash flow. No 1 asset contributed more than 12.5% of total revenue. While it is only 1 quarter of results, I think we're off to a good start. We are encouraged by events in our sector's investment opportunities. Larger scale investments like Kansanshi, as well as the opening of new potential markets like Australia, bode well for our business.

Bill Heissenbuttel: Thanks, Paul. I wanted to close with a brief overview of our thoughts on our post-acquisition progress, changes in our business development environment, and capital allocation. At our Investor Day in March, we attempted to provide the market with both a sense for the scale, cash flow generating ability of our expanded company, as well as the diversification and growth prospects of the company. In Q1, we achieved record revenue, earnings, and cash flow. No 1 asset contributed more than 12.5% of total revenue. While it is only 1 quarter of results, I think we're off to a good start. We are encouraged by events in our sector's investment opportunities. Larger scale investments like Kansanshi, as well as the opening of new potential markets like Australia, bode well for our business.

Thanks Paul.

I wanted to close with a brief overview of our thoughts.

Changes in our business development.

And capital, allocation.

At our investor day, in March, we attempted to provide the market with both a sense for the scale, cash flow, generating ability of our expanded company, as well as the diversification and growth prospects of the company.

In the first quarter, we achieved record Revenue, earnings and cash flow and no 1 assets, contributed more than 12.5% of total revenue.

Only one quarter of results. I think we're off to a good start.

We are encouraged by events in our sectors investment opportunities.

William Heissenbuttel: Our reestablished accordion feature under our revolving credit facility positions us well to take advantage of attractive opportunities. While we are now in the 25th year of paying a higher dividend to our shareholders, we have added another capital allocation tool in our share repurchase program that allows us to act opportunistically in the event we see a valuation dislocation in our share price. At our Investor Day, we spoke of an investment in Royal Gold as being one through all cycles, and I believe this is a time for our sector to be of interest to investors. We are not directly exposed to the price of diesel, to tariffs, or to inflation in general.

Bill Heissenbuttel: Our reestablished accordion feature under our revolving credit facility positions us well to take advantage of attractive opportunities. While we are now in the 25th year of paying a higher dividend to our shareholders, we have added another capital allocation tool in our share repurchase program that allows us to act opportunistically in the event we see a valuation dislocation in our share price. At our Investor Day, we spoke of an investment in Royal Gold as being one through all cycles, and I believe this is a time for our sector to be of interest to investors. We are not directly exposed to the price of diesel, to tariffs, or to inflation in general.

Larger scale Investments like consanti as well as the opening of new potential markets like Australia old, well for our business.

I'll re-established. Accordion feature under our revolving credit facility positions as well to take advantage of attractive opportunities.

And while we are now in the 25th year of paying a higher dividend to our shareholders, we have added another Capital, allocation tool in our share repurchase program, that allows us to act opportunistically in the event. We see evaluation dislocation in our share price.

Finally, at our investor day, we spoke of an investment in Royal gold as being 1 through all Cycles.

And I believe this is a time for our sector to be of interest to investors.

We are not directly exposed to the price of diesel to tariffs or to invite inflation in general.

William Heissenbuttel: The fight to the shares of operating companies in a rising gold price environment within the last year always came with the downside risk of compressing margins, and the operators may start seeing margin compression in the coming quarters with higher energy costs. I hope our stable cost structure against the backdrop of gold price volatility highlights the strength of our business model and attractiveness as a gold investment. Operator, that concludes our prepared remarks. I will now open the line for questions.

Bill Heissenbuttel: The fight to the shares of operating companies in a rising gold price environment within the last year always came with the downside risk of compressing margins, and the operators may start seeing margin compression in the coming quarters with higher energy costs. I hope our stable cost structure against the backdrop of gold price volatility highlights the strength of our business model and attractiveness as a gold investment. Operator, that concludes our prepared remarks. I will now open the line for questions.

The flight to the shares of operating companies and are rising gold price environments. Within the last year, always came with the downside risk of compressing margins. And The Operators, may start seeing margin compression in the coming quarters with higher energy costs,

I hope our stable cost structure against the backdrop of gold price. Volatility, highlights the strength of our business model and attractiveness as a gold investment

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

Operator 3: Our first question comes from Larry Liu with CIBC. Your line is open. Please go ahead.

We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand to withdraw. Your question, press star 1. Again we ask you pick up your handset. When asking a question to allow for Optimum sound quality and if muted locally, please remember to unmute your device please. Stand by while we compile the Q&A roster,

Operator: Our first question comes from Larry Liu with CIBC. Your line is open. Please go ahead.

Larry Liu: Hi, Bill, Paul, Martin, Alistair, and team for taking my question. I guess my first question, I'll start out by asking about the guidance. I noticed within the press release, you know, you compared 2026 Q1 results to the full year guidance, there was no really mentioning of the 5-year or the long-term guidance. Is that, you know, considered as a reiteration, or how should we look at it?

Our first question comes from Larry Lou, with CIBC your line is open. Please go ahead. Hi Bill Paul, Martin, Alistair and team for taking my question, I guess my first question. I'll start out by asking about the guidance. I noticed within the press release you know you compared 2026 q1 results to the full year guidance. But there was no really mentioning of the the 5 year or the long-term guidance is that, you know, considered at the reiteration or how should we look at it.

William Heissenbuttel: Yeah, Larry, thanks for the thanks for the question. You know, updating for the annual guidance is something we've done for a number of years and will continue to do throughout this fiscal year. When we gave the 5-year guidance at our investor day, the one thing that we were very clear about was that we were giving it on that day, but we would not be updating it through the year or really at any point. The next time that we're gonna talk about a longer-term guidance number, it will be when we give 5-year guidance for 2031 at some point next year.

Bill Heissenbuttel: Yeah, Larry, thanks for the thanks for the question. You know, updating for the annual guidance is something we've done for a number of years and will continue to do throughout this fiscal year. When we gave the 5-year guidance at our investor day, the one thing that we were very clear about was that we were giving it on that day, but we would not be updating it through the year or really at any point. The next time that we're gonna talk about a longer-term guidance number, it will be when we give 5-year guidance for 2031 at some point next year.

Number of years, and will continue to do throughout this, this fiscal year.

when we gave the 5 year guidance at our investor day, the the 1 thing that we were very clear about was uh, that we were giving it on that day, but we would uh, not be updating it uh, through the year or really at any point and the and the next time

William Heissenbuttel: The fact that we didn't mention the 2030 guidance was on purpose, it was intentional, and it just reflects our view that we're not gonna update those figures.

Bill Heissenbuttel: The fact that we didn't mention the 2030 guidance was on purpose, it was intentional, and it just reflects our view that we're not gonna update those figures.

Uh, that we're going to talk about a longer term guidance number, it will be when we give 5 year, guidance for 2031 at some point. Uh, next year. So the the fact that we didn't mention the 2030 guidance was uh was on purpose. It was intentional and and it just reflects our view that

we're not going to update those figures.

Larry Liu: Yeah. No, for sure, Bill. That makes sense. I think it leads well to my next question. I know within your guidance you mentioned that, you know, the deferred silver ounces potentially at Pueblo Viejo is not included within your guidance. Can you remind us, kind of a three-part question here, what's the outstanding balance at this point, and what are some of the criterias that, you know, under the agreement that needs to be hit before these deliveries will contribute to Royal Gold?

Yeah, no, for sure. Bill that makes sense. And I think it leads well to my next question. I know within your guidance, you mentioned that, you know, the difference of Oz potentially at pubo. Viejo is not included within your guidance. So can you remind us kind of a 3-part question here? What's the outstanding balance at this point? And what are some of the criteria that, you know, uh, under the agreement? That needs to be hid before these deliveries we'll uh contribute to roll gold.

William Heissenbuttel: Yeah, I mean, the criteria is recovery. What we need is for recovery, I think the number is like 52.5%. Recovery has to go above 52.5% for us to start clawing back some of those deferred ounces. As you may have seen in the technical report at, from PV, they're not expecting that for a number of years. To just go on tabulating the figure from quarter to quarter, when right now there's no expectation that we're gonna see it any time in the near term, it just wasn't deemed to be, if you will, material. Now, if that turns around and the recovery goes up, and we get some deferred ounces back, we'll update the market on the balance.

Bill Heissenbuttel: Yeah, I mean, the criteria is recovery. What we need is for recovery, I think the number is like 52.5%. Recovery has to go above 52.5% for us to start clawing back some of those deferred ounces. As you may have seen in the technical report at, from PV, they're not expecting that for a number of years. To just go on tabulating the figure from quarter to quarter, when right now there's no expectation that we're gonna see it any time in the near term, it just wasn't deemed to be, if you will, material. Now, if that turns around and the recovery goes up, and we get some deferred ounces back, we'll update the market on the balance.

Yeah, I mean the criteria is is recovery. Uh, and what we uh what we need is for Recovery. I think the number is like 52 and a half percent recovery, has to go above 52 and a half percent for us to start calling back some of those deferred Oz as you may have seen in the technical report at at some TV. Um,

William Heissenbuttel: At this point, we're just gonna let that number sort of sit there and grow over time. There just doesn't seem any need to be talking about it.

Bill Heissenbuttel: At this point, we're just gonna let that number sort of sit there and grow over time. There just doesn't seem any need to be talking about it.

Larry Liu: Yeah. No, for sure. Sounds good. Moving on to another asset, Hod Maden, Bill, I know your commentary mentioned earlier that's considered one of the financial commitments still outstanding at this point. I realize from your financial statement there has been a cash call under the equity investment of $14.7 million or $15 million this quarter. What kind of additional commitments do you have outstanding for the remainder of the year, and how should we look at it from a model perspective that way?

They're not expecting that for a number of years and to just go on, uh, tabulating. The figure from quarter to quarter, uh, when we right now, there's no expectation that we're going to see at any time in the, in the near term. It it just wasn't deemed to be, uh, if you will material. Um, now, if that turns around and, and the recovery goes up, uh, and we get from deferred Oz back. We'll update the market on, on the balance, but at this point I would, we're just going to let that number sort of sit there and and grow over time to just doesn't seem any need to to be talking about it.

Yeah, no for sure. Sounds good. I guess. Moving on to another asset on Madame Bill, I know you're a commentary mentioned earlier, that's considered 1 of the financial commitments. So, outstanding at this point, but I realize I'm your financial statements. There has been a cash call under the equity investment of, uh, 14.7 or 15 million, this quarter. What kind of additional commitments do you have, um, outstanding for the remainder of the year? And how should we look at it for our model perspective that way.

William Heissenbuttel: Well, maybe what I'll do is I'll turn it over to Paul to sort of take you through the accounting first. Maybe I'll come back and talk about expectations. Paul, is that okay?

Bill Heissenbuttel: Well, maybe what I'll do is I'll turn it over to Paul to sort of take you through the accounting first. Maybe I'll come back and talk about expectations. Paul, is that okay?

Paul Libner: Yeah, sure. Thanks, Eric, for the question. Yeah, you know, high level, you're right, the accounting for that Hod Maden joint venture is done under the equity method. Items with this Hod Maden accounting each quarter, and the first is, you know, kind of what you already pointed out is the cash call for our portion of the ongoing development cost of Hod Maden. You're right, the this quarter, we had a $14 million cash call, the equity method investment on our balance sheet would increase by that amount. The offset then, obviously, is the cash. That cash, for your benefit, goes through the investing activity on the statement of cash flow. The second piece to the accounting each quarter is our 30% pickup of any losses in our equity investment in Artmin.

Paul Libner: Yeah, sure. Thanks, Larry, for the question. Yeah, you know, high level, you're right, the accounting for that Hod Maden joint venture is done under the equity method. Items with this Hod Maden accounting each quarter, and the first is, you know, kind of what you already pointed out is the cash call for our portion of the ongoing development cost of Hod Maden. You're right, the this quarter, we had a $14 million cash call, the equity method investment on our balance sheet would increase by that amount. The offset then, obviously, is the cash. That cash, for your benefit, goes through the investing activity on the statement of cash flow. The second piece to the accounting each quarter is our 30% pickup of any losses in our equity investment in Artmin.

Uh well maybe what I'll do is I'll turn it over to Paul to to sort of take you through the accounting first and then maybe I'll come back and and talk about expectations Paul. Is that okay?

Yeah, sure.

Thanks. Sorry for the question. Yeah. You know high level you're right the accounting for that. Hot. Man joint venture is done under the equity method.

Items with this hot meta, accounting each quarter and the first is you know kind of what you already pointed out. Is the cash call for our portion of the ongoing development cost of hot Madden.

And you're right the uh this quarter. We had a 14 million cash call. And so, uh, the equity method investment on our balance sheet would increase by that amount.

Paul Libner: This quarter, Artmin, I believe, had losses. Our portion of losses was just over $1 million. I think it was $1.3 million. That does get go through our P&L each quarter. This quarter, $1.3 million went through the non-operating income section of our income statement, and I believe it was in interest and other expense. The offset to that goes as a decrease to that equity investment that I mentioned on our balance sheet. If you are interested in some further light reading, I know our 10-Q and K go and give a little bit more information on that, but that's really the high level for the accounting.

And then the offset and obviously, is the cash and that cash for your benefit goes through, the investing activities on the statement of cash flow. Um, the second piece, uh, to the to the accounting, each quarter is our 30% pickup of any losses in our Equity investment, in in artman, um, and this quarter artman, I believe. Had, uh, losses. Our portion of the losses was approximately, it was just over a million dollars, I think it was 1.3 million dollars, um, and that does get go through our p&l, uh, each quarter. Um, so this quarter 1.3 million went through the non-operating income section of our income statement and I believe it was in the interest and other expense. And then the offset to that, um, goes, uh, as a decrease to that Equity investment that I mentioned on our balance sheet. So, um, if you are interested in some further Light reading, I know our 10 q and K, go and get a little bit more information on that, but uh, that's really the high level for the accounting.

William Heissenbuttel: Thanks, Paul. Then, you know, just for the question of what the number might be, I would say give us a little time. As you know, SSR has announced that they're trying to rationalize the investment. The spending's not gonna be that high in the immediate term while, you know, the partners try to figure out the way forward there. I think they announced the strategic review in early March, you would have had a couple months where there was really an effort to, SSR was sort of engaged in bringing this thing forward. Now I think things are just a little bit quieter.

Bill Heissenbuttel: Thanks, Paul. Then, you know, just for the question of what the number might be, I would say give us a little time. As you know, SSR has announced that they're trying to rationalize the investment. The spending's not gonna be that high in the immediate term while, you know, the partners try to figure out the way forward there. I think they announced the strategic review in early March, you would have had a couple months where there was really an effort to, SSR was sort of engaged in bringing this thing forward. Now I think things are just a little bit quieter.

William Heissenbuttel: Once this gets rationalized, I think we'll be able to give you a better sense for what the spending's gonna be this year.

Bill Heissenbuttel: Once this gets rationalized, I think we'll be able to give you a better sense for what the spending's gonna be this year.

This gets rationalized, I I think we'll be able to give you a better sense for what the spending is going to be this year.

Larry Liu: Perfect. Sounds good, Bill. I'm glad I have my CPA, so I understand everything that Paul just mentioned earlier. I promise I have one last question. It's not as technical. It's more focused on the revolving credit facility. I know, you know, as you mentioned earlier as well, it increased by about $600 million this quarter. Just drawing, you know, historical records as well, the last time you increased it is when right before you did the Kansanshi Stream, as well as the Sandstorm Gold and Horizon Copper acquisition. What is the kind of read-through here? You've done billion dollars deals in the past. Is that time to see more billion-dollar deals coming from Royal Gold again?

Perfect. Sounds good Bill. I'm glad I have my CPA so I'm going to send everything that Paul just mentioned earlier. I promise I have 1 last question. It's known as technical, it's more focused on the revolving credit facility. I know, you know, as you mentioned earlier as well, it uh increased by about $600 million this quarter and just drawing, you know, historical records as well. The last time you increased it, it was when right before you did the consumption stream, as well as the um, Sandstorm Gold and Horizon copper acquisition. What is the kind of read through here? And, you know, you've done billion dollars deals in the past is that time to see more billion dollar deals coming from Royal gold again?

William Heissenbuttel: Yeah, I wouldn't read through anything. I, you know, I know we established, we had the accordion, and then we actually exercised it in very short order. I wouldn't read anything into it. I think it's just a reflection. You've seen some large transactions in our sector. There seem to be more of them, more opportunities. We love the revolving credit. We think our business is great in terms of being able to service debt. It's non-dilutive. We just want to be ready. As I've said before, even though gold's come off, it's still at a level where every GEO you buy is probably more expensive than it was 5 years ago. It's just being prepared.

Bill Heissenbuttel: Yeah, I wouldn't read through anything. I, you know, I know we established, we had the accordion, and then we actually exercised it in very short order. I wouldn't read anything into it. I think it's just a reflection. You've seen some large transactions in our sector. There seem to be more of them, more opportunities. We love the revolving credit. We think our business is great in terms of being able to service debt. It's non-dilutive. We just want to be ready. As I've said before, even though gold's come off, it's still at a level where every GEO you buy is probably more expensive than it was 5 years ago. It's just being prepared.

Yeah, I wouldn't read.

through anything, I

Know we established, we had the accordion and then we, we actually exercised it in, in very short order. Uh, but I wouldn't read anything into it. I I think it's just a reflection and and you've seen uh, some large transactions in our in our sector. Uh there seem to be more of them more opportunities. Um and we loved the revolving credit. We think our business is great uh in terms of being able to service that it's non-dilutive. Um and we just we just want to be ready. Uh as I've said before uh even though Gold's come off it, it's still at a level where every Geo you buy is probably more expensive uh than it was 5 years ago.

William Heissenbuttel: That's the only read-through I'd ask you to take from it.

Bill Heissenbuttel: That's the only read-through I'd ask you to take from it.

Um so it it's just being prepared. That's that that's the only read through. I'd I'd ask you to take from it.

Larry Liu: Yeah, for sure. thanks again, Bill, Paul, Martin, and Alistair, and team for taking my questions today. Thank you.

Yeah for sure. And uh thanks again. Bill Paul Martin and Alistair and team for taking my questions today. Thank you.

William Heissenbuttel: Thank you.

Bill Heissenbuttel: Thank you.

Thank you.

Operator 3: Our next question comes from Daniel Major with UBS. Your line is open. Please go ahead.

Operator: Our next question comes from Daniel Major with UBS. Your line is open. Please go ahead.

Our next question comes from Daniel Major with UBS. Your line is open, please go ahead.

Daniel Major: Hi. Yeah, thanks so much for the questions. The first question is on the buyback option and how we should think about that relative to the balance sheet. Is there a kind of level of net cash or net debt that we should be thinking about that increases the probability of buybacks? And is the emphasis of the buyback to ultimately kind of normalize the share count from the Sandstorm deal?

Hi yes. Thanks um thanks very much for the questions. Um,

The first question is on the, uh, on the buyback option and how we should think about that, um, relative to, uh, relative to the balance sheet. Is there a a kind of level of of net cash or um, or or or, or net debt, that we should be thinking about that increases the

The probability of buybacks, um, and is the

The the emphasis of the buyback to, to ultimately kind of normalize the share count from the sandstorm deal.

William Heissenbuttel: No, it's not to try to normalize the share count relative to the Sandstorm deal. I wouldn't take it as you know, a sort of a net cash. You know, if we've got excess liquidity, that's something we're gonna turn to. This is about what we see as a value dislocation. I'll really, I'll take you back to November, December of last year, where I think the view amongst everybody on our management team was, we just shouldn't be trading at these levels. We are very undervalued. I quite frankly wished we'd had the program in place back then. This is kind of a reaction to that, where if from a valuation multiple perspective, and that's where it starts, we think there is a dislocation.

Bill Heissenbuttel: No, it's not to try to normalize the share count relative to the Sandstorm deal. I wouldn't take it as you know, a sort of a net cash. You know, if we've got excess liquidity, that's something we're gonna turn to. This is about what we see as a value dislocation. I'll really, I'll take you back to November, December of last year, where I think the view amongst everybody on our management team was, we just shouldn't be trading at these levels. We are very undervalued. I quite frankly wished we'd had the program in place back then. This is kind of a reaction to that, where if from a valuation multiple perspective, and that's where it starts, we think there is a dislocation.

Uh know it's it's not to try to normalize the the share counts uh relative to the to the sandstorm deal. Um and I wouldn't take it as, you know, sort of a net cash. You know, if we've got excess liquidity, that's something we're going to turn to this is about what we see as as a value dislocation. And and I'll I'll really I'll take you back to uh November December uh, of last year. Where I think the view amongst everybody on our me.

William Heissenbuttel: We may very well use the program. At the same time, you have to understand we have other priorities as well, and we have to balance with that. Number one, we still have debt outstanding. Love to pay off the debt. That may remain a priority. Again, to the extent the business development pipeline looks healthy, we may wanna retain that liquidity. It's not, you know, we're not looking at it going, "Okay, if we're at this valuation multiple, we're automatically gonna go out and use the buyback program." It's really a balance of priorities, and it's what we would view as a real dislocation in value.

Bill Heissenbuttel: We may very well use the program. At the same time, you have to understand we have other priorities as well, and we have to balance with that. Number one, we still have debt outstanding. Love to pay off the debt. That may remain a priority. Again, to the extent the business development pipeline looks healthy, we may wanna retain that liquidity. It's not, you know, we're not looking at it going, "Okay, if we're at this valuation multiple, we're automatically gonna go out and use the buyback program." It's really a balance of priorities, and it's what we would view as a real dislocation in value.

Management team was we just shouldn't be trading at these levels. It it we are very undervalued. Uh, and I quite frankly wish we'd had the program in place back then. Um, and and this is kind of a reaction to that where if from an evaluation multiple perspective and that's where it starts. Uh, we think there is a dislocation, we met, uh, very well use the program but at the same time you have to understand. We have other, we have other priorities as well and we have to balance with that. Number 1, we sell at dead outstanding, love to pay off the debt um that may remain a priority and uh against the extent the business development pipeline looks healthy. We may want to retain that liquidity. So it it's not, you know, we're not looking at it going, okay? For it. This valuation. Multiple will automatically going to go out, uh, and and that use the, the buyback program, it it's really, it's a balance of priorities, and it's what we would view as a, a real dislocation in value.

Daniel Major: Okay. It's sort of option that, yeah, an option in the capital allocation, sort of tool chest.

William Heissenbuttel: Yeah.

Bill Heissenbuttel: Yeah.

Daniel Major: Okay. Just second question, just a sort of slight specific one. When would you expect to make the second payment of, I think it's 11.1 thousand ounces, sorry, receive the second payment from the Mount Milligan cost support program, wherever that fall?

Okay. So it's sort of option that yeah, an option in the capital allocation uh sort of tool chest, okay? Yeah.

um,

Uh, just second question, just a sort of specific 1. Um, when would you expect to make the second payment of? I think it's 11.1000. Oh, um, or be sorry received the second payment from the mount Milligan.

Uh, cost support um program.

Where, where would that fall?

William Heissenbuttel: That's a good question. I can't answer it. Dan, do you recall when we expect Greenstone to hit the next target? Is it later this year?

Bill Heissenbuttel: That's a good question. I can't answer it. Dan, do you recall when we expect Greenstone to hit the next target? Is it later this year?

Uh, that's a good question. I can't answer it, Dan. Do you recall when we expect Greenstone to hit the next target? Is it later this year?

Daniel Breeze: Yeah, Bill. Hi, Daniel. Thanks for the question. We were just looking at the results from Equinox overnight. Based on what we're seeing from their production and guidance, it looks like it'll be sometime in Q3 of this year.

Dan Breeze: Yeah, Bill. Hi, Daniel. Thanks for the question. We were just looking at the results from Equinox overnight. Based on what we're seeing from their production and guidance, it looks like it'll be sometime in Q3 of this year.

Yeah, yeah Bill. Hi Daniel. Thanks for the question. And we were just looking at the results from from Equinox overnight and and based on what we're seeing from uh their production and and guidance, it looks like it'll be sometime in Q3 of this year.

Daniel Major: Okay. Perfect. Thank you. That's useful. Then, just last question, just for the general one on the pipeline and what you're seeing in terms of, you know, potential opportunities out there. We've obviously seen some consolidation in the in precious metal pricing, but as you say, still at a good level. Any high-level insights on what you're seeing in the pipeline?

That's useful. And then, um, just last question for the general 1 on, um, on the pipeline and and what you're seeing in terms of, um, you know, potential opportunities out there, obviously, seen some consolidation in the in precious metal pricing. But as you say still a good level um any higher level insights than what you're seeing in the pipeline.

William Heissenbuttel: Well, Daniel Breeze, I might have you keep going and cover that subject as well.

Bill Heissenbuttel: Well, Dan Breeze, I might have you keep going and cover that subject as well.

Daniel Breeze: Yeah. Happy to, Bill. I think, Daniel, we certainly like what we see in the pipeline right now. I think as we look at the market, the volatility, you know, the geopolitical risk that we're seeing across the board right now, it doesn't seem to be slowing interest from counterparties to consider deals, at least currently. Obviously, we've seen a number of deals already this year. It looks pretty good to us and very much like previous quarters. I think the deals that we've seen announced this year are kind of like what we see in the pipeline right now. Those arbitrage opportunities, the base metal producers looking to sell into a good market with the non-core precious metals that they hold.

Dan Breeze: Yeah. Happy to, Bill. I think, Daniel, we certainly like what we see in the pipeline right now. I think as we look at the market, the volatility, you know, the geopolitical risk that we're seeing across the board right now, it doesn't seem to be slowing interest from counterparties to consider deals, at least currently. Obviously, we've seen a number of deals already this year. It looks pretty good to us and very much like previous quarters. I think the deals that we've seen announced this year are kind of like what we see in the pipeline right now. Those arbitrage opportunities, the base metal producers looking to sell into a good market with the non-core precious metals that they hold.

But uh, Dan Breeze, I might have you keep going and cover that subject. Yeah, happy happy to bill. Um, yeah, look I I think I think Daniel we, we certainly like what we see in the pipeline right now. And and I think as we look at the market, the volatility, um, you know, the geopolitical risk, uh, that we're seeing across the board right now. It doesn't seem to be slowing interest from from counterparties to consider deals at least currently. And uh, obviously we've seen a number of deals already this year. So it, it looks pretty good to us and very much like previous quarters. I I think the deals that we've seen announced this year are kind of like what we see in the pipeline right now. So those Arbitrage opportunities, the base metal, producers looking to sell into a good market with the the non-core precious.

Daniel Breeze: I think there's more interest now given the Antamina Wheaton deal that we saw. I think that's stimulated interest from base level companies to consider monetizing those byproducts. Certainly in our deal flow last year, you know, we saw that from First Quantum and Solaris over their assets that we were able to stream as well. We like that. The third-party royalty market looks pretty healthy as well. New project development, all of it looks pretty good. Again, we're still in that $3, 4 million size. I think that's still a good range to think about for deals.

Dan Breeze: I think there's more interest now given the Antamina Wheaton deal that we saw. I think that's stimulated interest from base level companies to consider monetizing those byproducts. Certainly in our deal flow last year, you know, we saw that from First Quantum and Solaris over their assets that we were able to stream as well. We like that. The third-party royalty market looks pretty healthy as well. New project development, all of it looks pretty good. Again, we're still in that $3, 4 million size. I think that's still a good range to think about for deals.

Uh, metals that they hold. I think there's more interest now given the ante mean a Wheaten deal that we saw. I think that's stimulated interest from base metal companies to consider um, monetizing those those byproducts and and certainly in our our deal flow last year. You know, we saw that from from first Quantum and and, and Solaris over their assets that we were able to, to stream as well. So, we like that the third party royalty Market, looks pretty healthy as well.

And then new project development. All of it looks pretty good. And again, we're

Still in that 3 4 million dollar sized. Uh I think that's still a good a good range to think about for for deals.

Daniel Major: Great. Thanks a lot.

Great.

Thanks a lot.

William Heissenbuttel: Thanks for the questions.

Bill Heissenbuttel: Thanks for the questions.

Thanks for the questions.

Operator 3: Our next question comes from Tanya Jakusconek with Scotiabank. Your line is open. Please go ahead.

Operator: Our next question comes from Tanya Jakusconek with Scotiabank. Your line is open. Please go ahead.

Tanya Jakusconek: Great. Good morning, everybody. Thank you for taking my questions. Paul, I'm not an accountant, so I'm gonna start with that. I just wanna simplistically understand how I should be thinking of it. There's really two components to this Hod Maden that I need to understand. One is something that will go through the income statement, which seems to be something in the one and a half million expense per quarter. There's the second component, which is the capital calls that goes through the cash flow. That depends on the capital outlay that's required from the joint venture and your 30% interest. Is that how I should think of it?

Our next question comes from Tanya Jakis, connected with Scotiabank. Your line is open. Please go ahead.

Oh great. Uh, uh, good morning. Um, everybody. Thank you for taking my questions. Paul. I'm not an accountant, so I'm going to start with that. Um, I just want to simplistically understand, um how I should be thinking of it. So there's really 2 components to this Hub Madden that. I need to understand 1 is something that will go through the income statement, which seems to be something in the 1 and a half million expense per quarter.

And then there's the second component, which is the capital calls that go through the cash flow.

Um and that depends on the capital outlay. That's required from the from uh, the the joint venture and your 30% interest.

Is that how I should think of it?

Paul Libner: That's correct, Tanya. Thanks, question. I'm happy to give you a bit more color there too on the pickup of the losses in the joint venture, the 30% pickup. I'll just tell you that over probably the average over the last 4 or 5 quarters, those losses have ranged really between about $600,000 and $700,000. If that's also another guide for you. This quarter was $1.3 million. If you factor even that in, I'd say over the last 4 or 5 quarters, it's been $600,000 to $700,000. You're correct, that does go through the P&L, and that will go show up in the non-operating section, and I believe we include it within interest and other expense.

That's correct. Tanya. Yeah it takes a question and I'm happy to give you a bit more color there too. On the uh the pickup of the losses in the joint venture the 30% pickup. I'll just tell you that over the probably the average over the last 4 or 5 quarters. Those losses have range really between about 600,000 and 7 700 thousand. Um, so if that's also another guide for you, yeah, this quarter was 1.3 million. Um, but, uh, if you factor in that in, I'd say, over the last 4 or 5 quarters, it's been 600 to 700,000 and that you're correct that does go through the piano.

Tanya Jakusconek: Okay. Whatever the capital call is, you know, if it's $50 million a month, your 30% of that will go through the cash flow statement.

Uh, and that will go show up in the non-operating section and I believe we include it within interest and other expense.

Paul Libner: Correct. As an investing activity, so not operating cash flow.

Tanya Jakusconek: Yeah.

Paul Libner: Yeah, the offset to that is the increase of that equity investment on the balance sheet.

Okay and then whatever the cash call is um you know if it fits 50 million a month then you have to send of that will go through the cash flow statements statement. Correct as an investing activity, so not operating cash flow.

Paul Libner: Yeah, the offset to that is the increase of that equity investment on the balance sheet.

Tanya Jakusconek: Yeah. Okay. All right. That's clear. Thank you for that. We will wait to, you know, I think the guidance had been about $15 million a month. Is that what you're thinking within, you know, your projections until otherwise noticed?

Yeah, and then we also. Yeah. And then the offset to that is the increase of that Equity investment on the balance sheet.

And now we will wait to, um, you know, I I think the guidance has been about 15 million a month is, is that what you're thinking within?

you know, your projections and tell otherwise

Notice.

William Heissenbuttel: Tanya, I don't even know if it'll be that. Again, as I think my response to the other question, just give us a bit of time to sort out the strategic review by SSR.

Bill Heissenbuttel: Tanya, I don't even know if it'll be that. Again, as I think my response to the other question, just give us a bit of time to sort out the strategic review by SSR.

Yeah, I don't even know if it'll be if if it'll be that. Um again as I the my response to the other question, just just give us a bit of time to to sort out those

The, uh, strategic review by by SSR.

Tanya Jakusconek: Okay. All right. My second question, I don't know who wants to take this one, but I think, Paul, maybe Paul again, you were mentioning that we are going to the Q2 or Q3 week after the quarter, I forget what you mentioned, we will be getting additional information ahead of the full financial. You mentioned revenue. Did I hear streams both from the royalties and streams themselves broken up in GEOs? Is that what we're going to get? I didn't understand what exactly we're getting.

And, and okay.

For financial, you mentioned Revenue um that I hear streams both from the Royal royalties and and and um and streams themselves broken up in GEOS. Is that what we're going to get? I, I

Didn't understand exactly what we're getting.

Paul Libner: Hey, Tanya. Yeah. You may recall that we previously had provided the metal stream sales release shortly after the quarter end.

Tanya Jakusconek: Yes.

Paul Libner: Really you're gonna get a bolt on to that. It'll include the stream sales information, but we'll also provide a dollar range of the royalty segment as well. As you may appreciate, you know, we do have to estimate some of these and this release will hopefully tie all this together for you from both segments standpoint.

Tanya Jakusconek: Okay. GEOs from the stream and then from the royalty segment.

Hey, can can. Yeah. So you may recall that we we previously had provided the the medals stream sales uh, release shortly after the quarter in. So really you're going to get a bolt-on to that. So it will include the stream sales information. But we'll also provide a dollar range uh of the uh, royalty segment as well. Um, as you may appreciate, uh, you know, we do have to estimate some of these and, uh, so this release will will hopefully tie all this together for you from, uh, both both segments standpoint.

Paul Libner: Correct.

Okay. So go from the the stream and then the royalty segment.

Tanya Jakusconek: Okay. Got it. With that, I know we had initially spoken the 48 52 H1, H2 performance. You know, I think guidance had been originally that we were supposed to have a Q1 similar to Q4, which had been about 91,000 GEOs, and you came in at 97. Should I be thinking that we're probably more equal for the next three quarters?

Correct.

And, and with

Initially spoken by the 4852. First half second, half performance.

Um but you know, um, I think I had been originally that we were supposed to have a q1 similar to Q4, which had been about 91,000 GEOS and you came in at 97. Should I be thinking that we're probably more equal for the next 3 quarter?

William Heissenbuttel: Paul, you wanna take that one?

Bill Heissenbuttel: Paul, you wanna take that one?

Paul, do you want to take that one?

Paul Libner: Yeah, I think as of right now, yeah, I think it's still at 48 to 52. I think is still what we're guiding to. Yeah, we did have a few royalties this quarter and streams that had better than expected production, but I think you can expect the 48 to 52 for the rest of the year and maintaining that guidance that we provided earlier as well.

Tanya Jakusconek: Okay. If someone wants to take on the share buyback, and maybe Bill, this is for you, if I could, and then someone to take my final question on the transaction environment. Just on the buyback, you know, you've mentioned a few times that, you know, where you see a valuation disconnect with the market. When you think of a valuation disconnect, are you looking at it, let's say, your NAV versus, you know, where you see your NAV versus where the share price is trading? Like, what valuation metrics are you using to see that or clarifying that disconnect?

Yeah, I think as as of right now. Yeah, I think it's still that 4852. I think is still uh, what? We're? We're we're we're guiding to um, yeah. We we did have a few, uh, royalties this quarter and streams that had better than expected production, but I think you can expect, uh, the 4852, uh, for the rest of the year. Um, and maintaining that guidance that we provided earlier as well.

Okay, okay.

And maybe bill, this is for you if I could and then someone to take my final question on the, the transaction environment. But just on the buyback, you know, you've mentioned a few times that you know, where you see a valuation disconnect with the market, when you think of evaluation disconnect, are you looking at it? But let's say your nav versus, you know, where you see or nav versus where the share price is trading. Like, how, like, what valuation metrics are you using to see that? Oh clarifying, that discount.

William Heissenbuttel: Yeah. I think you're going down the right road. It starts with P NAV and price to cash flow. Looking at others in our sector. That I think is where the analysis starts. Again, as I mentioned, that's not an automatic tri-trigger to either do something or not do something. There are other priorities that we've gotta manage in that process, but it's definitely valuation multiples where we will start the analysis.

Bill Heissenbuttel: Yeah. I think you're going down the right road. It starts with P NAV and price to cash flow. Looking at others in our sector. That I think is where the analysis starts. Again, as I mentioned, that's not an automatic tri-trigger to either do something or not do something. There are other priorities that we've gotta manage in that process, but it's definitely valuation multiples where we will start the analysis.

Yeah, I I I think you're you're going down the right Road. It starts with pav and and price. The cash flow um and looking at others. In our sector that that I think is where the analysis starts.

Um but again, as I as I mentioned, that's not an automatic try trigger to either do something or not do something. There are other priorities that we've got to. We've got to manage.

Tanya Jakusconek: Okay. I'm only saying that because I, you know, I'm trying to understand whether, you know, your price NAV or price to cash flow is a certain spread for years, and that's where you look at it and say, Okay, there's a disconnect, and if we have the cash flow, if we have the cash, let's buy back shares.

Uh, in that process, but it's definitely valuation multiples where we will start the analysis, okay? So you would be—and I'm saying that because, you know, I'm trying to understand whether, you know, your price now or price to cash flow is a certain spread versus the years, and that's where you look at it and say, okay, to connect. And if we have the cash flow, if we have the cash flow, let's buy back shares.

William Heissenbuttel: Yeah, that's where it starts. It's also do we have debt to pay down? Do we have new investments we want-

Bill Heissenbuttel: Yeah, that's where it starts. It's also do we have debt to pay down? Do we have new investments we want-

Tanya Jakusconek: For sure.

William Heissenbuttel: to be considering for? Yeah.

Bill Heissenbuttel: to be considering for? Yeah.

Tanya Jakusconek: If we had the cash all else being equal.

William Heissenbuttel: Yes.

Bill Heissenbuttel: Yes.

Yeah, that's where it starts but it's also do. We have debt to pay down? Do we have new Investments? We want to be. Yeah, yeah, for sure, if we have the, the cache, all else, being closed.

Tanya Jakusconek: Okay. Thank you for that. Just my last question, you gave us a little bit of a flavor for what's being out there. You said the $400 million range is what you were looking at. Maybe someone can confirm that, what I heard. I'm just trying to understand, you know, you've, you know, a couple of others have said there's a couple of very large deals still out there, potential syndication. Would that be something that you would consider, syndicated deals as well?

Yeah.

Okay, thank you for that. And then uh, just my last question and you gave us a little bit of a, a flavor for what's being out there to take the 300 to 400 million range.

Um, is what you were looking at and maybe someone can confirm that I heard. Um,

I'm just trying to understand, you know, you, you know, a couple of others have said, there's a, a couple of very large deals, still out there. Um, potential syndication, would that be something that you would consider, um, to create a deals as well?

William Heissenbuttel: Yeah. I mean, I'll answer the syndication part of the question. Sure, love to syndicate. We'd love to be part of it. We'd love to lead it. The thing I just caution people is if you want a transaction, you want a transaction for a reason, which means that maybe your structure is different than everybody else's. Maybe your pricing is more competitive than everybody else's. You would have to find somebody else willing to do the transaction that they potentially lost it to. You know, it's not something that we syndicate ahead of time. You have to close the deal and then syndicate it. We're totally open to the concept.

Bill Heissenbuttel: Yeah. I mean, I'll answer the syndication part of the question. Sure, love to syndicate. We'd love to be part of it. We'd love to lead it. The thing I just caution people is if you want a transaction, you want a transaction for a reason, which means that maybe your structure is different than everybody else's. Maybe your pricing is more competitive than everybody else's. You would have to find somebody else willing to do the transaction that they potentially lost it to. You know, it's not something that we syndicate ahead of time. You have to close the deal and then syndicate it. We're totally open to the concept.

Uh, yeah. I mean, I'll I'll answer the syndication part of the question. Uh, sure. Love to Syndicate. Um,

Uh would love to be part of it would love to to lead it. Um the the thing I just caution people is if you want a transaction you want a transaction for a reason.

Which means that maybe your structure is different than everybody else's, maybe your pricing is more competitive than everybody else's. So, you would have to find somebody else willing to do the transactions that they potentially lost to—

William Heissenbuttel: you know, that just makes the whole diversification side of what we were talking about at the investor day, even better. That's the syndication side. Daniel Breeze, is there anything else you wanna add on the market in general?

Bill Heissenbuttel: you know, that just makes the whole diversification side of what we were talking about at the investor day, even better. That's the syndication side. Daniel Breeze, is there anything else you wanna add on the market in general?

And then and then Syndicate it, but we're totally open to the concept. Um, you know, that just that makes the whole diversification side of what we were talking about at the investor day, uh, even even better so that that's the syndication side. Um, then Breeze, is there anything else you you want to add on the market in general?

Daniel Breeze: Yeah, Tanya, I would just say, and I did mention $300 to 400, and, you know, there's always a range in there. You know, even up to $500, let's say, in that range. The third-party royalties that we see in the pipeline, they tend to be smaller, as you know, sort of a, you know, $100 million plus or minus type sizes. I think the range we always give you, Tanya, it still holds.

Dan Breeze: Yeah, Tanya, I would just say, and I did mention $300 to 400, and, you know, there's always a range in there. You know, even up to $500, let's say, in that range. The third-party royalties that we see in the pipeline, they tend to be smaller, as you know, sort of a, you know, $100 million plus or minus type sizes. I think the range we always give you, Tanya, it still holds.

Um, yeah, Tanya, I I would just say, and I did mention 3 to 400 and, and, you know, there's always a range in there, uh, you know, even even up to 500, let's say in that range. But the third party royalties that that we see in the pipeline, um, they tend to be smaller as, as, you know, sort of a, you know, hundred million dollar plus, or minus type type sizes.

but I think the range we always give you Tanya, it still holds

Tanya Jakusconek: Okay. And Dan, are you seeing more silver opportunities?

Okay. And and then are you seeing

More of our opportunity.

Daniel Breeze: Yeah. I think the answer, Tanya, is very similar to what I shared with you in Zurich last month at the mining forum, which is we're kind of seeing a bit of everything right now. It is silver. Maybe it's a bit more silver than we've seen, say, a year ago. It's still a mix of silver and gold across the board, and producing assets and development assets and whatnot. It's really hard to say that there's one type of opportunity that's kind of outweighing the rest. It's pretty broad, at least from our pipeline's perspective.

Dan Breeze: Yeah. I think the answer, Tanya, is very similar to what I shared with you in Zurich last month at the mining forum, which is we're kind of seeing a bit of everything right now. It is silver. Maybe it's a bit more silver than we've seen, say, a year ago. It's still a mix of silver and gold across the board, and producing assets and development assets and whatnot. It's really hard to say that there's one type of opportunity that's kind of outweighing the rest. It's pretty broad, at least from our pipeline's perspective.

Tanya Jakusconek: Okay. No, thank you very much for that, and thank you for the color on some of these things. Paul, thank you for having patience with my non-accounting background.

Yeah, it I think I think the answer Tanya is very similar to what I I shared with you in Zurich last month at the mining Forum, which is we're kind of seeing a bit of everything right now. It is silver, maybe it's a bit more silver than we've seen say a year ago. Um, but it's still a mix of silver and gold, uh, across the board and producing assets and development assets and whatnot. So it's really hard to say that there's 1 uh type of opportunity. That's kind of a outweighing the rest. It's it's pretty broad at least from from our pipelines perspective.

Tanya Jakusconek: Okay. No, thank you very much for that, and thank you for the color on some of these things. Paul, thank you for having patience with my non-accounting background.

Mhm.

Okay, um, no, thank you very much for that. And thank you for the color on some of these things. And Paul, thank you for having patience with my non-accounting background.

William Heissenbuttel: No problem, Tanya. Always happy to talk.

Bill Heissenbuttel: No problem, Tanya. Always happy to talk.

No problem. Daniel always ask me to always happy to talk.

Operator 3: Our next question comes from Derick Ma with TD Cowen. Your line is open. Please go ahead.

Operator: Our next question comes from Derick Ma with TD Cowen. Your line is open. Please go ahead.

Our next question.

Derick Ma: Thanks. I want to thank the team in advance for the future disclosure on preliminary numbers for royalties and streams. I think that's going to be quite helpful for the investment community. In terms of SSR and Hod Maden, are there opportunities to work collaboratively there to achieve your own stated goals of disposing or converting your 30% interest? Are you having those type of conversations right now?

TD Cowen. Your line is open. Please go ahead.

Thanks. And I want to thank the team in advance for the feature disclosure, on preliminary numbers for royalties and streams. I think that's going to be

uh, quite helpful for the investment community, in terms of SSR and Hog Mountain. Are there opportunities to work collaboratively there to achieve your own stated goals, of disposing, or converting, your 30% interests, and are you having those type of conversations right now?

William Heissenbuttel: When you say collaboratively, I mean, it's Any rationalization of our ownership was going to involve the partners one way or the other. You know, if it was you were either gonna sell to them or you know, were gonna sell to a third party, but with their consent effectively. That's always been the approach. I don't think, you know, as I said in the investor day, I think SSR's strategic review complicates what we're trying to do here. It's not a step that we envisioned when we set that goal. It's still our goal, but it's only gonna be done with the partners, working with the partners.

Bill Heissenbuttel: When you say collaboratively, I mean, it's Any rationalization of our ownership was going to involve the partners one way or the other. You know, if it was you were either gonna sell to them or you know, were gonna sell to a third party, but with their consent effectively. That's always been the approach. I don't think, you know, as I said in the investor day, I think SSR's strategic review complicates what we're trying to do here. It's not a step that we envisioned when we set that goal. It's still our goal, but it's only gonna be done with the partners, working with the partners.

Uh, when you say 'collaborates' as 'we,' I mean, is—

Any rationalization of our ownership was, was going to involve, uh, the partners 1 way or the other, uh, you know, if it was you you were either going to sell to them or if you were, you know, we're going to sell to a third party but with with their consent effectively, um, so that's always been the approach. I I don't think you know as I said in the investor day, I think SSRS.

Strategic review. Um, complicates what we're trying to do here. Uh, it's not a step that that we envisioned. Uh, when we we set that goal, it's, it's still our goal, but it's only going to be done, uh, with the with the partners working with the partners.

Derick Ma: What can investors expect in terms of timing and then ultimate outcome, I guess, from the situation then?

what can investors expect in terms of timing and then ultimate outcome, I guess, from the situation then,

William Heissenbuttel: I think you're gonna see an answer in the near term. I don't wanna put months on that, but I think something's gonna happen, I think relatively soon. You know, because again, SSR, I think SSR actually put a timeframe on it over the next few months, so I would sort of stick with that. This is not gonna be a long, drawn-out, I don't think, a long, drawn-out process.

Bill Heissenbuttel: I think you're gonna see an answer in the near term. I don't wanna put months on that, but I think something's gonna happen, I think relatively soon. You know, because again, SSR, I think SSR actually put a timeframe on it over the next few months, so I would sort of stick with that. This is not gonna be a long, drawn-out, I don't think, a long, drawn-out process.

I I think you're going to see it, you're going to see an answer in the near term. I don't want to put months on that but you're I think you're going to it's because something's going to happen. Uh, uh, I think relatively uh, relatively soon. Um, you know, because again, SSO I think SSR actually put a time frame on it over the next few months. So, uh, I would, I would sort of stick with that. This is not going to be a long drawn out. I don't think a long drawn out process.

Derick Ma: A complete disposal, or do you think some partial conversion is still possible here?

And a complete disposal, or do you think some partial conversion is still possible here?

William Heissenbuttel: Don't know.

Bill Heissenbuttel: Don't know.

Derick Ma: Okay.

William Heissenbuttel: Don't know.

Bill Heissenbuttel: Don't know.

No, no, no.

Derick Ma: Yep. Then just finally, on the share repurchase program. I know we touched on it a lot already, it sounds like the plan is to self-administer the program and not have it automated via broker. Is that correct?

I don't know. Yep.

Um and then just finally on the share repurchase program, I know we've touched on it a lot already, but it sounds like the plan is to self administer the program and not have. It automated via broker. Is that correct?

William Heissenbuttel: Well, it's not gonna be automated in the sense that, you know, we pick a price and sell it. I mean, we've gotta figure out how we're going to implement it because we do want, we do want discretion as to when, if and when, the program gets utilized. I don't imagine giving, you know, a bank, you know, 6 months and a price and just exercise it if it hits that price. There's gonna be more to it than that.

Bill Heissenbuttel: Well, it's not gonna be automated in the sense that, you know, we pick a price and sell it. I mean, we've gotta figure out how we're going to implement it because we do want, we do want discretion as to when, if and when, the program gets utilized. I don't imagine giving, you know, a bank, you know, 6 months and a price and just exercise it if it hits that price. There's gonna be more to it than that.

Well, it's not going to be automated in the sense that, you know, we pick a price and sell it. I mean, we've got to we, we've got to figure out, uh, how we're going to implement it because we do want, we do want discretion, uh, as to when if and when uh, the program gets gets utilized. So I I don't imagine giving, you know, a bank

you know, 6 months at a price and just exercising if it hits that price, if there's gonna be more to it than that,

Derick Ma: Got it. Okay. Thank you.

Got it. Okay, thank you.

Thank you.

William Heissenbuttel: Thank you.

Bill Heissenbuttel: Thank you.

Operator 3: Our next question comes from Josh Wolfson with RBC Capital Markets. Your line is open. Please go ahead.

Operator: Our next question comes from Josh Wolfson with RBC Capital Markets. Your line is open. Please go ahead.

Our next question comes from Josh Wolfson with RBC Capital markets. Your line is open, please go ahead.

Josh Wolfson: Thank you very much. I figured it would only be appropriate if I also asked on the buyback, as I've done historically. I mean, we've seen a lot of volatility historically with shares, and in some of those prior calls, there has been justification to not proceed with the buyback, just due to the stock trading at a premium. I'm wondering, you know, what's changed or how is the company looking at things, or potential scenarios that could justify this now being something that's pursued versus historical comments?

Shares. And in some of those prior calls, there has been justification to not proceed with the buyback. Uh, just due to the stock, treating the premium. I'm, I'm wondering, you know what, what's changed or or or how's the company looking at things, uh, or potential scenarios that could justify this now, being something that's pursued versus, uh, uh, historical comments?

William Heissenbuttel: Well, again, Josh, I think I go back to, again, I'll take you back to November, December. You know, I think we were trading at a P NAV less than 1.4 times for a little while. You know, say, Okay, if you can buy back your shares at 1.4 times and investments in the sector are being priced at 1.7 times, well, we should know our assets better than anything new we're gonna add to the portfolio. Is that a better use of capital?

Bill Heissenbuttel: Well, again, Josh, I think I go back to, again, I'll take you back to November, December. You know, I think we were trading at a P NAV less than 1.4 times for a little while. You know, say, Okay, if you can buy back your shares at 1.4 times and investments in the sector are being priced at 1.7 times, well, we should know our assets better than anything new we're gonna add to the portfolio. Is that a better use of capital?

Well, again, Josh, I think I go back to, uh—again, I'll take you back to November, December. Um, you know, I think we were trading at a PAB less than 1.4 times for a little while.

William Heissenbuttel: I just, the buyback really came from that period of time when I just sat there and said, God, I wish we had the buyback because now is the time to buy shares. We also saw a year, almost 10 years ago, when Thompson Creek was having financial difficulties and people weren't sure if the Mount Milligan stream was going to survive. We felt very comfortable that it was, but there was a very significant value disconnect. Again, at that time, if we had had a program, I think we probably would have done something under that program.

Bill Heissenbuttel: I just, the buyback really came from that period of time when I just sat there and said, God, I wish we had the buyback because now is the time to buy shares. We also saw a year, almost 10 years ago, when Thompson Creek was having financial difficulties and people weren't sure if the Mount Milligan stream was going to survive. We felt very comfortable that it was, but there was a very significant value disconnect. Again, at that time, if we had had a program, I think we probably would have done something under that program.

Um, and you know what? We have to what we have to do is is say okay if you can buy back, your shares at 1.4 times and investments in the sector are being priced at 1.7 times. Well, we should know our assets better than anything new. We're going to add to the portfolio. So is that a better if we're going to use capital? Is that a better use of of capital but I just, I the buyback really came from that period of time. When I I just set them and said, God, I wish we had to buy that because now is the time to buy shares. We also saw year, almost 10 years ago, uh, when Thompson Creek was having financial difficulties, and people weren't sure if the mount building in stream was going uh, to survive. And we felt very comfortable that it was but there was a very significant value to disconnect and again, at that time if we had had a program, I think we probably would have done something under that program.

Josh Wolfson: Got it. Okay. Then, maybe getting into some of the asset specifics. Cortez had a pretty good quarter. I know there's not a lot of visibility on the asset, you know, quarter to quarter, because the differences in percentages, you know, what Barrick reports versus what you report, can vary. I'm just wondering if the company can provide a bit more understanding of Q1, and then, if it's available, you know, what the expectation is over the course of the year.

Got it. Okay uh and then uh maybe getting into some of the assets specifics uh Cortes had a pretty good quarter. Uh I know there's not a lot of visibility on the asset uh you know, quarter to quarter and there is because the difference is in percentages. You know what Barak reports versus what you report uh, can vary, I'm just wondering if the company can provide a bit more understanding, uh, of q1. And then if it's available, you know what the expectation is over the course of the year?

William Heissenbuttel: Josh, I'm gonna turn that to Martin. I'll just caution you, I think Barrick usually comes out before us, which makes it a little bit easier for us to talk about the assets. I'm not sure what we can share. Martin, is there any comment you could make about what we saw at Cortez in Q1?

Bill Heissenbuttel: Josh, I'm gonna turn that to Martin. I'll just caution you, I think Barrick usually comes out before us, which makes it a little bit easier for us to talk about the assets. I'm not sure what we can share. Martin, is there any comment you could make about what we saw at Cortez in Q1?

Uh, Josh, I'm going to turn that to Mark, and I'll just caution you—I think Eric usually comes out before us, which makes it a little bit easier for us to talk about the assets. So I'm not sure what we can share, but Martin, is there any comment you can make about what we thought of Cortez in the first quarter?

Martin Raffield: I think I would say, Bill, that we should just wait for Barrick's, Barrick to come out on Monday. I wouldn't like to front run anything that they're going to say at this stage.

Um, I I think I would say Bill that we should just wait for Barracks Barrett to come out on Monday. I wouldn't like to front run anything that they're going to say at this stage.

Josh Wolfson: Got it. All right. Just on Khoemacau, some of the challenges in Q1 and then kind of looking at the impact of Zone 5 North and understanding the differences there. You know, how should we be thinking about how the proportion of that zone, you know, is processed and what the outlook is for Royal in that context?

Got it. All right. Uh, and then—

Just on COW, uh, some of the challenges in the first quarter, and then kind of looking at the impact of Zone 5N and understanding the differences there—you know, how should we be thinking about how the proportion of that zone, um, you know, is processed, and what the outlook is for Royal in that context?

William Heissenbuttel: Martin, you wanna take a shot at that?

Bill Heissenbuttel: Martin, you wanna take a shot at that?

all right, you want to

Take a shot at that.

Martin Raffield: Look, they had some issues last year as they switched over their mining contractor, moving to the Chinese contractor. I think any time that you've got a big contractor change at an underground mine, it's gonna have an impact. They do seem to have been stabilizing fairly well as we move towards the end of last year and move through this year. Obviously, their focus at the moment is on building the expansion, building the new processing plant, finishing the design for that and getting into construction. Building an underground backfill plant so that they can start backfilling, reduce the amount of pillars that they leave behind, improve the recovery of the resource. That seems to be going pretty well at the moment.

Martin Raffield: As to Zone 5 North and Mango and the other, the other pieces of the puzzle put together, you know, that's still in development at the moment. You know, the new plant is gonna process mainly Zone 5 material, and we have a good, strong understanding that that's gonna improve our throughput and our silver recovery.

Yes, so yeah. Look they've I mean they've they had some um, issues last year as they switched over their mining contractor. Um, moving to the Chinese contractor. I think any time that you've got a, a big contract to change it and underground mine, it's going to have an impact. Um, they do seem to have been stabilizing fairly well as we move towards the end of last year and move through this year, um, obviously their focus at the moment is on building the expansion, um, building the new processing plant finishing, the design for that and getting into construction, um, building an underground backsaw plant, so that they can start backfilling reduce the amount of pillars that they leave behind improve the recovery of the resource. Um, so that seems to be going pretty well at the moment. But as to, um, zone 5 north and mango and the other, um, the other pieces of the puzzle put together

You know, that's still in development at the moment. Um, so we will—you know, the new plant is going to process mainly Zone 5 material, and we have a good, strong understanding that that's going to improve our throughput and, um, our silver recovery.

Josh Wolfson: Okay. Maybe just to clarify for Zone 5 North specifically, has the mining from that area been accelerated versus what the prior plan was? Is it the text maybe I'm misinterpreting things?

Okay, and maybe just to clarify for Zone 5 North specifically—has the mining from that area been accelerated versus what the prior plan was? Is it the text, maybe? Uh, maybe I'm misinterpreting things.

Martin Raffield: They haven't started mining Zone 5 North yet, Josh. They're mining Zone 5 Main and with the 3 declines. Zone 5 North, Mango, and the others are part of the expansion that they're gonna be starting to develop over the year.

Part of the expansion that they're going to be starting to develop over the year.

Josh Wolfson: Got it. Great. Thank you.

Operator 3: Our final question comes from Brian MacArthur with Raymond James. Your line is open. Please go ahead.

Operator: Our final question comes from Brian MacArthur with Raymond James. Your line is open. Please go ahead.

Our final question comes from Brian MacArthur with Raymond James. Your line is open. Please go ahead.

Brian MacArthur: Good morning. Sorry, most of my question's been answered, but I know this is difficult. Following up on Josh's asset, Antamina had $13 million this quarter. You commented about grade. Ballpark, I realize NPI are difficult. Is that a reasonable number going forward at these commodity prices, or was there capital allocation or something that made that number different than what you might think would be going forward? It's Q1 we've really got a look at this.

Oh, good morning. Uh, sorry, most of my questions have been answered, but I know this is difficult. Just, uh, following up on Josh's assets—Antamina had $13 million this quarter. You commented about grade, um, but just ballpark—I realize NPIs are difficult. Is that a reasonable number going forward at these commodity prices, or was there capital allocation or something that made that number?

Different than what you might think would be going forward. I mean, it's the first quarter we've really got to take a look at this.

William Heissenbuttel: Yeah. I'll offer you one thing. Real quick, and I think $13 million was more than the annual revenue received in certain years in the past.

Bill Heissenbuttel: Yeah. I'll offer you one thing. Real quick, and I think $13 million was more than the annual revenue received in certain years in the past.

Brian MacArthur: Yeah.

William Heissenbuttel: I agree with you, NPI are impossible to estimate. Martin, is there anything you would say that makes Q1 unique or a signal of things to come?

Bill Heissenbuttel: I agree with you, NPI are impossible to estimate. Martin, is there anything you would say that makes Q1 unique or a signal of things to come?

Yeah, I I I'll offer you 1 Thing uh real quick and and I think 13 million dollars was more than the annual revenue. We received in certain years in the past, so yeah, um I agree with you npi's are impossible.

Martin Raffield: No. I mean, it was essentially low deductions, and it was high prices. We can't really project what is to come. We're not changing our outlook in terms of what we expect for the year. Yeah, it's capital allocation and deductions, and we have almost no visibility into that, Brian.

Uh, to estimate, Martin, is there anything you would say that makes the first quarter unique, or a signal of things to come?

No, I mean, it was essentially loaded options and it was high prices. So, we can't really project what is to come. We're not changing our outlook in terms of what we expect for the year.

Um, but yeah, it's capital allocation and deductions, and we have almost no visibility into that, Brian.

Brian MacArthur: Fair enough. Just a second question while I have you. One asset that's sitting around that's been there for years, but obviously we're a higher price environment. Is anything happening, I don't know if I can remember how to say it, at Ilovica, the Euromax Resources asset in Macedonia? That has the potential to be a decent size going forward too.

Fair enough.

The second question, will I have you?

One asset that's sitting around, that's been there for years, but obviously we're in a higher price environment— is anything happening? I don't know if I can remember how to say it at Ilovica, the Euromaxx asset in North Macedonia, because that has potential to be a decent site going forward, too.

William Heissenbuttel: Yeah, Brian, I don't think there's anything to report there. The last we really looked into it, I think they were still working on consolidating mining licenses and just, you know, the government changed 10 years ago, and it's been an uphill battle for them. I don't have anything to update you on.

Bill Heissenbuttel: Yeah, Brian, I don't think there's anything to report there. The last we really looked into it, I think they were still working on consolidating mining licenses and just, you know, the government changed 10 years ago, and it's been an uphill battle for them. I don't have anything to update you on.

Yeah, Brad I don't think there's anything to to report their. I, the last we really looked into it. I think they were uh, still working on consolidating mining licenses and and just, you know, the government changed 10 years ago and it it's been an uphill battle for him. So I I I don't have anything to

Brian MacArthur: Perfect. Thank you.

Perfect, thank you.

Operator 3: We have reached the end of the Q&A session. I will now turn the call back to William Heissenbuttel for closing remarks.

Operator: We have reached the end of the Q&A session. I will now turn the call back to William Heissenbuttel for closing remarks.

We have reached the end of the Q&A session. I will now turn the call back to bill heissenbuttel for closing remarks.

William Heissenbuttel: Well, thank you very much for taking the time to join us today. We certainly appreciate your interest, and we look forward to updating you on our progress during our next quarterly call. Take care.

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

Well, thank you very much for for taking the time to join us today. We certainly appreciate your interest and and we look forward to updating you on our progress. During our next quarterly, call take care.

Operator 3: This concludes today's call. Thank you for attending. You may now disconnect.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

This concludes today's call. Thank you for attending. You may now disconnect.