Royal Gold’s fixed costs, diversified portfolio, and methodical approach to precious metal investments are designed to provide shareholder value. The key elements of our business strategy include:
Business Model. Royal Gold's royalty and streaming business model provides investors with a diversified portfolio of 38 producing assets without incurring many of the costs and risks associated with mine operations.
Gold Focused. 88% of Royal Gold's revenue in fiscal 2016 was generated from gold.
Reinvest Free Cash Flow in Long Lived Properties. Royal Gold emphasizes investment in long lived assets that we believe will provide our shareholders gold price optionality and reserve upside leverage.
Invest at the Troughs and Be Patient at the Top. Royal Gold maintains a strong balance sheet that allows us to opportunistically invest at favorable times in the price cycle and be responsive to counter-party needs.
Be the Most Valuable, Not Necessarily the Largest. Focus on cash flow returns per share and high quality properties to maximize total shareholder return and to achieve a premium valuation.
Pay a Growing and Sustainable Dividend. Royal Gold concentrates on margin expansion by maintaining a lean cost structure, measuring success on per share metrics and paying a sustainable and growing dividend.