Royal Gold, Inc. acquires and manages precious metal royalties and similar interests, including metal streams, with a primary focus on gold. The Company’s portfolio provides investors with a unique opportunity to capture value I the precious metal sector without incurring many of the costs and risks associated with mine operations.
To acquire a royalty, Royal Gold buys a percentage of the metal produced from a mineral property in exchange for an initial payment without assuming any responsibility for the actual mining operation. Existing royalties are acquired outright from either a mineral resource company or a private party; new royalties are created by providing capital to an operator or explorer in exchange for a royalty. Precious metal streams are obtained by providing financing to base metal operators, allowing them to monetize their precious metal by-product production. A metal stream is similar to a royalty but typically has a smaller front end payment, and requires that payments be made as metal is delivered over the life of the mine. In either case, Royal Gold does not have to contribute to the exploration, operating, or capital costs at the mine after our investment is made.
Royal Gold owns a large portfolio of producing, development, evaluation, and exploration stage royalties and similar interests located in some of the world’s most prolific gold regions. Through this high quality portfolio, Royal Gold maintains upside potential through any exploration successes by the operators and benefits when new reserves are discovered and produced.
This successful business model generates strong cash flow and high margins with a lower cost structure, providing shareholders with a premium precious metal investment.
Royal Gold is a Denver based company, traded on the Nasdaq Global Select Market, under the symbol “RGLD”, and on the Toronto Stock Exchange, under the symbol “RGL”.