Royal Gold, Inc. acquires and manages precious metals stream and royalty interests, with a primary focus on gold. The Company’s portfolio provides investors with a unique opportunity to capture value in the precious metals 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. Existing royalties are acquired outright from either a mineral resource company or a private party; new royalties are generally created by providing capital to an operator or explorer in exchange for a royalty. Precious metal streams are purchase agreements with mine operators that provide, in exchange for an upfront deposit payment, the right to purchase all or a portion of one or more metals produced from a mine, at a price determined for the life of the transaction by the purchase agreement. Except for one joint venture property where we conduct exploration, we do not conduct work on the properties in which we hold stream and royalty interests, and we are not responsible for contributing to exploration, operating, environmental or capital costs on those properties.
Royal Gold owns a large portfolio of producing, development, evaluation and exploration stage streams and royalties located in some of the world’s most prolific gold regions. Approximately 90% of our reserves and revenue in fiscal 2016 was derived from North America, the Dominican Republic and Chile. With this high quality portfolio, Royal Gold maintains upside potential through exploration successes by the operators and generally 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 metals investment.
Royal Gold is based in Denver, Colorado, and is traded on the NASDAQ Global Select Market, under the symbol “RGLD.”