Royal Gold Inc Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Cosmos Chiu - CIBC World Markets Inc. - Analyst : Maybe my question is on the SK 1300 standard. Bill, I know you kind of talked about it, but could you maybe give me a bit more clarity, so it sounds like even though some of these reserve resources are under 43-101, they don't meet the standard of SK 1300 given that you're an SEC registered -- and it never sounds great when you have an amendment to your SEC filings. I'm just wondering like how extensive is this filing that you need to do?

Question: Cosmos Chiu - CIBC World Markets Inc. - Analyst : Sounds good. So Bill, I'd like to clarify. So your handbook doesn't change. The only really -- the only change will be in your 10-K and in that one section of reserve resources information is still there elsewhere, just not in the 10-Q. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 6:00PM, RGLD.OQ - Q3 2024 Royal Gold Inc Earnings Call

Question: Tanya Jakusconek - Scotiabank GBM - Analyst : Just wanted to circle back on the guidance for 2024. I think -- I'm sorry, I'm on the phone, so it went in and out, so I just want to make sure I heard it correctly. You are going to be at the mid to the lower portion of the range on the gold front and you're going to be the higher end on the copper and other front. Is that correct, on the higher end and then below on the silver?

Question: Tanya Jakusconek - Scotiabank GBM - Analyst : Okay. And the softer Q4, and you said it would be weaker deliveries. So can you just remind me what assets we would be expecting weaker deliveries or timing?

Question: Tanya Jakusconek - Scotiabank GBM - Analyst : Okay. That's helpful. And then I wanted to circle back, if I could, on your -- just on the transaction environment. With gold price moving quite volatile things change on a daily basis. So I know I ask this every quarter, but maybe something has changed. I just want to kind of come back and see what are you seeing? You said you're busy. What are you seeing in terms of opportunities on the precious metals front? Are you still in that $100 million to $300 million range and then the royalties in the sub-$100 million range? And then are you still seeing the money towards funding for development companies and/or buying operating cash flow. I'm just trying to see if anything has changed there for you. And in this competitive environment, has the way you approach your agreement changed as well in terms of having to modify include different things? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 6:00PM, RGLD.OQ - Q3 2024 Royal Gold Inc Earnings Call

Question: Tanya Jakusconek - Scotiabank GBM - Analyst : And what about the structure of the deal. I just noticed a recent one had (inaudible) on it and different bells and (inaudible). I'm just kind of wondering, as you look at these structures are you finding that they're getting more complicated than just above and beyond the stream or the royalty plus the debt plus the equity financing plus X, Y, Z. What are you seeing? And how are you thinking about your agreement?

Question: Tanya Jakusconek - Scotiabank GBM - Analyst : Okay. Understood. It's just as you know, as it gets more competitive, right, everyone is trying to add something new to maybe entice the agreement. Okay. I really appreciate that. And thank you for the SK standard explanation because at the end of the day, like nobody wants to wake up and think reserves and resources have evaporated. Right, somewhere you will have the disclosure in your asset handbook and on your website that we can refer to.

Question: Lawson Winder - BofA Global Research (US) - Analyst : Thank you for the update today. I wanted to ask about, I guess, political risk and Botswana in (inaudible), I think when you guys originated the (inaudible) acquisition, it was originally assessed as a very high-quality jurisdiction, very low risk. And I think the market agreed. Does the recently historic change in government change that assessment in any way?

Question: Lawson Winder - BofA Global Research (US) - Analyst : Okay. Fantastic. And then thinking about the deal pipeline and potential deals going forward, I mean, one is, how is your appetite today for further deals in Africa? And then looking at the pipeline, from which jurisdictions are you predominantly seeing potential transactions? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 6:00PM, RGLD.OQ - Q3 2024 Royal Gold Inc Earnings Call

Question: Lawson Winder - BofA Global Research (US) - Analyst : Okay. Great. And then looking to 2025, I mean, it's very early at this point, but I'm sure you have started some of your 2025 planning discussion. I mean, directionally with quite a few number of new assets starting up and ramping up. I mean, it seems like there's a potential for pretty material growth in GEOs into 2025. But I mean there's obviously a lot of big unknowns as well that I don't think we have a lot of great insight into right now, particularly some of the (inaudible) assets. I mean, would it be fair to characterize the risk to 2025 GEO guidance to higher than '24 more so than lower than '24?