Royal Gold Inc Investor Update Transcript

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

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : Just a couple of quick ones for me. First, for Khoemacau, for the upside opportunities and the resources that were outlined, is all of that included within the stream boundaries? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 20, 2021 / 1:30PM, RGLD.OQ - Royal Gold Inc Investor Update

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : Okay. And I understand there's still a lot of uncertainties related to potential tax changes in the U.S., and it's difficult to comment on them without formal proposals having been placed and also without the ability to interpret those proposals and understand the time lines. But when the team is looking at pricing future transactions, how do you do so with this uncertainty still out there? Do you -- are you looking at sort of pricing things with the worst-case assumption? Or how does this affect the overall outlook for the ability to appropriately price things?

Question: Jackie Przybylowski - BMO Capital Markets Equity Research - Analyst : Yes. I guess I want to come back to something that you talked about sort of early in the presentation on due diligence and things like the virtual core shed visits. Can you talk about how you sort of protect yourselves on the due diligence side? And just to ensure that what you're seeing on screen is a true reflection of what the site, like how do you manage that risk?

Question: Jackie Przybylowski - BMO Capital Markets Equity Research - Analyst : That makes sense. I guess as an analyst on the finance side, I get some confusion (inaudible). So I was just curious. I do want to switch gears and maybe ask a couple of questions about Khoemacau and I really enjoyed the presentation. I really want to thank John Munro and his team for joining. It was really hopeful. Maybe just to start at the beginning of that presentation on Khoemacau, you talked about the emerging -- I think you said Kalahari belt. And I know you've identified a number of projects on your own site or expansion opportunities on your own site. Are there other opportunities in the belt that you -- that sort of Khoemacau would consider adding in to the existing land package? Or is that -- is there enough opportunities already that you have? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 20, 2021 / 1:30PM, RGLD.OQ - Royal Gold Inc Investor Update

Question: Jackie Przybylowski - BMO Capital Markets Equity Research - Analyst : All right. That's great. That's helpful. And maybe finally one last question. This is maybe more of a housekeeping question. But at the beginning of the Khoemacau presentation, you talked about the production levels and -- I'm sorry, I wrote this down, but I'm not sure I got it right because it was running really fast. Over the life of mine, I think you said averaged 9.1 million ounces of silver per year. Can you just comment on what the expected payability on that is and what the -- what we should expect Royal Gold to actually receive and sell from its portion of that? But I'm assuming that's going to be present in the copper concentrate, is that right? John Munro Yes. So yes, the copper and silver report together to the concentrate, that then is going to be shipped to an independent smelter through a third party. The -- Royal Gold's exposure to the concentrate offtake, but they don't have exposure to the contract that we set up. There's a certain payability set out in the contracts. But the headline numbers that we've spoken about in the presentation of 1.8 million, 1.9 million ounces a year of production from the start-up project is the right number to work from in terms of the total production. And as Mark said earlier, currently, based on the current funding structure, Royal Gold has an 84% stream over that, given the funding that's occurred to date.