Royal Gold Inc at Denver Gold Americas Explorer & Developer Forum (Virtual) - Pre-Recorded Transcript

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

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst :

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : It's very good to hear. So at the end of the June quarter, Royal Gold had announced that the company was first in a net cash position. And with gold prices having increased, our estimates are that company will generate in excess of $300 million after paying its dividend. Naturally, what's Royal Gold going to do with all this excess cash that it's generating these days? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 20, 2020 / 3:00PM, RGLD.OQ - Royal Gold Inc at Denver Gold Americas Explorer & Developer

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : Got it. Maybe back to the comments on the dividend and I guess the current problem that you have of having too much cash. When we look historically what the dividend has been, it's represented about 40% of free cash flow, but with higher gold prices today, by our estimate, it's about 25% of free cash flow. How does the company set its dividend policy? And how do you look at increasing it with that sort of presenting risk that if the gold price were to decrease, you wouldn't put yourself in a position where you'd have to revaluate it while the price is lower?

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : And on the topic of dividends, would the company ever consider special dividends in the event that there was windfall gains? Or is that maybe not as consistent with that consistently increasing policy?

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : Got it. Relative to some of your peers, which have talked about a very robust transaction outlook, how would you characterize the outlook for transactions today?

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : Good to hear. From some of the competitors you have, there's been an interest or appetite for doing very large transactions in the work, billion dollars spent in -- thrown in or added a couple of times. The company has or Royal Gold has billion dollars of liquidity today. Would you feel comfortable putting that much capital to work in a single transaction? Or would you feel better looking at sort of smaller opportunities?

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : Got it. On the topic of diversification, when Mount Milligan first started production, that was a large concentration risk for the company on the order of 35% or so. Today, it's down to 25%. What do you see as being the right offer limit today for maximum exposure to any one particular asset?

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : Good to hear. In general, when we're in an environment, like perhaps we're in today, where maybe there's a bit of a bid-ask spread between buyers and sellers for streaming transactions, what do you view as there being opportunities for royalty companies to create value for shareholders?

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : Got it. In recent years, we've seen a number of new entrants into the royalty space, both private and public. How would you characterize the competitive outlook today for royalty companies?

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : Got it. When you think about Royal Gold versus its peers, how does the company differentiate itself either through its day-to-day sort of course -- normal-course business or through the pilot structures, transactions?

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : Got it. Yes. Similarly, along those lines, I think I've noticed debt as part of certain transactions more recently, which seems like a strength that you have available. Back to the topic of IRC and the other acquisitions that were done, could you comment on how that scenario materialized for Royal Gold? And today, if you were evaluating a stream versus an operating company, how you differentiate reviewing either of those opportunities? When you mentioned it was not -- it was less appealing.

Question: Joshua Mark Wolfson - RBC Capital Markets, Research Division - Analyst : Well, I believe that's all the time we have today. Thank you very much, Bill, for your time. We hope the audience enjoyed this discussion with Royal Gold. DISCLAIMER Refinitiv reserves the right to make changes to documents, content, or other information on this web site without obligation to notify any person of such changes. In the conference calls upon which Event Transcripts are based, companies may make projections or other forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks, which are more specifically identified in the companies' most recent SEC filings. Although the companies may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realized. THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS. IN NO WAY DOES REFINITIV OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY EVENT TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 20, 2020 / 3:00PM, RGLD.OQ - Royal Gold Inc at Denver Gold Americas Explorer & Developer