Royal Gold, Inc.

Hello everyone and welcome to the Royal Gold Inc. calendar year 2022 third quarter conference call. My name is Charlie and I'll be coordinating the call today. You will have the opportunity to ask a question at the end of the presentation. If you'd like to register a question, please press star followed by one on your telephone keypads. And I'll hand over to your host Alistair Baker, Vice President, Investor Relations and Business Development to begin. Alistair, please go ahead.

Thank you, Operator. Good morning and welcome to our discussion of Royal Gold's third quarter 2022 results. This event is being webcast live and you will be able to access a replay of this call on our website. Speaking on the call today are Bill Heisenbottle, President and CEO, Mark Disto, Executive Vice President and COO of Royal Gold Corporation, and Paul Libner, CFO and Treasurer, Randy Sheffman, General Counsel, and Dan Brees, Vice President, Corporate Development of RGAG, are also available for questions during today's call we will make forward-looking statements including statements about our projections and expectations for the future these statements are subject to risks and uncertainties that could cause actual results to differ materially from these statements these risks and uncertainties are discussed in yesterday's press release and our filings with the sec we will also refer to certain non-gap financial measures including adjusted net income, adjusted net income per share, and adjusted EBITDA margin. Reconciliations of adjusted net income, adjusted net income per share, and adjusted EBITDA to the most directly comparable GAAP measures, as well as the definition of adjusted EBITDA margin, are available in yesterday's press release, which can be found on our website. Will will start the call with an overview of the quarter. Mark will provide an operating update, and Paul will provide a financial update. After the formal remarks, we'll open the lines for a Q&A session. I'll now turn the call over to Bill.

Good morning, and thank you for joining the call. I'll begin on slide four. We delivered solid operating and financial results in the third quarter, despite pressure from lower metal prices. Revenue for the quarter was $131 million, operating cash flow was $95 million, and earnings were $46 million, or 70 cents per share. After removing an FX loss related to the Great Bear acquisition and a minor change in the fair value of equity securities, adjusted earnings were 71 cents per share. Our adjusted EBITDA margin of 77% remained high and in line with last quarter. While we are not immune from inflationary pressures, our low and stable costs provide protection against margin compression. We were very active on the business development front during the quarter, and we completed two transactions. Both of which were previously announced. The first was the acquisition of a royalty on Ken Ross's great bear project in Ontario. The second was the acquisition of an additional royalty on the Cortez complex in Nevada. Both of these transactions are in line with our strategy of acquiring long life and high quality assets operated by leading counterparties in safe jurisdictions. TAB, With respect to the Cortez complex royalty we received notice from Nevada gold mines that the 15 million ounce threshold was reached late in the quarter and approximately 3300 ounces of mine production was attributable to the 1.2% royalty. TAB, The royalty revenue for the September quarter was nominal and we expect that the royalty will be fully payable in the December quarter. We recognize that our royalty position at the Cortez complex has become more complicated with the acquisition of this new royalty. We expect to provide some new disclosure guidelines soon to help simplify and clarify how to think about our multiple royalty interest at Cortez. Our balance sheet remains strong and our cashflow on the quarter allowed us to repay $50 million of the $500 million that we drew on the revolver for the Cortez complex royalty acquisition. At the end of September, we had $550 million of revolver capacity undrawn and available. During the quarter, we paid our dividend of 35 cents per share. We are a leader in the precious metal sector in terms of our commitment to the dividend, regardless of short-term gold price volatility. And finally, we achieved the full recovery of our total $781.5 million stream advance payment at Mount Milligan, which is a significant milestone after only nine years of commercial operation. For those of you who have followed us for years, you will appreciate that Milligan performance has not always been consistent in the past. I am pleased to report the return of our investment at the same time as the announcement of the updated technical report by Sentara, which provides for several positive read-throughs for Royal Gold in terms of mine life and production. I'll now turn the call over to Mark for some comments on our portfolio.