Royal Gold, Inc.

Hello everyone and welcome to Royal Goals 2024 third quarter conference call. My name is Emily and I'll be coordinating your call today. After the presentation there will be the opportunity for you to ask any questions which you can do so by pressing start followed by the number one on your telephone keypad. I will now turn the call over to our host Alistair Baker, Senior Vice President of Investor Relations and Business Development. Please go ahead Alistair.

Thank you, operator. Good morning and welcome to our discussion of Loyal Gold's third quarter 2024 results. This event is being webcast live and a replay of this call will be available on our website. Speaking on the call today are Bill Heisenbottle, President and CEO, Paul Widmer, Senior Vice President and CFO, and Martin Rothfield, Senior Vice President of Operations. Randy Sheffman, Senior Vice President and General Counsel. and Dan Breeze, Senior 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-GAAP financial measures. including adjusted net income, adjusted net income per share, adjusted EBITDA, and cash G&A. Reconciliations of these measures to the most directly comparable gap measures are available in yesterday's press release, which can be found on our website. Bill will start with an overview of the quarter. Martin will give some commentary on the portfolio, 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 had very strong financial performance during the quarter and recognized record revenue of $194 million, a 40% increase over the same period last year. Operating cash flow was $137 million, up 39% over last year, and earnings were $96 million, or $1.46 per share, a 95% increase when compared to the third quarter of last year. On an adjusted basis, our earnings were a record $97 million, or $1.47 per share. Revenue was 76% gold, and almost 60% of our revenue was generated from the US, Canada, and Australia. Our adjusted EBITDA margin remained strong at 81% for the quarter. A key feature of our business model is that we're not directly exposed to inflationary cost pressures, and we have not seen erosion in margins during the recent period of rising gold prices. We used our cash flow to pay our regular quarterly dividend of $26 million, and we also repaid the final $50 million outstanding on the revolving credit facility. We are now debt-free and have over $1.1 billion of available liquidity. During the quarter, we recognized first revenue from two of the newest producing assets in our portfolio. I'd like to congratulate I Am Gold at Cote Gold and Kinross and Contango Orr at Manchot for bringing these projects into production on schedule. And finally, I'd like to mention a change to our disclosure. As a U.S. domiciled company, we are subject to the SEC's regulation SK-1300, and we have recently learned that the SEC has taken a position that precludes the inclusion of some or all of the reserves and resources in our filings. As a passive investor, we do not have access to the information from our operators that would meet the SEC's interpretation of the standards of disclosure under SK-1300. Most of our operating counterparties that are foreign domiciled do not disclose information about their properties in accordance with SK-1300, but instead utilize other standard reporting guidelines like 43-101 and JORC, all of which are well established and were previously allowed for reporting purposes by the SEC before the introduction of SK-1300. As a result, we expect to amend our 2023 Form 10-K in the next few weeks. Reducing our disclosure in the 10-K does not imply any change to the risk profile of our business, our business model, our access to information, or the status of our interest in any properties. There are also no changes to our previously designated principal properties. We will continue to include fulsome disclosure of all mineral resources and reserves attributable to our interests in AK filings that are furnished to the SEC and on our website under the Our Portfolio tab and our Asset Handbook. I'll refer you to Part 2, Item 1A in the 10-Q we filed this morning for a more complete description of this issue. With that, I'll hand the call over to Martin to discuss our portfolio performance.