Royal Gold, Inc.

Hello, everyone. Thank you for joining us, and welcome to Royal Gold Inc.' 's 2026 First Quarter Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Alistair Baker, Senior Vice President, Investor Relations and Business Development. Alistair, go ahead.

Thank you, operator. Good morning and welcome to our discussion of Royal Gold's first quarter 2026 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 Heisenbuddle, President and CEO, Paul Libner, Senior Vice President and CFO, and Martin Rothfield, Senior Vice President of Operations. Other members of the management team 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 provide portfolio commentary, and Paul will give 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. 2025 was a transformational year for Royal Gold, and the benefits of last year's activity are clearly seen in this quarter's results, with materially higher records for revenue, operating cash flow, and earnings. Quarterly revenue was $469 million, operating cash flow was $294 million, and earnings were $281 million. These were increases of 143%, 115%, and 148%, respectively, over the first quarter of last year. After adjusting for unusual items, net income was a record $233 million, or $2.72 per share, an 80% increase over last year. Gold contributed 71% of total revenue for the quarter. This is lower than what we've seen over the past few quarters, but it was driven by very strong silver prices during the quarter and not weakness in gold revenues. Our adjusted EBITDA margin remained high at 83% for the quarter, reflecting our low and stable cash G&A. We paid dividends of $40 million to shareholders in the quarter at our new annual rate of $1.90 per share. And we repaid $300 million on the revolver during the quarter, raising our total available liquidity to $1.1 billion. During the quarter, we also completed the restructuring of the Bear Creek debt and equity investments. In keeping with our strategy, we plan to rationalize non-core assets acquired through the Sandstorm transaction, and where possible, convert those into holdings that are more consistent with our royalty and streaming business. The Bear Creek restructuring was a multi-step transaction, and we were successful in converting those interests into cash, Islander silver shares, and royalties on the Karani project and Mercedes mine. We sold the Highlander shares during the quarter, leaving us with the royalty interest only, which is in line with our core business. With respect to capital allocation, we provided an overview of our framework during our investor day in March, which is to reinvest in our business, maintain a strong balance sheet and liquidity, and pay a growing and sustainable dividend. We believe our outlook remains strong with healthy metal prices and good growth within the portfolio, but we also believe in being flexible and prepared for changing market conditions. With that in mind, we have added two new tools to keep us positioned to continue growing our per share metrics depending on circumstances. The first is the new $600 million accordion feature under our revolver. If exercised, this effectively increases the total revolver capacity to $2 billion. We don't see a need to use this today, but we're in a healthy business development environment And this additional source of non-dilutive capital may be helpful if more large transactions come to market. The second is the authorization by the board for a $500 million share repurchase program. At times, we believe Royal Gold shares trade at a discount to what we perceive to be a fair value. And putting this program in place now will allow us to act quickly if we see a significant disconnect between the market value of Royal Gold shares and our view of that intrinsic value. I want to be clear that we view these tools that will be used separately and in different circumstances, and we do not plan to use expanded revolver capacity to buy back shares. We're putting both in place today to make sure we are positioned to respond to opportunities quickly and help us continue to execute our capital allocation strategy and grow per share value in any market environment. I'll now turn the call over to Martin to discuss portfolio performance in the quarter.

Thanks, Bill. Turning to slide five, portfolio performance was solid for the quarter. Volume was 96,300 GEOs with record revenue of $469 million, which included the first full quarter from the Sandstorm Horizon interests. Royalty revenue was up by 120% from the prior year quarter to $156 million. We saw very strong revenue from Penasquito and at Cortez from both the Legacy Zone and the CC Zone. Stream revenue was also up strongly by 155% from the prior year to $313 million. We saw higher contributions from all our stream interests, with materially higher sales year-over-year from Pueblo Viejo, Zavanchina, Rainy River, Mount Milligan, and Okoyoko, Macau, and Wausau, and a strong contribution from Kinsanchi. Metal sales are tracking well at this point compared to our 2026 guidance, although Q1 copper revenue was better than expected. This was led by strong performance at Antamina due to higher grade and lower deductions, and from Casaronas and Chapada due to generally strong operating performance. I'll now turn to slide six and give some high-level commentary on notable developments within the portfolio. I gave detailed updates on several assets during the investor day at the end of March, so I'll limit my comments to more recent developments. At Mount Milligan, Sentera reported that Q1 gold and copper production was in line with the PFS mine plan and is on track to meet full year guidance. At Penasquito, first quarter revenue was strong, but Newmont expects that the ramp down of mining at Penasco Phase 7 will lead to lower production of gold, lead and zinc and higher silver in 2026 compared to last year. Newmont expects to increase processing of stockpiles during the transition from Phase 7 to Phase 8, with higher grades expected to begin in 2028. At Greenstone, Equinox completed an updated technical report which targets average gold production of 320,000 ounces per year over the next decade, based on a sustained milling capacity of 27,000 tons per day. Equinox believes there is scope to further optimize production and increase throughput towards 30,000 tons per day and to incorporate higher grade underground resources into the mine plan. At Voices Bay, Vale reported record production in Q1 at the Long Harbour refinery, supported by stable operations at the new underground mines. At Zavenchina, Eero expects gold production to be weighted towards the second half of the year as upgrades to ventilation and cooling infrastructure become fully operational. Eero also expects gold concentrate sales to be higher over the remainder of the year, with drier conditions following the end of the rainy season. At Consanchi, First Quantum confirmed 2026 production guidance and reported that S3 throughput increased steadily during the quarter, driven by higher operating time, strong utilization, and milling rates stabilizing approximately 25% above the design capacity. At ComiCow, MMG reported that the expansion to 130,000 tons of copper per year remains on track for concentrate production in the first half of 2028. And work started on a PFS for the next expansion phase up to 200,000 tons of copper per year. At Wasa, Qifeng announced a strategic investment agreement with a subsidiary of Zijin Mining. Zijin Gold will invest approximately $1.2 billion of new capital and take operating control. Approximately half of this amount is earmarked for investment in Qifeng's overseas operations, including Wasa. Projects at Wasa identified for investment include infill drilling, expansion and upgrade of the existing processing plant, and further development outside Wasa mine, including construction of a decline at the Father Brown deposit, open pit development of Benso, and a new processing plant in the southern area. All of these are covered in by our stream agreement. Zijin is one of the world's largest mining companies, and we think this investment agreement is a positive development for the future of Wausau. At Platte Reef, Ivanhoe reported continued progress towards expanded production, with Shaft 3 construction completed on schedule and the Phase 2 concentrator on track for completion at the end of the year. We expect to see our first revenue from Platte Reef in the current quarter. At Hod Madden, SSR reported on Tuesday that the strategic review of its Hod Madden joint venture ownership is continuing, and it intends to incur minimal capital costs at the project while that review is ongoing. We will continue to fund our 30% of project costs through this period, but we expect these to be relatively low and not significant compared to our expected cash flow. And finally, with respect to development projects, Solaris received technical approval of the Warranty EIA in April and is targeting receipt of full permits by the end of 2026. and a final investment decision in 2027. I'll now turn the call over to Paul. Thanks, Martin.

I'll turn to slide seven and give an overview of the financial results for the quarter. For the discussion of slides seven and eight, I'll be comparing the quarter end in March 31, 2026 to the prior year quarter. Revenue for the quarter was up strongly by 143% to $469 million, which is a new record. The strong increase was driven by higher volumes from some of our largest legacy interests, new contributions from our latest portfolio additions, and increased metal prices. Metal price increases were significant, with gold up 70%, silver up 165%, and copper up 38% over the prior year. Gold remains our dominant revenue driver, but given the significantly higher increase in the silver price during the quarter, The split of our gold revenue decreased to 71% and silver rose to 16% as compared to the prior year contributions of 75% and 12% respectively. Copper revenue was approximately 10% and in line with the last year. Turning to slide 8, I'll provide more detail on certain financial line items for the quarter. G&A expense was $17.5 million, which is approximately $6.5 million higher than the prior year. The higher expenses period was mostly due to higher corporate costs. These corporate costs included employee-related costs, legal, audit, and other minor costs that were attributable to the 2025 transactions, but with the service or expense recognized in the first quarter. We expect that first quarter G&A costs, which includes non-cash compensation expense, will be the highest for the year, and our total G&A expense for the year will finish near the high end of the $50 to $60 million range we provided on our last call. Our DD&A expense increased to $91 million from $33 million in the prior year. On a unit basis, this expense was $944 per GEO for the quarter compared to $488 per GEO last year. The overall expense is in line with our guidance and is mainly driven by the higher carrying values of the Kansanshi Gold Stream and the Sandstorm Horizon interest we acquired in 2025. These increases were partially offset by lower gold sales and depletion rates at Mount Milligan. We recognize the $14 million gain on the sale of marketable securities during the quarter, most of which was due to the sale of the Highlander silver shares that Bill mentioned in his remarks. We have made substantial progress on divesting the equity positions we inherited from Sandstorm, and most of the remaining position is the block of Entrez resources. As we said during our investor day, we don't see this position as a core investment, but it may have some strategic value and we are happy to hold it until there is more clarity on what may happen at Oyutogoy between the government of Mongolia, Rio Tinto, and Entrez. Interest and other expenses increased to $13.2 million from $1.2 million, primarily due to high average amounts outstanding on the revolving credit facility in the current quarter. Tax expense for the quarter was $25 million, resulting in an effective tax rate of 8%, compared to a tax expense of $10 million in the prior year. We recognized a $33.7 million discrete benefit during the quarter, and excluding this benefit, our effective tax rate was approximately 19.5%. We continue to expect our effective tax rate for the full year will range between 17% and 22%. Net income for the quarter was $281 million, or $3.30 per share, which compares to $113 million, or $1.72 per share, in the prior year. The increase in net income was largely due to higher revenue and gains from the sale of marketable securities, offset by the higher cost of sales, DD&A, interest, and income tax expense. After adjusting for the fair value changes in equity securities, the gain on sale of equity securities and the discrete tax benefit, Adjusted net income was a record $233 million, or $2.72 per share. Finally, our operating cash flow this quarter was a record $294 million, up significantly from $136 million in the prior year. The increase was primarily due to higher stream and royalty revenue offset by higher income tax payments, cash G&A costs, and interest payments. In summary, it was a very strong financial quarter that reflects a significant increase in the scale of our business. On that note, and recognizing the challenge of accurately estimating the quarterly performance of our larger portfolio, we will make a change to our disclosure heading into quarterly results. Starting with the next quarter and sometime during the third full week after each quarter end, we expect to issue a press release that will provide more detail on notable financial items, including revenue estimates from both our stream and royalty segments. We hope this provides further transparency to the market in the weeks leading up to the release of our full quarterly results. I will end on slide nine and summarize our financial position. We have quickly rebuilt our liquidity. At the end of March, we had total available liquidity of $1.1 billion between the available amounts on the revolver and $295 million of working capital. After quarter end, we continued our focus on debt servicing. In April, we made a $75 million repayment, and we intend to make an additional $100 million repayment next week. Upon next week's payment, we will have $425 million outstanding and $975 million available under the credit facility. As I said during our investor day, we expect to fully repay the outstanding balance by sometime in the fourth quarter, based on current metal prices and absent further significant acquisitions. With respect to financial commitments, at the end of March, we had $100 million of funding outstanding for the warrants acquisition. We made a $50 million payment in April upon technical approval of the EIA agreement. and expect to fund the remaining $50 million on the anniversary of the transaction closing date in May, subject to the satisfaction of outstanding conditions. The only other financial commitment is the funding of our share of any Hod Madden project cost during the year in order to maintain our 30% ownership interest. That concludes my comments on our financial performance for the quarter, and I'll now turn the call back to Bill for closing comments.

Thanks, Paul. I wanted to close with a brief overview of our thoughts on our post-acquisition progress changes in our business development environment, and capital allocation. At our investor day in March, we attempted to provide the market with both a sense for the scale, cash flow generating ability of our expanded company, as well as the diversification and growth prospects of the company. In the first quarter, we achieved record revenue, earnings, and cash flow, and no one asset contributed more than 12.5% of total revenue. While it is only one quarter of results, I think we're off to a good start. We are encouraged by events in our sector's investment opportunities. Larger scale investments like Consanche, as well as the opening of new potential markets like Australia, bode well for our business. Our reestablished accordion feature under our revolving credit facility positions us well to take advantage of attractive opportunities. And while we are now in the 25th year of paying a higher dividend to our shareholders, we have added another capital allocation tool in our share repurchase program that allows us to act opportunistically in the event we see a valuation dislocation in our share price. Finally, at our investor day, we spoke of an investment in Royal Gold as being one through all cycles. And I believe this is a time for our sector to be of interest to investors. We are not directly exposed to the price of diesel, to tariffs, or to inflation in general. The flight to the shares of operating companies in a rising gold price environment within the last year always came with a downside risk of compressing margins, and the operators may start seeing margin compression in the coming quarters with higher energy costs. I hope our stable cost structure against the backdrop of gold price volatility highlights the strength of our business model and attractiveness as a gold investment. Operator, that concludes our prepared remarks. I'll now open the line for questions.

We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask you pick up your handset when asking a question to allow for optimum sound quality, and if muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Our first question comes from Larry Liu with CIBC. Your line is open. Please go ahead.

Hi, Bill, Paul, Martin, Alistair, and team for taking my question. I guess my first question I'll start out by asking about the guidance. I noticed within the press release, you know, you compared 2026 Q1 results to the full-year guidance, but there was no really mentioning of the five-year or the long-term guidance. Is that considered as a reiteration, or how should we look at it?

Yeah, Larry, thanks for the question. And updating for the annual guidance is something we've done for a number of years and will continue to do throughout this fiscal year. When we gave the five-year guidance at our investor day, the one thing that we were very clear about was that we were giving it on that day, but we would not be updating it. uh through the year or really at any point and the next time uh that we're going to talk about a longer term guidance number it will be when we give five-year guidance for 2031 at some point uh next year so the the fact that we didn't mention the 2030 guidance was uh was on purpose it was intentional and it just reflects our view that we're not going to update those figures yeah no for sure bill that makes sense and i think it leads well

To my next question, I know within your guidance you mentioned that the deferred silver ounces potentially at Pueblo Viejo is not included within your guidance. So can you remind us, kind of a three-part question here, what's the outstanding balance at this point and what are some of the criteria that under the agreement that needs to be hit before these deliveries will contribute to roll gold?

Yeah, I mean, the criteria is recovery. And what we need is for recovery, I think the number is like 52.5%. Recovery has to go above 52.5% for us to start clawing back some of those deferred ounces. As you may have seen in the technical report from PV, they're not expecting that for a number of years. And to just go on tabulating the figure from quarter to quarter, When we, right now, there's no expectation that we're going to see at any time in the near term. It just wasn't deemed to be, if you will, material. Now, if that turns around and the recovery goes up and we get some deferred ounces back, we'll update the market on the balance. But at this point, we're just going to let that number sort of sit there and grow over time. There just doesn't seem any need to be talking about it.

Yeah, no, for sure. Sounds good. I guess moving on to another asset. I know your commentary mentioned earlier that's considered one of the financial commitments so outstanding at this point, but I realize from your financial statements, there has been a cash call under the equity investment of 14.7 or 15 million this quarter. What kind of additional commitments do you have outstanding for the remainder of the year, and how should we look at it from a model perspective that way?

Well, maybe what I'll do is I'll turn it over to Paul to sort of take you through the accounting first, and then maybe I'll come back and talk about expectations. Paul, is that okay?

Yeah, sure. Thanks, Larry, for the question. Yeah, you know, high level, you're right. The accounting for that Hodman joint venture is done under the equity method. items with this Hod Madden accounting each quarter. And the first is kind of what you already pointed out is the cash call for our portion of the ongoing development costs at Hod Madden. And you're right. This quarter, we had a $14 million cash call. And so the equity method investment on our balance sheet would increase by that amount. And then the offset then obviously is the cash. And that cash for your benefit goes through the investing activities on the statement of cash flow. The second piece to the accounting each quarter is our 30 percent pickup of any losses in our equity investment in Artman. And this quarter, Artman, I believe, had losses. Our portion of losses was approximately it was just over a million dollars. I think it was one point three million dollars. And that does go through our P&L each quarter. So this quarter, $1.3 million went through the non-operating income section of our income statement. And I believe it was in interest and other expense. And then the offset to that is a decrease to that equity investment that I mentioned on our balance sheet. So if you are interested in some further light reading, I know our 10Q and K go and give a little bit more information on that. But that's really the high level for the accounting.

James Meeker, Thanks Paul and then you know just for the question of what what the number might be, I would say, give us a little time, as you know, as far as announced that they're they're trying to rationalize the investment the spending is not going to be that high. James Meeker, In the immediate term well well you know the partners, try to figure out the way the way forward there, I think they announced the the strategic review in early March, so you would have had a couple months. where there was really an effort to, SSR was sort of engaged in bringing this thing forward. And now I think things are just a little bit quieter. So once this gets rationalized, I think we'll be able to give you a better sense for what the spending is going to be this year.

Perfect. Sounds good, Bill. I'm glad I have my CPA so I understand everything that Paul just mentioned earlier. I promise I have one last question. It's not as technical. It's more focused on the revolving credit facility. I know, as you mentioned earlier as well, it increased by about $600 million this quarter. And just drawing historical records as well, the last time you increased it, it was right before you did the Kansanshi Stream, as well as the Sandstorm Gold and Horizon Copper acquisition. What is the kind of read-through here? And you've done billion-dollar deals in the past. Is that time to see more billion-dollar deals coming from Royal Gold again?

Yeah, I wouldn't read through anything. I know we established, we had the accordion, and then we actually exercised it in very short order. But I wouldn't read anything into it. I think it's just a reflection. And you've seen some large transactions in our sector. There seem to be more of them, more opportunities. And we love the revolving credit. We think our business is great in terms of being able to service that. It's non-dilutive. And we just want to be ready. As I've said before, even though gold's come off, it's still at a level where every GEO you buy is probably more expensive than it was five years ago. So it's just being prepared. That's the only read-through I'd ask you to take from it.

Yeah, for sure. And thanks again, Bill, Paul, Martin, and Alistair and team for taking my questions today. Thank you. Thank you.

Our next question comes from Daniel Major with UBS. Your line is open. Please go ahead.

Hi. Yeah, thanks. Thanks so much for the questions. The first question is on the buyback option and how we should think about that relative to the balance sheet. Is there a kind of level of net cash or or net debt that we should be thinking about that increases the probability of buybacks? And is the emphasis of the buyback to ultimately kind of normalize the share count from the Sandstorm deal?

No, it's not to try to normalize the share count relative to the Sandstorm deal. And I wouldn't take it as, you know, sort of a net cash You know, if we've got excess liquidity, that's something we're going to turn to. This is about what we see as a value dislocation. And really, I'll take you back to November, December of last year, where I think the view amongst everybody on our management team was we just shouldn't be trading at these levels. We are very undervalued. And I quite frankly wish we'd had the program in place back then. And this is kind of a reaction to that. where if from a valuation multiple perspective, and that's where it starts, we think there is a dislocation. We may very well use the program. But at the same time, you have to understand we have other priorities as well that we have to balance with that. Number one, we still have debt outstanding. We'd love to pay off the debt. That may remain a priority. And again, to the extent the business development pipeline looks healthy, we may want to retain that liquidity. We're not looking at it going, okay, for this valuation multiple, we're automatically going to go out and use the buyback program. It's a balance of priorities, and it's what we would view as a real dislocation in value.

Okay. So it's sort of an option in the capital allocation sort of tool chest. Yeah. Just second question, just a sort of specific one. When would you expect to make the second payment of, I think it's 11.1,000 ounces or be, sorry, receive the second payment from the Mount Milligan cost support program? Where would that fall?

That's a good question. I can't answer it. Dan, do you recall when we expect Greenstone to hit the next target? Is it later this year?

Yeah, Bill. Hi, Daniel. Thanks for the question. And we were just looking at the results from Equinox overnight. And based on what we're seeing from their production and guidance, it looks like it'll be sometime in Q3 of this year.

Okay. Perfect. Thank you. That's useful. And then just last question, the general one on the pipeline and what you're seeing in terms of potential opportunities. I would have seen some consolidation in precious metal pricing, but as you say, still at a good level. Any high-level insights on what you're seeing in the pipeline?

Dan Brees, I might have you keep going and cover that subject.

Yeah, happy to, Bill. Look, I think, Daniel, we certainly like what we see in the pipeline right now. And I think as we look at the market, the volatility, um you know the geopolitical risk uh that we're seeing across the board right now it doesn't seem to be slowing interest from from counterparties to consider deals at least currently and obviously we've seen a number of deals already this year so it looks pretty good to us and very much like previous quarters i think the deals that we've seen announced this year are kind of like what we see in the pipeline right now so those arbitrage opportunities the base metal producers looking to sell into a good market with the non-core precious metals that they hold. I think there's more interest now, given the Antamina Wheaton deal that we saw. I think that's stimulated interest from base level companies to consider monetizing those byproducts. And certainly in our deal flow last year, we saw that from First Quantum and Solaris over their assets that we were able to stream as well. So we like that. The third-party royalty market looks pretty healthy as well. And then new project development, all of it looks pretty good. And again, we're still in that $3 million, $4 million size. I think that's still a good range to think about for deals.

Great. Thanks a lot. Thanks for the questions.

Our next question comes from Tanya Jakuskinek with Scotiabank. Your line is open. Please go ahead.

Oh, great. Good morning, everybody. Thank you for taking my question. Paul, I'm not an accountant, so I'm going to start with that. I just want to simplistically understand how I should be thinking of it. So there's really two components to this Hob-Madden that I need to understand. One is something that will go through the income statement, which seems to be something in the $1.5 million expense per quarter. And then there's the second component, which is the capital calls that go through the cash flow. And that depends on the capital outlay that's required from the joint venture and your 30% interest. Is that how I should think of it?

That's correct, Tanya. Yeah, thanks for the question. And I'm happy to give you a bit more color there, too, on the pickup of the losses in the joint venture, the 30% pickup. I'll just tell you that over the average over the last four or five quarters, those losses have ranged really between about $600,000 and $700,000. So if that's also another guide for you, yeah, this quarter was $1.3 million. But if you factor even that in, I'd say over the last four or five quarters, it's been $600,000 to $700,000. And you're correct. That does go through the P&L. And that will show up in the non-operating section. And I believe we include it within interest and other expense.

Okay. And then whatever the cash flow is, you know, if it's $50 million a month, then your 30% of that will go through the cash flow statement statement.

Correct, as an investing activity, so not operating cash flow. And then the offset to that is the increase of that equity investment on the balance sheet.

Yeah, okay. All right, that's clear. Thank you for that. And we will wait. I think the guidance had been about $15 million a month. Is that what you're thinking within your projections until otherwise noticed?

Yeah, Teddy, I don't even know if it'll be that. Again, as I, my response to the other question, just give us a bit of time to sort out the strategic review by SSR.

And, okay. All right, so then my second question, I don't know who wants to take this one, but I think, maybe Paul again, you were mentioned. that we are going to, I think, second or third week after the quarter, I forget what you mentioned, we will be getting some additional information ahead of the full financial. You mentioned revenue. Did I hear streams both from the royalties and streams themselves broken up in GEOs? Is that what we're going to get? didn't understand what exactly we're getting.

Terry, yeah. So you may recall that we previously had provided the metal stream cells released shortly after the quarter end. So really, you're going to get a bolt on to that. So it'll include the stream sales information, but we'll also provide a dollar range of the royalty segment as well. As you may appreciate, you know, we do have to estimate some of these. And so this release will hopefully tie all this together for you from both segments standpoint.

Okay. So GEOs from the stream and then the royalty segment.

Correct.

Okay. Got it. And with that, I know we had initially spoken about 48-52, first half, second half performance. But, you know, I think guidance had been originally that we were supposed to have a Q1 similar to Q4, which had been about 91,000 geos, and you came in at 97. Should I be thinking that we're probably more equal for the next three quarters?

Paul, you want to take that one?

Yeah, I think as of right now, yeah, I think it's still that 4852 I think is still what we're guiding to. Yeah, we did have a few royalties this quarter in streams that had better than expected production, but I think you can expect the 4852 for the rest of the year and maintaining that guidance that we provided earlier as well.

Okay. If someone wants to take on the share buyback, and maybe, Bill, this is for you, if I could, and then someone to take my final question on the transaction environment. But just on the buyback, you've mentioned a few times where you see a valuation disconnect with the market. When you think of a valuation disconnect, are you looking at it let's say, your NAV versus, you know, where you see your NAV versus where the share price is trading? Like, what valuation metrics are you using to see that or clarifying that discount?

Yeah, I think you're going down the right road. It starts with PNAV and price to cash flow and looking at others in our sector. That, I think, is where the analysis starts. But again, as I mentioned, that's not an automatic trigger to either do something or not do something. There are other priorities that we've got to manage in that process. But it's definitely valuation multiples where we will start the analysis.

Okay. So, you know, I'm saying that because I, you know, I'm trying to understand whether, you know, your price NAV or price to cash flow is a certain spread versus and that's where you look at it and say, okay, does it connect? If we have the cash flow, if we have the cash, let's buy back shares.

Yeah, that's where it starts. But it's also, do we have debt to pay down? Do we have new investments we want? For sure. Yeah.

For sure. If we have the cash, all else being equal.

Yeah.

Okay. Thank you for that. And then just my last question, and you gave us a little bit of a flavor for what's being out there. $300 to $400 million range is what you were looking at. Maybe someone can confirm that, I heard. I'm just trying to understand, you know, a couple of others have said there's a couple of very large deals still out there, potential syndication. Would that be something that you would consider, syndicated deals as well?

James Rattling Leafs. yeah I mean i'll answer the syndication part of the question sure love to syndicate. James Rattling Leafs. would love to be part of it would love to read it, but the thing I just caution people is, if you want a transaction you want a transaction for a reason. James Rattling Leafs. Which means that maybe your structure is different than everybody else's maybe your pricing is more competitive than everybody else's so you'd have to find somebody else willing to do the transaction that they potentially lost to. Um, and you know, so it's not something that we syndicate ahead of time. You have to close the deal and then, and then syndicate it, but we're totally open to the concept. Um, you know, that just, that makes the whole diversification side of what we were talking about at the investor day, uh, even, even better. So that that's the syndication side. Um, Dan Brees, is there anything else you want to add on the market in general?

Yeah, Tonya, I would just say, and I did mention 300 to 400, and, you know, there's always a range in there, you know, even up to 500, let's say, in that range. But the third-party royalties that we see in the pipeline, they tend to be smaller, as you know, sort of, you know, $100 million plus or minus type sizes. But I think the range we always give you, Tonya, it still holds.

Okay. And, Dan, are you seeing more silver opportunities

Yeah, I think the answer, Tonya, is very similar to what I shared with you in Zurich last month at the mining forum, which is we're kind of seeing a bit of everything right now. It is silver. Maybe it's a bit more silver than we've seen, say, a year ago. But it's still a mix of silver and gold across the board and producing assets and development assets and whatnot. So it's really hard to say that there's one type of opportunity that's kind of outweighing the rest. It's pretty broad, at least from our pipeline's perspective.

Okay. No, thank you very much for that, and thank you for the color on some of these things. And, Paul, thank you for having patience with my non-accounting background.

No problem, Tanya. Always happy to talk.

Our next question comes from Derek Ma with TD Cowan. Your line is open. Please go ahead.

Thanks. And I want to thank the team in advance for the feature disclosure on preliminary numbers for royalties and streams. I think that's going to be quite helpful for the investment community. In terms of SSR and HODMAP, are there opportunities to work collaboratively there to achieve your own stated goals of disposing or converting your 30% interest? And are you having those type of conversations right now?

When you say collaboratively, any rationalization of our ownership was going to involve the partners, one way or the other. You were either going to sell to them or you were going to sell to a third party, but with their consent, effectively. That's always been the approach. As I said in the investor day, I think SSR's strategic review complicates what we're trying to do here. It's not a step that we envisioned when we set that goal. It's still our goal, but it's only going to be done with the partners, working with the partners.

What can investors expect in terms of timing and then ultimate outcome, I guess, from the situation then?

I think you're going to see it. You're going to see an answer in the near term. I don't want to put months on that, but I think you're going to because something's going to happen. I think relatively relatively soon. You know, because again, SSR, I think SSR actually put a time frame on it over the next few months, so I would. I would sort of stick with that. This is not going to be a long drawn out. I don't think a long drawn out process.

And a complete disposal, or do you think partial conversion is still possible here?

Don't know.

Don't know. Yep. And then just finally on the share repurchase program, I know we touched on it a lot already, but it sounds like the plan is to self administer the program and not have it automated via broker.

Is that correct? Well, it's not going to be automated in the sense that, you know, we pick a price and fill it. I mean, we've got to we've got to figure out how We're going to implement it because we do want we do want discretion as to when if and when the program gets gets utilized, so I don't imagine giving you know, a bank. You know, six months and a price and just exercise if it hits that price that there's going to be more to it than that.

Okay, thank you. Thank you.

Our next question comes from Josh Wolfson with RBC Capital Markets. Your line is open. Please go ahead.

Thank you very much. I figured it would only be appropriate if I also asked on the buyback as I've done historically. So, I mean, we've seen a lot of volatility historically with shares. And in some of those prior calls, there has been justification to not proceed with the buyback just due to the stock trading at a premium level. I'm wondering, you know, what's changed or how's the company looking at things or potential scenarios that could justify this now being something that's pursued versus historical comments?

Well, again, Josh, I think I go back to, again, I'll take you back to November, December. You know, I think we were trading at a PNAD less than 1.4 times for a little while. what we have to do is say, okay, if you can buy back your shares at 1.4 times and investments in the sector are being priced at 1.7 times, we should know our assets better than anything new we're going to add to the portfolio. So is that a better, if we're going to use capital, is that a better use of capital? The buyback really came from that period of time when I just sat there and said, I kind of wish we had the buyback because now is the time to buy shares. We also saw it TAB, Mark McIntyre, You're almost 10 years ago. TAB, Mark McIntyre, When Thompson creek was having financial difficulties and people weren't sure about building a stream was going to survive, we felt very comfortable that it was. TAB, Mark McIntyre, But there was a very significant value disconnect and again at that time, if we had had a program I think we probably would have done something under that Program.

TAB, Mark McIntyre, Okay. And then maybe getting into some of the asset specifics, Cortez had a pretty good quarter. I know there's not a lot of visibility on the asset, you know, quarter to quarter, and there is because the differences in percentages, you know, what Barrick reports versus what you report can vary. I'm just wondering if the company can provide a bit more understanding of Q1 and then if it's available, you know, what the expectation is over the course of the year.

Justin Delacruz- I just i'm going to turn that to Martin i'll just caution you know I think Eric usually comes out before us, which makes it a little bit easier for us to talk about the assets. Justin Delacruz- So i'm not sure what we can share but Martin, is there any comment, you can make about what we thought cortez in the first quarter.

I think I would say, Bill, that we should just wait for Barrick to come out on Monday. I wouldn't like to front run anything that they're going to say at this stage.

Got it. All right. And then just on ComiCow, some of the challenges in the first quarter and then kind of looking at the impact of Zone 5N and understanding the differences there. you know, how should we be thinking about how the proportion of that zone, you know, is processed and what the outlook is for Royal in that context?

Martin, you want to take a shot at that?

Yeah, so, yeah, look, they've, I mean, they had some issues last year as they switched over their mining contract to Moving to the Chinese contractor, I think anytime that you've got a big contractor change at an underground mine, it's going to have an impact. They do seem to have been stabilizing fairly well as we move towards the end of last year and move through this year. Obviously, their focus at the moment is on building the expansion, building the new processing plant, finishing the design for that and getting into construction. building an underground backfill plant so that they can start backfilling, reduce the amount of pillars that they leave behind, improve the recovery of the resource. So that seems to be going pretty well at the moment. But as to Zone 5 North and Mango and the other pieces of the puzzle put together, you know, that's still in development at the moment. So we will The new plant is going to process mainly Zone 5 material, and we have a good, strong understanding that that's going to improve our throughput and our silver recovery.

Okay. And maybe just to clarify for Zone 5 North specifically, has the mining from that area been accelerated versus what the prior plan was? The text, maybe I'm misinterpreting things.

They haven't started mining Zone 5 North yet, Josh. They're mining Zone 5 Main with the three declines. Zone 5 North Mango and the others are part of the expansion that they're going to be starting to develop over the year.

Great. Thank you.

Our final question comes from Brian MacArthur with Raymond James. Your line is open. Please go ahead.

Oh, good morning. Sorry, most of my questions have been answered, but I know this is difficult. But just following up on Josh's asset, Antamina had $13 million this quarter. You commented about grade. But just ballpark, I realize NPIs are difficult. Is that a reasonable number going forward at these commodity prices, or was there capital allocation or something that made that number different than what you might think it would be going forward? I mean, it's the first quarter we've really got to look at this.

Yeah, I'll offer you one thing real quick. And I think $13 million was more than the annual revenue received in certain years in the past. So I agree with you, NPIs are impossible to estimate. Martin, is there anything you would say that makes the first quarter unique or a signal of things to come?

No, I mean, it was essentially low deductions and it was high prices. So we can't really project what is to come. We're not changing our outlook in terms of what we expect for the year. But, yeah, it's capital allocation and deductions, and we have almost no visibility into that, Brian.

Fair enough. And just a second question while I have you. One asset that's sitting around that's been there for years, But obviously, we're a higher price environment. Is anything happening? I don't know if I can remember how to say it. At La Vita, the Euromax asset in New Macedonia, because that has the potential to be a decent size going forward, too.

Yeah, Brian, I don't think there's anything to report there. The last we really looked into it, I think they were still working on consolidating mining licenses and just You know, the government changed 10 years ago, and it's been an uphill battle for them. So I don't have anything to update you on.

Perfect. Thank you.

We have reached the end of the Q&A session. I will now turn the call back to Bill Heisenbuttel for closing remarks.

Well, thank you very much for taking the time to join us today. We certainly appreciate your interest and we look forward to updating you on our progress during our next quarterly call. Take care.

This concludes today's call. Thank you for attending. You may now disconnect.