Royal Gold, Inc.

Hello, everyone. Thank you for joining us and welcome to the Royal Gold, Inc. 2026 Second Quarter Conference Call. After today's prepared remarks, we will host a question and answer session. 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, please go ahead.

Thank you, Operator. Good morning and welcome to our discussion of Royal Gold's second 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 Heissenbuttel, President and CEO of Paul Libner, Senior Vice President and CFO, and Martin Raffield, 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 GAAP measures are available in yesterday's press release, which can be found at our website. Bill will start with an overview of the second 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. This is our second complete quarter of consolidated financial results after significantly growing our business in 2025. And our strong first half of 2026 clearly demonstrates material change in the scale of our portfolio. Revenue for the quarter was $451 million. Operating cash flow was a record $335 million. and earnings were $236 million. These were increases of 115%, 119% and 79% respectively over the same period last year. Our diversified portfolio produced revenue from a variety of properties with no one asset contributing more than 13% of revenue and only two assets generating more than 10% of revenue. Reducing asset concentration risk was a key driver for our acquisitions in 2025, and we are pleased to see this reflected in our portfolio, which is now one of the most diversified in the sector. After adjustments, net income was $218 million, or $2.56 per share, a 41% increase over last year. We remain a gold-focused business, and gold contributed 76% of total revenue for the quarter. 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 annual rate of $1.90 per share, 6% higher than last year. We repaid $200 million on the revolver during the quarter, and we ended the quarter with total available liquidity of $1.2 billion. and we're active on our share buyback program and repurchased and canceled 147,000 shares for a total cost of $30 million. As we discussed on our last quarterly call, we put the share buyback program in place as an additional capital allocation tool to be used with discretion. We have multiple priorities for capital deployment and our decision making considers the business development pipeline, the balance sheet, our regular dividend and our equity valuation. During the quarter, we balanced the agreed further investment at Warrensa, paid $40 million in dividends, bought back shares, and made a meaningful reduction in debt, the latter of which preserves liquidity. Changes in market conditions and our outlook mean we must be flexible as we balance all opportunities for the accretive deployment of capital over the long term. In the second quarter, we thought the market did not reflect what we see as the value of our company, and we are active on the share buyback alongside our other priorities. And any further activity will be based on the short and long-term priorities of the company and not just valuation. During the quarter, we also made further progress on simplifying the Sandstorm portfolio. We announced the restructuring of our ownership in the Hod-Modden joint venture. And after quarter end, we reduced our equity interest from 30% to 15% in return for additional royalty interest. Badman is a high-grade and high-margin project, and we are pleased to preserve the value of our position while bringing our overall interest more in line with our core royalty and streaming business. While the residual equity interest is not the ideal investment structure for our portfolio, the smaller interest materially reduces our exposure to operating and capital cost risks, and we may still look for opportunities to reduce this interest in the future. We also worked with America's Gold and Silver to settle fixed delivery obligations related to the relief canyon mine. This was a complicated arrangement that was cumbersome to manage, and it eliminates a distraction for both sides without impacting our royalty or stream interests at the leaf canyon. With these transactions, we have significantly simplified aspects of the Sandstorm portfolio that were difficult for investors to understand. Over the past few months, we have streamlined the Horizon structure, divested non-core equity positions, restructured the Bear Creek investments, settled the Relief Canyon obligations, and made progress on restructuring the direct equity interest in Hodmoden. These steps were a strategic priority for us when we announced the Sandstorm and Horizon transaction, and I am pleased with how quickly we have been able to show progress. I'll now turn the call over to Martin to discuss portfolio performance in the quarter.