Royal Gold Inc (NASDAQ: RGLD)

Royal Gold acquires and manages precious metal streams royalties and similar interests.

The company does not conduct mining operations on the properties where it holds these interests and is generally not required to contribute to capital costs environmental costs or other operating costs.

Royal Gold focuses on acquiring existing stream and royalty interests or financing projects that are in production development or exploration in exchange for stream or royalty interests.

Its core activity is to generate cash flow from the production of metals without bearing the operational risks of mining.

Royal Gold generates revenue by holding stream and royalty interests that entitle it to receive a portion of metal produced from mines operated by third parties.

Under a stream agreement the company makes an upfront deposit and then purchases metal at a predetermined price for the life of the contract.

Under a royalty agreement the company receives a percentage of gross revenue or net smelter return after specified costs are deducted.

The metals received primarily gold silver and copper are sold to refiners traders and other market participants.

This business model provides revenue that is linked to metal prices and production volumes while limiting the company's exposure to operating expenses.

The company operates through the following segments: Acquisition and Management of Stream Interests and Acquisition and Management of Royalty Interests.

• Acquisition and Management of Stream Interests: this segment involves acquiring stream agreements that give Royal Gold the right to purchase a portion of metal production at a predetermined price for the life of the agreement. Stream interests accounted for approximately sixty seven percent of total revenue in 2025 and 2024 and are expected to remain a significant contributor to earnings.

• Acquisition and Management of Royalty Interests: this segment involves acquiring royalty interests that provide Royal Gold a share of revenue from mining operations after deducting specified costs such as transportation insurance refining and smelting expenses. Royalty interests represented about thirty three percent of total revenue in 2025 and 2024 and continue to provide a stable stream of income.

Royal Gold is recognized as a leading participant in the stream and royalty market alongside peers such as Franco Nevada Wheaton Precious Metals and Sandstorm Gold.

The company competes with other stream and royalty firms mine operators and financial investors for the acquisition of existing interests and the financing of new projects.

Competitive advantages include a strong track record of identifying and evaluating opportunities disciplined transaction structuring and reliable access to capital through credit facilities and equity markets.

These factors enable Royal Gold to grow its portfolio while maintaining a low cost structure relative to traditional mining operators.

Royal Gold's customers consist primarily of mining companies that operate the properties underlying its streams and royalties.

These operators produce the metals that Royal Gold receives under its agreements and then sells the metal to refiners traders and institutional investors.

While the filing does not disclose specific customer names the company's interests span a diverse set of mines across North America South and Central America EMEA and Australia Pacific.

This geographic and commodity diversity helps reduce reliance on any single operator or region.