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 Royal Gold Reports a 38% Increase in Fourth Quarter Earnings and Record Annual Revenue
   Wednesday, August 10, 2016 4:45:00 PM ET

Royal Gold, Inc. (RGLD ) (together with its subsidiaries, "Royal Gold" or the "Company," "we" or "our") reports net income attributable to stockholders ("net income") of $20.4 million, or $0.32 per share, on revenue of $94.1 million in its fiscal fourth quarter ended June 30, 2016 ("fourth quarter"). Earnings increased 38% compared to the prior year quarter net income of $14.8 million, or $0.23 per share, on revenue of $73.6 million. The average gold price was $1,259 per ounce, up 6% from the prior year quarter.

Fourth Fiscal Quarter 2016 Highlights Compared to the Prior Year Quarter:

-- Volume of 74,700 Gold Equivalent Ounces ("GEOs(1)"), an increase of 21%



-- Revenue of $94.1 million, an increase of 28%

-- Reported earnings per share of $0.32, an increase of 38%

-- Operating cash flow of $49.2 million, an increase of 12%

-- Dividends paid of $15 million, an increase of 5%

Fiscal 2016 Highlights Compared to Fiscal 2015:

-- Record volume of 308,000 GEOs(2), an increase of 36%

-- Record revenue of $359.8 million, an increase of 29%

-- Record dividends paid of $58.7 million, an increase of 5%

For the fiscal year ended June 30, 2016 ("fiscal 2016"), Royal Gold reports record revenue of $359.8 million, a 29% increase over $278.0 million in fiscal 2015. Fiscal 2016 earnings were impacted by impairments reported in the March 2016 quarter and discrete tax expenses reported in the September 2015 quarter resulting in a net loss attributable to stockholders of $77.1 million, or ($1.18) per share, compared to fiscal 2015 net income of $52.0 million, or $0.80 per share. Absent the adjustments for impairments and the discrete tax expenses, fiscal 2016 adjusted net income(3)would have been $65.0 million, or $1.00 per share. The average gold price was $1,168 in fiscal 2016, down 5% from fiscal 2015.

"We made great progress in fiscal 2016 by enhancing our portfolio with four large transactions resulting in immediate contributions to our operating results from four new mines, including Pueblo Viejo, Andacollo, Wassa and Prestea," commented Tony Jensen, President and CEO. "And fiscal 2017 is starting off strong with Centerra Gold’s agreement to acquire Thompson Creek Metals. In this new fiscal year, we look forward to a financially stronger Mount Milligan, construction progress at Rainy River and the Wassa and Prestea underground mines, and ongoing development at Cortez Crossroads to further grow and diversify our portfolio."

Recent Developments

Mount Milligan Commitment Letter

On July 5, 2016, we signed a binding commitment letter with Centerra Gold Inc. ("Centerra") describing key terms of a future amendment to the Company’s streaming interest at the Mount Milligan mine owned by Terrane Metals Corp. ("Terrane"), a subsidiary of Thompson Creek Metals Company Inc. ("Thompson Creek"). Centerra entered into a definitive arrangement agreement to acquire Thompson Creek and, in connection with closing that acquisition, will redeem all of Thompson Creek’s secured and unsecured notes.

Under the commitment letter, our 52.25% gold streaming interest at Mount Milligan will be amended to a 35% gold stream and we will obtain an 18.75% copper stream. We will continue to pay $435 per ounce of gold delivered and will pay 15% of the spot price per metric tonne of copper delivered. The amendment is conditioned upon closing of Centerra’s acquisition of Thompson Creek. Royal Gold estimates this amendment to be value neutral on a discounted cash flow basis, and expects about two-thirds of its future net revenue from Mount Milligan will be gold related and one-third copper related over the next ten years. After transition to the amended stream, Royal Gold expects that approximately 85% of our total net revenue will come from precious metals and 15% from base metals.(4)

Centerra’s proposed acquisition of Thompson Creek is subject to court and applicable regulatory approvals as well as approval of Thompson Creek shareholders, and is expected to close in the fall of calendar 2016. _________________________________

(1)   GEOs are calculated as revenue divided by the average gold price for
                         the same period. GEOs net of stream payments were 59,600 in the
                         fourth quarter compared to 53,300 in the year-ago quarter.
(2)                      GEOs net of stream payments were 247,300 for fiscal 2016, compared
                         to 199,800 net GEOs in fiscal 2015.
(3)                      Non-GAAP measure. See Schedule A for reconciliation.
(4)                      Based on current projections for the next five years from operators
                         where the Company has interests.
                          

Fiscal 2016 Overview

Fiscal year 2016 revenue of $359.8 million included stream revenue of $238.0 million and royalty revenue of $121.8 million. Stream segment gold purchases totaled approximately 216,600 ounces of gold and sales were approximately 202,000 ounces of gold. Stream segment silver purchases were 532,600 ounces and sales were 208,900 ounces of silver. The Company had approximately 19,800 ounces of gold and 323,700 ounces of silver in inventory at June 30, 2016, as previously announced, compared to 5,300 ounces of gold at June 30, 2015.

The increase in fiscal 2016 revenue, compared to the fiscal year ended June 30, 2015, resulted primarily from higher production at Mount Milligan and new production from our recently acquired streams at the Wassa, Prestea, Pueblo Viejo and Andacollo mines.

Fiscal 2016 cost of sales was $71.0 million, compared to $33.5 million in fiscal 2015. The increase is primarily attributable to higher volume from our streaming segment. Cost of sales is specific to our stream agreements and results from the Company’s purchase of gold and silver for cash payments at a set contractual price, or a percentage of the prevailing market price of gold or silver when purchased.

General and administrative expenses increased to $31.7 million in fiscal 2016 compared to $24.9 million in fiscal 2015. The increase was primarily due to non-cash, stock-based compensation of approximately $4.9 million, resulting from management’s change in estimate for the number of performance shares that are expected to vest.

Depreciation, depletion and amortization expense increased to $141.1 million in fiscal 2016, compared to $93.5 million in fiscal 2015. The increase was primarily attributable to the ramp-up in production at Mount Milligan ($11.4 million) and new production from the recently acquired streams at Pueblo Viejo ($21.9 million), Wassa and Prestea ($7.8 million), and Andacollo ($9.0 million).

Exploration costs, which are specific to our Peak Gold joint venture in Alaska, increased to $8.6 million in fiscal 2016, compared to $2.2 million in fiscal 2015.

We recognized a fiscal 2016 income tax expense of $60.7 million compared to $9.6 million in fiscal 2015. The increase is primarily related to the gain attributable to the Company’s Andacollo transactions, the liquidation of our Chilean subsidiary, and impairment charges.

At June 30, 2016, we had current assets of $164.8 million compared to current liabilities of $22.7 million. This compares to current assets of $797.0 million and current liabilities of $25.0 million at June 30, 2015. The decrease in our current assets was primarily attributable to a decrease in our cash and equivalents resulting from the stream acquisitions completed early in the fiscal year.

The Company repaid $25 million on its revolving credit facility during the fourth quarter and as of June 30, 2016, had $375 million available and $275 million outstanding under the facility. Working capital, combined with the Company’s undrawn revolving credit facility, totaled $517.1 million in liquidity at June 30, 2016.

PROPERTY HIGHLIGHTS

A summary of fiscal 2016 fourth quarter and historical production can be found on Tables 1 and 2. Calendar year production estimates versus actual production at certain producing properties can be found on Table 3. Results of our streaming business for the three months and fiscal year ended June 30, 2016 compared to the three months and fiscal year ended June 30, 2015, can be found on Table 4. Highlights at certain of the Company’s principal producing and development properties during fiscal 2016, compared to fiscal 2015, are detailed in our Form 10-K.

CORPORATE PROFILE

Royal Gold is a precious metals stream and royalty company engaged in the acquisition and management of precious metal streams, royalties and similar production based interests. The Company owns interests on 193 properties on six continents, including interests on 38 producing mines and 24 development stage projects. Royal Gold is publicly traded on the NASDAQ Global Select Market under the symbol "RGLD." The Company’s website is located at www.royalgold.com.

Note: Management’s conference call reviewing the fourth fiscal quarter results will be held Thursday, August 11, 2016 at 10:00 a.m. Mountain Daylight Time (noon Eastern Daylight Time) and will be available by calling (855) 209-8260 (U.S.), (855) 669-9657 (Canada) or (412) 542-4106 (international), conference title "Royal Gold." The call will be simultaneously broadcast on the Company’s website at www.royalgold.com under the "Presentations" section. A replay of this webcast will be available on the Company’s website approximately two hours after the call ends.

Cautionary "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: With the exception of historical matters, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein. Such forward-looking statements include statements about operators’ expectations about development; anticipated production and returns from our stream and royalty properties, including without limitation Centerra’s proposed acquisition of Thompson Creek Metals Company, Centerra’s financial strength as proposed owner of Mount Milligan, estimated percentages of precious and base metals expected from Mount Milligan and from the Company’s stream and royalty portfolio in the aggregate after the proposed Mount Milligan stream agreement becomes effective; construction progress at Rainy River and at Wassa and Prestea and development at Cortez Crossroads; operators’ production estimates for calendar year 2016 and statements about the opportunities for portfolio and investment growth and diversification and the Company’s ability to pursue such opportunities. Factors that could cause actual results to differ materially from the projections include, among others, precious metals, copper and nickel prices; performance of and production at the Company’s stream and royalty properties, including gold and copper production at Mount Milligan; the ability of operators of development properties to finance project construction to completion and bring projects into production as expected; operators’ delays in securing or inability to secure necessary governmental permits; decisions and activities of the operators of the Company’s stream and royalty properties; unanticipated grade, environmental, geological, seismic, metallurgical, processing, liquidity or other problems the operators of the mining properties may encounter; changes in operators’ project parameters as plans continue to be refined; changes in estimates of reserves and mineralization by the operators of the Company’s stream and royalty properties; the failure of Centerra’s acquisition of Thompson Creek to occur; contests to the Company’s stream and royalty interests and title and other defects to the Company’s stream and royalty properties; errors or disputes in calculating stream and royalty payments, or payments not made in accordance with stream and royalty agreements; economic and market conditions; risks associated with conducting business in foreign countries; changes in laws governing the Company and its stream and royalty properties or the operators of such properties, and other subsequent events; as well as other factors described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission. Most of these factors are beyond the Company’s ability to predict or control. The Company disclaims any obligation to update any forward-looking statement made herein. Readers are cautioned not to put undue reliance on forward-looking statements.

Statement Regarding Third Party Information: Royal Gold does not own, develop or mine the properties on which it holds stream or royalty interests. Certain information provided in this press release, including production estimates for calendar 2016, has been provided to us by the operators of those properties or is publicly available information filed by these operators with applicable securities regulatory bodies, including the Securities and Exchange Commission. Royal Gold has not verified, and is not in a position to verify, and expressly disclaims any responsibility for, the accuracy, completeness or fairness of such third-party information and refers the reader to the public reports filed by the operators for information regarding those properties.

                                                                                                                                                                          
                                                                                                                                                                                  TABLE 1
                                                                                                                                                                        Fourth Quarter Fiscal 2016
                                                                                                                                                                                  Revenue
                                                                                                                                                    and Reported Production for Principal Royalty and Stream Interests
                                                                                                                                                                                    (In
                                                                                                                                                          thousands, except reported production in oz. and lbs.)
                                                                                                                                                                                                                                                        
                                                                                                    Three Months Ended                                                                                                                                            Three Months Ended
                                                                                                                                             June 30, 2016                                                                                                           June 30, 2015
                                                                                         ---------------------------------------------------------------------------------------------------------------------------------------- -------------------- --------------------------------------------------------------------------------------------------------------------
                                                                                                                                   Reported                                                                                                                                   Reported
      Stream/Royalty              Metal(s)                      Revenue                                       Production(1)                                          Revenue                                       Production(1)
------------------------- -------------------- -------------------- -------------------- ------------------------------  -------------------- ------------------------------------------------------------   -------------------- -------------------- ------------------------------  -------------------- ------------------------------------------------------------
Stream:                                                                      
------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- --------------------
  Mount Milligan                               Gold                                                         $     29,874                                    23,800   oz.                                                                               $     27,411                                    23,000   oz.
  Andacollo                                    Gold                                                         $     17,080                                    13,500                      oz.                                                                                        N/A                                       N/A
  Pueblo Viejo                                 Gold                                                         $     16,676                                    10,600                      oz.                                                                                        N/A                                       N/A
                                               Silver                                                                                                      208,900                      oz.                                                                                        N/A                                       N/A
  Wassa and Prestea                            Gold                                                         $      5,791                                     4,600                      oz.                                                                                        N/A                                       N/A
  Other                                        Gold                                                         $          -                                       300                      oz.                                                                     N/A                                       N/A
                                                                                         -------------------- ----------                                                                                                                               -------------------- ----------
  Total stream revenue                                                                                      $     69,421                                                                                                                                                  $     27,411
                                                          
------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- --------------------
Royalty:                                                                     
------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- --------------------
  Penasquito                                                                                   $      2,552                                                                                                                                                  $     10,369
                                               Gold                                                                                                         41,900                      oz.                                                                                                                              296,900                      oz.
                                               Silver                                                                                                          2.6                      Moz.                                                                                                                                 7.0                      Moz.
                                               Lead                                                                                                           13.3                      Mlbs.                                                                                                                               48.2                      Mlbs.
                                               Zinc                                                                                                           43.2                      Mlbs.                                                                                                                               88.9                      Mlbs.
  Voisey’s Bay                                                                                              $          -                                                                                                                                                  $      3,021
                                               Nickel                                                                                                          N/A                                                                                                                                                           9.0                      Mlbs.
                                               Copper                                                                                                          N/A                                                                                                                                                          20.8                      Mlbs.
  Holt                                         Gold                                                         $      2,775                                    13,500                      oz.                                                                               $      2,911                                    15,800                      oz.
  Cortez                                       Gold                                                         $      1,267                                    16,100                      oz.                                                                               $      3,283                                    43,900                      oz.
  Andacollo(2)                                 Gold                                                                    -                                       N/A                      oz.                                                                               $      9,433                                    10,500                      oz.
  Other                                        Various                                         18,114                                       N/A                                                                                                        $     17,151                                       N/A
                                                                                         -------------------- ----------                                                                                                                               -------------------- ----------
  Total royalty revenue                                                                        24,708                                                                                                                                                  $     46,168
                                                                                         -------------------- ----------                                                                                                                               -------------------- ----------
Total Revenue                                                                                  94,129                                                                                                                                                  $     73,579
                                                                                         ==================== ==========                                                                                                                               ==================== ==========
                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                            
                                                                                                                                                                             TABLE 1
                                                                                                                                                                        Fiscal Year 2016
                                                                                                                                                                           Revenue and
                                                                                                                                                 Reported Production for Principal Royalty and Stream Interests
                                                                                                                                                                               (In
                                                                                                                                                     thousands, except reported production in oz. and lbs.)
                                                                                                                                                                                                                                                                                                                                             
                                                                                                Fiscal Year Ended                                                                                                                                        Fiscal Year Ended
                                                                                                                                        June 30, 2016                                                                                                      June 30, 2015
                                                                                         ------------------------------------------------------------------------------------------------------------------------------ -------------------- --------------------------------------------------------------------------------------------------------------------
                                                                                                                         Reported                                                                                                                                   Reported
      Stream/Royalty              Metal(s)                 Revenue                                  Production(1)                                          Revenue                                       Production(1)
------------------------- -------------------- -------------------- -------------------- --------------------  -------------------- ------------------------------------------------------------   -------------------- -------------------- ------------------------------  -------------------- ------------------------------------------------------------
Stream:                                                            
------------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- --------------------
  Mount Milligan                               Gold                                               $    125,438                                   108,800   oz.                                                                               $     94,104                                    76,900                      oz.
  Andacollo                                    Gold                                               $     49,243                                    41,600                      oz.                                                                                        N/A                                       N/A
  Pueblo Viejo                                 Gold                                               $     39,683                                    31,200                      oz.                                                                                        N/A                                       N/A
                                               Silver                                                                                            208,900                      oz.                                                                                        N/A                                       N/A
  Wassa and Prestea                            Gold                                               $     23,346                                    20,100                      oz.                                                                                        N/A                                       N/A
  Other                                        Gold                                               $        318                                       300                      oz.                                                                     N/A                                       N/A
                                                                                         ---------- ----------                                                                                                                               -------------------- ----------
  Total stream revenue                                                                            $    238,028                                                                                                                                                  $     94,104
                                                
------------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- --------------------
Royalty:                                                           
------------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- --------------------
  Penasquito                                                                         $     22,760                                                                                                                                                  $     30,306
                                               Gold                                                                                              584,000                      oz.                                                                                                                              742,100                      oz.
                                               Silver                                                                                               21.4                      Moz.                                                                                                                                24.6                      Moz.
                                               Lead                                                                                                134.2                      Mlbs.                                                                                                                              158.4                      Mlbs.
                                               Zinc                                                                                                333.0                      Mlbs.                                                                                                                              340.8                      Mlbs.
  Voisey’s Bay                                                                                    $     11,044                                                                                                                                                  $     16,665
                                               Nickel                                                                                               78.6                      Mlbs.                                                                                                                               62.8                      Mlbs.
                                               Copper                                                                                               56.2                      Mlbs.                                                                                                                               64.8                      Mlbs.
  Holt                                         Gold                                               $     10,295                                    58,300                      oz.                                                                               $     11,954                                    61,500                      oz.
  Cortez                                       Gold                                               $      6,107                                    74,000                      oz.                                                                               $     18,044                                   229,000                      oz.
  Andacollo(2)                                 Gold                                               $          -                                         -                      oz.                                                                               $     38,033                                    41,500                      oz.
  Other                                        Various                                            $     71,556                                       N/A                                                                                                        $     68,913                                       N/A
                                                                                         ---------- ----------                                                                                                                               -------------------- ----------
  Total royalty revenue                                                                           $    121,762                                                                                                                                                  $    183,915
                                                                                         ---------- ----------                                                                                                                               -------------------- ----------
Total Revenue                                                                                     $    359,790                                                                                                                                                  $    278,019
                                                                                         ========== ==========                                                                                                                               ==================== ==========
                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                            
                                                                                                                                                                                                                                     TABLE 2
                                                                                                                                                                                                                                     Historical Production
                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                 Reported Production For The Quarter Ended(1)
                                                                                                                                                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
         Property                                    Stream/Royalty                                  Operator               Metal(s)                                  Jun. 30, 2016                                                    Mar. 31, 2016                                                    Dec. 31, 2015                                                    Sep. 30, 2015                                                    Jun. 30, 2015
------------------------- -------------------- ---------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------
Stream:                                                                                                                  
------------------------- -------------------- ---------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Mount Milligan            52.25% of payable gold                                             Thompson Creek         Gold                                 23,800   oz.                                  25,400   oz.                                  38,700   oz.                                  21,000   oz.                                  23,000   oz.
------------------------- -------------------- ---------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Andacollo                 100% of gold produced                                              Teck                   Gold                                 13,500   oz.                                  13,500   oz.                                   5,200   oz.                                   9,500   oz.                                     N/A    
------------------------- -------------------- ---------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Pueblo Viejo                                 7.5% of gold produced up to 990,000                                                   Barrick (60%)                             Gold                                 10,600   oz.                                  11,800   oz.                                   8,800   oz.                                     N/A                        N/A    
                                               ounces; 3.75% thereafter
                                               ----------------------------------------------------------------                                                                -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
         75% of payable silver up to 50 million                                 Silver                              208,900   oz.                                     N/A                        N/A                        N/A                        N/A    
                                               ounces; 37.5%
                                               thereafter
------------------------- -------------------- ---------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Wassa and Prestea         9.25% of gold produced up to 12/31/17; 10.5% of gold produced up   Golden Star            Gold                                  4,600   oz.                                   3,500   oz.                                   8,800   oz.                                   3,200   oz.                                     N/A    
                                               to 240,000 ounces; 5.5% thereafter
------------------------- -------------------- ---------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Royalty:                                                                                                                 
------------------------- -------------------- ---------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Penasquito                      2.0% NSR                                                                              Goldcorp                                                                           
                                                                                                                                                                               -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                               Gold                                 41,900   oz.                                 120,300   oz.                                 195,400   oz.                                 226,500   oz.                                 296,900   oz.
                                                                                                                                                                               -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                               Silver                                  2.6   Moz.                                    4.8   Moz.                                    6.8   Moz.                                    7.3   Moz.                                    7.0   Moz.
                                                                                                                                                                               -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                               Lead                                   13.3   Mlbs.                                  30.2   Mlbs.                                  41.7   Mlbs.                                  49.1   Mlbs.                                  48.2   Mlbs.
                                                                                                                                                                               -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                             Zinc                                   43.2   Mlbs.                                  73.1   Mlbs.                                  98.0   Mlbs.                                 118.7   Mlbs.                                  88.9   Mlbs.
------------------------- -------------------- ---------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Cortez                    GSR1 and GSR2, GSR3, NVR1                                          Barrick                Gold                                 16,100   oz.                                  18,400   oz.                                  17,000   oz.                                  22,600   oz.                                  43,900   oz.
------------------------- -------------------- ---------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Holt                      0.00013 x quarterly average gold price                             Kirkland Lake Gold     Gold                                 13,500   oz.                                  13,500   oz.                                  15,000   oz.                                  16,300   oz.                                  15,800   oz.
------------------------- -------------------- ---------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Voisey’s Bay                                 2.7% NSR                                                                              Vale                                                                               
                                                                                                                                                                               -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                               Nickel                                  N/A                       17.2   Mlbs.                                  23.6   Mlbs.                                  37.8   Mlbs.                                   9.0   Mlbs.
                                                                                                                                                                               -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                             Copper                                  N/A                       39.2   Mlbs.                                  15.2   Mlbs.                                   1.7   Mlbs.                                  20.8   Mlbs.
------------------------- -------------------- ---------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Andacollo(2)              75%                                                                Teck                   Gold                                    N/A                        N/A                        N/A                        N/A                     10,500   oz.
------------------------- -------------------- ---------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                          FOOTNOTES
                                       Tables 1 and 2
 (1)   Reported production relates to the amount of metal sales that are
                          subject to our royalty and stream interests for the stated period,
                          as reported to us by operators of the mines.
 (2)                      This royalty was terminated effective July 1, 2015.
                           
                                                                                                                                     
                                                                                                                                                                                           TABLE 3
                                                                                                                                                               Calendar 2016 Operators’ Production
                                                                                                                                                                                Estimate vs Actual Production
                                                                                                                                                                                                
                                                           Calendar 2016 Operator’s Production Estimate(1)                                                                                                                                       Calendar 2016 Operator’s Production
                                                                                                                                                   Actual(2,3)
                                            -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Gold                  Silver               Base Metals                                                       Gold                                       Silver                                                         Base Metals
    Stream/Royalty               (oz.)                  (oz.)                 (lbs.)                    (oz.)                                       (oz.)                                                           (lbs.)
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------------------------------------------------------------------------- ---------------------------------------------------------------
Stream:                                                 
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Andacollo(4)                         57,600             -                               -                   25,300                      -                          -    
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Mount Milligan(5)           240,000-270,000             -                               -                   99,700                      -                          -    
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Pueblo Viejo(6)             600,000-650,000           Not provided                      321,900                            Not provided                                               -    
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------------------------------------------------------------------------- -------------------- -------------------- --------------------
  Wassa and Prestea(7)        180,000-205,000                           95,700                
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Royalty:                                                
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Cortez GSR1                         119,200             -                               -                   31,800                      -                          -    
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Cortez GSR2                           1,300             -                               -                    2,700                      -                          -    
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Cortez GSR3                         120,500             -                               -                   34,400                      -                          -    
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Cortez NVR1                          68,900             -                               -                   23,700                      -                          -    
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Penasquito(8)               520,000-580,000          22-24 million                      -                  161,000                             7.8 million                                               -    
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------------------------------------------------------------------------- -------------------- -------------------- --------------------
                  Lead                145-155 million                                 46.1   million
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                  Zinc                375-400 million                                109.4   million
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                
     
(1)                      Production estimates received from our operators are for calendar
                         2016. There can be no assurance that production estimates received
                         from our operators will be achieved. Please refer to our cautionary
                         language regarding forward-looking statements preceding Table 1
                         above, as well as the Risk Factors identified in Part I, Item 1A, of
                         our Fiscal 2015 10-K for information regarding factors that could
                         affect actual results.
(2)                      Actual production figures shown are for the period January 1, 2016
                         through June 30, 2016, unless otherwise noted.
(3)                      Actual production figures for Andacollo and Cortez are based on
                         information provided to us by the operators, and actual production
                         figures for Andacollo, Mount Milligan, Penasquito (gold), and Wassa
                         and Prestea are the operators’ publicly reported figures.
(4)                      The estimated and actual production figures shown for Andacollo are
                         contained gold in concentrate.
(5)                      The estimated and actual production figures shown for Mount Milligan
                         are payable gold in concentrate.
(6)                      The estimated and actual production figures shown are payable gold
                         in dore and represent Barrick’s 60% interest in Pueblo Viejo.
(7)                      The estimated production figure shown is payable gold in dore.
(8)                      The estimated gold and silver production figures reflect payable
                         gold and silver in concentrate and dore, while the estimated lead
                         and zinc production figures reflect payable metal in concentrate.
                          
                                                                                                                                                                               
                                                                                                                                     TABLE 4
                                                                                                                                 Stream Summary
                                                                                                                                                                                                                                                             
                                                         Three Months Ended June 30, 2016                                 Three Months Ended June 30, 2015                   As of June 30, 2016                       As of June 30, 2015
                                          ----------------------------------------------------------------------------------- ----------------------------------------------------------------------------------- --------------------                      --------------------
     Gold Stream                             Purchases (oz.)          Sales (oz.)                             Purchases (oz.)          Sales (oz.)                           Ounces in inventory                       Ounces in inventory
--------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      --------------------                      --------------------
Mount Milligan                                          31,200                 23,700                                    21,400                 23,000                                     7,500                                     5,300
Pueblo Viejo                                            11,000                                    11,000                                       N/A                                       N/A                                    11,000                                       N/A
Andacollo                                               13,500                                    13,500                                       N/A                                       N/A                                         -                                       N/A
Wassa and Prestea                                        4,400                                     4,600                                       N/A                                       N/A                                     1,300                                       N/A
Phoenix Gold                                                 -                      -                                       N/A                    N/A                                         -                                       N/A
                                          -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      --------------------                      --------------------
Total                                                   60,100                                    52,800                                    21,400                                    23,000                                    19,800                                     5,300
                                                                                                                                                                                                                                                             
                                                         Three Months Ended June 30, 2016                                                    Three Months Ended June 30, 2015                                      As of June 30, 2016                       As of June 30, 2015
                                          ---------------------------------------------------------------                     ---------------------------------------------------------------                     --------------------                      --------------------
    Silver Stream                            Purchases (oz.)          Sales (oz.)                             Purchases (oz.)          Sales (oz.)                           Ounces in inventory                       Ounces in inventory
--------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      --------------------                      --------------------
Pueblo Viejo                                           322,800                                   208,900                                       N/A                                       N/A                                   323,700                                       N/A
                         
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                         
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                          Fiscal Year Ended June 30, 2016                                                     Fiscal Year Ended June 30, 2015                                      As of June 30, 2016                       As of June 30, 2015
                                          ---------------------------------------------------------------                     ---------------------------------------------------------------                     --------------------                      --------------------
     Gold Stream                             Purchases (oz.)          Sales (oz.)                             Purchases (oz.)          Sales (oz.)                           Ounces in inventory                       Ounces in inventory
--------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      --------------------                      --------------------
Mount Milligan                                         111,000                                   108,800                                    74,400                                    76,900                                     7,500                                     5,300
Pueblo Viejo                                            42,200                                    31,200                                       N/A                                       N/A                                    11,000                                       N/A
Andacollo                                               41,700                                    41,600                                       N/A                                       N/A                                         -                                       N/A
Wassa and Prestea                                       21,400                                    20,100                                       N/A                                       N/A                                     1,300                                       N/A
Phoenix Gold                                               300                    300                                       N/A                    N/A                                         -                                       N/A
                                          -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      --------------------                      --------------------
Total                                                  216,600                                   202,000                                    74,400                                    76,900                                    19,800                                     5,300
                                                                                                                                                                                                                                                             
                                                          Fiscal Year Ended June 30, 2016                                                     Fiscal Year Ended June 30, 2015                                      As of June 30, 2016                       As of June 30, 2015
                                          ---------------------------------------------------------------                     ---------------------------------------------------------------                     --------------------                      --------------------
    Silver Stream                            Purchases (oz.)          Sales (oz.)                             Purchases (oz.)          Sales (oz.)                           Ounces in inventory                       Ounces in inventory
--------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      --------------------                      --------------------
Pueblo Viejo                                           532,600                                   208,900                                       N/A                                       N/A                                   323,700                                       N/A
                         
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                   
                                                                                       ROYAL GOLD, INC.
                                                                                  Consolidated Balance Sheets
                                                                                              As
                                                                                          of June 30,
                                                                               (In thousands except share data)
                                                                                                                                           
                                                                                           2016                             2015    
                                                                                      -------------------- ---------                      -------------------- --------- --------------------
                             ASSETS
Cash and equivalents                                                                                     $   116,633                                         $   742,849
Royalty receivables                                                                                           17,990                                              37,681
Income tax receivable                                                                                         20,043                                               6,422
Stream inventory                                                                                               9,489                                               2,287
Available-for-sale securities                                                                                      -                                               6,273
Prepaid expenses and other                                                                    614                            1,511  
                                                                                      -------------------- ---------                      -------------------- --------- --------------------
   Total current assets                                                                                      164,769                                             797,023
                                                                                                                                           
Stream and royalty interests, net                                                                          2,848,087                                           2,083,608
Other assets                                                                               53,696                           36,560  
                                                                                      -------------------- ---------                      -------------------- --------- --------------------
   Total assets                                                                                          $ 3,066,552                                         $ 2,917,191  
                                                                                      ==================== =========                      ==================== ========= ====================
                                                                                                                                           
                           LIABILITIES
Accounts payable                                                                                         $     4,114                                         $     4,911
Dividends payable                                                                                             15,012                                              14,341
Other current liabilities                                                                   3,554                            5,721  
                                                                                      -------------------- ---------                      -------------------- --------- --------------------
   Total current liabilities                                                                                  22,680                                              24,973
                                                                                                                                           
Debt                                                                                                         600,685                                             313,869
Deferred tax liabilities                                                                                     133,867                                             146,603
Uncertain tax positions                                                                                       16,996                                              15,130
Other long-term liabilities                                                                 6,439                              689  
                                                                                      -------------------- ---------                      -------------------- --------- --------------------
   Total liabilities                                                                      780,667                          501,264  
                                                                                      -------------------- ---------                      -------------------- --------- --------------------
                                                                                                                                           
Commitments and contingencies
                                                                                                                                           
                             EQUITY
Preferred stock, $.01 par value, authorized 10,000,000 shares                                                      -                                                   -
authorized;
and 0 shares issued
Common stock, $.01 par value, 100,000,000 shares authorized; and                                                 651                                                 650
65,093,950
and 65,033,547 shares outstanding, respectively
Additional paid-in capital                                                                                 2,179,781                                           2,170,643
Accumulated other comprehensive loss                                                                               -                                              (3,292 )
Accumulated earnings                                                                       48,584                          185,121  
                                                                                      -------------------- ---------                      -------------------- --------- --------------------
Total Royal Gold stockholders’ equity                                           2,229,016                                           2,353,122
Non-controlling interests                                                                  56,869                           62,805  
                                                                                      -------------------- ---------                      -------------------- --------- --------------------
   Total equity                                                                         2,285,885                        2,415,927  
                                                                                      -------------------- ---------                      -------------------- --------- --------------------
   Total liabilities and equity                                                                          $ 3,066,552                                         $ 2,917,191  
                                                                                      ==================== =========                      ==================== ========= ====================
                                                                                                                                           
                                                                                                                                                                                                         
                                                                                                                                                                               ROYAL GOLD, INC.
                                                                                                                                                                     Consolidated Statements of Operations
                                                                                                                                                                        and Comprehensive (Loss) Income
                                                                                                                                                                         (In thousands except for per
                                                                                                                                                                                  share data)
                                                                                                                                                                                                                                                 
                                                                                                                                              For The Three Months Ended                                                                                                                              For The Years Ended
                                                                                           --------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 June 30,                                               June 30,                                                                   June 30,                                               June 30,
                                                                                                2016                                2015                                 2016                                2015     
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------                       -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Revenue                                                                                                       $     94,129                                                              $     73,579                                                               $    359,790                                                              $    278,019
                                                                                                                                                                                                                                                                                                                           
Costs and expenses
   Cost of sales                                                                                                    19,019                                                                     9,998                                                                     70,979                                                                    33,450
   General and administrative                                                                                        8,305                                                                     6,671                                                                     31,720                                                                    24,873
   Production taxes                                                                                                    432                                                                     1,091                                                                      3,978                                                                     5,446
   Exploration Costs                                                                                                 2,466                                                                     2,038                                                                      8,601                                                                     2,194
   Depreciation, depletion and amortization                                                                         35,391                                                                    26,213                                                                    141,108                                                                    93,486
   Impairment of stream and royalty interests and royalty receivables                                 -                                   -                               98,588                              31,335  
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------                       -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Total costs and expenses                                                                         65,613                              46,011                              354,974                             190,784  
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------                       -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                           
Operating income                                                                                                    28,516                                                                    27,568                                                                      4,816                                                                    87,235
                                                                                                                                                                                                                                                                                                                           
Gain (loss) on available-for-sale securities                                                                         1,665                                                                      (183 )                                                                    2,340                                                                      (183 )
Interest and other income                                                                                            1,582                                                                       178                                                                      3,711                                                                       883
Interest and other expense                                                                       (8,656 )                                               (6,196 )                                               (32,625 )                                              (25,691 )
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------                       -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Income (loss) before income taxes                                                                                   23,107                                                                    21,367                                                                    (21,758 )                                                                  62,244
                                                                                                                                                                                                                                                                                                                           
Income tax expense                                                                               (5,025 )                                               (6,394 )                                               (60,680 )                                               (9,566 )
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------                       -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Net income (loss)                                                                                                   18,082                                                                    14,973                                                                    (82,438 )                                                                  52,678
Net loss (income) attributable to non-controlling interests                                       2,357                                (154 )                                                 5,289                                (713 )
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------                       -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Net income (loss) attributable to Royal Gold common stockholders                                              $     20,439                                           $     14,819                                            $    (77,149 )                                                            $     51,965  
                                                                                           ==================== ========== ====================                      ==================== ========== ====================                       ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                           
Net income (loss)                                                                                             $     18,082                                                              $     14,973                                                               $    (82,438 )                                                            $     52,678
Adjustments to comprehensive income (loss), net of tax
   Unrealized change in market value of available-for-sale securities                                                1,112                                                                       689                                                                      5,632                                                                    (3,292 )
   Reclassification adjustment for (gains) losses included in net                                (1,665 )                                                  167                               (2,340 )                                                  160  
   income (loss)
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------                       -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Comprehensive income (loss)                                                                                         17,529                                                                    15,829                                                                    (79,146 )                                                                  49,546
Comprehensive income attributable to non-controlling interests                                    2,357                                 154                                5,289                                (713 )
                                                                                           -------------------- ---------- --------------------                      -------------------- ---------- --------------------                       -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                           
Comprehensive income (loss) attributable to Royal Gold stockholders                                           $     19,886                                           $     15,675                                            $    (73,857 )                                                            $     48,833  
                                                                                           ==================== ========== ====================                      ==================== ========== ====================                       ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                           
Net income (loss) per share available to Royal Gold common
stockholders:
Basic earnings (loss) per share                                                                               $       0.32                                           $       0.23                                            $      (1.18 )                                                            $       0.80  
                                                                                           ==================== ========== ====================                      ==================== ========== ====================                       ==================== ========== ====================                      ==================== ========== ====================
Basic weighted average shares outstanding                                                    65,090,772                          65,033,547                           65,074,455                          65,007,861  
                                                                                           ==================== ========== ====================                      ==================== ========== ====================                       ==================== ========== ====================                      ==================== ========== ====================
Diluted earnings (loss) per share                                                                             $       0.32                                           $       0.23                                            $      (1.18 )                                                            $       0.80  
                                                                                           ==================== ========== ====================                      ==================== ========== ====================                       ==================== ========== ====================                      ==================== ========== ====================
Diluted weighted average shares outstanding                                                  65,090,772                          65,129,362                           65,074,455                          65,125,173  
                                                                                           ==================== ========== ====================                      ==================== ========== ====================                       ==================== ========== ====================                      ==================== ========== ====================
Cash dividends declared per common share                                                                      $       0.23                                           $       0.22                                            $       0.91                                           $       0.87  
                                                                                           ==================== ========== ====================                      ==================== ========== ====================                       ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                
                                                                                                                                                                       ROYAL GOLD, INC.
                                                                                                                                                             Consolidated Statements of Cash Flows
                                                                                                                                                                              (In
                                                                                                                                                                          Thousands)
                                                                                                                                                                                                                                                                                                              
                                                                                                                                    For The Three Months Ended                                                                                                                          For The Years Ended
                                                                                     -------------------------------------------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------------------------------------------
                                                                                                          June 30,                                                               June 30,                                                                June 30,                                                                 June 30,
                                                                                         2016                             2015                              2016                               2015   
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ---------- --------------------                      -------------------- ------- --------------------
Cash flows from operating activities:
Net income (loss)                                                                                       $  18,082                                                              $  14,973                                                              $    (82,438 )                                                            $  52,678
Adjustments to reconcile net income (loss) to net cash provided
by
operating activities:
   Depreciation, depletion and amortization                                                                35,391                                                                 26,213                                                                   141,108                                                                 93,486
   Impairment of stream and royalty interests                                                                   -                                                                      -                                                                    98,588                                                                 31,335
   Amortization of debt discount and issuance costs                                                         4,843                                                                  3,088                                                                    12,985                                                                 12,100
   Non-cash employee stock compensation expense                                                             2,250                                                                  1,481                                                                    10,039                                                                  5,141
   Tax benefit of stock-based compensation exercises                                                          301                                                                   (290 )                                                                     548                                                                   (364 )
   (Gain) loss on available-for-sale securities                                                            (1,665 )                                                                  183                                                                    (2,340 )                                                                  183
   Deferred tax benefit                                                                                    12,263                                                                  6,548                                                                    (4,983 )                                                              (27,651 )
   Other                                                                                                        -                                                                    (46 )                                                                    (390 )                                                                  (46 )
Changes in assets and liabilities:
   Royalty receivables                                                                                      2,245                                                                  1,805                                                                    17,221                                                                  5,977
   Stream inventory                                                                                        (4,088 )                                                                  675                                                                    (7,203 )                                                                1,110
   Income taxes receivable                                                                                (11,181 )                                                               (9,666 )                                                                 (14,177 )                                                               15,525
   Prepaid expenses and other assets                                                                       (1,783 )                                                                 (121 )                                                                    (153 )                                                                2,527
   Accounts payable                                                                                           684                                                                  1,892                                                                      (849 )                                                                  150
   Foreign withholding taxes payable                                                                            -                                                                      1                                                                      (199 )                                                               (2,000 )
   Uncertain tax positions                                                                                    (83 )                                                                 (331 )                                                                   1,867                                                                  1,405
   Other liabilities                                                                    (8,047 )                                            (2,500 )                                                  235                              543  
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ---------- --------------------                      -------------------- ------- --------------------
Net cash provided by operating activities                                                               $  49,212                                                              $  43,905                                                              $    169,859                                                              $ 192,099
                                                                                                                                                                                                                                                                                                              
Cash flows from investing activities:
   Acquisition of royalty and stream interests                                                            (19,853 )                                                                  (88 )                                                              (1,346,109 )                                                              (60,429 )
   Andacollo royalty termination                                                                                -                                                                      -                                                                   345,000                                                                      -
   Golden Star term loan                                                                                        -                                                                      -                                                                   (20,000 )                                                                    -
   Proceeds from sale of available-for-sale securities                                                      4,972                                                                      -                                                                    11,905                                                                      -
   Tulsequah stream termination                                                                                 -                                                                      -                                                                         -                                                                 10,000
   Other                                                                                    (7 )                                              (702 )                                                 (309 )                                              (773 )
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ---------- --------------------                      -------------------- ------- --------------------
Net cash used in investing activities                                                                   $ (14,888 )                                                            $    (790 )                                                            $ (1,009,513 )                                                            $ (51,202 )
                                                                                                                                                                                                                                                                                                              
Cash flows from financing activities:
   Borrowings from revolving credit facility                                                                    -                                                                      -                                                                   350,000                                                                      -
   Repayment of revolving credit facility                                                                 (25,000 )                                                                    -                                                                   (75,000 )                                                                    -
   Net (payments) proceeds from issuance of common stock                                                     (179 )                                                                    -                                                                      (353 )                                                                  775
   Common stock dividends                                                                                 (15,011 )                                                              (14,342 )                                                                 (58,720 )                                                              (56,054 )
   Debt issuance costs                                                                                        (62 )                                                                 (864 )                                                                  (1,111 )                                                                 (864 )
   Distribution to non-controlling interests                                                                   (1 )                                                                 (578 )                                                                    (830 )                                                               (1,805 )
   Tax (benefit) expense of stock-based compensation exercises                            (301 )                                               290                                (548 )                                               364  
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ---------- --------------------                      -------------------- ------- --------------------
Net cash (used in) provided by financing activities                                                     $ (40,554 )                                                            $ (15,494 )                                                            $    213,438                                           $ (57,584 )
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ---------- --------------------                      -------------------- ------- --------------------
Net (decrease) increase in cash and equivalents                                                            (6,230 )                                                               27,621                                                                  (626,216 )                                                               83,313
Cash and equivalents at beginning of period                                            122,863                          715,228                             742,849                          659,536  
                                                                                     -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ---------- --------------------                      -------------------- ------- --------------------
Cash and equivalents at end of period                                                                   $ 116,633                                           $ 742,849                                           $    116,633                                           $ 742,849  
                                                                                     ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========== ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                              

SCHEDULE A

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (GAAP). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Our management uses Adjusted EBITDA and Adjusted Net Income as measures of operating performance to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the board of directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe that these measures are used by and are useful to investors and other users of our financial statements in evaluating our operating performance because they provide an additional tool to evaluate our performance without regard to special and noncore items, which can vary substantially from company to company depending upon accounting methods and book value of assets and capital structure. We have provided reconciliations of all non-GAAP measures to their nearest U.S. GAAP measures and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment.

Adjusted EBITDA Reconciliation

Adjusted EBITDA is defined by the Company as net income (loss) plus depreciation, depletion and amortization, non-cash charges, income tax expense, interest and other expense, and any impairment of mining assets, less non-controlling interests in operating loss (income) of consolidated subsidiaries, interest and other income, and any royalty portfolio restructuring gains or losses. Other companies may define and calculate this measure differently. Adjusted EBITDA identifies the cash generated in a given period that will be available to fund the Company’s future operations, growth opportunities, shareholder dividends and to service the Company’s debt obligations. This information differs from measures of performance determined in accordance with U.S. generally accepted accounting principles ("GAAP") and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. See the table below for a reconciliation of net income to Adjusted EBITDA.

                                                                                                                                                                            
                                                                                                                                For The Three Months Ended                                                                                                            For The Years Ended
                                                                                                                                         June 30,                                                                                                                          June 30,
                                                                                            --------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------
                                                                                               2016       2015                             2016          2015   
                                                                                            -------------------- ------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                           
Net income (loss)                                                                                              $ 18,082                                         $ 14,973                                                              $ (82,438 )                                                            $  52,678
  Depreciation, depletion and amortization                                                                       35,391                                           26,213                                                                141,108                                                                 93,486
  Non-cash employee stock compensation                                                                            2,250                                            1,481                                                                 10,039                                                                  5,141
  Impairment of stream and royalty interests and royalty receivables                                                  -                                                -                                                                 98,588                                                                 31,335
  Interest and other, net                                                                                         5,409                                            6,201                                                                 26,574                                                                 24,992
  Income tax expense                                                                                              5,025                                            6,394                                                                 60,680                                                                  9,566
  Non-controlling interests in operating loss (income) of consolidated                         2,357                          (108 )                                             5,289                             (666 )
  subsidiaries
                                                                                            -------------------- ------                      -------------------- ------ --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Adjusted EBITDA                                                                                                $ 68,514                                         $ 55,154                                           $ 259,840                                           $ 216,532  
                                                                                            ==================== ======                      ==================== ====== ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                           

Adjusted Net Income (Loss) Reconciliation

Management of the Company uses adjusted net income (loss) to evaluate the Company’s operating performance, and for planning and forecasting future business operations. The Company believes the use of adjusted net income (loss) allows investors and analysts to understand the results relating to receipt of revenue from its royalty interests and purchase and sale of gold from its streaming interests by excluding certain items that have a disproportionate impact on our results for a particular period. The net income (loss) adjustments are presented net of tax generally at the Company’s statutory effective tax rate. Management’s determination of the components of adjusted net income (loss) are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Royal Gold stockholders is reconciled to adjusted net income (loss) as follows:

                                                                                                                                                            
                                                                                                                      For The Three Months Ended                                                                                             For The Years Ended
                                                                                                                               June 30,                                                                                                           June 30,
                                                                                         -------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------
                                                                                              2016           2015                             2016           2015
                                                                                         -------------------- ----------                      -------------------- ----------                      -------------------- ------- --------------------                      -------------------- ----------
                                                                                                                                                                                                                                                                           
Net income (loss) attributable to Royal Gold common stockholders                                            $     20,439                                         $     14,819                                         $ (77,149 )                                                            $     51,965
                                                                                                                                                                                                                                                                           
Impairment of stream and royalty interests and royalty receivables,                                                    -                                                    -                                            86,130                                                                    24,185
net of tax
Tax expense on Andacollo royalty sale and Chilean subsidiary                                                           -                                                    -                                            56,000                                                                         -
liquidation
                                                                                                                                                                                                                  
                                                                                         --------------------------------                     --------------------------------                     --------------------------------------------------                     --------------------------------
Adjusted net income attributable to Royal Gold common stockholders                                          $     20,439                                         $     14,819                                         $  64,981                                                              $     76,150
                                                                                                                                                                                                                  
                                                                                         --------------------------------                     --------------------------------                     --------------------------------------------------                     --------------------------------
Adjusted earnings per share                                                                                 $       0.32                                         $       0.23                                         $    1.00                                           $       1.17
                                                                                         ==================== ==========                      ==================== ==========                      ==================== ======= ====================                      ==================== ==========
                                                                                                                                                                                                                                                                           

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160810006156r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160810006156/en/

SOURCE: Royal Gold, Inc.

Royal Gold, Inc. 
Karli Anderson, 303-575-6517 
Vice President Investor Relations


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