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 Royal Gold Reports Record Annual Revenue, Earnings and Cash Flow
   Wednesday, August 09, 2017 5:01:11 PM ET

Royal Gold, Inc. (RGLD ) (together with its subsidiaries, "Royal Gold" or the "Company," "we" or "our") reports record fiscal year 2017 net income of $102 million, or $1.55 per basic share, on record revenue of $441 million and record operating cash flow of $266 million.

Fiscal 2017 Highlights Compared to Fiscal 2016:

-- Record revenue of $441 million, an increase of 23%

-- Record net income of $102 million, an increase of 56%(1)

-- Record cash flow from operations of $266 million, an increase of 57%

-- Record volume of 350,100 Gold Equivalent Ounces ("GEOs"(2)), an increase of 14%

-- Record dividends paid of $61 million, an increase of 5%



-- Repaid $95 million on revolving credit facility

-- Average gold price of $1,259, an increase of 8%

The Company reports net income of $20 million, or $0.31 per share, on revenue of $109 million in its fiscal fourth quarter ended June 30, 2017. Fourth quarter net income included higher non-cash compensation costs and mark-to-market adjustments on warrants and Canadian deferred tax liabilities, as well as higher exploration and legal costs.

Fiscal Fourth Quarter 2017 Highlights Compared to Prior Year Quarter:

-- Revenue of $109 million, an increase of 16%

-- Operating cash flow of $65 million, an increase of 32%

-- Volume of 86,700 GEOs, an increase of 16%

-- Dividends paid of $16 million, an increase of 4%

-- Repaid $50 million on revolving credit facility

-- Average gold price of $1,257, in line with the prior year quarter

"We experienced a step change in our financial results in fiscal 2017 with increased volume from recent transactions," commented Tony Jensen, President and CEO. "Our strong cash flow will be focused on new business, further strengthening the balance sheet and return to shareholders. Looking forward to the next several years, we see New Gold’s Rainy River mine, Barrick’s Cortez Crossroads deposit and Goldcorp’s Pyrite Leach Project at the Penasquito mine driving further growth and revenue diversification."

Recent Developments

Peak Gold Maiden Resource

The Peak Gold joint venture ("Peak Gold"), of which our Royal Alaska subsidiary is the manager, completed mineralized material(3) estimate of the deposits located near Tok, Alaska. The estimate of measured and indicated resources(4) contained within mineralized material assuming a $1,400 per ounce gold pit shell consists of approximately 1.3 million ounces of gold grading 3.46 grams per tonne ("gpt"), 5.1 million ounces silver grading 14.09 gpt, and 40 million pounds of copper grading 0.16%. Continuing exploration activity is focused on adjacent and regional targets.

Expansion of Credit Facility

We entered into a new $1 billion, 5-year revolving credit facility with a final maturity in June 2022. The new credit facility replaces Royal Gold’s prior $650 million credit facility that was set to mature in March 2021. Royal Gold repaid the $300 million outstanding under the prior credit facility using a combination of cash on hand of $50 million and borrowings under the new credit facility of $250 million, leaving $750 million of availability under the new credit facility.

Fiscal 2017 Overview

Fiscal 2017 revenue of $441 million included stream revenue of $314 million and royalty revenue of $127 million. The Company had inventory of approximately 14,100 ounces of gold and 536,800 ounces of silver at June 30, 2017, as previously announced, compared to 19,800 ounces of gold and 323,700 ounces of silver at June 30, 2016.

Our total revenue for fiscal 2017 of $441 million increased when compared with $360 million in fiscal 2016, due to higher volume across the portfolio with notable increases in gold production at Andacollo and higher gold and silver production at Pueblo Viejo.

Fiscal 2017 cost of sales was approximately $87 million, compared to $71 million in fiscal 2016. The increase is primarily attributable to an increase in gold production and silver stream production at Pueblo Viejo. Cost of sales is specific to our stream agreements and is the result of the purchase of gold, silver and copper for a cash payment.

General and administrative expenses increased to $33 million in fiscal 2017, from $32 million in fiscal 2016, primarily due to an increase in legal costs.

Exploration costs, which are specific to exploration and advancement of Peak Gold, increased to $13 million in fiscal 2017, from $9 million in fiscal 2016. As of June 30, 2017, Royal Gold has contributed $23 million to the project and obtained a 29.5% membership interest in Peak Gold.

Depreciation, depletion and amortization expense increased to $160 million in fiscal 2017, from $141 million in fiscal 2016. The increase was primarily attributable to increased gold sales and new silver sales from Pueblo Viejo.

Interest and other income increased to $9 million in fiscal 2017 from $4 million in fiscal 2016. The increase was primarily due to a gain on a former interest, consideration received as part of a legal settlement and termination of a non-principal royalty.

We recognized income tax expense totaling $26 million in fiscal 2017 compared with $61 million in fiscal 2016. This resulted in an effective tax rate of 22% for fiscal 2017 compared with (279%) in the prior fiscal year. The decrease is primarily related to tax impacts attributable to our Chilean subsidiary that were incurred during fiscal 2016.

At June 30, 2017, we had current assets of $140 million compared to current liabilities of $31 million, resulting in working capital of $109 million. This compares to current assets of $168 million and current liabilities of $26 million at June 30, 2016, resulting in working capital of $142 million. The decrease in working capital is primarily due to repayments on the outstanding balance under our credit facility.

During fiscal 2017, liquidity needs were met from $354 million in revenue net of our streaming payments and our available cash resources. As of June 30, 2017, the Company had $750 million available and $250 million outstanding under its revolving credit facility. Working capital, combined with the Company’s undrawn revolving credit facility, resulted in $859 million of total liquidity at June 30, 2017.

Fourth Quarter 2017 Overview

Fourth quarter revenue was $109 million compared to $94 million in the prior year quarter. Stream and royalty revenue totaled $78 million and $31 million, respectively, for the quarter. Revenue increased due to higher royalty volume principally from Penasquito, increased silver sales from Pueblo Viejo and greater gold sales from Wassa and Prestea. We received the first quarter of copper deliveries from Mount Milligan, and those copper stream sales more than offset the reduced percentage of gold sales under our new streaming agreement.

Fourth quarter cost of sales of $20 million was slightly higher than $19 million recorded in the prior year quarter, driven by higher gold and silver sales from Pueblo Viejo.

General and administrative expenses increased to $10 million in the fourth quarter, compared to $8 million in the prior year quarter. The increase was primarily related to higher non-cash stock-based compensation charges and legal costs.

Exploration costs, which are related to Peak Gold, were higher, totaling $4 million in the fourth quarter, compared to $2 million in the prior year quarter.

Interest and other expense increased to $11 million from $9 million in the prior year quarter. The increase reflected higher borrowing costs associated with an increase in LIBOR compared to the prior year quarter, as well as higher undrawn commitment fees associated with the additional $350 million of revolver capacity under the new credit facility.

We recognized fourth quarter income tax expense of $8 million, compared to $5 million during the prior year quarter. This resulted in an effective tax rate of 31% compared to 22% in the prior year quarter. The increase was largely associated with the strengthening of the Canadian dollar relative to the US dollar, which impacted the valuation of certain Canadian deferred tax liabilities. As noted above, the fiscal 2017 effective tax rate was 22%.

PROPERTY HIGHLIGHTS

A summary of fourth quarter and historical production can be found on Tables 1 and 2. Calendar year 2017 operator production estimates of certain properties in which we have interests compared to actual production through June 30, 2017 can be found on Table 3. Results of our streaming business for the fourth quarter, compared to the prior year quarter, can be found on Table 4. Highlights at certain of the Company’s principal producing and development properties during the fourth quarter, compared to the prior year quarter, are detailed in our Annual Report on 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 194 properties on six continents, including interests on 39 producing mines and 20 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 quarter results will be held on Thursday, August 10, 2017, at noon Eastern Time (10:00 a.m. Mountain Time). The call will be webcast and archived on the Company’s website for a limited time.

Fourth Quarter Earnings Call Information:

        Dial-In Numbers:          855-209-8260 (U.S.); toll free
                                                                                                                                                                                          855-669-9657 (Canada); toll free
                                                                                                                                                                                          412-542-4106 (International)
                                                                                    Conference Title:                                                                                     Royal Gold
                                                                                    Webcast URL:                                                                                          www.royalgold.com
                                                                                                                                                                                          under Investors, Events & Presentations

________________

(1)   When compared to fiscal 2016 adjusted net income, a non-GAAP
                         measure. Please see Adjusted Net Income (Loss) Reconciliation for
                         details.
(2)                      GEOs are calculated as revenue divided by the average gold price for
                         the same period. GEOs net of stream payments were 71,000 in the
                         fourth quarter and 280,800 in fiscal year 2017, compared to 59,600
                         and 247,300 in the prior year quarter and fiscal year, respectively.
(3)                      The U.S. Securities and Exchange Commission ("SEC") does not
                         recognize this term. Mineralized material is that part of a mineral
                         system that has potential economic significance but cannot be
                         included in the proven and probable ore reserve estimates until
                         further drilling and metallurgical work is completed, and until
                         other economic and technical feasibility factors based upon such
                         work have been resolved. Investors are cautioned not to assume that
                         any part or all of the mineral deposits in this category will ever
                         be converted into reserves.
(4)                      Measured and indicated resources is not a term recognized by the
                         SEC. Estimates of such resources are subject to further exploration
                         and development, are subject to additional risks, and no assurance
                         can be given that they will eventually convert to future reserves.
                          

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 cash flow growth; Rainy River, Cortez Crossroads and the Penasquito Pyrite Leach Project as new or expanding sources of revenue providing further growth and revenue diversification, and the expected timing of commissioning of these projects; and operators’ production estimates for calendar year 2017. Net gold and metal reserves attributable to Royal Gold’s stream, royalty and other interests are subject to certain assumptions and, like reserves, do not reflect actual ounces that will be produced. Like any stream, royalty or similar interest on a non-producing or not-yet-in-development project, our interests on development projects are subject to certain risks, such as the ability of the operators to bring the projects into production and operate in accordance with their feasibility studies and mine plans, and the ability of Royal Gold to make accurate assumptions regarding valuation and timing and amount of payments. In addition, many of our interests are subject to risks associated with conducting business in a foreign country, including application of foreign laws to contract and other disputes, foreign environmental laws and enforcement and uncertain political and economic environments. 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 and gold and silver production at Pueblo Viejo; 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 Company’s stream and royalty 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; 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 deliveries and royalty payments, or deliveries or payments not made in accordance with stream and royalty agreements; economic and market conditions; changes in laws governing the Company and its stream and royalty interests or the operators of the properties subject to such interests, 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: Certain information provided in this press release, including production estimates for calendar 2017, has been provided to us by the operators of the relevant 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 2017
                                                                                                                                                                                     Revenue and Reported Production for Principal Stream and Royalty
                                                                                                                                                                                                                 Interests
                                                                                                                                                                                        (In thousands, except reported production in oz. and lbs.)
                             
                                                                                                             Three Months Ended                                                                                                                 Three Months Ended
                                                                                                                                                                                            June 30, 2017                                                                                                                                                            June 30, 2016
                                                                                                                                   -------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                     Reported                                                                                                                           Reported
      Stream/Royalty                Metal(s)                   Revenue                                    Production(1)                                     Revenue                                    Production(1)
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------  -------------------- -------------------- ------------------------------------------------------------   -------------------- -------------------- --------------------  -------------------- -------------------- ------------------------------------------------------------
Stream:
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  Mount Milligan                                                                                                                            $     31,575                                                                                                                                          $     29,874                                                                 
                                                                    Gold                                                                                                                                         19,800                      oz.                                                                                                                                          23,800                      oz.
                                                                    Copper                                                                                                                                          2.6                      Mlbs.                                                                                                                                           N/A
  Pueblo Viejo(2)                                                                                                                           $     19,678                                                                                                                                                             $     16,676
                                                                    Gold                                                                                                                                         10,500                      oz.                                                                                                                                          10,600                      oz.
                                                                    Silver                                                                                                                                      374,500                      oz.                                                                                                                                         208,900                      oz.
  Andacollo                                                         Gold                                                                    $     18,699                                                         14,900                      oz.                                                                     $     17,080                                                         13,500                      oz.
  Wassa and Prestea                                                 Gold                                                                    $      7,952                                                          6,300                      oz.                                                                     $      5,791                                                          4,600                      oz.
  Other(3)                                                          Gold                                                                    $          -                                                            N/A                                                                                              $          -                                                            300                      oz.
                                                                                                                                   ---------- ----------                                                                                                                                                    ---------- ----------
  Total stream revenue                                                                                                                      $     77,904                                                                                                                                                             $     69,421
                                              
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- --------------------
Royalty:                                                         
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- --------------------
  Penasquito                                                                                                                   $      6,752                                                                                                                                                             $      2,552
                                                                    Gold                                                                                                                                        133,300                      oz.                                                                                                                                          41,900                      oz.
                                                                    Silver                                                                                                                                          5.6                      Moz.                                                                                                                                            2.6                      Moz.
                                                                    Lead                                                                                                                                           27.4                      Mlbs.                                                                                                                                          13.3                      Mlbs.
                                                                    Zinc                                                                                                                                           85.7                      Mlbs.                                                                                                                                          43.2                      Mlbs.
  Cortez                                                            Gold                                                                    $      1,562                                                         16,600                      oz.                                                                     $      1,267                                                         16,100                      oz.
  Other(3)                                                          Various                                                                 $     22,716                                                            N/A                                                                                              $     20,889                                                            N/A
                                                                                                                                   ---------- ----------                                                                                                                                                    ---------- ----------
  Total royalty revenue                                                                                                                     $     31,030                                                                                                                                                             $     24,708
                                                                                                                                   ---------- ----------                                                                                                                                                    ---------- ----------
Total revenue                                                                                                                               $    108,934                                                                                                                                                             $     94,129
                                                                                                                                   ========== ==========                                                                                                                                                    ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                  TABLE 1
                                                                                                                                                                                                             Fiscal Year 2017
                                                                                                                                                                                     Revenue and Reported Production for Principal Stream and Royalty
                                                                                                                                                                                                                 Interests
                                                                                                                                                                                        (In thousands, except reported production in oz. and lbs.)
                             
                                                                                                              Fiscal Year Ended                                                                                                                  Fiscal Year Ended
                                                                                                                                                                                            June 30, 2017                                                                                                                                                            June 30, 2016
                                                                                                                                   -------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                     Reported                                                                                                                           Reported
      Stream/Royalty                Metal(s)                   Revenue                                    Production(1)                                     Revenue                                    Production(1)
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------  -------------------- -------------------- ------------------------------------------------------------   -------------------- -------------------- --------------------  -------------------- -------------------- ------------------------------------------------------------
Stream:                                                          
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- --------------------
  Mount Milligan                                                                                                                            $    136,736                                                                                                                                          $    125,438                                                                 
                                                                    Gold                                                                                                                                        103,400                      oz.                                                                                                                                         108,800                      oz.
                                                                    Copper                                                                                                                                          2.6                      Mlbs.                                                                                                                                           N/A
  Pueblo Viejo(4)                                                                                                                           $     91,589                                                                                                                                                             $     39,683
                                                                    Gold                                                                                                                                         50,700                      oz.                                                                                                                                          31,200                      oz
                                                                    Silver                                                                                                                                          1.6                      Moz.                                                                                                                                        208,900                      oz
  Andacollo                                                         Gold                                                                    $     60,251                                                         47,800                      oz.                                                                     $     49,243                                                         41,600                      oz
  Wassa and Prestea                                                 Gold                                                                    $     25,435                                                         20,300                      oz.                                                                     $     23,346                                                         20,100                      oz
  Other                                                             Gold                                                                    $          -                                                            N/A                                                                                              $        318                                                            300                      oz
                                                                                                                                   ---------- ----------                                                                                                                                                    ---------- ----------
  Total stream revenue                                                                                                                      $    314,011                                                                                                                                                             $    238,028
                                              
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- --------------------
Royalty:                                                         
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------ -------------------- -------------------- -------------------- --------------------
  Penasquito                                                                                                                   $     26,687                                                                                                                                                             $     22,760
                                                                    Gold                                                                                                                                        556,300                      oz.                                                                                                                                         584,000                      oz.
                                                                    Silver                                                                                                                                         20.7                      Moz.                                                                                                                                           21.4                      Moz.
                                                                    Lead                                                                                                                                          125.2                      Mlbs.                                                                                                                                         134.2                      Mlbs.
                                                                    Zinc                                                                                                                                          317.8                      Mlbs.                                                                                                                                         333.0                      Mlbs.
  Cortez                                                            Gold                                                                    $      6,504                                                         64,200                      oz.                                                                     $      6,107                                                         74,000                      oz.
  Other(3)                                                          Various                                                                 $     93,612                                                            N/A                                                                                              $     92,895                                                            N/A
                                                                                                                                   ---------- ----------                                                                                                                                                    ---------- ----------
  Total royalty revenue                                                                                                                     $    126,803                                                                                                                                                             $    121,762
                                                                                                                                   ---------- ----------                                                                                                                                                    ---------- ----------
Total revenue                                                                                                                               $    440,814                                                                                                                                                             $    359,790
                                                                                                                                   ========== ==========                                                                                                                                                    ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                     TABLE 2
                                                                                                                                                                                                                                     Historical Production
                                                                     
                                                                                                                                                                                                                                            Reported Production For The Quarter Ended(1)
                                                                                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
         Property              Stream/Royalty            Operator               Metal(s)                                    Jun. 30,                                                         Mar. 31,                                                         Dec. 31,                                                         Sep. 30,                                                         Jun. 30,
                                                                                                                                                                                                          2017                                                                                2017                                                                                2016                                                                                2016                                                                                2016
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------   -------------------- ------------------------------------------------------------
Stream:                                                                      
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Mount Milligan(5)         35.00% of payable      Centerra                       Gold                         19,800   oz.                                  28,900   oz.                                  25,700   oz.                                  28,900   oz.                                  23,800   oz.
                                               gold; 18.75% of
                                               payable copper
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                        Copper                           2.6   Mlbs.                                   N/A                        N/A                        N/A                        N/A    
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Pueblo Viejo                                 7.5% of gold                              Barrick (60%)                                     Gold                         10,500   oz.                                  15,600   oz.                                  13,700   oz.                                  11,000   oz.                                  10,600   oz.
                                               produced up to
                                               990,000 ounces;
                                               3.75%
                                               thereafter
                                               --------------------                                                                -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
         75% of payable                    Silver                       374,500   oz.                                 322,000   oz.                                 543,300   oz.                                 323,300   oz.                                 208,900   oz.
                                               silver up to 50
                                               million ounces;
                                               37.5%
                                               thereafter
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Andacollo                 100% of gold           Teck                           Gold                         14,900   oz.                                   8,500   oz.                                   9,200   oz.                                  15,200   oz.                                  13,500   oz.
                                               produced
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Wassa and Prestea         9.25% of gold          Golden Star                    Gold                          6,300   oz.                                   5,400   oz.                                   4,000   oz.                                   4,500   oz.                                   4,600   oz.
                                               produced up to
                                               240,000 ounces;
                                               5.5%
                                               thereafter
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Royalty:                                                                     
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Penasquito                      2.0% NSR                                  Goldcorp                                                                           
                                                                                                                                   -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                           Gold                        133,300   oz.                                 137,500   oz.                                 185,400   oz.                                 100,100   oz.                                  41,900   oz.
                                                                                                                                   -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                          Silver                           5.6   Moz.                                    4.8   Moz.                                    5.0   Moz.                                    5.2   Moz.                                    2.6   Moz.
                                                                                                                                   -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                           Lead                           27.4   Mlbs.                                  31.3   Mlbs.                                  33.6   Mlbs.                                  33.0   Mlbs.                                  13.3   Mlbs.
                                                                                                                                   -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                         Zinc                           85.7   Mlbs.                                  88.5   Mlbs.                                  70.5   Mlbs.                                  73.0   Mlbs.                                  43.2   Mlbs.
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Cortez                    GSR1 and GSR2,         Barrick                        Gold                         16,600   oz.                                  11,300   oz.                                  14,500   oz.                                  21,800   oz.                                  16,100   oz.
                                               GSR3, NVR1
------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                           
                                                                   FOOTNOTES
                                                                Tables 1 and 2
      
(1)                       Reported production relates to the amount of metal sales that are
                          subject to our stream and royalty interests for the stated period,
                          as reported to us by operators of the mines.
(2)                       The first silver stream deliveries were in March 2016, with the
                          first silver sales made during the June 2016 quarter.
(3)                       Individually, no stream or royalty included within the "Other"
                          category contributed greater than 5% of our total revenue for the
                          entire period.
(4)                       The gold and silver streams at Pueblo Viejo were acquired during the
                          three months ended September 30, 2015. The first gold and silver
                          stream deliveries were in December 2015 and March 2016, respectively.
(5)                       Reflects the October 20, 2016 amendment to our Mount Milligan
                          streaming agreement. Prior to the amendment, Royal Gold held a
                          52.25% gold stream. Gold concentrate that was in transit at October
                          20, 2016 was delivered to us under the 52.25% gold stream. Royal
                          Gold began receiving gold and copper deliveries reflecting the
                          amended stream agreement in April 2017.
                           
                           
                                                                                                                                                                                                        TABLE 3
                                                                                                                                                             Calendar 2017 Operator’s Production Estimate vs Actual Production
                                                                                                                                                                                                   
                                                                                                                               Calendar 2017 Operator’s Production                                                                                                                                                          Calendar 2017 Operator’s Production
                                                                                                                                           Estimate(1)                                                                                                                                                                                  Actual(2,3)
                                                                       ---------------------------------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Gold                                                          Silver                                                       Base Metals                                                       Gold                    Silver                                                       Base Metals
       Stream/Royalty                    (oz.)                    (oz.)                   (lbs.)                    (oz.)                    (oz.)                   (lbs.)
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Stream:                                                         
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Andacollo(4)                                 61,600                               26,800            
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Mount Milligan(5)                   260,000-290,000              55 - 65 million                    102,300               27.7 million
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Pueblo Viejo(6)                     625,000-650,000         Not provided                            314,000         Not provided          
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Wassa and Prestea(7)                255,000-280,000                              122,000            
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Royalty:                                                        
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Cortez GSR1                                 102,200                               27,700            
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Cortez GSR2                                   1,600                                  200            
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Cortez GSR3                                 103,800                               27,900            
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Cortez NVR1                                  63,900                               15,300            
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  Penasquito(8)                  410,000         Not provided                            260,000         10.2 million          
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                        Lead                      125 million                         58.5 million
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                        Zinc                      325 million                         164.8 million
---------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(1)   Production estimates received from our operators are for calendar
                         2017. 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 and the statement
                         regarding third party information contained in this press release,
                         as well as the Risk Factors identified in Part I, Item 1A, of our
                         Fiscal 2016 Form 10-K for information regarding factors that could
                         affect actual results.
(2)                      Actual production figures shown are from our operators and cover the
                         period January 1, 2017 through June 30, 2017.
(3)                      Actual production figures for Cortez are based on information
                         provided to us by Barrick Gold Corporation, and actual production
                         figures for Andacollo, Mount Milligan, Pueblo Viejo, Penasquito
                         (gold) and Wassa and Prestea are the publicly reported figures of
                         the operators of those properties.
(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 and copper in concentrate.
(6)                      The estimated and actual production figures shown for Pueblo Viejo
                         are payable gold in dore and represent Barrick’s 60% interest in
                         Pueblo Viejo.
(7)                      The estimated gold production figures shown for Wassa and Prestea
                         are payable gold in concentrate and dore.
(8)                      The estimated and actual gold production figures shown for
                         Penasquito are payable gold in concentrate. The operator did not
                         provide estimated silver, lead and zinc production.
                          
                          
                                                                                                                             TABLE 4
                                                                                                                         Stream Summary
 
                                         Three Months Ended                                       Three Months Ended                             As of                  As of
                                                               June 30, 2017                                                               June 30, 2016                                              June 30, 2017                             June 30, 2016
                                          -------------------------------------------------------                     -------------------------------------------------------                     --------------------                      --------------------
Gold Stream                                 Purchases (oz.)      Sales (oz.)                         Purchases (oz.)      Sales (oz.)                          Inventory (oz.)                           Inventory (oz.)
--------------------                      ------------------                      --------------                      ------------------                      --------------                      --------------------                      --------------------
Mount Milligan                                        19,900                              19,800                                  31,200                              23,700                                       100                                     7,500
Pueblo Viejo                                          12,900                              10,500                                  11,000                              11,000                                    12,900                                    11,000
Andacollo                                             12,600                              14,900                                  13,500                              13,500                                       100                                         -
Wassa and Prestea                                      5,300                               6,300                                   4,400                               4,600                                     1,000                                     1,300
                                          ------------------                      --------------                      ------------------                      --------------                      --------------------                      --------------------
Total                                                 50,700                              51,500                                  60,100                              52,800                                    14,100                                    19,800
                                                                                                                                                                                                                                             
                                                            Three Months Ended                                                          Three Months Ended                                                As of                                     As of
                                                               June 30, 2017                                                               June 30, 2016                                              June 30, 2017                             June 30, 2016
                                          -------------------------------------------------------                     -------------------------------------------------------                     --------------------                      --------------------
Silver Stream                               Purchases (oz.)                         Sales (oz.)                         Purchases (oz.)                         Sales (oz.)                          Inventory (oz.)                           Inventory (oz.)
--------------------                      ------------------                      --------------                      ------------------                      --------------                      --------------------                      --------------------
Pueblo Viejo                                         536,800                             374,500                                 322,800                             208,900                                   536,800                                   323,700
                                                                                                                                                                                                                                             
                                                            Three Months Ended                                                          Three Months Ended                                                As of                                     As of
                                                               June 30, 2017                                                               June 30, 2016                                              June 30, 2017                             June 30, 2016
                                          -------------------------------------------------------                     -------------------------------------------------------                     --------------------                      --------------------
Copper Stream                             Purchases (tonnes)                      Sales (tonnes)                      Purchases (tonnes)                      Sales (tonnes)                       Inventory (tonnes)                        Inventory (tonnes)
--------------------                      ------------------                      --------------                      ------------------                      --------------                      --------------------                      --------------------
Mount Milligan                                         1,165                               1,165                                     N/A                                 N/A                                         -                                       N/A
                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                             
                                                                                     
-------------------- -------------------- --------------------------------------------------------------------------- --------------------------------------------------------------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                             
                                                             Fiscal Year Ended                                                           Fiscal Year Ended                                                As of                                     As of
                                                               June 30, 2017                                                               June 30, 2016                                              June 30, 2017                             June 30, 2016
                                          -------------------------------------------------------                     -------------------------------------------------------                     --------------------                      --------------------
Gold Stream                                 Purchases (oz.)                         Sales (oz.)                         Purchases (oz.)                         Sales (oz.)                          Inventory (oz.)                           Inventory (oz.)
--------------------                      ------------------                      --------------                      ------------------                      --------------                      --------------------                      --------------------
Mount Milligan                                        96,000                             103,400                                 111,000                             108,800                                       100                                     7,500
Pueblo Viejo                                          52,600                              50,700                                  42,200                              31,200                                    12,900                                    11,000
Andacollo                                             47,900                              47,800                                  41,700                              41,600                                       100                                         -
Wassa and Prestea                                     19,900                              20,300                                  21,400                              20,100                                     1,000                                     1,300
Phoenix Gold                                               -                                   -                                     300                                 300                                         -                                         -
                                          ------------------                      --------------                      ------------------                      --------------                      --------------------                      --------------------
Total                                                216,400                             222,200                                 216,600                             202,000                                    14,100                                    19,800
                                                                                                                                                                                                                                             
                                                             Fiscal Year Ended                                                           Fiscal Year Ended                                                As of                                     As of
                                                               June 30, 2017                                                               June 30, 2016                                              June 30, 2017                             June 30, 2016
                                          -------------------------------------------------------                     -------------------------------------------------------                     --------------------                      --------------------
Silver Stream                              Purchases (Moz.)                        Sales (Moz.)                         Purchases (oz.)                         Sales (oz.)                          Inventory (oz.)                           Inventory (oz.)
--------------------                      ------------------                      --------------                      ------------------                      --------------                      --------------------                      --------------------
Pueblo Viejo                                             1.8                                 1.6                                 532,600                             208,900                                   536,800                                   323,700
                                                                                                                                                                                                                                             
                                                             Fiscal Year Ended                                                           Fiscal Year Ended                                                As of                                     As of
                                                               June 30, 2017                                                               June 30, 2016                                              June 30, 2017                             June 30, 2016
                                          -------------------------------------------------------                     -------------------------------------------------------                     --------------------                      --------------------
Copper Stream                             Purchases (tonnes)                      Sales (tonnes)                      Purchases (tonnes)                      Sales (tonnes)                       Inventory (tonnes)                        Inventory (tonnes)
--------------------                      ------------------                      --------------                      ------------------                      --------------                      --------------------                      --------------------
Mount Milligan                                         1,165                               1,165                                     N/A                                 N/A                                         -                                       N/A
                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                             
                                                                                                                            ROYAL GOLD, INC.
                                                                                                                       Consolidated Balance Sheets
                                                                                                                             As of June 30,
                                                                                                                    (In thousands except share data)
 
                                                                                      2017                                     2016
                                                                                                                                                     -------------------------------                                          ------------------------------------------
                             ASSETS
Cash and equivalents                                                                                                                                                    $    85,847                                                              $              116,633
Royalty receivables                                                                                                                                                          23,461                                                                              17,990
Income tax receivable                                                                                                                                                        22,169                                                                              23,219
Stream inventory                                                                                                                                                              7,883                                                                               9,489
Prepaid expenses and other                                                                                                                                   822                                                              614
                                                                                                                                                     -------------------- ---------                                           -------------------- --------------------
    Total current assets                                                                                                                                                    140,182                                                                             167,945
Stream and royalty interests, net                                                                                                                                         2,892,256                                                                           2,848,087
Other assets                                                                                                                                              58,202                                                           53,697
                                                                                                                                                     -------------------- ---------                                           -------------------- --------------------
    Total assets                                                                                                                                                        $ 3,090,640                                                              $            3,069,729
                                                                                                                                                     ==================== =========                                           ==================== ====================
                           LIABILITIES
Accounts payable                                                                                                                                                        $     3,908                                                              $                4,114
Dividends payable                                                                                                                                                            15,682                                                                              15,012
Income tax payable                                                                                                                                                            5,651                                                                               3,177
Other current liabilities                                                                                                                                  5,617                                                            3,554
                                                                                                                                                     -------------------- ---------                                           -------------------- --------------------
    Total current liabilities                                                                                                                                                30,858                                                                              25,857
Debt                                                                                                                                                                        586,170                                                                             600,685
Deferred tax liabilities                                                                                                                                                    121,330                                                                             133,867
Uncertain tax positions                                                                                                                                                      25,627                                                                              16,996
Other long-term liabilities                                                                                                                                6,391                                                            6,439
                                                                                                                                                     -------------------- ---------                                           -------------------- --------------------
    Total liabilities                                                                                                                                                       770,376                                                                             783,844
                             EQUITY
Preferred stock, $.01 par value, authorized 10,000,000 shares                                                                                                                     -                                                                                   -
authorized; and 0 shares issued
Common stock, $.01 par value, 200,000,000 shares authorized; and                                                                                                                652                                                                                 651
65,179,527 and 65,093,950 shares outstanding, respectively
Additional paid-in capital                                                                                                                                                2,185,796                                                                           2,179,781
Accumulated other comprehensive income                                                                                                                                          879                                                                                   -
Accumulated earnings                                                                                                                                      88,050                                                           48,584
                                                                                                                                                     -------------------- ---------                                           -------------------- --------------------
Total Royal Gold stockholders’ equity                                                                                                          2,275,377                                                                           2,229,016
Non-controlling interests                                                                                                                                 44,887                                                           56,869
                                                                                                                                                     -------------------- ---------                                           -------------------- --------------------
    Total equity                                                                                                                                       2,320,264                                                        2,285,885
                                                                                                                                                     -------------------- ---------                                           -------------------- --------------------
    Total liabilities and equity                                                                                                                                        $ 3,090,640                                                              $            3,069,729
                                                                                                                                                     ==================== =========                                           ==================== ====================
                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                         ROYAL GOLD, INC.
                                                                                                                                                                                                  Consolidated Statements of Operations and Comprehensive Income
                                                                                                                                                                                                                              (Loss)
                                                                                                                                                                                                             (In thousands except for per share data)
 
                                                                                                                                       For The Three Months Ended                                                                                                                                  For The Years Ended
                                                                                                                ----------------------------------------------------------------------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                      June 30,                                                 June 30,                                                                                       June 30,                                                 June 30,
                                                                                                                                        2017                                                                                           2016                                                                                           2017                                                                                           2016
                                                                                                                -----------------------------------------------------                                          -----------------------------------------------------                                          -----------------------------------------------------                                          -----------------------------------------------------
Revenue                                                                                                                            $    108,934                                                                                   $     94,129                                                                                   $    440,814                                                                                   $    359,790
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Costs and expenses
  Cost of sales                                                                                                                          19,682                                                                                         19,019                                                                                         87,265                                                                                         70,979
  General and administrative                                                                                                              9,903                                                                                          8,305                                                                                         33,350                                                                                         31,720
  Production taxes                                                                                                                          429                                                                                            432                                                                                          1,760                                                                                          3,978
  Exploration costs                                                                                                                       4,450                                                                                          2,466                                                                                         12,861                                                                                          8,601
  Depreciation, depletion and amortization                                                                                               39,851                                                                                         35,391                                                                                        159,636                                                                                        141,108
  Impairments of stream and royalty interests and royalty receivables                                                      -                                                        -                                                        -                                                   98,588  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total costs and expenses                                                                                              74,315                                                   65,613                                                  294,872                                                  354,974  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Operating income                                                                                                                         34,619                                                                                         28,516                                                                                        145,942                                                                                          4,816
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Gain on available-for-sale securities                                                                                                         -                                                                                          1,665                                                                                              -                                                                                          2,340
Interest and other income                                                                                                                   753                                                                                          1,582                                                                                          9,302                                                                                          3,711
Interest and other expense                                                                                           (10,819 )                                                                    (8,656 )                                                                   (36,378 )                                                                   (32,625 )
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Income (loss) before income taxes                                                                                                        24,553                                                                                         23,107                                                                                        118,866                                                                                        (21,758 )
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Income tax expense                                                                                                    (7,717 )                                                                    (5,025 )                                                                   (26,441 )                                                                   (60,680 )
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Net income (loss)                                                                                                                        16,836                                                                                         18,082                                                                                         92,425                                                                                        (82,438 )
Net loss attributable to non-controlling interests                                                                     3,184                                                    2,357                                                    9,105                                                    5,289  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Net income (loss) attributable to Royal Gold common stockholders                                                                   $     20,020                                                                $     20,439                                                                $    101,530                                                                $    (77,149 )
                                                                                                                ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Net income (loss)                                                                                                                  $     16,836                                                                                   $     18,082                                                                                   $     92,425                                                                                   $    (82,438 )
Adjustments to comprehensive income (loss), net of tax
  Unrealized change in market value of available-for-sale securities                                                                        303                                                                                          1,112                                                                                            879                                                                                          5,632
  Reclassification adjustment for gains included in net income                                                             -                                                   (1,665 )                                                                                            -                                                                      (2,340 )
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                                                ---------- --------------------                                                                ---------- --------------------
Comprehensive income (loss)                                                                                                              16,533                                                                                         17,529                                                                                         93,304                                                                                        (79,146 )
Comprehensive loss attributable to non-controlling interests                                                           3,184                                                    2,357                                                    9,105                                                    5,289  
                                                                                                                -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Comprehensive income (loss) attributable to Royal Gold stockholders                                                                $     19,717                                                                $     19,886                                                                $    102,409                                                                $    (73,857 )
                                                                                                                ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                   
Net income (loss) per share available to Royal Gold common
stockholders:
Basic earnings (loss) per share                                                                                                    $       0.31                                                                $       0.32                                                                $       1.55                                                                $      (1.18 )
                                                                                                                ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================
Basic weighted average shares outstanding                                                                         65,175,663                                               65,090,772                                               65,152,782                                               65,074,455  
                                                                                                                ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================
Diluted earnings (loss) per share                                                                                                  $       0.31                                                                $       0.32                                                                $       1.55                                                                $      (1.18 )
                                                                                                                ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================
Diluted weighted average shares outstanding                                                                       65,320,719                                               65,090,772                                               65,277,953                                               65,074,455  
                                                                                                                ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================
Cash dividends declared per common share                                                                                           $       0.24                                                                $       0.23                                                                $       0.95                                                                $       0.91  
                                                                                                                ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                      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,
                                                                                                                                         2017                                                                                        2016                                                                                        2017                                                                                          2016
                                                                                                                  --------------------------------------------------                                          --------------------------------------------------                                          ---------------------------------------------------                                          -----------------------------------------------------
Cash flows from operating activities:
Net income (loss)                                                                                                                    $  16,836                                                                                   $  18,082                                                                                   $   92,425                                                                                   $    (82,438 )
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
  Depreciation, depletion and amortization                                                                                              39,851                                                                                      35,391                                                                                      159,636                                                                                        141,108
  Amortization of debt discount and issuance costs                                                                                       3,623                                                                                       4,843                                                                                       13,825                                                                                         12,985
  Non-cash employee stock compensation expense                                                                                           3,224                                                                                       2,250                                                                                        9,983                                                                                         10,039
  Impairments of stream and royalty interests and royalty receivables                                                                        -                                                                                           -                                                                                            -                                                                                         98,588
  Tax (benefit) expense of stock-based compensation exercises                                                                             (937 )                                                                                       301                                                                                         (975 )                                                                                          548
  Gain on available-for-sale securities                                                                                                      -                                                                                      (1,665 )                                                                                          -                                                                                         (2,340 )
  Deferred tax expense (benefit)                                                                                                         7,822                                                                                      12,263                                                                                        1,556                                                                                         (4,983 )
  Other                                                                                                                                   (236 )                                                                                         -                                                                                       (4,874 )                                                                                         (390 )
Changes in assets and liabilities:
  Royalty receivables                                                                                                                     (671 )                                                                                     2,245                                                                                       (5,472 )                                                                                       17,221
  Stream inventory                                                                                                                      (1,259 )                                                                                    (4,088 )                                                                                      1,606                                                                                         (7,203 )
  Income tax receivable                                                                                                                 (2,815 )                                                                                   (11,783 )                                                                                    (13,056 )                                                                                      (14,637 )
  Prepaid expenses and other assets                                                                                                       (948 )                                                                                    (1,783 )                                                                                     (1,691 )                                                                                         (153 )
  Accounts payable                                                                                                                       1,435                                                                                         684                                                                                         (206 )                                                                                         (849 )
  Income tax payable                                                                                                                    (1,227 )                                                                                       602                                                                                        2,475                                                                                            460
  Uncertain tax positions                                                                                                                1,290                                                                                         (83 )                                                                                      8,631                                                                                          1,867
  Other liabilities                                                                                                  (1,004 )                                                                 (8,047 )                                                                   2,015                                                       36  
                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ---------- --------------------
Net cash provided by operating activities                                                                                            $  64,984                                                                $  49,212                                                                $  265,878                                                                $    169,859  
                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                        
Cash flows from investing activities:
  Acquisition of stream and royalty interests                                                                                                -                                                                                     (19,853 )                                                                                   (203,721 )                                                                                   (1,346,109 )
  Andacollo royalty termination                                                                                                              -                                                                                           -                                                                                            -                                                                                        345,000
  Golden Star term loan                                                                                                                      -                                                                                           -                                                                                            -                                                                                        (20,000 )
  Proceeds from sale of available-for-sale securities                                                                                        -                                                                                       4,972                                                                                            -                                                                                         11,905
  Other                                                                                                               2,102                                                    (7 )                                                                   3,605                                                     (309 )
                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ---------- --------------------
Net cash provided by (used in) provided by investing activities                                                                      $   2,102                                                                $ (14,888 )                                                                                 $ (200,116 )                                                                                 $ (1,009,513 )
                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                        
Cash flows from financing activities:
  Borrowings from revolving credit facility                                                                                                  -                                                                                           -                                                                                       70,000                                                                                        350,000
  Repayment of revolving credit facility                                                                                               (50,000 )                                                                                   (25,000 )                                                                                    (95,000 )                                                                                      (75,000 )
  Net payments from issuance of common stock                                                                                               192                                                                                        (179 )                                                                                     (2,426 )                                                                                         (353 )
  Common stock dividends                                                                                                               (15,681 )                                                                                   (15,011 )                                                                                    (61,396 )                                                                                      (58,720 )
  Purchase of additional royalty interest from non-controlling interest                                                                 (1,056 )                                                                                         -                                                                                       (2,518 )                                                                                            -
  Debt issuance costs                                                                                                                   (3,340 )                                                                                       (62 )                                                                                     (3,340 )                                                                                       (1,111 )
  Tax expense (benefit) of stock-based compensation exercises                                                                              937                                                                                        (301 )                                                                                        975                                                                                           (548 )
  Other                                                                                                                (381 )                                                                     (1 )                                                                  (2,843 )                                                                      (830 )
                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ---------- --------------------
Net cash (used in) provided by financing activities                                                                                  $ (69,329 )                                                                                 $ (40,554 )                                                                                 $  (96,548 )                                                                                 $    213,438  
                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ---------- --------------------
Net (decrease) increase in cash and equivalents                                                                                         (2,243 )                                                                                    (6,230 )                                                                                    (30,786 )                                                                                     (626,216 )
Cash and equivalents at beginning of period                                                                          88,090                                               122,863                                                116,633                                                  742,849  
                                                                                                                  -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- -------- --------------------                                           -------------------- ---------- --------------------
Cash and equivalents at end of period                                                                                                $  85,847                                                                $ 116,633                                                                $   85,847                                                                $    116,633  
                                                                                                                  ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ======== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                        

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 non-core items, which can vary substantially from company to company depending upon accounting methods, 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. 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                                                                           Fiscal Years Ended
                                                                                                                                                                                                                                            June 30,                                                                                                                               June 30,
                                                                                                                                                                                                                                    (Unaudited, in thousands)                                                                                                              (Unaudited, in thousands)
                                                                                                                                                                                                     --------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------
                                                                                                                                                                                                              2017                      2016                                                            2017                             2016
                                                                                                                                                                                                     ----------------------                                          ----------------------                                          ----------------------                                          ------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                    Net income (loss)                                                                                                         $     16,836                                                    $     18,082                                                    $     92,425                                                $ (82,438 )
                                                                                        Depreciation, depletion and amortization                                                                                    39,851                                                          35,391                                                         159,636                                                  141,108
                                                                                        Non-cash employee stock compensation                                                                                         3,224                                                           2,250                                                           9,983                                                   10,039
                                                                                        Impairment of stream and royalty interests and royalty receivables                                                               -                                                               -                                                               -                                                   98,588
                                                                                        Interest and other, net                                                                                                     10,067                                                           5,409                                                          27,075                                                   26,574
                                                                                        Income tax expense                                                                                                           7,717                                                           5,025                                                          26,441                                                   60,680
                                                                                        Non-controlling interests in operating loss of consolidated                                                                  3,422                                                           2,357                                                          10,628                                                    5,289
                                                                                        subsidiaries
                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                     ----------------------                                          ----------------------                                          ----------------------                                          ------------------------------------
                                                                                    Adjusted EBITDA                                                                                                           $     81,117                                                    $     68,514                                                    $    326,188                                                $ 259,840  
                                                                                                                                                                                                     ========== ==========                                           ========== ==========                                           ========== ==========                                           ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                     

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                                                                                                 Fiscal Years Ended
                                                                                                                                                                June 30,                                                                                                                                                     June 30,
                                                                                                                                                        (Unaudited, in thousands)                                                                                                                                    (Unaudited, in thousands)
                                                                                                               ----------------------------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------------------
                                                                                                                             2017                                2016                                                                      2017                                         2016
                                                                                                               --------------------------------                                          --------------------------------                                          --------------------------------                                          --------------------------------------------------
                                                                                                                                                                                                                                                                                                                                              
Net income (loss) attributable to Royal Gold common stockholders                                                                  $     20,020                                                              $     20,439                                                              $    101,530                                                              $ (77,149 )
                                                                                                                                                                                                                                                                                                                                              
Impairments of stream and royalty interests and royalty receivables,                                                                         -                                                                         -                                                                         -                                                                 86,130
net of tax
Tax expense on Andacollo royalty sale and Chilean subsidiary                                                              -                                                      -                                                      -                                              56,000  
liquidation
                                                                                                               -------------------- ----------                                           -------------------- ----------                                           -------------------- ----------                                           -------------------- ------- --------------------
Adjusted net income attributable to Royal Gold common stockholders                                                                $     20,020                                                              $     20,439                                                              $    101,530                                                              $  64,981
                                                                                                          
-------------------------------------------------------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- --------------------------------------------------
                                                                                                                                                                                                                                                                                                                                              
Net income (loss) attributable to Royal Gold common stockholders                                                                  $       0.31                                                              $       0.32                                                              $       1.55                                                              $   (1.18 )
per basic share
                                                                                                                                                                                                                                                                                                                                              
Impairment of stream and royalty interests and royalty receivables,                                                                          -                                                                         -                                                                         -                                                                   1.32
net of tax
Tax expense on Andacollo royalty sale and Chilean subsidiary                                                              -                                                      -                                                      -                                                0.86  
liquidation
                                                                                                               -------------------- ----------                                           -------------------- ----------                                           -------------------- ----------                                           -------------------- ------- --------------------
Adjusted net income attributable to Royal Gold common                                                                             $       0.31                                                              $       0.32                                                              $       1.55                                                              $    1.00  
stockholders per basic share
                                                                                                               ==================== ==========                                           ==================== ==========                                           ==================== ==========                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                              
Net income (loss) attributable to Royal Gold common stockholders                                                                  $       0.31                                                              $       0.32                                                              $       1.55                                                              $   (1.18 )
per diluted share
                                                                                                                                                                                                                                                                                                                                              
Impairment of stream and royalty interests and royalty receivables,                                                                          -                                                                         -                                                                         -                                                                   1.32
net of tax
Tax expense on Andacollo royalty sale and Chilean subsidiary                                                              -                                                      -                                                      -                                                0.86  
liquidation
                                                                                                               -------------------- ----------                                           -------------------- ----------                                           -------------------- ----------                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                              
Adjusted net income attributable to Royal Gold common                                                                             $       0.31                                                              $       0.32                                                              $       1.55                                                              $    1.00  
stockholders per diluted share
                                                                                                               ==================== ==========                                           ==================== ==========                                           ==================== ==========                                           ==================== ======= ====================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170809006188r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170809006188/en/

SOURCE: Royal Gold, Inc."> <Property FormalName="PrimaryTwitterHandle" Value="@RoyalGold11

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


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