Royal Gold Provides Update on its Fiscal 2019 First Quarter

Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company”) today announced that its wholly owned subsidiary, RGLD Gold AG, sold approximately 57,000 gold equivalent ounces comprised of approximately 48,000 gold ounces, 572,000 silver ounces and 380 tonnes of copper related to its streaming agreements during its fiscal 2019 first quarter ended September 30, 2018 (“first quarter”). The Company had approximately 20,000 gold ounces, 545,000 silver ounces and 350 tonnes of copper in inventory at September 30, 2018.

RGLD Gold AG’s average realized gold, silver and copper prices for the first quarter were $1,221 per ounce, $15.25 per ounce, and $5,800 per tonne ($2.63 per pound), respectively, compared to $1,314, $16.55, and $6,847 ($3.11 per pound) in the prior quarter, respectively. Cost of sales was approximately $288 per gold equivalent ounce for the first quarter using the quarterly average silver-gold ratio of approximately 81 to 1 and copper-gold ratio of approximately 0.20 tonnes per ounce, compared to $349 per gold equivalent ounce in the prior quarter. Cost of sales is specific to our stream agreements and is the result of the Company’s purchase of gold, silver or copper for cash payments at a set contractual price, or a percentage of the prevailing market price of gold, silver or copper when purchased.

As previously announced and anticipated, reduced sales were experienced during the first quarter from Mount Milligan due to the temporary shutdown of the mill processing facility that occurred in early calendar 2018 resulting from a lack of sufficient water sources.

On September 14, 2018, Centerra reported that both ball mill circuits at Mount Milligan had been operating from current water sources through the third calendar quarter to that date, and that approval had been received for the use of certain short-term water sources through November 15, 2018. Centerra also reported that it is seeking to extend and add certain temporary sources until 2020 but cautioned that the currently approved sources will provide limited amounts of water in the near term, and that there can be no assurances with respect to the sufficiency and availability of additional water sources. Centerra indicated work was under way on a long-term water solution from and after 2020 for the entire mine life.