What were the key takeaways from Royal Gold’s earnings call?

Did Royal Gold beat or miss consensus estimates last quarter?

What factors drove the changes in Royal Gold's revenue and profit?

What guidance did Royal Gold's management provide for the next earnings period?

What is the revenue and EPS growth rate for Royal Gold year over year?

What is Royal Gold's latest dividend and current dividend yield?

What is Royal Gold's gross profit margin?

What does Royal Gold do and what are its main business segments?

- **Record Financials**: Q3 revenue of $252 million and adjusted net income of $136 million ($2.06 per share), driven by higher metal prices and strategic acquisitions.
- **Strategic Acquisitions**: Completed Sandstorm and Horizon deals, adding $64 million in quarterly revenue and diversifying the portfolio.
- **Kansanshi Stream**: First gold delivery in October, with 2026 deliveries expected to include deferred 2025 ounces.
- **Operational Growth**: Mount Milligan mine life extended to 2045, and Fourmile's 600,000-750,000 oz/year potential highlights long-term growth.
- **Debt Management**: $1.225 billion debt post-acquisitions, with plans to repay by mid-2027 using cash flows, maintaining a 1-1.5x leverage ratio.

**【CEO Summary Section】**
- Q3 2025 revenue reached a record $252 million, driven by 40% higher gold prices and 34% higher silver prices. Adjusted net income was $136 million ($2.06 per share), excluding acquisition costs.
- Acquired Sandstorm Gold and Horizon Copper in October, adding $58 million in quarterly revenue from Sandstorm and $6 million from Horizon. These transactions expanded the portfolio's growth potential and diversification.
- Completed the $1 billion Kansanshi copper-gold stream, receiving first gold delivery in October. Despite a 5,000-ounce delay in 2025 deliveries, the stream is expected to contribute 7,500 ounces annually starting in 2026.
- Portfolio diversification includes life-of-mine extensions at Mount Milligan (2036 to 2045) and Fourmile (600,000-750,000 oz/year potential), enhancing long-term revenue stability.

**【CFO Financial Commentary】**
- Operating cash flow reached $174 million, up 27% year-over-year, due to higher metal prices and production volumes. Cash G&A remained below 3% of revenue, reflecting operational efficiency.
- Incurred $13 million in acquisition-related costs for Sandstorm and Horizon, with additional expenses expected in Q4. Total debt post-acquisitions is $1.225 billion, with plans to repay by mid-2027 using cash flows.
- Effective tax rate was 17.9%, and the company maintained its dividend of $0.45 per share, emphasizing shareholder returns despite increased debt.

**【Portfolio Update】**
- **Mount Milligan**: Mine life extended to 2045 with government support, contributing 22% of total revenue. First gold delivery under the cost support agreement generated $44 million in proceeds.
- **Cortez (Fourmile)**: Barrick's PEA indicates 600,000-750,000 oz/year production potential, with Royal Gold's 1.6% royalty covering the entire project.
- **Kansanshi**: First gold delivery in October, with monthly cadence expected. Despite 2025 shortfall, 2026 deliveries are on track.
- **Sandstorm Assets**: Post-acquisition, MARA and Platreef show progress, with Platreef's Phase 1 concentrator operational and first concentrate expected in late 2025.

**【Q&A Highlights】**
- **Debt Comfort**: CEO Bill Heissenbuttel stated leverage will be 1-1.5x net debt/EBITDA post-acquisitions, comfortable for the business model. Debt repayment is expected by mid-2027.
- **Kansanshi Delay**: 5,000 ounces deferred to 2026 due to delivery timing, not production issues. 2026 deliveries will include both original and deferred ounces.
- **Sandstorm Integration**: CFO Paul Libner noted Q4 will finalize accounting for Sandstorm and Horizon, with 2026 guidance provided at March 2026 Investor Day.
- **Dividend Policy**: Board will consider dividend increase in November, balancing debt repayment and portfolio growth.
- **Hamadan JV**: Management aims to convert the 30% joint venture into a conventional royalty, prioritizing discussions with operators.

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