second quarter
Filed Aug 5, 2026Royal Gold Reports Strong Second Quarter Financial Results Including Record Operating Cash Flow, Repurchase of Shares and Further Repayment of Debt
Second-quarter revenue, operating cash flow, net income and GEO sales volume all increased substantially from the prior-year period, while the Company repaid revolving-credit-facility debt, repurchased shares and increased its quarterly dividend.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $450.5 million | – | 114.9 % |
| Gold revenueGAAP | $343.9 million | – | 109.3 % |
| Silver revenueGAAP | $55.6 million | – | 131.0 % |
| Copper revenueGAAP | $37.9 million | – | 156.4 % |
| Other Metals revenueGAAP | $13.2 million | – | 103.7 % |
| Operating cash flowGAAP | $335.2 million | – | – |
| Net incomeGAAP | $236.4 million | – | – |
| Net income per shareGAAP | $2.78 per share | – | – |
| Adjusted net incomenon-GAAP | $218.2 million | – | – |
| Adjusted net income per sharenon-GAAP | $2.56 per share | – | – |
| Sales volumeother | 100,000 GEOs | – | 56.5 % |
| Adjusted EBITDA marginnon-GAAP | 83% | – | – |
| Revenue split by commodityother | 76% gold, 12% silver, 8% copper | – | – |
| Revenue split stream / royaltyother | 69% / 31% | – | – |
| Six-month total revenueGAAP | $919.7 million | – | 128.2 % |
| Six-month gold revenueGAAP | $677.8 million | – | 118.6 % |
| Six-month silver revenueGAAP | $128.6 million | – | 169.8 % |
| Six-month copper revenueGAAP | $84.5 million | – | 167.7 % |
| Six-month Other Metals revenueGAAP | $28.8 million | – | 108.5 % |
| Six-month GEOsother | 196,000 | – | 49.0 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| GoldGold represented 76% of revenue split by commodity. | $343.9 million | – | 109.3 % |
| SilverSilver represented 12% of revenue split by commodity. | $55.6 million | – | 131.0 % |
| CopperCopper represented 8% of revenue split by commodity. | $37.9 million | – | 156.4 % |
| Other MetalsReported as Other Metals revenue. | $13.2 million | – | 103.7 % |
| North America56% of second-quarter total revenue. | $ 250,381 | – | – |
| South and Central America22% of second-quarter total revenue. | $ 99.5 million | – | – |
| Europe, Middle East, Africa (EMEA)19% of second-quarter total revenue. | $ 85.4 million | – | – |
| Australia Pacific3% of second-quarter total revenue. | $ 15.3 million | – | – |
2026 outlook
- Tax rate17–22%
- NoteTotal Sales Gold (oz): 290,000–320,000; Actual Performance Through June 30, 2026: 143,968
- NoteSilver (M oz): 3.0–3.5; Actual Performance Through June 30, 2026: 1.6
- NoteCopper (M lb): 21.0–25.0; Actual Performance Through June 30, 2026: 14.2
- NoteOther Metals (M): $34–$38; Actual Performance Through June 30, 2026: $29
- NoteDD&A (M): $339–379; Actual Performance Through June 30, 2026: $187
- NoteYear to date effective tax rate excluding discrete tax items: 19.9%
- NoteSales of copper and other metals are trending to be around or above the top end of the respective guidance ranges.
Capital returns
- Paid quarterly dividend of $0.475 per share, a 6% increase over the prior year period.
- Repurchased 147,205 shares at an average price of $203.80 per share, for total consideration of $30 million.
- The repurchased shares were cancelled and 84,673,027 shares remain outstanding as of June 30, 2026.
- The share repurchases were made under the previously-announced $500 million share repurchase program approved by the Board of Directors on May 4, 2026.
What drove it
- Average gold price was $4,506 per oz, compared with $3,280 per oz in 2025, a 37% change.
- Average silver price was $73.15 per oz, compared with $33.68 per oz in 2025, a 117% change.
- Average copper price was $6.05 per lb, compared with $4.32 per lb in 2025, a 40% change.
- Sales volume was 100,000 GEOs, compared to 63,900 in the prior year period.
- Royal Gold sold 5,000 ounces of gold received in settlement of remaining fixed delivery obligations related to the Relief Canyon mine.
- The Relief Canyon settlement generated a $2.6 million gain and approximately $12 million of additional DD&A expense.
- The Company closed the Hod Maden ownership restructuring on July 17, 2026 and received a new effective 2.5% NSR royalty interest over the Hod Maden Project.
Concerns
- Adjusted EBITDA margin was 83%, compared to 84% in the prior year period.
- The remaining $50 million payable to Solaris is subject to completion of all filings necessary to perfect security in Ecuador and is anticipated in the third or fourth quarter of 2026.
- Lidya will complete the funding of the next $397 million of Hod Maden Project costs, and further funding will be split pro rata between Royal Gold and Lidya according to their 15%/85% ownership in Artmin.
- The $600 million accordion feature is uncommitted and requires customary conditions, including consent of each lender providing an additional commitment.
What to watch
- Whether 2026 gold sales remain within the 290,000–320,000 oz guidance range.
- Whether copper and other-metals sales finish around or above the top end of their respective guidance ranges.
- Completion of filings necessary for the remaining $50 million Solaris payment anticipated in the third or fourth quarter of 2026.
- Hod Maden Project funding requirements, potential debt financing and Royal Gold's option to acquire an equivalent 2.0% NSR royalty interest for $160 million.
- Future repurchases under the $500 million share repurchase program and additional revolving-credit-facility repayments.
Balance sheet and cash flow
- Record operating cash flow of $335.2 million (compared to $152.8 million in the prior year period).
- Repaid $200 million on the revolving credit facility.
- Increased total available liquidity to approximately $1.2 billion.
- On July 15, 2026, repaid $75 million on the revolving credit facility, reducing the amount currently drawn to $325 million and increasing the amount available and undrawn to $1.075 billion.
- Added a new $600 million uncommitted accordion feature to the $1.4 billion revolving credit facility.
- The accordion feature permits aggregate commitments under the revolving credit facility of up to $2.0 billion, subject to customary conditions.
- Advanced a further $50 million under the stream agreement to Solaris Resources Inc.
- Funded $70 million in Hod Maden Project costs.
Analysis
Royal Gold reported a strong second quarter ended June 30, 2026. Total revenue was $450.5 million versus $209.6 million in the prior-year period, while sales volume rose to 100,000 GEOs from 63,900. Gold revenue was $343.9 million, silver revenue was $55.6 million, copper revenue was $37.9 million and Other Metals revenue was $13.2 million. Gold comprised 76% of revenue split by commodity, and the stream and royalty split was 69% / 31%.
The reported pricing environment was substantially higher than the prior-year period. Average gold price was $4,506 per oz compared with $3,280 per oz, average silver price was $73.15 per oz compared with $33.68 per oz, and average copper price was $6.05 per lb compared with $4.32 per lb. Revenue growth extended across all reported commodities, with copper and silver posting the largest stated percentage increases. North America remained the largest regional contributor at $250,381, or 56% of total revenue, followed by South and Central America at $99.5 million and EMEA at $85.4 million.
Cash generation was a central feature of the release. Operating cash flow reached a record $335.2 million compared with $152.8 million in the prior-year period. GAAP net income was $236.4 million, or $2.78 per share, and adjusted net income was $218.2 million, or $2.56 per share. Adjusted EBITDA margin was 83%, compared with 84% in the prior-year period. The Relief Canyon settlement added the sale of 5,000 ounces of gold during the quarter, a $2.6 million gain and approximately $12 million of additional DD&A expense.
Capital allocation included repayment of $200 million on the revolving credit facility, a $30 million repurchase of 147,205 shares and a quarterly dividend of $0.475 per share. After quarter-end, the Company repaid a further $75 million, leaving $325 million drawn and $1.075 billion available and undrawn. The Company also advanced $50 million to Solaris for Warintza and funded $70 million of Hod Maden Project costs, while adding a $600 million uncommitted accordion feature to its $1.4 billion revolving credit facility.
For 2026, Royal Gold said performance is forecast to remain within previously provided sales-volume, DD&A and effective-tax-rate ranges, except that copper and other-metals sales are trending to be around or above the top end of their respective ranges. Actual performance through June 30 included 143,968 gold oz, 1.6 silver M oz, 14.2 copper M lb, $29 of Other Metals, $187 of DD&A and a 19.9% year-to-date effective tax rate excluding discrete tax items. The next operational and capital-allocation milestones are the anticipated remaining Solaris payment in the third or fourth quarter of 2026, Hod Maden funding and the use of liquidity, debt capacity and the share-repurchase authorization.
Management, verbatim
Financial results for the second quarter were strong and we made meaningful progress on executing our priorities.
Bill Heissenbuttel, President and CEO of Royal Gold
We continued our disciplined approach to capital allocation.
Bill Heissenbuttel, President and CEO of Royal Gold
After a solid first half of the year driven by our large and diversified portfolio, our outlook for the second half remains positive, and we will maintain our discipline and long term focus as we consider alternatives to accretively deploy capital in an active environment for new business development opportunities.
Bill Heissenbuttel, President and CEO of Royal Gold
Not in the filing
stated, not guessed- Free cash flow was not reported in the provided filing text.
- Gross margin was not reported in the provided filing text.
- Operating income was not reported in the provided filing text.
- Operating expenses were not reported in the provided filing text.
- A quarter-end cash balance was not reported in the provided filing text.
- Total debt and net debt were not reported in the provided filing text.
- Prior-quarter comparisons were not reported for the key metrics in the provided filing text.
- Prior-year GAAP net income per share was not reported in the provided filing text.
- Prior-year adjusted net income per share was not reported in the provided filing text.
- A prior outlook document was not provided, so no comparison of actual results with prior guidance is included.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.