Royal Gold Inc

Royal Gold reported second-quarter revenue rose 56.5% to $450 million, with earnings of $2.56 a share, up 41% from a year ago, though both figures narrowly missed analyst estimates. The Denver-based company, which acquires and manages metal streams and royalty interests rather than operating mines, posted record operating cash flow of $335.2 million, more than double the prior year. Gold accounted for 76% of revenue, silver 12%, and copper 8%. The article argues that demand from AI data centers will continue to support copper and silver prices, while gold benefits from expectations of Federal Reserve rate cuts, a weaker dollar, and central bank diversification away from the dollar.

Royal Gold posted second-quarter 2026 results showing revenue of $451 million, record operating cash flow of $335 million, and net income of $236 million, gains of 115%, 119%, and 79% respectively over the same period last year. Management repurchased 147,000 shares for $30 million during the quarter, arguing the market has not caught up to the portfolio's worth, while also paying $40 million in dividends at an annualized rate of $1.90 per share, 6% higher than a year earlier. The company repaid $200 million on its revolver during the quarter, followed by another $75 million in July, with a further $100 million planned for mid-August and expects the balance fully repaid in the fourth quarter. Depreciation, depletion, and amortization expense jumped to $96 million from $31 million a year earlier, driven largely by higher carrying values from the Kansanshi stream and the Sandstorm and Horizon assets acquired in 2025, while general and administrative expense rose to $13.4 million and interest expense climbed to $10 million from $1.5 million. Royal Gold also recognized $22 million of incremental revenue from an advanced delivery of 5,000 ounces tied to the Relief Canyon settlement, pulling forward 1,175 ounces originally scheduled through 2027.

Royal Gold reported second quarter 2026 revenue of $451 million, up 114.9% year over year, driven by higher metal prices and new contributions from the Kansanshi stream and Sandstorm portfolio. Operating cash flow reached a record $335.2 million, a 119.4% increase, while adjusted net income rose 41.4% to $218.2 million, or $2.56 per share. The company paid $40.3 million in dividends at a quarterly rate of $0.475 per share, repurchased $30 million of common stock, and repaid $200 million on its revolving credit facility, ending the quarter with $1.2 billion in total available liquidity. Management noted that copper and other metals are tracking at or above the top end of 2026 guidance ranges, and the company reduced its equity interest in the Hod Maden project from 30% to 15% in exchange for a new 2.5% net smelter return royalty.

JPMorgan Chase has issued a forecast that gold could rise to more than $5,000 an ounce by the fourth quarter of 2026, with potential for further gains thereafter. The prediction comes as CEO Jamie Dimon warned of elevated market risks, likening them to colliding tectonic plates. The bank suggests investors consider gold as a hedge, highlighting streaming and royalty companies like Franco-Nevada, Royal Gold, and Wheaton Precious Metals as attractive vehicles due to their diversification and dividend histories.

Royal Gold reported a preliminary 8% year-over-year increase in second-quarter 2026 gold-equivalent ounce sales to 69,000 GEOs, up from 63,900 GEOs a year earlier but down from 96,300 GEOs in the first quarter of 2026. The sales mix included 54,500 ounces of gold, 595,500 ounces of silver, 2.5 million pounds of copper, and 1.3 million pounds of lead. Cost of sales rose to $871 per GEO from $596 in the prior-year quarter, while stream segment sales surged to $311 million from $123 million and royalty segment sales are estimated between $137 million and $142 million, up from $51.1 million. The company also repaid $200 million of debt, leaving $400 million outstanding on its revolving credit facility with $1.0 billion undrawn, and settled an outstanding gold delivery obligation with Americas Gold and Silver by receiving 5,000 ounces of gold and 2,652,532 common shares, which added $12 million in additional DD&A expense.

SSR Mining has completed the sale of its 20% stake in the Hod Maden development project in Turkey, converting the equity interest into a 4.0% net smelter return royalty on the entire project. Royal Gold holds a call right to buy half of that royalty, 2.0%, for $160 million, exercisable up to 12 months after Hod Maden reaches commercial production, along with a consent right over any royalty sale before January 1, 2028, and a right of first refusal on future sales. The closing, alongside the earlier divestment of the Copler mine in Turkey, completes SSR's shift to focus on the Americas. The new royalty joins a portfolio that already includes interests in the San Luis, Pitarrilla, Rowan, and Sunrise Lake projects. SSR expects to produce 450,000 to 535,000 gold equivalent ounces in 2026.