Royal Gold (NASDAQ:RGLD) reported record revenue, operating cash flow and earnings in the first quarter of 2026, as management said the company benefited from a larger portfolio following the completion of the transaction and strong metals prices in 2025.
President and CEO Bill Hasenbuttel said quarterly revenue increased 143% from the previous year to $469 million, while operating cash flow increased 115% to $294 million. Earnings were $281 million, up 148% year over year. Adjusted net income was a record $233 million, or $2.72 per share, representing an 80% increase from Q1 2025.
“2025 was a transformational year for Royal Gold,” Hasenbuttel said. “The benefits of last year’s activities are clearly visible in this quarter’s results.”
Gold accounted for 71% of total revenue in the quarter. Hasenbuttel said the percentage was lower than in recent quarters due to stronger silver prices, not because of weakness in gold revenues. The company’s adjusted EBITDA margin was 83%, which management attributed to low and stable cash general and administrative costs.
Adds portfolio scale and diversification
Senior vice president of operations Martin Raffield said the portfolio’s performance in the quarter was “solid”, with volumes of 96,300 gold equivalent ounces and record revenues that included the first full quarter of contributions from the Sandstorm and Horizon interests.
Royalty revenues increased 120% year over year to $156 million, supported by strong revenues from Penasquito and Cortez, including both the Legacy Zone and CC Zone. Stream revenues increased 155% to $313 million, driven by higher contributions from several properties including Pueblo Viejo, Xavantina, Rainy River, Mount Milligan, Antapake, Khoemakau and Wassa, as well as strong contributions from Kansanshi.
Raffield said metals sales were running well compared to 2026 guidance, although copper revenue in the first quarter was better than expected. He cited strong performance at Antamina, driven by higher grades and lower cuts, and at Caserón and Chapada, driven by generally strong operating performance.
Hasenbuttel also highlighted the company’s increased diversification and said no single asset contributed more than 12.5% of total revenue in the quarter.
Asset updates include Greenstone, Vasa and Platref
Management provided updates on several portfolio assets. At Mount Milligan, Centerra reported first quarter gold and copper production in line with its pre-feasibility study mine plan and is on track to meet full-year guidance. At Penasquito, Raffield said first-quarter revenue was strong, although Newmont expects mining at Penasquito Phase 7 to decline sharply, resulting in lower gold, lead and zinc production and higher silver production in 2026 compared to last year.
At Greenstone, Equinox completed an updated technical report targeting average gold production of 320,000 ounces per year over the next decade, based on sustained milling capacity of 27,000 tonnes per day. Raffield said Equinox believes there is scope to optimize production, increase throughput to 30,000 tonnes per day and incorporate high-grade underground resources into the mine plan.
In Vaasa, Chifeng Gold announced a strategic investment agreement with a subsidiary of Zijin Mining. Zijin Gold International is expected to invest approximately $1.2 billion of new capital and take operational control, about half of which is earmarked for Chifeng’s overseas operations, including Wasa. Raffield said the projects identified for investment in Vaasa fall under Royal Gold’s stream agreements.
At Platreef, Ivanhoe reported continued progress towards expanded production, including completion of shaft 3 construction and the Phase 2 concentrator remaining on track for year-end completion. Raffield said Royal Gold expects to receive its first revenue from Platref in the current quarter.
Liquidity rebuilds as loan repayments continue
Senior Vice President and CFO Paul Liebner said Royal Gold ended March with total available liquidity of $1.1 billion, including available revolver capacity and $295 million of working capital. The company paid down $300 million on its revolver during the quarter and paid down an additional $75 million in April. Liebner said Royal Gold intends to repay an additional $100 million next week, leaving $425 million outstanding and $975 million available under the credit facility.
Liebner said the company expects to fully repay the outstanding revolver balance in the fourth quarter, based on current metals prices and assuming no further significant acquisitions.
Royal Gold has also added a $600 million accordion feature to its revolving credit facility, which if exercised would increase the total revolver capacity to $2 billion. Hasenbuttel said the company doesn’t see a current need to use excess capacity, but wants to be prepared if larger transactions come to market.
The company also announced a $500 million share repurchase program. Hasenbuttel said the program is intended as a tool to respond to potential valuation dislocations in Royal Gold shares, not as a mechanism to offset shares issued in the Sandstorm transaction. He also said the company is not planning to use the expanded revolver capacity to buy back shares.
Cost, Tax and Disclosure Changes
Liebner said G&A expense in the quarter was $17.5 million, up about $6.5 million from the year-ago period, primarily due to higher corporate costs related to the 2025 transaction. He said first-quarter G&A, including non-cash compensation expense, is expected to be the highest for the year, with full-year G&A expected to be closer to the high end of the $50 million to $60 million range previously provided.
DD&A expenses increased to $91 million from $33 million a year ago, largely reflecting higher carrying values for the Kansanshi Gold Stream and Sandstorm and Horizon interests acquired in 2025. Interest and other expenses increased by $1.2 million to $13.2 million, primarily due to higher average borrowings under the revolving credit facility.
Royal Gold recorded tax expense of $25 million in the quarter and an effective tax rate of 8%. Excluding $33.7 million in severance gains, Liebner said the effective tax rate was about 19.5%. The company expects its full-year effective tax rate to be between 17% and 22%.
Liebner also said Royal Gold would change its disclosure process starting next quarter. During the third full week following the end of each quarter, the Company is expected to issue a press release providing further details on notable financial items, including revenue estimates from both the Stream and Royalty segments.
Management addresses guidance, deals and HOD Madden
During the question-and-answer session, Hasenbuttel said Royal Gold will continue to update annual guidance during the year, but has no plans to update the five-year guidance it provided at the March investor day. He said the next long-term guidance discussion is expected to occur when the company next year provides five-year guidance for 2031.
On business development, Daniel Breese, senior vice president of corporate development, said the pipeline remains active, including monetization of non-core precious metals to base metals producers, third-party royalties and new project development opportunities. He said the deal size typically ranges from $300 million to $400 million, although opportunities can vary.
Regarding Hod Madden, Hasenbuttel said SSR Mining’s strategic review complicates Royal Gold’s goal of rationalizing its 30% ownership interest, but the company still aims to work with partners on any outcome. Raffield said Royal Gold will continue to finance its 30% share of the project cost during the review, although management expects the costs to be relatively low compared to expected cash flows.
Emphasizing the company’s lower exposure to operating cost inflation than mining operators, Hasenbuttel said Royal Gold is “not directly exposed to diesel price, tariffs or inflation in general.”
About Royal Gold (NASDAQ:RGLD)
Royal Gold, Inc., headquartered in Denver, Colorado, is a leading precious metals streaming and royalty company. Through its business model, Royal Gold provides advance financing to mining operators in exchange for the right to purchase a percentage of future metal production at predetermined prices. This structure allows the company to participate in production while reducing the risk of operational and capital-intensive aspects of mine ownership.
The company’s portfolio includes over 200 streams and royalties on projects in North America, South America, Europe, Africa and Australia.
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