2014 Interactive Annual Report

Royal Gold, Inc. acquires and manages precious metals royalties and streams, with a primary focus on gold. The Company’s portfolio provides investors with a unique opportunity to capture value in the precious metal sector without incurring many of the costs and risks associated with mine operations.

To acquire a royalty, Royal Gold buys a percentage of the metal produced from a mineral property in exchange for an initial payment. Existing royalties are acquired outright from either a mineral resource company or a private party; new royalties are generally created by providing capital to an operator or explorer in exchange for a royalty. Precious metal streams are obtained by providing financing to operators, allowing them to monetize a portion of their production. A metal stream is similar to a royalty but typically has a smaller front end payment, and requires that payments be made as metal is delivered over the life of the mine. In a royalty or stream investment, Royal Gold does not contribute to the exploration, operating, or capital costs at the mine after the investment is made, and does not assume any responsibility for actual mine operations.

Royal Gold owns a large portfolio of producing, development, evaluation and exploration stage royalties and streams located in some of the world’s most prolific gold regions. With this high quality portfolio, Royal Gold maintains upside potential through exploration successes by the operators and generally benefits when new reserves are discovered and produced.

This successful business model generates strong cash flow and high margins with a lower cost structure, providing shareholders with a premium precious metal investment.

Royal Gold is based in Denver, Colorado, and is traded on the NASDAQ Global Select Market, under the symbol “RGLD,” and on the Toronto Stock Exchange, under the symbol “RGL.”