Royal Gold holds multiple royalties that cover all reserves, resources and potential extensions thereof on the Back River Gold District.
Royalty revenue from the Goose Project is expected based on the following royalty rates and cumulative production thresholds:
• 0.7% NSR royalty rate until the receipt of C$5 million of royalty revenue, declining to 0.35% thereafter, on all gold produced from startup through to the cumulative production of 400,000 ounces;
• 2.5% GSR royalty rate on all gold produced after the cumulative production of 400,000 ounces up to a cumulative total of approximately 780,000 ounces; and
• 3.3% GSR royalty rate on all production above cumulative production of approximately 780,000 ounces.
Based on the current mine plan, the two thresholds are expected to be reached in 2026 and 2028, respectively, although royalty rates and production thresholds are approximate due to assumptions related to the gold price and the timing and applicability of certain deductions and adjustments.
Royalty revenue from the George portion of the Back River Gold District is expected based on an approximate 3.2-4.0% GSR royalty rate, which is payable after cumulative production of 800,000 ounces.
Royal Gold acquired these royalty interests in two acquisitions: the first was in 2008, as part of the acquisition of a royalty portfolio from Barrick Gold Corporation, and the second was in 2024 with the acquisition of two other royalty interests from third party sellers.