Royal Gold Inc. - Our Portfolio - Principal Properties

Operator: First Quantum Minerals Ltd.

Location: North-Western Province, Zambia

Stream: 75 ounces of gold per million pounds of recovered copper produced until the delivery of 425,000 ounces; 55 ounces of gold per million pounds of recovered copper produced between 425,001 ounces and 650,000 ounces delivered, and 45 ounces of gold per million pounds of recovered copper produced thereafter

Term of Stream: Life of Mine

The Kansanshi mine is owned and operated by Kansanshi Mining PLC, which is 80% owned indirectly by First Quantum Minerals Ltd. (“First Quantum”) and 20% by ZCCM Investments Holdings PLC, a listed company that is majority-owned by the Government of the Republic of Zambia. The mine is located approximately 10 kilometers north of the town of Solwezi, the capital of the Zambian North-Western Province.

First Quantum acquired its interest in the project in 2001, began construction soon after, and achieved commercial production in 2005.

Kansanshi is a sediment-hosted, stratabound deposit with subvertical veins. Economic copper and gold mineralization occurs in three ore-types: primary sulfide, mixed supergene and oxide.

Mining is carried out in three open pits, Main, Northwest and Southeast Dome, using conventional open pit methods employing hydraulic and electric equipment and a fleet of haul trucks with electric trolley assist on the main ramps. Ore treatment is flexible to allow for variation in ore type either through an oxide leach circuit, a transitional ore “mixed float” circuit, or sulfide flotation circuits.

Oxide ore is treated via crushing, grinding and flotation. The oxide flotation tails are treated in a high-pressure leach (autoclave) circuit before joining the oxide flotation concentrate for atmospheric acid leaching, solvent extraction and electrowinning to produce copper cathode. Mixed ore undergoes crushing, grinding and flotation, with the mixed flotation tails sent to atmospheric acid leach and SX/EW to produce cathode, while the mixed flotation concentrate advances to the smelter to produce copper anode. Sulfide ore undergoes crushing, grinding and flotation with the sulfide flotation concentrate sent to the smelter for copper anode production.

Gold is recovered from all ore types by gravity concentrators. Gemini tables treat the gold gravity concentrates and produce a high-grade concentrate for direct smelting to gold bullion.

A new 25 million tonne per year sulfide processing plant (S3) was commissioned in August 2025. Kansanshi is an integrated operation with an onsite smelter to treat copper concentrate from Kansanshi and First Quantum’s Sentinel mine, which is also located in Zambia’s North-Western Province.

On August 5, 2025, Royal Gold’s wholly-owned subsidiary, RGLD Gold AG, entered into a precious metals purchase agreement for gold deliveries referenced to copper production from the Kansanshi copper-gold mine in the North-Western Province of Zambia, operated and 80% owned by a subsidiary of First Quantum. RGLD Gold AG made an advance payment of $1 billion (the “Advance”) for the gold stream.

Deliveries under the precious metals purchase agreement are indexed to the production of recovered copper to reduce exposure to metallurgy and processing variability, and the stream rate will vary based on gold delivery thresholds:

• 75 ounces of gold per million pounds of recovered copper produced until the delivery of 425,000 ounces;

• 55 ounces of gold per million pounds of recovered copper produced between the delivery of 425,001 ounces and 650,000 ounces; and

• 45 ounces of gold per million pounds of recovered copper produced thereafter.

Recovered copper is produced in both concentrate and cathode form and the stream economics are not dependent on downstream smelter recoveries or gold production at the site.

First Quantum will have two options to accelerate stream deliveries and reduce the outstanding Advance:

• Acceleration Option 1: From the earlier of the achievement by First Quantum of a minimum ‘BB’ or equivalent senior unsecured debt rating from a rating agency, or a Net Debt/TTM EBITDA ratio of 2.25x or less over three consecutive quarters starting from March 31, 2026, it will have a one-year period to exercise the option and deliver gold worth up to $200 million over a 14-month period from the date of option exercise and reduce the stream rates and delivery thresholds by up to 20%.

• Acceleration Option 2: If First Quantum achieves either a minimum ‘BBB-’ or equivalent senior unsecured debt rating from a rating agency, or shows a Net Debt/TTM EBITDA ratio of 1.25x or less over four consecutive quarters, and achieves certain operational conditions, it will have a one-year period to exercise the option and deliver gold worth up to $100 million over a 7-month period from the date of option exercise and reduce the stream rates and delivery thresholds by up to a further 10%.

Royal Gold pays 20% of the spot gold price for each ounce delivered. Should either one of the conditions in Acceleration Option 1 be met, Royal Gold will pay 35% of the spot gold price for each ounce delivered.

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