Business Strategy2012 Interactive Annual Report

Royal Gold’s fixed costs, diversified portfolio, and well-capitalized approach to precious metal investments are designed to provide shareholder value.

Business Strategy

Key Elements

1

Focus
on Gold

Royal Gold is a precious metals investment vehicle focused on gold.

2

Business
Model

Royal Gold’s lower risk business model is based on acquiring royalty interests in precious metal properties or entering into precious metal stream transactions rather than engaging in costly and more complex mining operations.

3

Growth and
Diversification

Royal Gold is determined to add to its broad-based and geopolitically stable portfolio of precious metal interests through accretive transactions.

4

Margin
Enhancement

Royal Gold’s unique business model allows us to efficiently grow revenue without adding significant overhead costs.

5

Financial
Flexibility

Royal Gold’s liquidity allows the Company to compete for royalty acquisitions or metal streams by means of a purchase, a corporate transaction, providing financing, or entering into a strategic exploration alliance.

 

NOTES:

  1. Certain information, including the Company’s audited financial statements, required to be included in this Annual Report is contained in the Form 10-K beginning on page 29.
  2. We do not own or operate the properties on which we have royalty and similar interests and therefore much of the information in this Annual Report regarding the properties is provided to us by the operators, including reserves, production estimates and status of the development at the properties.