Royal Gold Reports Results for Second Quarter Fiscal Year 2013

  Royal Gold Reports Results for Second Quarter Fiscal Year 2013

  *Record royalty revenue of $79.9 million, a 16% increase year-over-year
  *Record Adjusted EBITDA^1 of $73.4 million, an 18% increase year-over-year

Business Wire

DENVER -- January 31, 2013

Royal Gold, Inc. (NASDAQ:RGLD)(TSX:RGL) today announced net income
attributable to Royal Gold stockholders of $27.2 million, or $0.42  per basic
share, on record royalty revenue of $79.9 million for the second quarter of
fiscal 2013. This compares to net income attributable to Royal Gold
stockholders of $23.4 million, or $0.42 per basic share, on royalty revenue of
$68.8 million for the second quarter of fiscal 2012.

For the six-month period ended December 31, 2012, royalty revenue was $157.7
million and net income attributable to Royal Gold stockholders was $52.0
million, or $0.84 per basic share. This compares to royalty revenue of $133.3
million and net income attributable to Royal Gold stockholders of $45.9
million, or $0.83 per basic share, for the six-month period ended December 31,
2011.

Adjusted EBITDA^1 for the second quarter of fiscal 2013 was a record $73.4
million representing 92% of revenue, an increase of 18% compared to Adjusted
EBITDA of $62.1 million or 90% of revenue for the prior year period. Cash flow
from operations for the quarter was $10.9 million, or $0.17 per basic share
compared with $29.3 million or $0.53 per share for the second quarter of
fiscal 2012. Cash flow from operations was negatively impacted by provisional
income tax payments of $22.6 million normally due during the quarter, and the
timing of a withholding tax payment of $17.2 million, which is expected to be
recovered in future periods.

The 16% increase in revenue for the quarter was largely driven by increased
production at Andacollo, Holt, Robinson, Mulatos, Las Cruces, Canadian
Malartic and Wolverine, as well as the higher average price of gold and other
metals. These increases were partially offset during the period by production
declines at Voisey’s Bay, Cortez, Leeville and Dolores. The average price of
gold for the quarter was $1,722 per ounce compared with $1,688 per ounce for
the comparable period, an increase of 2%.

As of December 31, 2012, the Company had a working capital surplus of $762.5
million. Current assets were $781.1 million (including $680.7 million in cash
and equivalents), compared to current liabilities of $18.6 million, resulting
in a current ratio of approximately 42 to 1. In addition to available working
capital, the Company had $350 million available under its revolving line of
credit.

Tony Jensen, President and CEO, commented, “Our broad and diverse portfolio of
assets continues to provide strong financial results as demonstrated by our
record quarterly royalty revenue and Adjusted EBITDA. During the quarter, the
majority of our producing properties performed well and, in particular,
Andacollo recorded record gold production. We were also pleased that Las
Cruces reached its design capacity, and several other properties continued to
make steady progress toward targeted production levels.”

RECENT DEVELOPMENTS

Acquisition of Additional Royalty Option on the KSM Project

In December, the Company increased the net smelter return (“NSR”) royalty
option it may acquire on the Kerr-Sulphurets-Mitchell (“KSM”) project from
1.25% to 2.0%. The net cost to acquire the option was approximately $3.6
million. The Company now holds the right to purchase either a 1.25% NSR
royalty for C$100 million, or a 2.0% NSR royalty for C$160 million on all of
the gold and silver production from the project, payable in three equal
installments over a 540-day period following exercise of its purchase right.
The options to purchase the NSR royalty will remain exercisable for 60 days
following Royal Gold’s satisfaction that the project has received all material
approvals and permits, has sufficient committed funding for construction, and
certain other conditions have been met.

PROPERTY HIGHLIGHTS

Highlights at certain of the Company’s principal producing and development
properties during the quarter ended December 31, 2012 are listed below:

Producing Properties

Andacollo – Gold production increased during the quarter due to higher grade
ore and improved recoveries. Teck continues to increase mill throughput rates
as they de-bottleneck and optimize the plant.

Canadian Malartic – Osisko reported that fourth quarter gold production
totaled 101,544 ounces with calendar 2012 output of 388,478 ounces. During the
quarter, throughput was affected by a 6-day shutdown to complete the
installation of the second pebble crusher and to make modifications to various
conveying systems in the crushing and grinding circuits. Osisko also announced
calendar 2013 gold production guidance of between 485,000 and 510,000 ounces.

Cortez – Barrick continued to prioritize production from their higher grade
Cortez Hills operations that is not covered by our royalty interest. As a
result, production decreased during the period.

Dolores – Pan American announced that calendar 2013 capital expenditures will
include construction of a third leach pad, significant pre-stripping and the
systematic rehabilitation of the mining fleet. Pan American also announced
calendar 2013 production guidance of between 3.25 million to 3.45 million
ounces of silver and between 63,500 to 68,000 ounces of gold.

Holt – St Andrew Goldfields reported production of 15,082 ounces of gold for
the quarter with mill recoveries at 94%. The operator stated that construction
of a new ore pass is complete and that it expects to see increased production
capacity once commissioning is finalized in mid-January.

Las Cruces – Inmet announced that calendar 2012 copper production at Las
Cruces increased by more than 60% to 67,700 tonnes from 42,100 tonnes in
calendar 2011. The operator also announced calendar 2013 production guidance
of between 68,500 to 72,000 tonnes of copper.

Leeville – A portion of the mine production at Leeville was derived from an
area outside of our royalty interest resulting in a decrease in royalty
revenue over the prior period.

Mulatos – Alamos reported record production of 67,800 ounces of gold during
the fourth quarter achieving its production guidance for the year of 200,000
ounces of gold. Production for the quarter benefitted from higher than
budgeted throughput and grade from the gravity mill in addition to record
levels of quarterly crusher throughput that averaged 17,900 tonnes of ore per
day.

Peñasquito –  Goldcorp reported that water availability issues limited mill
throughput rates. They plan to bring additional water wells into production
within the Cedros Basin in addition to new dewatering wells within the Chile
Colorado pit. The additional water wells in calendar 2013 are expected to
increase mill throughput to 105,000 tonnes per day. A hydrology study is
underway to develop a long-term water strategy and is expected to be completed
during the first half of 2013. Goldcorp also announced calendar 2013
production guidance of between 360,000 to 400,000 ounces of gold and between
20 to 21 million ounces of silver.

Voisey’s Bay – The variability in Vale’s shipping schedule continues to result
in uneven metal sales quarter-over-quarter. Copper sales for the quarter were
lower than expected due to increased sales during the period ended September
30, 2012.

Wolverine –  Yukon Zinc stated that production growth during the quarter was
due to increased throughput, as they continue to ramp up to design capacity,
with improved metallurgical performance and recoveries in the mill.

Development Properties

Mt. Milligan – Thompson Creek announced that they received notification from
the Department of Fisheries and Oceans approving its fish habitat compensation
plan, as required by Environment Canada's Metal Mining Effluent Regulations.
This approval was the final step to authorize deposition of tailings material
into the zero discharge tailings storage facility and the final authorization
required to operate the Mt. Milligan mine. Thompson Creek also reiterated that
the Mt. Milligan project remains on schedule with commercial production
expected in the fourth quarter of calendar 2013.

Pascua-Lama – Barrick reported that construction management has been
transferred to Fluor and that the project team has been significantly
strengthened. As disclosed with its third quarter 2012 financial results,
Barrick indicated it expected initial gold production in the second half of
2014, and that the definitive estimate of costs and schedule for the project
would be complete by the time of its 2012 year-end results in mid-February.

Additional Property Information

Second quarter fiscal 2013 production and revenue for the Company’s principal
interests are shown in Table 1 and historical production data is shown in
Table 2. For more detailed information about each of our principal interests,
please refer to the Company’s most recent Annual Report on Form 10-K, our
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the
SEC and available on the SEC’s website located at www.sec.gov, or our website
located at www.royalgold.com.

CORPORATE PROFILE

Royal Gold is a precious metals royalty company engaged in the acquisition and
management of precious metals royalties and similar interests. The Company
owns interests on 205 properties on six continents, including interests on 39
producing mines and 28 development stage projects. Royal Gold is publicly
traded on the NASDAQ Global Select Market under the symbol “RGLD,” and on the
Toronto Stock Exchange under the symbol “RGL.” The Company’s website is
located at www.royalgold.com.

Note: Management’s conference call reviewing the second quarter results will
be held today  at 10:00 a.m. Mountain Time (noon Eastern Time) and will be
available by calling (800) 603-2779 (North America) or (973) 200-3960 
(international), access #85826820. The call will be simultaneously broadcast
on the Company’s website at www.royalgold.com under the “Presentations”
section. A replay of this webcast will be available on the Company’s website
approximately two hours after the call ends.

________________________

Cautionary “Safe Harbor” Statement Under the Private Securities Litigation
Reform Act of 1995: With the exception of historical matters, the matters
discussed in this press release are forward-looking statements that involve
risks and uncertainties that could cause actual results to differ materially
from projections or estimates contained herein. Such forward-looking
statements include statements about the Company’s assets continuing to deliver
strong financial results; further production increases at Andacollo,
Peñasquito, Canadian Malartic, Holt, and Wolverine; and the operators’
expectation of production, construction, ramp up, reaching design capacity,
throughput, water availability and other developments at various mines.
Factors that could cause actual results to differ materially from the
projections include, among others, precious metals, copper and nickel prices;
performance of and production at the Company's royalty properties; decisions
and activities of the operators of the Company's various properties;
unanticipated grade, geological, metallurgical, processing or other problems
the operators of the mining properties may encounter; delays in the operators
securing or their inability to secure necessary governmental permits; changes
in operator’s project parameters as plans continue to be refined; economic and
market conditions; the ability of the various operators to bring projects into
production as expected; and other subsequent events; as well as other factors
described in the Company's Annual Report on Form 10-K, Quarterly Report on
Form 10-Q, and other filings with the Securities and Exchange Commission. Most
of these factors are beyond the Company’s ability to predict or control. The
Company disclaims any obligation to update any forward-looking statement made
herein. Readers are cautioned not to put undue reliance on forward-looking
statements.

       The Company defines Adjusted EBITDA, a non-GAAP financial measure, as
       net income plus depreciation, depletion and amortization, non-cash
       charges, income tax expense, interest and other expense, and any
^1   impairment of mining assets, less non-controlling interests in
       operating income from consolidated subsidiaries, interest and other
       income, and any royalty portfolio restructuring gains or losses (see
       Schedule A).
       

                                                                                
TABLE 1

Second Quarter Fiscal 2013

Royalty Production and Revenue for Principal Royalty Interests
                                                                                           
                                                            THREE MONTHS ENDED             THREE MONTHS ENDED
                                                            DECEMBER 31, 2012            DECEMBER 31, 2011
                                                            Royalty                        Royalty
PROPERTY          ROYALTY       OPERATOR       METAL(S)                   Reported                       Reported
                                                    Revenue                    Revenue    
                                                                          Production^1                   Production^1
                                                            ($                             ($
                                                            millions)                      millions)
Andacollo^2,3   75% NSR     Teck         Gold       23.13       18,015 oz.     16.18       13,070 oz.
Voisey's                                       Nickel                     28.8M lbs.                     27.4M lbs.
Bay^3           2.7% NSR    Vale                    7.41                       12.04      
                                               Copper                     31.2M lbs.                     78.6M lbs.
                                               Gold                       91,017 oz.                     67,827 oz.

                                               Silver                     4.6M oz.                       5.0M oz.
Peñasquito^3    2.0% NSR    Goldcorp                6.61                       6.31       
                                               Lead                       23.7M lbs.                     40.2M lbs.

                                               Zinc                       73.6M lbs.                     78.4M lbs.
                  0.00013 x
                  quarterly     St Andrew
Holt            average     Goldfields   Gold       5.81        15,076 oz.     4.23        11,461 oz.
                  gold
                  price
Mulatos^4       1.0% to     Alamos       Gold       5.25        61,311 oz.     3.57        43,223 oz.
                  5.0% NSR
                                               Gold                       11,603 oz.                     7,193 oz.
Robinson^3      3.0% NSR    KGHM                    4.67                       1.95       
                                               Copper                     41.1M lbs.                     21.1M lbs.
Canadian        1.0% to     Osisko       Gold       2.51        96,276 oz.     1.53        54,141 oz.
Malartic^5        1.5% NSR
Leeville        1.8% NSR    Newmont      Gold       2.15        69,754 oz.     3.10        102,946 oz.
                  GSR1 and
                  GSR2
Cortez^6                    Barrick      Gold       2.06        18,232 oz.     2.66        23,609 oz.
                  GSR3

                  NVR1
Las Cruces^3    1.5% NSR    Inmet        Copper     2.03        38.3M lbs.     1.48        28.1M lbs.
                  0.0% to                      Gold                       3,203 oz.                      294 oz.
Wolverine^3,7   9.445%      Yukon Zinc              1.98                       0.83       
                  NSR                          Silver                     742,874 oz.                    366,922 oz.
                  3.25% NSR     Pan            Gold                       14,976 oz.                     20,663 oz.
Dolores                     American                1.38                       1.67       
                  2.0% NSR      Silver         Silver                     854,739 oz.                    887,007 oz.
Other Royalty                          Various    14.88       N/A            13.29       N/A
Properties^8
Total Royalty Revenue                               79.87                     68.84       
                                                                                                    
                                                                                                         

FOOTNOTES

      Reported production relates to the amount of metal sales that are
1   subject to our royalty interests for the periods ended December 31, 2012
      and December 31, 2011, as reported to us by the operators of the mines.
      
      The royalty rate is 75% until 910,000 payable ounces of gold have been
2     produced – 50% thereafter. There have been approximately 132,000
      cumulative payable ounces produced as of December 31, 2012. Gold is
      produced as a by-product of copper.
      
      Revenues consist of provisional payments for concentrates produced
3     during the current period and final settlements for prior production
      periods.
      The Company’s royalty is subject to a 2.0 million ounce cap on gold
      production. There have been approximately 1.0 million ounces of
4     cumulative production, as of December 31, 2012. NSR sliding-scale
      schedule (price of gold per ounce – royalty rate): $0.00 to $299.99 –
      1.0%; $300 to $324.99 – 1.50%; $325 to $349.99 – 2.0%; $350 to $374.99 –
      3.0%; $375 to $399.99 – 4.0%; $400 or higher – 5.0%.
      
5     NSR sliding-scale schedule (price of gold per ounce – royalty rate):
      $0.00 to $350 – 1.0%; above $350 – 1.5%.
      
6     Royalty percentages: GSR1 and GSR2 – 0.40 to 5.0% (sliding-scale); GSR3
      – 0.71%; NVR1 – 0.39%.
      
      Gold royalty rate is based on the price of silver per ounce. NSR
7     sliding-scale schedule (price of silver per ounce – royalty rate): Below
      $5.00 – 0.0%; $5.00 to $7.50 – 3.778%; >$7.50 – 9.445%.
      
      “Other” includes all of the Company’s non-principal producing royalties
8     for the periods ended December 31, 2012 and 2011. Individually, no
      royalty included within “Other” contributed greater than 5% of our total
      royalty revenue for any of the periods.
      
      

                                                
TABLE 2

Historical Production
                                                         
                                                         REPORTED PRODUCTION^1

                                                         FOR THE QUARTER ENDED
PROPERTY^2     ROYALTY       OPERATOR       METAL(S)     September     June        March       December
                                                 30,         30,       31,       31,

                                                         2012          2012        2012        2011
Andacollo    75% NSR     Teck         Gold       15,937      11,908    13,174    13,070
                                                         oz.           oz.         oz.         oz.
                                                         131,239       90,554      87,517      67,827
                                                         oz.           oz.         oz.         oz.
                                            Gold
                                                         7.4M oz.      6.0M        6.6M        5.0M oz.
                                            Silver                     oz.         oz.
Peñasquito   2.0% NSR    Goldcorp                41.7M                           40.2M
                                            Lead         lbs.          42.2M       52.4M       lbs.
                                                                       lbs.        lbs.
                                            Zinc         96.6M                                 78.4M
                                                         lbs.          90.8M       75.9M       lbs.
                                                                       lbs.        lbs.
                                                         33.9M         30.6M       50.9M       27.4M
Voisey's                                    Nickel       lbs.          lbs.        lbs.        lbs.
Bay          2.7% NSR    Vale                                                   
                                            Copper       43.6M         2.9M        9.7M        78.6M
                                                         lbs.          lbs.        lbs.        lbs.
               0.00013 x
               quarterly     St Andrew                   12,870        11,469      8,839       11,461
Holt         average     Goldfields   Gold       oz.         oz.       oz.       oz.
               gold
               price
                                                         9,072 oz.     9,191       5,673       7,193
                                            Gold                       oz.         oz.         oz.
Robinson     3.0% NSR    KGHM                    36.9M                          
                                            Copper       lbs.          32.5M       23.8M       21.1M
                                                                       lbs.        lbs.        lbs.
Mulatos      1.0% to     Alamos       Gold       42,310      46,077    50,493    43,223
               5.0% NSR                                  oz.           oz.         oz.         oz.
               GSR1 and
               GSR2
Cortez                   Barrick      Gold       25,751      26,845    23,362    23,609
               GSR3                                      oz.           oz.         oz.         oz.

               NVR1
Las Cruces   1.5% NSR    Inmet        Copper     46.2M       37.3M     29.9M     28.1M
                                                         lbs.          lbs.        lbs.        lbs.
Canadian     1.0% to     Osisko       Gold       91,737      91,734    90,845    54,141
Malartic       1.5% NSR                                  oz.           oz.         oz.         oz.
Leeville     1.8% NSR    Newmont      Gold       68,026      36,582    64,291    102,946
                                                         oz.           oz.         oz.         oz.
               0.0% to                      Gold         1,200 oz.     842 oz.     393 oz.     294 oz.
Wolverine    9.445%      Yukon Zinc                                             
               NSR                          Silver       494,496       338,736     326,017     366,922
                                                         oz.           oz.         oz.         oz.
                                                         13,244        10,085      14,510      20,663
               3.25% NSR     Pan            Gold         oz.           oz.         oz.         oz.
Dolores                  American                                               
               2.0% NSR      Silver         Silver       773,369       643,972     858,600     887,007
                                                         oz.           oz.         oz.         oz.
                                                                                        

       Reported production relates to the amount of metal sales that are
^1   subject to our royalty interests for the stated period, as reported to
       us by the operators of the mines.

^2     See individual property footnotes on page 7.
       
       

                                                  
ROYAL GOLD, INC.

Consolidated Balance Sheets

(Unaudited, in thousands except share data)
                                                                 
                             December 31,                        June 30,
                             2012                                2012
ASSETS
Cash and equivalents         $ 680,731                           $ 375,456
Royalty receivables            70,754                              53,946
Income tax receivable          7,204                               11,046
Prepaid expenses and          22,361                            4,760     
other current assets
Total current assets           781,050                             445,208
                                                                 
Royalty interests in
mineral properties,            2,063,604                           1,890,988
net
Available for sale             18,489                              15,015
securities
Other assets                  23,904                            21,834    
Total assets                 $ 2,887,047                        $ 2,373,045 
                                                                 
LIABILITIES
Accounts payable             $ 2,255                             $ 2,615
Dividends payable              13,010                              8,947
Other current                 3,288                             3,647     
liabilities
Total current                  18,553                              15,209
liabilities
                                                                 
Debt                           297,697                             293,248
Net deferred tax               175,875                             178,716
liabilities
Uncertain tax                  19,821                              19,469
positions
Other long-term               2,353                             2,974     
liabilities
Total liabilities             514,299                           509,616   
                                                                 
Commitments and
contingencies
                                                                 
EQUITY
Preferred stock, $.01
par value, 10,000,000          -                                   -
shares authorized; and
1 share issued
Common stock, $.01 par
value, 100,000,000
shares authorized; and
64,162,252 and                 642                                 586
58,614,221 shares
outstanding,
respectively
Exchangeable shares,
no par value,
1,806,649 shares               29,722                              35,156
issued, less 1,131,303
and 1,007,823 redeemed
shares, respectively
Additional paid-in             2,138,153                           1,656,357
capital
Accumulated other
comprehensive (loss)           (10,289   )                         (13,763   )
income
Accumulated earnings          190,131                           160,123   
Total Royal Gold               2,348,359                           1,838,459
stockholders’ equity
Non-controlling               24,389                            24,970    
interests
Total equity                  2,372,748                         1,863,429 
Total liabilities and        $ 2,887,047                        $ 2,373,045 
equity
                                                                 
                                                                 

                                                                          
ROYAL GOLD, INC.

Consolidated Statements of Operations and Comprehensive Income

(Unaudited, in thousands except share data)
                                                                                         
                      Three Months Ended                            Six Months Ended
                      December 31,         December 31,             December 31,         December 31,
                      2012                 2011                     2012                 2011
Royalty               $ 79,870             $ 68,842                 $ 157,732            $ 133,307
revenues
                                                                                         
Costs and
expenses
General and             5,720                5,057                    11,790               11,355
administrative
Production              2,197                2,946                    4,676                5,097
taxes
Depreciation,
depletion and           21,120               21,419                   42,620               38,639
amortization
Restructuring
on royalty
interests in           -                  -                      -                  1,328      
mineral
properties
Total costs and        29,037             29,422                 59,086             56,419     
expenses
                                                                                         
Operating               50,833               39,420                   98,646               76,888
income
                                                                                         
Interest and            29                   489                      139                  3,322
other income
Interest and           (6,988     )        (1,609     )            (13,157    )        (3,387     )
other expense
Income before           43,874               38,300                   85,628               76,823
income taxes
                                                                                         
Income tax             (16,315    )        (14,051    )            (32,776    )        (26,433    )
expense
Net income              27,559               24,249                   52,852               50,390
Net income
attributable to        (342       )        (838       )            (865       )        (4,484     )
non-controlling
interests
Net income
attributable to       $ 27,217            $ 23,411                $ 51,987            $ 45,906     
Royal Gold
stockholders
                                                                                         
Net income            $ 27,559             $ 24,249                 $ 52,852             $ 50,390
Adjustments to
comprehensive
income, net of
tax
Unrealized
change in
market value of        (1,572     )        (6,958     )            3,474              (12,262    )
available for
sale securities
Comprehensive           25,987               17,291                   56,326               38,128
income
Comprehensive
income
attributable to        (342       )        (838       )            (865       )        (4,484     )
non-controlling
interests
Comprehensive
income
attributable to       $ 25,645            $ 16,453                $ 55,461            $ 33,644     
Royal Gold
stockholders
                                                                                         
Net income per
share available
to Royal Gold
common
stockholders:
                                                                                         
Basic earnings        $ 0.42              $ 0.42                  $ 0.84              $ 0.83       
per share
Basic weighted
average shares         63,941,686         55,329,463             61,688,776         55,259,009 
outstanding
Diluted
earnings per          $ 0.42              $ 0.42                  $ 0.84              $ 0.82       
share
Diluted
weighted               64,137,237         55,574,814             61,905,549         55,533,248 
average shares
outstanding
Cash dividends
declared per          $ 0.20              $ 0.15                  $ 0.35              $ 0.26       
common share
                                                                                         
                                                                                         

                             
ROYAL GOLD, INC.

Consolidated Statements of Cash Flows

(Unaudited, in thousands)
                                 
                                 Six Months Ended
                                 December 31,           December 31,
                                 2012                             2011
Cash flows from operating
activities:
Net income                       $ 52,852                         $ 50,390
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation, depletion            42,620                           38,639
and amortization
Gain on distribution to            (88      )                       (3,284   )
non-controlling interest
Non-cash stock-based               3,900                            4,066
compensation expense
Tax benefit of stock-based         (1,214   )                       (3,086   )
compensation exercises
Restructuring on royalty
interests in mineral               -                                1,328
properties
Deferred tax benefit               (2,166   )                       (847     )
Amortization of debt               4,448                            -
discount
Changes in assets and
liabilities:
Royalty receivables                (16,808  )                       (15,693  )
Prepaid expenses and other         (19,659  )                       1,385
assets
Accounts payable                   (661     )                       (194     )
Income tax receivable              1,827                            1,947
Other liabilities                 (626     )                      785      
Net cash provided by             $ 64,425                        $ 75,436   
operating activities
                                                                  
Cash flows from investing
activities:
Acquisition of royalty
interests in mineral               (215,032 )                       (148,182 )
properties
Proceeds on sale of                118                              4,842
Inventory - restricted
Other                             (38      )                      (128     )
Net cash (used in)               $ (214,952 )                     $ (143,468 )
investing activities
                                                                  
Cash flows from financing
activities:
Borrowing from credit              -                                100,000
facility
Repayment of debt                  -                                (37,800  )
Common stock dividends             (17,915  )                       (12,209  )
Distribution to                    (1,273   )                       (6,315   )
non-controlling interests
Proceeds from the issuance         473,776                          2,917
of common stock
Tax benefit of stock-based        1,214                          3,086    
compensation exercises
Net cash provided by             $ 455,802                       $ 49,679   
financing activities
Net increase (decrease) in        305,275                        (18,353  )
cash and equivalents
Cash and equivalents at           375,456                        114,155  
beginning of period
Cash and equivalents at          $ 680,731                       $ 95,802   
end of period
                                                                  
                                                                  

                                  SCHEDULE A

Non-GAAP Financial Measures

The Company computes and discloses Adjusted EBITDA. Adjusted EBITDA is a
non-GAAP financial measure. Adjusted EBITDA is defined by the Company as net
income plus depreciation, depletion and amortization, non-cash charges, income
tax expense, interest and other expense, and any impairment of mining assets,
less non-controlling interests in operating income of consolidated
subsidiaries, interest and other income, and any royalty portfolio
restructuring gains or losses. Other companies may define and calculate this
measure differently. Management believes that Adjusted EBITDA is a useful
measure of the performance of our royalty portfolio. Adjusted EBITDA
identifies the cash generated in a given period that will be available to fund
the Company's future operations, growth opportunities, shareholder dividends
and to service the Company's debt obligations. This information differs from
measures of performance determined in accordance with U.S. generally accepted
accounting principles (“GAAP”) and should not be considered in isolation or as
a substitute for measures of performance determined in accordance with U.S.
GAAP. Below is a reconciliation of net income to Adjusted EBITDA:

                               
Royal Gold, Inc.

Adjusted EBITDA Reconciliation
                                   
                                   For The Three Months Ended
                                   December 31,
                                   2012                  2011
                                   (Unaudited, in thousands)
                                                                   
Net income                         $ 27,559                        $ 24,249
Depreciation, depletion and          21,120                          21,419
amortization
Non-cash employee stock              1,805                           1,868
compensation
Interest and other income            (29     )                       (489    )
Interest and other expense           6,988                           1,609
Income tax expense                   16,315                          14,051
Non-controlling interests in
operating income of                 (342    )                      (572    )
consolidated subsidiaries
Adjusted EBITDA                    $ 73,416                       $ 62,135  
                                                                   
                                                                   
                                   For The Six Months Ended
                                   December 31,
                                   2012                            2011
                                   (Unaudited, in thousands)
                                                                   
Net income                         $ 52,852                        $ 50,390
Depreciation, depletion and          42,620                          38,639
amortization
Non-cash employee stock              3,900                           4,066
compensation
Restructuring on royalty
interests in mineral                 -                               1,328
properties
Interest and other income            (139    )                       (3,322  )
Interest and other expense           13,157                          3,387
Income tax expense                   32,776                          26,433
Non-controlling interests in
operating income of                 (777    )                      (1,200  )
consolidated subsidiaries
Adjusted EBITDA                    $ 144,389                      $ 119,721 

Contact:

Royal Gold, Inc.
Karen Gross
Vice President and Corporate Secretary
(303) 575-6504
 
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