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    Unknown Analyst • Scotiabank

    Unknown Analyst's questions to Royal Gold Inc (RGLD) leadership

    Unknown Analyst's questions to Royal Gold Inc (RGLD) leadership • Q4 2024

    Question

    An analyst from Scotiabank asked about the deal pipeline, including the typical $100M-$300M deal size, the potential for more non-gold deals, the company's capacity for a $1B transaction, and its appetite for corporate M&A. They also asked for commentary on the new Rainy River mine plan and the timing for reserve updates.

    Answer

    President and CEO William Heissenbuttel stated the company could handle a $1B deal alone but is open to syndication. He noted corporate M&A is challenging due to valuation gaps but remains a possibility. He reiterated that non-precious metal deals are opportunistic, not a strategic shift. SVP of Corporate Development Daniel Breeze confirmed the $100M-$300M range remains typical, though smaller deals occur, and the current pipeline is more precious-metal weighted. SVP of Operations Martin Raffield commented that the Rainy River update was new to them and they were still digesting it. Heissenbuttel added that reserve updates are an iterative process as operator data becomes available.

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    Unknown Analyst's questions to Sandstorm Gold Ltd (SAND) leadership

    Unknown Analyst's questions to Sandstorm Gold Ltd (SAND) leadership • Q2 2024

    Question

    An analyst from Scotiabank inquired about long-term debt targets beyond 2024, M&A strategy regarding deal size and asset type, and whether the current share buyback pace of 10,000 shares per day would continue.

    Answer

    Executive Nolan Watson explained the long-term goal is to lower debt on the revolving credit facility as much as possible to fund future growth. CFO Erfan Kazemi-Esfahani noted current M&A capacity is under $100 million but will grow as debt declines. Nolan Watson added that the M&A focus is on cash-flowing or near-term assets, not long-dated optionality. He confirmed the buyback plan is ~10,000 shares/day, but the company may be opportunistic on price dips, with debt reduction remaining the priority.

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