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"There is no change to previously issued guidance for sales of 315,000 to 340,000 GEOs, depreciation, depletion and amortization expense of $535 to $585 per GEO, and an effective tax rate of 17% to 22% for 2022. Due to uncertainty with respect to the timing and amount of the first payment from the Cortez Royalty described above, 2022 guidance ranges were not adjusted to include any contribution from this royalty at this time. Royal Gold has two near term financing commitments which the Company expects to pay using available cash. The first is the potential payment of C$199.5 million (approximately $155 million) for the acquisition of GBR upon closing of that transaction, which is expected in the third quarter subject to receipt of all necessary approvals. The second is the potential payment of up to $6.8 million to a subsidiary of Ero Copper Corporation for the achievement of success-based targets related to regional exploration and mineral resource targets under the NX Gold stream, which may occur at any time prior to the end of 2024," the company said.

Royal Gold (RGLD) announced that its wholly owned subsidiary, RG Royalties, has acquired a sliding-scale gross royalty on an area including the Cortez mine operational area and the Fourmile development project in Nevada. Royal Gold paid $525M in cash consideration for the Royalty to Kennecott Royalty, a wholly owned subsidiary of Rio Tinto (RIO). The area within the Cortez Complex is owned or controlled by Nevada Gold Mines, a joint venture between Barrick Gold (GOLD) and Newmont Corporation (NEM), with the exception of the Fourmile development project which is 100% owned and operated by Barrick. The Royalty covers an area of approximately 300 square miles without stepdowns or caps, and funding of the acquisition using available liquidity sources provides Royal Gold shareholders with full exposure to exploration and production without equity dilution. The royalty provides Royal Gold further exposure to a foundational asset and is expected to begin paying in the third or fourth quarter of 2022. The royalty is a life of mine sliding scale gross royalty payable at a rate of 0% at a gold price less than $400 per ounce, increasing to 3% at a gold price above $900 per ounce, and is payable on 40% of all production from the Cortez Complex. Based on the information available, the royalty does not cover the existing deposits within the Robertson property. At current gold prices the royalty is an effective 1.2% gross royalty on the Cortez Complex and is not subject to any stepdowns or caps. The royalty is payable after cumulative production from the Cortez Complex of 15M gold equivalent ounces from January 1, 2008 onwards. According to Barrick public disclosure, cumulative production from January 1, 2008, was approximately 14.8M ounces as of June 30 and Royal Gold expects the Royalty to begin paying in the third or fourth quarter of 2022 with the first revenue recognized during the fourth quarter of 2022 or first quarter of 2023. Royalty payments will be made quarterly within 45 days of the end of each calendar quarter. Deductions from Royalty payments are limited to third-party royalties that existed at the time the Royalty was created in 2008, which include Royal Gold's existing royalties on parts of Crossroads, Pipeline and Goldrush. Information rights for the Royalty include two annual site visits and standard audit rights. Applicable taxes on the Royalty include 21% U.S. Federal income tax and the 5% Nevada Net Proceeds of Minerals Tax.