125 Royal Gold, Inc. 2022 Environmental, Social and Governance Report About Royal Gold Governance ESG Stewardship Our People Our Operators and Communities Appendices The table below summarizes how these transition risks may impact Net Zero 2050 financial performance; it also provides detailed commentary for each jurisdiction and property. These same transition risks also apply to the Net Zero 2050 scenario for the measurement year 2035. Potential financial impacts Risks and impacts Jurisdiction and sites Our Operators Our Company Transition risks Carbon pricing: In the absence of low-carbon alternatives, regulatory changes and high prices set for GHG emissions or carbon drive up the implied price for energy All jurisdictions/sites Operating costs: Increased costs due to the application of carbon taxation Revenue: Reduced revenue could come from increased operating costs, driving an increase in the ore cut-off grade or lowering the amount of available ore; alternatively, increased costs could eliminate the potential for mine life extension associated with the conversion of mineral resources to reserves Trade restrictions: Metal concentrates produced with a high emissions footprint could become subject to trade restrictions through border adjustment carbon taxation, in which a tax equal to the difference between carbon taxes applied in the exporting country compared to the importing country would be levied Zacatecas State, Mexico: Peñasquito Ngamiland, Botswana: Khoemac a u Operating costs: Carbon border taxation could result in higher operating costs through the payment of a carbon border tax on metal concentrates or the existence of carbon border taxation in some jurisdictions, either of which could drive up shipping and treatment charges for concentrates that have elevated carbon footprints Revenue: Increasing concentrate freight and treatment charges could impact our revenue through higher deductions, or through the potential for border carbon taxes to be considered a deduction for stream or royalty calculation purposes Permitting approvals for production life extension: Sustained production is contingent on the ability to obtain federal and state regulatory approvals, while political pressure could change regulations for mine development approvals, making it more difficult to permit future developments Northern Nevada, U.S.: Cortez Coquimbo Region, Chile: Andacollo Revenue: the inability or delay in obtaining permits for mine life extension would result in production loss or delay Revenue: The inability or delay in obtaining permits for mine life extension would result in the loss or delay in stream metal deliveries or royalty payments Proximity to communities: Regulatory programs to quickly decarbonize cause social unrest and disproportionally impact the large, low-income portion of the population, resulting in impacts to supply chain logistics Western Region, Ghana: Wassa Coquimbo Region, Chile: Andacollo Sánchez Ramírez Province, Dominican Republic: Pueblo Viejo Zacatecas State, Mexico: Peñasquito Ngamiland, Botswana: Khoemac a u Revenue: Social stress could potentially manifest as impacts to the road transport of operating supplies and people; this would restrict full operations, which has the potential to impact metal production and profitability – or, alternatively, delays in the transport of metal concentrates to off-takers Revenue: Revenue could be delayed, but not likely lost Royal Gold reputational risk: Operations with high emissions intensity and an inability to effectively reduce intensity could become the focus of pressure from investors, to understand how Royal Gold plans to mitigate the emissions Sánchez Ramírez Province, Dominican Republic: Pueblo Viejo No risk Revenue: Investor pressure to improve our portfolio’s emission performance prompts the divestiture of high-emission assets or offsetting emissions based on the social cost of carbon Labor union unrest: Regulatory programs to quickly decarbonize cause social unrest, in response to inflationary cost pressures; this can result in labor unrest and work stoppages to solicit higher wages Coquimbo Region, Chile : Andacollo Zacatecas State, Mexico: Peñasquito Ngamiland, Botswana: Khoemac a u Revenue: Work stoppages would delay revenue Operating costs: Labor unrest would likely result in higher operating costs Revenue: Labor unrest would result in delayed production and revenue Government taking: The host government forces an increase in its beneficial interest of the operation, due to economic pressures in other segments of the country’s economy that had been generated by a global increase in carbon pricing Sánchez Ramírez Province, Dominican Republic: Pueblo Viejo Revenue: A reduction by the owner in their beneficial interest would reduce revenue Revenue: Loss in beneficial interest could reduce stream deliveries or royalty revenue, depending on the mechanism used by the government to obtain the additional beneficial interest