58 Royal Gold, Inc. 2022 Environmental, Social and Governance Report About Royal Gold Governance ESG Stewardship Our People Our Operators and Communities Appendices Operator water availability and risk Mining and ore-processing operations require significant amounts of water. Water sourcing and consumption can be prominent concerns for local communities and established water users, and unique water supply strategies are often used at mining operations to allow production while addressing local environmental and social concerns. Many of the opportunities we evaluate are in areas of elevated water stress, which require in-depth reviews of the Operator’s water management plans, including stakeholders’ concerns. In our due diligence for new opportunities, we review the project water balance, the sustainability of water supply sources and the potential for water competition with other users in the region. We routinely benchmark the actual or estimated water consumption performance of a project against similar operations. Ongoing monitoring of water availability and risk is required to understand if there is a change in risk exposure from the period when our initial due diligence was conducted. We collect water consumption data to understand water use intensity, and also consult external sources that assess water-related risks. These data collection activities support our efforts to understand how climate change could impact our stream and royalty interests. Operator water consumption intensity We track water consumption intensity as a useful metric to assess performance. Water consumption intensity is measured as cubic meters of water consumed per net GEO produced by each operation. Using an intensity measurement as a KPI allows changes to be tracked over time, and it remains relevant regardless of changes in annual production. An Appendix starting on page 95 details our revenue-generating assets for the 2018–2021 period and their associated water consumption data, as compiled by Skarn Associates. There has been a modest improvement trend (as seen in the chart to the right) in water consumption intensity performance over those four years, which is associated with more than 95% of our net revenue each year. WATER CONSUMP TION INTENSIT Y 0 5 10 15 20 25 30 2018 2019 2020 2021 23.5 22.6 22.1 21.6 Kilo Liters/Net Gold Equivalent Ounces The figure below shows that our stream and royalty interests are in the fourth quartile for water consumption per GEO produced for the 56 million GEOs represented in the database. GOLD INDUS TRY WATER CONSUMP TION INTENSIT Y 2021 WITH ROYAL GOLD PR INCIPAL PROPER TIES 1, 2 1 © Skarn Associates Limited 2 Khoemac a u not shown as data were not available for 2021.