59 Royal Gold, Inc. 2022 Environmental, Social and Governance Report About Royal Gold Governance ESG Stewardship Our People Our Operators and Communities Appendices Operator water risk Water-related risks are one of the parameters we use to assess climate-related risks and potential impacts on our stream and royalty interests as we advance our TCFD climate scenario analysis. We will also aim to understand the water-related risks to our interests, and mitigate risks by implementing corresponding action plans, when possible; wherever possible, we will seek to understand how to incentivize Operators to improve water use intensity and water management. Our approach Our stream and royalty interests are geographically and climatologically diverse. In 2021 we looked to systematically understand the risk in our portfolio associated with water supply, to be able to independently and effectively communicate our findings to stakeholders; we have updated that review for this report. We based this initial assessment of our Principal Properties on a global water risk mapping tool, Aqueduct™ Water Risk Atlas, developed by the WRI. The Atlas is based on a framework of eight physical water risk indicators: water stress, water depletion, interannual variability, seasonal variability, groundwater table decline, riverine flood risk, coastal flood risk and drought risk. We did not note any changes to the physical risk indicators since our prior reporting. We have chosen to focus on three indicators – water stress, interannual variability and drought risk – as these directly correlate to our Principal Properties having sufficient water to operate. An assessment of all water risk indicators for our Principal Properties is presented in the Appendices, on page 101 . The review shows that all our Principal Properties have at least one elevated physical water risk indicator. For example, Mount Milligan is assessed as having low water stress risk, as there is limited competition for water resources in the region. However, the interannual variability is classified as medium–high, indicating elevated risk in annual precipitation rates. This is important for an operation like Mount Milligan that collects run-off from snow melt as its water supply. As another example, Andacollo’s water stress indicator is classified as extremely high, as it is located in a very low- precipitation region with significant competition for available water resources from agriculture and domestic uses. The interannual variability is classified as medium–high, indicating elevated risk in annual precipitation rates. In 2022, Andacollo experienced unusually high precipitation events that caused the curtailment of operations for five days due to flooding and impacted open pit operations for months. The assessment of our Principal Properties associated with the three risk indicators is summarized in the figures on the following page. A portfolio review shows that 13% of our net revenue in 2021 was produced from jurisdictions with extremely high water stress, which is dominated by the Andacollo operation; however, Khoemac a u, Peñasquito and Cortez all are characterized as posing high water stress risk, with the potential for climate change to increase risk. Site visit – Chile, South America “ We see water-related risks facing many of our Operators in the form of competition for limited water resources or water stress, high annual precipitation variability which can create either water shortages or excess water leading to flooding and susceptibility to drought. Layering in changes associated with climate change further magnify these risks. Being able to systematically assess impacts of these water-related risks associated with our current interest as well as new business opportunities is essential to having a sustainable business. ” Mark Isto, Executive Vice President and Chief Operating Officer