Overview Governance Strategy Risk Management Metrics and Targets Appendices 28 2023 CLIMATE REPORT ROYAL GOLD Financial risk FINANCIAL IMPACTS The financial impacts of climate-related issues on an organization are driven by the specific climate-related risks and opportunities to which the organization is exposed and its strategic and risk management decisions (i.e., mitigate, transfer, accept or control), and action taken (or not) on those opportunities. The TCFD identifies four major categories through which climate-related risks and opportunities may affect an organization’s current and future financial positions: revenues, expenditures, assets and liabilities, and capital and financing. Expenditures (income statement): We are not the operator of any of the mining assets that make up our portfolio of mineral investments; therefore, we generally have no direct cost exposure to the operations. However, we may see an increase in our expenditures if we elect to or are required to purchase carbon offsets associated with our scope 3 investment emissions. Revenue (income statement): Our revenue is derived from the production (and sale) of metals and mineral commodities at the operations where we hold stream and royalty interests. Climate risk may impact the Operators’ ability to produce as planned, thus possibly impacting our revenue. Assets and liabilities (balance sheet): Our stream and royalty interests in the production, development and exploration stages are carried at cost on our balance sheet. Production stage stream and royalty interests are depleted using the units of production method over the life of the mineral property (as stream sales occur or royalty payments are recognized), which are estimated using proven and probable reserves as provided to us by the operator. Development and exploration stage stream or royalty interests are not depleted until the property begins production. The carrying values of our stream and royalty interests are subject to commodity price, reserve and production risks over the life of mine. Should there be a significant decrease in price, reserves or production over time, we will evaluate each of our mineral interests for possible impairment (i.e. write down of the carrying value) in accordance with our policy and in conformity with U.S. generally accepted accounting principles. Capital and financing (balance sheet): We use our available liquidity, which includes cash, operating cash flows and availability under our revolving credit facility to help fund the growth of our business. There is risk that the cost of debt could be impacted by lenders’ views of our climate risk exposure. CLIMATE-RELATED RISKS, OPPORTUNITIES AND FINANCIAL IMPACT Risks Royal Gold FINANCIAL IMPACT ON ROYAL Operators of Our Stream and Royalty Interests INCOME STATEMENT CASH FLOW STATEMENT BALANCE SHEET Transition Risks Carbon Pricing Regulation Technology Revenue Royal Gold Attributed Mineral Resources and Reserves Physical Risks Acute Chronic Opportunities Carbon Offset Expenditures Cost of Financing Energy Efficiency Energy Source Electrification