37 2023 CLIMATE REPORT ROYAL GOLD Overview Governance Strategy Risk Management Metrics and Targets Appendices Identifying and assessing risks DUE DILIGENCE New royalty and stream investment opportunities go through a two-stage review process with respect to overall technical risk. Our assessments of climate risk and climate change risk have evolved over the last several years and generally consist of the following: Phase 1 Review A Phase 1 review typically includes the review of public information and characterization of the project or mine site, which may include the following: • Assessment of current water stress using WRI’s Aqueduct™ Water Risk Atlas • Review of historic precipitation and drought conditions • Assessment of riverine flood risk using Aqueduct™ Floods tool • Assessment of site hazards using the World Bank Think Hazard tool, which provides a regional risk assessment for river flooding, cyclones, water scarcity, extreme heat and wildfires among other non-climate-related natural disasters • For operating mines identification of GHG emissions, emissions intensity, power and fuel types using Skarn’s GHG and Energy databases for gold and copper operations, when applicable • Benchmarking of GHG emissions from proposed opportunities against our current portfolio using emissions intensity to gauge the potential impact on our portfolio of revenue generating projects Phase 2 Review This more detailed review builds on information from the Phase 1 review and may include more analysis in climate risk areas defined in the initial phase of work and may also involve review by external experts. Outcomes from the Phase 2 review vary by opportunity but may include: • Confirmation of GHG emission estimates and an estimate for our portfolio emissions performance with the inclusion of the new opportunity • An independent review and risk assessment of the project’s water supply, which would consider impacts to both the natural environment and local communities • A review of project management’s intentions to mitigate climate-related physical risks and water supply risks, which could be magnified with climate change • A review of the regulatory environment that includes existing and potential regulations associated with GHG emissions and carbon taxation The findings from our progressive two-phase process are summarized by the management team and, in the case of material acquisitions, presented to the Board to support any approval request. ROYAL GOLD DUE DILIGENCE PROCESS These findings provide the content for a presentation of technical due diligence findings to our senior management team, including critical findings from all team members. The process described earlier is graphically represented in the figure below. DUE DILIGENCE DESIGN Critical/unique issues recognized Technical scope defined Team member selection Information review Management presentations Data analysis Site visit Interviews Subject matter expert reports Value drivers & risk workbook ESG checklist PHASE 1 REVIEW PHASE 2 REVIEW DUE DILIGENCE FINDINGS Management presentation