Streams Versus Royalties – Details From a cash flow perspective, streams and royalties are comparable in that the revenue from a stream, less the ongoing cash price paid per unit of metal delivered, is similar to a gross royalty interest in mineral production. STREAM AND ROYALTY CHARACTERISTICS Streams Royalties Streams are typically settled by delivery of metal. Royalties are typically cash-settled. A stream is typically structured as the purchase by the streaming company of a percentage of metal produced in return for an upfront cash investment and an ongoing cash price per unit of metal delivered. A royalty is typically structured as gross smelter return (GSR), net smelter return (NSR), net value (NV) royalty, gross value (GV) royalty or net profits interest (NPI). The difference is the amount of deductions permitted prior to calculation of the royalty, ranging from zero deductions (GSR) to defined capital and operating costs (NPI). c A stream is structured as a contractual arrangement. An analysis of the credit profile of a counterparty is an important part of due diligence for streams. A royalty can be an interest in real property that “runs with the land” in the event of an ownership transfer of mineral rights, even if the transfer occurs through bankruptcy, in certain jurisdictions. Often, it is registered in government records on the title to the mineral rights. The sale of a stream is not taxable upfront in most jurisdictions, so it is a more tax-efficient source of finance. The sale of a royalty is often treated as a disposition of mineral interests and is subject to upfront taxation to the operator. (1) Gross margin is revenue, less cost of sales, and is pre-tax. Royal Gold | 2025/2026 Asset Handbook 7 2025 Revenue Split 67% 33% STREAM AND ROYALTY MARGINS Royal Gold’s business is high margin and the average gross margin for revenue, less cost of sales, was 87% in 2025. STREAM SEGMENT MARGIN 81% ROYALTY SEGMENT MARGIN 100% ROYAL GOLD MARGIN (1) 87% INTRODUCTION ATTRIBUTES OF OUR BUSINESS PORTFOLIO OVERVIEW EXPECTED PERFORMANCE AND OUTLOOK PORTFOLIO DETAILS REFERENCE MATERIALS