Why Royal Gold (RGLD) Is Up 10.7% After Record Results and the Kansanshi Gold Stream Deal

• Royal Gold reported record second quarter 2025 results, with revenue rising to US$209.64 million and net income reaching US$132.35 million, supported by higher precious metals prices and major acquisitions including a US$1 billion gold stream on the Kansanshi mine in Zambia.
• These acquisitions expand Royal Gold’s portfolio with high-quality, long-life assets, reinforcing its position as a leading company in the precious metals streaming and royalty sector.
• We’ll examine how the Kansanshi mine gold stream acquisition could reshape Royal Gold’s investment narrative and future growth outlook.

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Royal Gold Investment Narrative Recap

For those considering Royal Gold, the key thesis rests on believing that the company's disciplined approach to acquiring long-life streaming and royalty assets, together with its operational leverage to precious metals prices, will drive reliable growth. The record Q2 2025 results and Kansanshi gold stream acquisition reinforce the company’s near-term growth outlook, but the biggest short-term catalyst remains integration of these additions, while the largest risk continues to be production volatility from its principal assets. At this point, the impact of recent news does not appear to materially change the balance of near-term risks and rewards.

Of the recent corporate announcements, the US$1 billion gold stream acquisition on the Kansanshi copper-gold mine stands out as most relevant. With this deal, Royal Gold secures exposure to a large, long-life producing asset that is expected to generate immediate cash flow and strengthen portfolio diversification, directly supporting the main catalyst for new growth and offsetting some of the company’s existing revenue concentration risks across a handful of core properties.

However, investors should also be mindful that, while the portfolio has grown, the risk from reliance on a limited number of principal properties remains a factor to watch...

Read the full narrative on Royal Gold (it's free!)

Royal Gold's outlook anticipates $1.4 billion in revenue and $914.5 million in earnings by 2028. This is based on a projected annual revenue growth rate of 23.0% and a $516.1 million increase in earnings from the current level of $398.4 million.

Uncover how Royal Gold's forecasts yield a $206.71 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate Royal Gold’s fair value ranges widely, from US$100 to US$326, based on 12 independent analyses. While some see value far above current prices, the core risk of production unpredictability across key assets is top of mind for many, offering you a range of perspectives to consider.

Explore 12 other fair value estimates on Royal Gold - why the stock might be worth 41% less than the current price!

Build Your Own Royal Gold Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Royal Gold research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Royal Gold research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Royal Gold's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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