Royal Gold amends revolving credit facility, extends maturity to 2030

Royal Gold, Inc. (NASDAQ:RGLD) announced Monday that it entered into the Sixth Amendment to its Revolving Facility Credit Agreement on June 26, 2025. The amendment, disclosed in a press release statement and filed with the Securities and Exchange Commission, includes several changes to the company’s existing credit facility.

Under the new terms, the maturity date of the revolving credit facility is extended from June 28, 2028, to June 30, 2030. The company has also increased the size of the accordion feature, which allows for additional borrowing capacity subject to lender commitments, from $250 million to $400 million. This change enables Royal Gold to potentially increase the aggregate commitments under the facility up to $1.4 billion. With a strong current ratio of 4.74, the company’s liquid assets comfortably exceed its short-term obligations, positioning it well for this expanded credit facility.

Additionally, the amendment revises the leverage ratio covenant. The required leverage ratio for borrowers is now set at less than or equal to 4.00:1.00 at all times, replacing the previous structure that allowed a ratio of 4.00:1.00 for the two fiscal quarters following a material permitted acquisition and 3.50:1.00 at other times. With revenue growth of 31.09% over the last twelve months, Royal Gold demonstrates strong operational momentum. For deeper insights into Royal Gold’s financial metrics and growth potential, access the comprehensive Pro Research Report available on InvestingPro.

The rest of the terms and conditions of the credit agreement remain unchanged.

The amendment involves Royal Gold, Inc. and RGLD Gold AG as borrowers, with certain subsidiaries as guarantors. The Bank of Nova Scotia (NYSE:BNS) acts as administrative agent, while the Bank of Nova Scotia, Canadian Imperial Bank of Commerce (NYSE:CM), and BofA Securities, Inc. serve as joint lead arrangers.

This information is based on a press release statement included in the company’s Form 8-K filing with the SEC.

In other recent news, Royal Gold Inc. reported impressive financial results for the first quarter of 2025, surpassing analyst expectations with earnings per share of $1.72, a 24.6% increase over the forecast of $1.38. The company also reported revenue of $193.4 million, exceeding projections by 32.2%. Royal Gold declared a third-quarter dividend of $0.45 per share, reflecting a 12.5% increase from the previous year. Additionally, BMO Capital Markets raised the price target for Royal Gold’s shares to $197, maintaining a Market Perform rating, due to the company’s involvement in the Warintza project. This project includes a $200 million stream and royalty agreement, which analysts view positively, with an estimated internal rate of return of 7% based on BMO’s gold price estimates. Royal Gold also announced the approval of its 2025 Incentive Plan during its annual meeting, aiming to align the interests of its key personnel with those of its shareholders. The company’s stockholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025. These developments indicate Royal Gold’s strategic focus on financial growth and shareholder value.

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