Reducing Project Capex and Opex Risk at Hod Maden With NSR Swap

Research evidence excerpt

Reducing Project Capex and Opex Risk at Hod Maden With NSR Swap

May 18, 2026 | 21:22 ET~

Royal Gold Precious Metals & Minerals

Matthew Murphy, CFA Analyst

matthews.murphy@bmo.com (416) 843-3198

RGLD-NSDQ Rating Price: May-18 Target Total Rtn

Outperform $226.23 $340.00 51% David Hove, CFA VP Associate

david.hove@bmo.com (416) 355-8767

Mert Karanfil Associate

mert.karanfil@bmo.com (416) 568-4832

Legal Entity: BMO Nesbitt Burns Inc.Reducing Project Capex and Opex Risk at Hod Maden

With NSR Swap

Bottom Line:

RGLD has reduced its ownership stake in Hod Maden and grown its NSR stake, which 2YR Price Volume Chart

leaves project exposure more aligned with the company business model. While it needs 350

to provide the next $70M in spending and it retains 15% project ownership, the deal 300

also gives RGLD a future royalty option. We see this as a prudent course of action as the 250

project continues to advance with Turkish conglomerate Lidya Madençilik coming in as 200 765

4operator. 3 150

Key Points 100 Nov May Nov May 0

LHS: Price ($) / RHS: Volume (mm) Source: FactSet

RGLD gets a 2.5% royalty in exchange for 15% equity stake. RGLD is reducing its

direct ownership in the Hod Maden JV from 30% to 15% in exchange for a 2.5% NSR

royalty over the project plus rights related to a new royalty created for partner SSR.

RGLD already possessed a 2% NSR royalty before completion of this deal. RGLD expects

to receive ~9kGEOpa over the first 5 years of the asset from the new 2.5% royalty and

existing 2% royalty. RGLD will fund the next $70M of capex with its partner funding the

next $397M, following which capex will be pro-rata (total capex ~$910M).

Option on another royalty. SSR is selling its project stake to Lidya Madençilik (Lidya)

and resigning as operator.