로열 골드(RGLD) 2026년 3분기 실적 발표 콘퍼런스콜: 사상 최대 현금흐름 및 무차입 재무상태표

핵심 요약

• 2026년 3분기 매출은 금속 가격 상승, 인수한 포트폴리오 지분 효과, 주요 핵심 자산의 판매 호조에 힘입어 전년 동기 대비 84% 증가한 4억 6,500만 달러를 기록했다.
• 판매량은 사상 최대인 10만 9,000 금 등가 온스(GEO)에 달했다. 스트림 매출은 92% 증가한 3억 1,800만 달러를 기록한 반면, 로열티 매출은 70% 증가한 1억 4,600만 달러를 기록했다.
• 영업현금흐름은 전년 동기의 1억 7,400만 달러에서 98% 증가한 3억 4,400만 달러로 사상 최대치를 기록했다. 로열 골드는 이로써 3개 분기 연속 사상 최대 영업현금흐름을 달성했다.
• 순이익은 2억 2,700만 달러(주당 2.68달러)를 기록했다. 조정 순이익은 사상 최대인 2억 3,800만 달러(주당 2.80달러)에 달했으며, 조정 EBITDA 마진율은 84%였다.
• 로열 골드는 3분기 중 회전신용공여(리볼빙) 한도에서 2억 5,000만 달러를 상환하고 10월에 나머지 1억 5,000만 달러를 상환했다. 이로써 회사는 무차입 상태가 되었으며, 14억 달러 규모의 회전신용공여 한도 전액을 이용할 수 있게 되었다.
• 경영진은 기타 금속에 대한 연간 가이던스를 상향 조정했다. 은과 구리 판매량은 가이던스 범위의 상단 또는 그 이상으로 마감될 것으로 예상되는 반면, 금 판매량은 당초 제시된 가이던스 범위의 중간 수준을 순조롭게 유지하고 있다.

핵심 재무 실적

분기 매출에서 금이 73%를 차지했고, 은이 14%, 구리가 10%로 그 뒤를 이었다. 회사가 밝힌 평균 실현 시장 가격은 전년 동기 대비 금이 23%, 은이 59%, 구리가 44% 상승했다.

사업 및 운영 실적

스트림 매출 증가는 안다코요, 마운트밀리건, 푸에블로비에호, 샤반티나, 코에마카우의 기여도가 실질적으로 크게 확대된 점을 반영했다. 칸산시 역시 높은 기여를 보였으며, 그린스톤, 보니크로, 차파다에서 신규 스트림 매출이 추가되었다. 플래트리프도 첫 기여를 기록했다.

로열티 성장은 코르테즈 레거시 존과 페냐스키토가 견인했으며, 안타미나, 프루타델노르테, 카세로네스, 훈데, 아우리조나에서 새로 인수한 지분의 추가적인 기여도 있었다.

코르테즈의 경우 레거시 존의 생산량이 크게 증가했다. 해당 구역에서 로열 골드가 보유한 중복 지분은 약 9%의 총 로열티율에 해당한다. 코르테즈의 통합 로열티율은 3분기 4.45%, 연초 이후 누적 3.85%를 기록해 연간 가이던스인 3.5%~4%와 비교된다.

센테라는 마운트밀리건의 연간 금 및 구리 생산 가이던스를 재확인했다. 안다코요는 앞서 발생한 기상 악화로 인한 차질에서 조업이 회복되었으나, 텍은 현재 2026년 구리 생산량이 당초 제시한 4만 5,000~5만 5,000톤 범위의 하단에 머물 것으로 예상하고 있다.

퍼스트 퀀텀은 칸산시의 2026년 구리 생산 가이던스를 17만 5,000~18만 5,000톤으로 좁혔다. 로열 골드는 이에 따라 2026년 자사 스트림 계약에 따른 금 인도량이 2만 9,000~3만 1,000온스가 될 것임을 시사한다고 밝혔다.

경영진은 포트폴리오에 내재된 성장 잠재력도 강조했다. 레드 크리스는 2027년 초까지 투자 결정을 내리는 것을 목표로 하고 있으며, 뉴몬트는 단계적 개발을 통해 최대 70년의 잠재 광산 수명을 제시했다. 플래트리프의 2단계 선광장은 2027년 말 완공 예정이며, 호드 마덴은 약 30%의 공정률을 보였다.

경영진 가이던스

• 연간 금 판매량은 당초 가이던스 범위의 중간 수준을 순조롭게 유지하고 있다.
• 은과 구리 판매량은 각각의 연간 가이던스 범위 상단 또는 그 이상으로 마감될 것으로 예상된다.
• 연간 일반관리비(G&A)는 기존에 제시된 5,000만~6,000만 달러 범위의 상단 부근에 이를 것으로 예상된다.
• 연간 감가상각비(D&A)는 당초 제시된 3억 3,900만~3억 7,900만 달러 범위 내를 유지할 것으로 예상된다.
• 연간 유효세율은 당초 예상치인 17%~22% 범위 내에 머물 것으로 예상된다. 일회성 항목을 제외한 연초 이후 누적 유효세율은 20.1%였다.
• 경영진은 크로스로즈 노천 채굴장 바닥을 향해 채굴이 진행되는 가운데 조업 활동이 레거시 존에 계속 집중됨에 따라, 2027년 코르테즈 광산이 호조를 보일 것으로 예상하고 있다.

분기 말 이후, 로열 골드는 센테라로부터 이연된 금 대가의 2차분을 수령하여 약 4,600만 달러에 매각했다. 해당 매각 대금은 4분기 영업현금흐름에 포함되나, 매출이나 GEO 판매량으로는 인식되지 않는다.

또한 회사는 킨로스가 로열 골드의 그레이트 베어 로열티 지분 25%에 대한 재매입 권리를 행사함에 따라 4분기에 약 4,300만 달러를 수취할 것으로 예상하고 있다. 이 거래로 로열 골드의 지분은 1.5%의 순제련정산(NSR) 로열티로 축소된다.

리스크 및 주요 모니터링 요인

안타미나는 사망 사고 발생 및 관계 당국의 조사 대기에 따라 10월 27일 조업을 중단했다.

마운트밀리건의 인도량은 선적 시점, 항만 도착 및 대금 지급 일정에 영향을 받는다. 경영진은 4분기 인도량이 대체로 2분기 생산량을 반영하지만, 일정에 따라 일부 매출이 2027년 초로 이연될 수 있다고 밝혔다.

로열 골드는 담보 서류 등록이 완료된 후 솔라리스에 와린차 스트림 및 로열티에 대한 최종 5,000만 달러의 선급금을 지급할 예정이다. 다른 잔여 약정은 호드 마덴 프로젝트 비용의 15% 분담으로, 프로젝트 일정, 범위 및 자금 조달 가정이 변경되지 않는다면 2027년 중반에 자금 집행이 시작될 것으로 예상된다.

경영진은 아르헨티나가 현재 상황에서는 우호적인 관할권이라고 평가하면서도, 장기 투자 건은 향후 정치적 변화에 노출되어 있다고 강조했다.

애널리스트 질의응답(Q&A) 핵심 내용

경영진은 플래트리프, MARA, 호드 마덴에서의 예상보다 빠른 진척을 언급하며 인수한 샌드스톰 포트폴리오를 “완전한 성공”이라고 평가했다. 또한 안타미나, 프루타델노르테, 차파다, 카세로네스 등 생산 자산의 기여도 함께 지목했다.

구리는 분기 매출의 10%를 차지했다. 경영진은 이 비중을 줄이려 하지도, 전략적으로 늘리려 하지도 않는다고 밝혔다. 로열 골드는 여전히 귀금속과 금에 주로 집중하고 있으나, 매력적인 구리 투자 기회도 검토할 방침이다.

신규 사업은 여전히 회사의 최우선 자본 배분 순위다. 경영진은 향후 거래 자금을 조달할 때 부채에 대한 의존도를 낮추기 위해 추가적인 현금 유동성을 확보할 수도 있다. 이사회는 11월에 정기 연례 배당 검토를 진행할 예정이다.

로열 골드는 프로젝트 개발 스트림, 제3자 로열티 패키지, 신규 로열티 전반에 걸쳐 거래 파이프라인이 여전히 활발하다고 밝혔다. 경영진은 앞서 논의된 2억~5억 달러 규모의 거래 범위가 여전히 유효하다고 밝혔으며, 호주에서 스트리밍 거래에 대한 수용도가 높아졌다고 언급했다.

실적 발표 콘퍼런스콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Hello, everyone. Thank you for joining us, and welcome to the Royal Gold, Inc. 2026 Third Quarter Conference Call. [Operator Instructions]

I will now hand the conference over to Alistair Baker, Senior Vice President, Investor Relations and Business Development. Alistair, please go ahead.

Alistair Baker

Thank you, operator. Good morning, and welcome to our discussion of Royal Gold's third quarter 2026 results. This event is being webcast live, and a replay of this call will be available on our website. Speaking on the call today are Bill Heissenbuttel, President and CEO; Paul Libner, Senior Vice President and CFO; and Martin Raffield, Senior Vice President of Operations. Other members of the management team are also available for questions.

During today's call, we will make forward-looking statements, including statements about our projections and expectations for the future. These statements are subject to risks and uncertainties that could cause actual results to differ materially from these statements. These risks and uncertainties are discussed in yesterday's press release and our filings with the SEC. We will also refer to certain non-GAAP financial measures, including adjusted net income, adjusted net income per share, adjusted EBITDA and cash G&A. Reconciliations of these measures to the most directly comparable GAAP measures are available in yesterday's press release, which can be found on our website.

Bill will start with an overview of the third quarter, Martin will provide portfolio commentary, and Paul will give a financial update. After our prepared remarks, we'll open the line for questions. I'll now turn the call over to Bill.

William Heissenbuttel

Good morning, and thank you for joining the call. I'll begin on Slide 4. Our strong third quarter results extended the positive momentum from the first half of the year. Revenue for the quarter was $465 million on record volume of 109,000 GEOs, and operating cash flow was $344 million, a record for the third consecutive quarter.

Net income was $227 million and adjusted net income was a record $238 million, or $2.80 per share. We remain a gold-focused business, with gold contributing 73% of total revenue for the quarter. Our adjusted EBITDA margin increased to 84% for the quarter, reflecting our low cash G&A. We paid $40 million of dividends during the quarter at our annual dividend rate of $1.90 per share, which is 6% higher than last year. We were active on our share buyback program, repurchasing and canceling 190,000 shares for $49 million. We also repaid $250 million on the revolver during the quarter and the remaining $150 million balance in October. It is remarkable how much cash flow our large and diversified portfolio generates. In the year since we closed the Sandstorm and Horizon transaction, we have repaid more than $1.2 billion of debt, paid out $121 million of dividends, repurchased $79 million of shares, and funded $50 million for the Warintza project. I am very pleased with these results. We are now debt-free. Our full $1.4 billion revolver is undrawn and available, and we have strong cash flow to redeploy in an active market for business development.

I'll now turn the call over to Martin to discuss portfolio performance in the quarter.

Martin Raffield

Thanks, Bill. Turning to Slide 5. The portfolio delivered another strong quarter with record sales volume of 109,000 GEOs. Stream revenue was $318 million, up 92% from the prior year quarter. We saw materially higher revenue from Andacollo, Mount Milligan, Pueblo Viejo, Xavantina and Khoemacau. We also had strong contributions from Kansanshi and new streams at Greenstone, Bonikro and Chapada, and an initial contribution from Platreef.

Royalty revenue was $146 million, up 70% from the prior year quarter. We saw large increases from the Cortez Legacy Zone and Peñasquito as well as strong contributions from our new interests at Antamina, Fruta del Norte, Caserones, Houndé and Aurizona.

Turning to Slide 6. I'll comment briefly on our full year guidance. Based on strong year-to-date sales, we have raised our full year guidance for other metals, and we expect to be at or above the top end of the guidance ranges for silver and copper sales. Gold sales remain on track around the midpoint of our original guidance range.

I'll now turn to Slide 7 and highlight some notable developments across the portfolio. At Mount Milligan, Centerra reconfirmed that gold and copper production is on track to meet full year guidance. At Andacollo, Teck reported that production improved through the quarter as operations recovered from earlier weather events and plant throughput increased in September and returned to full production by month end. Teck now expects 2026 copper production to be at the low end of the 45,000 to 55,000 tonne guidance range.

At Kansanshi, First Quantum reported third quarter copper production of 46,000 tonnes, slightly higher than the previous quarter due to improved throughput. The new S3 concentrator throughput was sustained above design capacity due to higher operating time, strong utilization and improved milling rates. First Quantum narrowed the 2026 copper production guidance to 175,000 to 185,000 tonnes from the previous 175,000 to 205,000 tonnes, which implies gold deliveries under the stream of 29,000 to 31,000 ounces for 2026.

At Cortez, production from the legacy zone ramped up significantly in the third quarter. Our overlapping royalties in this zone create an approximate 9% gross royalty rate. Overall, our blended royalty rate for the quarter was 4.45% and year-to-date was 3.85% compared to our guidance of 3.5% to 4% for the full year. This is consistent with expectations that production from the Crossroads deposit would increase during the year.

Barrick and Newmont also resolved their dispute over the Fourmile project, which should allow the project to be optimized within the Nevada Gold Mines joint venture. We expect this to have a positive impact on our royalty, which covers the entirety of the Fourmile project.

At Xavantina, Ero provided total 2026 gold production guidance of between 75,000 to 80,000 ounces, including 30,000 to 35,000 ounces of mine production. Based on Ero's results to date, this implies total production from mining and stockpiles of approximately 22,000 to 27,000 ounces in the fourth quarter.

At Antamina, production was suspended on October 27 due to a fatality and to allow for investigations by the relevant authorities. Several operators also provided updates that highlight the organic growth potential within our portfolio. At Greenstone, Equinox reported that the first major exploration program since 2020 is underway. The program is aimed at converting higher-grade underground and satellite mineral resources, extending the mine life and optimizing throughput beyond the current nameplate capacity of 27,000 tonnes per day.

At Côté, IAMGOLD is aiming to complete an updated mine plan and reserve estimate by the end of this year. The update is expected to show a significant expansion of mineral reserves and mine life and to outline opportunities to progressively increase plant throughput to a sustained rate of approximately 40,000 tonnes per day.

At Red Chris, Newmont outlined the parameters of the block cave project, which is targeted for an investment decision by early 2027. Newmont expects an initial Phase 1 mine life of 13 years and production to ramp up to an annual average of 275,000 to 325,000 ounces of gold and 65,000 to 85,000 tonnes of copper between 2035 and 2040. Newmont also expects subsequent phase development with a potential mine life of up to 70 years. At Fruta del Norte, Lundin Gold reported that near-mine exploration continues to deliver exceptional results at FDN South, FDN East and Bonza Sur. Lundin Gold noted that the potential of these deposits provides increasing confidence in sustaining production at current levels over the longer term.

At Chapada, Lundin Mining expects to complete an updated technical report for the Chapada mine and Saúva project by year-end. Permitting for Saúva is continuing alongside further design and engineering work. At Platreef, the Phase 1 concentrator operated at 70% of design in October, and Ivanhoe expects mining and milling rates to improve further as identified bottlenecks have been resolved. Ivanhoe also reported that construction of the Phase 2 concentrator is on schedule for completion by the end of 2027.

At Great Bear, Kinross reported that the advanced exploration surface construction is now substantially complete. The North and South declines continue to advance. Detailed engineering is over 55% complete for the main project and permitting is progressing. Kinross has advised that they intend to buy back 25% of our royalty in the fourth quarter, which would reduce our interest to a 1.5% NSR in return for approximately $43 million in cash. Recall that we granted Kinross this option in return for information that derisked the royalty purchase and the buyback demonstrates the significant value of the Great Bear project.

At MARA, Glencore reported that the Alumbrera restart is underway and that the project received approval under Argentina's RIGI Investment Incentive Regime in early October. Our interest at MARA does not cover Alumbrera, but Glencore views the Alumbrera restart as an important step in derisking the development of MARA.

Finally, at Hod Maden, Lidya continues to advance the project, which is now about 30% complete.

I'll now turn the call over to Paul.

Paul Libner

Thanks, Martin. I'll turn to Slide 8 and give an overview of the financial results for the quarter. On Slides 8 and 9, I'll be comparing the third quarter of 2026 to the prior year quarter. Revenue for the quarter increased 84% to $465 million. The increase was driven by higher metal prices, new contributions from Kansanshi and the Sandstorm and Horizon portfolio and higher sales from Andacollo, Mount Milligan, Pueblo Viejo and Xavantina. These increases were partially offset by lower sales from Rainy River. Metal prices were significantly higher with gold up 23%, silver up 59% and copper up 44%. Gold remains our dominant revenue driver at 73% of total revenue with silver at 14% and copper at 10%.

Turning to Slide 9, I'll provide more detail on some key line items for the quarter. DD&A expense was $13.2 million, up approximately $3 million from the prior year. The increase was mostly due to higher office and employee-related costs, which included noncash stock compensation expense. We continue to expect our total G&A expense for the year will finish near the upper end of the $50 million to $60 million range we provided during our February conference call.

G&A expense increased to $82 million from $33 million in the prior year. On a unit basis, D&A was $752 per GEO compared to $451 per GEO last year. The increase was mainly due to higher carrying values of the Kansanshi Gold Stream and the Sandstorm and Horizon interest we acquired in 2025. D&A is in line with our expectations, and we expect to finish the year within our original guidance range of $339 million to $379 million.

The fair value loss on equity securities was $16 million for the quarter, primarily due to a decrease in the value of the Entrée Resources shares we acquired in the Sandstorm and Horizon transaction.

Interest and other expense decreased to $5 million from $9 million, primarily due to lower average borrowings under our revolving credit facility.

Tax expense for the quarter was $58 million, resulting in an effective tax rate of 20.2%. Before discrete items, our year-to-date effective tax rate is 20.1%, and we continue to expect the full year rate to be within the original guidance range of 17% to 22%. Net income for the quarter was $227 million, or $2.68 per share compared to $127 million or $1.92 per share in the prior year. The increase was largely driven by higher revenue and lower acquisition-related costs that were part of the Sandstorm and Horizon transaction in the prior year. These items were partially offset by higher cost of sales, depletion expense, fair value losses on equity securities and income tax expense. Excluding fair value changes in equity securities, adjusted net income was a record $238 million or $2.80 per share.

Finally, operating cash flow for the quarter was a record $344 million, up 98% from $174 million in the prior year. The increase was primarily due to higher stream and royalty revenue and lower acquisition-related costs and interest payments, partially offset by higher income tax expense.

I will end on Slide 10 and summarize our financial position. Our increase in record cash flows have allowed us to quickly pay down debt, further repurchase shares and rebuild our liquidity. At the end of September, we had total available liquidity of $1.5 billion, made up of $1.25 billion available under our revolver and $226 million of working capital. After quarter end, on October 19, we repaid the remaining $150 million on our revolver, and we are now debt-free. Adding to our liquidity, after quarter end, we received the second tranche of gold from Centerra as part of the deferred gold consideration for the Mount Milligan cost support agreement. We sold these ounces upon receipt for proceeds of approximately $46 million, and you will see the impact on our fourth quarter results. As a reminder, these proceeds will not be treated as revenue or included in our GEOs, but they will be included in our operating cash flow. After quarter end, we also finalized the details to make the final $50 million advance payment to Solaris for the Warintza of stream and royalty. Solaris will submit the documentation to register our security, and we expect to make the payment shortly. Our only other remaining commitment is our 15% share of Hod Maden project costs. As a reminder, we funded $70 million during the second quarter and assuming no changes to the project time line or scope and no debt financing, we expect to start contributing our share of spending in mid-2027 on a pro rata basis with Lidya.

That concludes my comments on our financial performance for the quarter, and I'll now turn the call back to Bill for closing comments.

William Heissenbuttel

Thanks, Paul. I'll close with 3 points. First, our cash flow has never been stronger. Our large and diversified portfolio delivered record operating cash flow for the third consecutive quarter, and we again had only 2 assets contributing more than 10% of revenue. This diversification reduces event risk at any one asset and makes our portfolio one of the best in terms of reducing exposure to mine site events. Our portfolio remains the most gold focused in our industry, and we continue to earn over 75% of our revenue from countries in the Western Hemisphere. Second, we have significant organic growth embedded in the portfolio. You heard it in Martin's update, potential to convert resources and extend mine life at Greenstone, a phased block cave at Red Chris that could extend the mine life up to 70 years, the RIGI application approval for MARA, the Phase 2 expansion at Platreef and sufficient progress at Great Bear has prompted Kinross to exercise its royalty buyback right. With the exception of the MARA option payment, all of this growth is already paid for and our operators are advancing it today.

Third, our capital allocation record speaks for itself. We have increased our dividend for 25 consecutive years, and we are the only precious metals company in the S&P High Yield Dividend Aristocrats Index. And in the year since we closed the Sandstorm and Horizon transaction, we have returned $200 million to shareholders and repaid more than $1.2 billion of debt. Today, we are debt-free. With our full $1.4 billion revolver available and an uncommitted accordion feature that could increase it to $2 billion, we are well positioned to compete for new business, and we will bring that same discipline to every opportunity. We are in a strong position, and I'm confident the market will recognize the value of what we have built, a sustainable and high-margin business with strong cash flow from a diversified portfolio, embedded organic growth from numerous assets and a long record of disciplined capital allocation.

Operator, that concludes our prepared remarks. Please open the line for questions.

Operator

[Operator Instructions] Your first question comes from the line of Daniel Major with UBS.

Correction. Your first question comes from the line of Cosmos Chiu with CIBC.

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Cosmos Chiu

Maybe my first question is to highlight good to see that MARA has received their RIGI permit. And I think earlier than what I had expected and potentially earlier than what you had expected as well. So I guess maybe to confirm that, like has it exceeded your expectations in terms of MARA? And taking a step back, looking at the entire Sandstorm portfolio, how has it performed? Has there been more positive surprises versus negative surprises to you? How has it performed since you've acquired that portfolio?

William Heissenbuttel

Cosmos, thanks for the question. I think the Sandstorm portfolio has been an absolute success. And you talk about pluses and minuses, I only see pluses. And if you just go back to what did we cite when we announced the acquisition. Well, it was about growth, and it was about Platreef, it was about MARA and Hod Maden and just walk through each one of those. Platreef was under construction. It's made its first delivery. MARA didn't have a time line. And now we have a time line. We have a RIGI application approval. They started the mining of the Alumbrera pit earlier than we thought. So that's moved advanced quicker than I think we really thought. And Hod Maden at the time, we didn't even have a technical report, let alone a setup in terms of ownership that would allow for the construction of the project. That project was under construction. So all those 3 key assets that we identified have all advanced and probably advanced faster than we thought. And that actually ignores a lot of the great things going on within the producing assets that we purchased. Antamina, almost $40 million of revenue in 9 months. Fruta del Norte seems to be getting better and better. You got upside at Chapada, Caserones. So I'm really pleased with how that portfolio has performed.

Cosmos Chiu

That's great to hear. And then, Bill, maybe talking about this past quarter, as you or Paul mentioned, the majority is coming from precious metals, but you do have about 10% coming from copper and copper prices have been fairly strong year-to-date. Are you comfortable with that 10%? Is it too high? Is it too low? Like how should we view that 10% within your portfolio?

William Heissenbuttel

Yes, Cosmos, I think we've been pretty consistent. We're focused on precious metals. We're focused on gold. I don't look at copper as being too high or too low. We like copper. If we find other opportunities in copper that we think are attractive, we may well make those investments. It's just -- it will never really, in my mind, be core to what we do. And as I always say, when our team is marketing, we're marketing for precious metal opportunities. The copper opportunities we see are ones that typically come into us and we look at it. We like it, just like Cactus is an example. So 10% is -- it's just a number. I'm not looking to reduce it, but I'm not also looking strategically to increase it.

Cosmos Chiu

Of course. And maybe one last question. If I were to look back at the history of Royal Gold or even now, a large part of your heritage is connected to Barrick, be it Cortez or near term Pueblo Viejo. And as Martin mentioned, there's also Barrick in terms of more clarity at Fourmile that has helped. As we all know, Barrick right now might be looking at an IPO of Barrick North America. Maybe I'm just reading too much into it, but Bill, would an IPO help in any way indirectly in terms of what's happening within your portfolio beyond Fourmile?

William Heissenbuttel

Yes, Cosmos, I think it would. And the reason I say that is when you're running a bigger company with a portfolio of mines, there are so many things that you have to focus on. And if we can have Nevada Gold Mines and Pueblo Viejo in what I'll call a smaller company in terms of assets, you're not competing for capital with Pakistan or Africa. And maybe the management team has more time to focus on the issues on a fewer number of assets as opposed to trying to address issues across a broader portfolio. So I'm hopeful that it is, I would say, marginally positive for our interest.

Operator

Your next question comes from the line of Derick Ma with TD Cowen.

Derick Ma

My question is on Cortez. There are a lot of moving pieces there. I know you haven't put out guidance yet, but directionally, how should we be thinking about Cortez going forward when we look into 2027 and beyond and how that would compare, I guess, to your 2026 average royalty rate of 3.5% to 4%?

William Heissenbuttel

Yes, Derick, I might turn that over to Martin. But before I do, we're just -- we're not going to get too specific about what we expect in 2027 or going forward. But Martin, maybe you can just talk about where the ounces are now coming from. And if there's anything that you can add maybe towards the end of this year, directionally, that would be helpful.

Martin Raffield

Yes. I think directionally, Derick, we're looking at a good year for Cortez next year. And I say that because as you'll see from results in Q2 and probably coming up in Q3, there is more focus at the moment on our Legacy Zone as they get down towards the bottom of the Crossroads pit. And we expect that to continue through at least some of next year. So we see good results coming from Cortez next year.

Derick Ma

Okay. Great. And then I have one more question on Mount Milligan. Very strong deliveries from Mount Milligan in Q3. Previously, you've talked about a 6-month delay, I guess, from production to sales. And given Q2 and Q3 were particularly strong production quarters at Mount Milligan, is the expectation that Q4 deliveries will be even stronger than Q3 to Royal Gold's account? Or is it more nuanced in terms of the delivery schedule and the delay from production to sales?

William Heissenbuttel

Yes. It's a little nuanced because the way -- the deliveries, we have a pretty good idea. I mean, what we're going to get in the fourth quarter is sort of what they produced in the second quarter. The nuance is you get a shipment that's a little bit later or a little bit earlier than you think. And the way we sell that metal is very much based on when we think the next delivery is coming in. So if you got a late delivery and that delivery got sold in early 2027, that's the only place that there's a bit of nuance.

But Martin, I'll turn it back to you again and just say, is there anything else that I'm missing in that description?

Martin Raffield

No, I don't think you're missing anything there, Bill. It's very heavily related to shipment timing and deliveries of ships into ports and payments from that. So I think you're right there.

Derick Ma

So maybe a strong Q4, but don't take exactly Q2.

Operator

[Operator Instructions] Your next question comes from the line of Daniel Major with UBS.

Daniel Major

First one, just thinking into next year, you've obviously given us some color on the buyback from Kinross. Is there any others in the portfolio we should be mindful of in the near term in terms of potential buybacks into next year?

William Heissenbuttel

Nothing comes to mind in terms of actual buybacks that operators may have rights to.

Daniel Major

Okay. And then I guess second question, just on the deal pipeline. Obviously, we've seen valuations come in a bit. Has that changed the discussions in terms of the processes that you're sort of having, is first question. And then kind of 3 regional questions on the pipeline. One, is Australia an area that you're seeing additional interest? I know there's been a few deals done that seems to be igniting some more interest in Australia, is the first question. The second is Argentina. I know First Quantum is keeping streaming as an option for funding for Taca Taca. Any discussions there? And then the third one, specifically, there seems to be some talk in the market about Bingham Canyon. Can you make any comment there?

William Heissenbuttel

Yes. We don't make comments on specific opportunities. Generally speaking, if I understood the first part of your comment, prices coming in, prices getting closer to consensus sort of makes the valuation discussion a lot easier when gold was $5,400 and the long-term price was $3,500 or whatever. It was, and that kind of gap really poses a bit of an issue trying to negotiate. So the prices coming in actually, I think, helps discussions a little bit. Again, coming back to your point on geographies, I would say there are 2 things that have happened in our sector that I think are positive for our industry. Number one, you saw a very large transaction done by a very large company. And that -- we always say, it only takes one to get others prompted to at least look at streaming. So I think that was positive. And then you've seen a number of transactions in Australia. The Australians had never previously wanted to consider streaming. And again, it only takes one. And now we have, I would say, a couple of examples where Australian companies did use streaming. And again, I think that opens the door a bit to new opportunities.

Daniel Major

Okay. And then -- so just to push you out. I mean, Argentina sort of broadly from a risk standpoint, would you be comfortable if the opportunities arose in Argentina, wherever the project might be?

William Heissenbuttel

Yes. I mean I think the whole RIGI application thing at MARA has been positive. The thing you just always have to keep in mind is that when we make investments, I mean, they go on for decades. And you're going to have political change. So I would say, Argentina is a very favorable location, I think, from my perspective right now, but we're always going to be cautious. So I'd say we're open to the country, absolutely.

Operator

[Operator Instructions] Our next question comes from the line of Sam Overwater with Scotiabank.

Samuel Overwater

And also, congratulations on being debt-free. Starting off with capital allocation, now that the credit facility is paid off, can you touch on your capital allocation priorities in terms of managing new transactions, dividends, buybacks and where you see any changes in these priorities in the next few months?

William Heissenbuttel

I don't see any change in priorities. So I mean, priority one from my perspective is finding new business opportunities. To me, that's the best way to add value. It's the best way in terms of duration, in terms of growth. It's just very important to keep that pipeline filled. So I would say that's number one.

With respect to our dividend, I think everybody knows that our Board reviews our dividend every November, and that would be the case this year as well.

And just in terms of share buybacks, the one comment I would make is with the increase in interest rates that we have seen, it may be beneficial for us to build a bit of liquidity. So if and when we find the investments that we like, we're not as dependent on drawing down on debt, and we have that cash available on our balance sheet. But that to me is -- that's the order of priority. So the new business opportunities, I think, will always be first.

Samuel Overwater

Great. Moving into the transaction environment. Daniel asked about Australia and Argentina. More specifically in terms of sizing, type and commodity. Last time we discussed it, it was between $200 million and $500 million with some larger transactions floating around and, like, across a pretty diverse type of asset, large projects as well as like main focused on gold. Are these objectives the same? Or has maybe the lens shifted a little bit? And then more specifically, are there jurisdictions that Royal has found themselves most interested in?

William Heissenbuttel

Well, what I might do there is hand that over to Dan Breeze a bit to give you a sense for what we're seeing.

Daniel Breeze

Yes, happy to, Bill. Sam, thanks for the question. And I think the way you described it still holds very much right now. I think we're pretty pleased with our pipeline. We're very busy right now really across a number of opportunities. We're always looking at these third-party royalty packages and new royalties and of course, the bread and butter of our industry, which is streams for project development. That's probably the bulk of it right now. And Bill mentioned about Australia. We're seeing opportunities there. That market certainly has embraced our products. So we're feeling pretty good about the environment right now. And again, I think the sizing that you described is representative.

Samuel Overwater

Amazing. That's great to hear. And then just one last quick question just on cash flows. Timing of the Great Bear repurchase is Q4. Can we expect that $43 million along with Q4?

William Heissenbuttel

Will we expect it to come in, in Q4? Is that your question?

Samuel Overwater

Yes. And then can we expect the inflows at that time as well?

William Heissenbuttel

We are expecting it this quarter.

Samuel Overwater

This quarter. Okay, great.

Operator

There are no further questions at this time. I will now turn the call back to Bill Heissenbuttel for closing remarks.

William Heissenbuttel

Well, everyone, thank you for taking the time to join us today. We certainly appreciate your interest in Royal Gold, and we look forward to updating you on our progress during our next quarterly call. Take care.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.