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Royal Gold Reports Record Quarter and Converts Hod Maden Stake to a Royalty

Converting Hod Maden equity into a royalty reduces cash commitments, cutting development risk for the company.

Overview

  • Royal Gold posted a record Q1 2026 with revenue up about 142.5% year-over-year, an adjusted EBITDA margin near 83%, and about $1.1 billion of cash liquidity plus a $2 billion revolver.
  • The company disclosed it has converted its Hod Maden equity into a royalty and plans to reduce its stake from roughly 30% toward 15%, a move that removes future cash calls tied to project development.
  • SSR Mining announced a deal to sell its 20% Hod Maden stake and operatorship to Lidya Mines, a change that helped clear the path for Royal Gold’s portfolio shift after questions raised on the May 7 earnings call.
  • Royal Gold recorded a $14 million cash call and $1.3 million of joint-venture losses in Q1 related to Hod Maden, and management says partner consent was required for any rationalization of the joint interest.
  • Analysts are split on the stock: Bank of America trimmed its price target and kept an underperform view while several independent commentators upgraded Royal Gold on valuation and margin strength.