Royal Gold Hits 52-Week High: What's Driving Its Performance?

Shares of Royal Gold, Inc. RGLD scaled a new 52-week high of $224.77 on Friday before ending the session lower at $218.75. The increase was fueled by near-record gold prices.

The company currently has a market capitalization of $18.5 billion and flaunts a Zacks Rank #1 (Strong Buy).

What’s Aiding Royal Gold Stock?

Solid Q3 Results: RGLD reported adjusted earnings per share (EPS) of $2.06 in third-quarter 2025. The company had registered an EPS of $1.47 in the year-ago quarter. RGLD generated record revenues of $252 million, up 30% year over year. The upside was driven by higher average metal prices, gold sales from Andacollo and Rainy River, and higher production from Peñasquito. However, these factors were offset by lower gold sales from Xavantina.

Stream revenues were $166 million and royalty revenues were $86 million in the September-end quarter. Stream revenues increased 24.8% year over year and royalty revenues rose 41.5%.

Strong Financial Position: Royal Gold is focused on allocating its strong cash flow to dividends, debt reduction and new businesses. Its total liquidity was more than $813 million as of Sept. 30, 2025, consisting of $188 million in working capital and $625 million available under the revolving credit facility. The company currently has a debt of $750 million.

In November 2025, the company announced that its fully-owned subsidiary, International Royalty Corporation (“IRC”), inked a deal to sell 11,827,273 common shares of Versamet Royalties Corporation to Tether Investments and 11,827,272 shares to Nemesia S.à.r.l. The deal is priced at C$8.75 ($6.23) per share, which will help Royal Gold with debt repayment.

Recent Acquisitions: On Oct. 20, 2025, Royal Gold acquired Sandstorm Gold Ltd. and Horizon Copper Corp. These transactions reinforce RGLD’s position as a leading North American precious metal streaming and royalty company. The addition of these assets from SAND and Horizon Copper creates a uniquely diversified global precious metals portfolio for Royal Gold with significant growth and exploration potential.

The deal adds 40 producing assets to Royal Gold’s portfolio. These assets are expected to generate gold equivalent ounces (“GEO”) of 65,000-80,000 in 2025. The transaction is anticipated to increase GEO production by 26%, based on the midpoints of the 2025 guidance provided by both Royal Gold and Sandstorm Gold.

Sandstorm Gold reported revenues of $57.5 million in the third quarter, while Horizon Copper’s revenues for the quarter were $6 million.

Near-record Metal Prices: Gold prices have rallied 63.9% year to date. The metal has been supported by geopolitical tensions, tariff concerns and continuous purchasing by central banks. Gold prices are currently trending near a record $4,345 per ounce.

Silver prices have gained 90.8% year to date, supported by strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver has benefited from resilient industrial demand and mounting supply deficits. Demand for solar energy, electronics and electrification now accounts for more than half of global silver demand. Currently, silver is trading at a fresh high of above $63.

This pickup in the prices of gold and silver is likely to improve Royal Gold’s results in the upcoming quarters.

RGLD Stock’s Price Performance

In the past year, shares of Royal Gold have gained 51.9% compared with the industry’s growth of 133.9%.

Other Stocks to Consider

Some better-ranked stocks from the basic materials space are Agnico Eagle Mines AEM, First Majestic Silver Corp. AG and OR Royalties Inc. OR. AEM sports a Zacks Rank #1, and AG and OR have a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $7.77 per share. The estimate indicates year-over-year growth of 83.6%. It has an average trailing four-quarter earnings surprise of 11.6%. Agnico Eagle Mines’ shares have surged 107.6% in a year.

The Zacks Consensus Estimate for First Majestic Silver’s 2025 earnings is pegged at 25 cents per share, suggesting year-over-year growth of 278%. First Majestic Silver’s shares jumped 157.1% last year.

The consensus estimate for OR Royalties’ 2025 earnings is pegged at 82 cents per share. The estimate implies year-over-year growth of 57.7%. OR Royalties’ shares have surged 80% in a year.

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This article originally published on Zacks Investment Research (zacks.com).

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