Royal Gold Reports Record Third Quarter Revenue

Royal Gold Reports Record Third Quarter Revenue
* Royalty Revenue of $6.0 Million


DENVER, May 6  /PRNewswire-FirstCall/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX:
RGL) today announced record revenues and cash flow for the third quarter
(January 1 -- March 31) of fiscal year 2004.  The Company's strong performance
during the quarter largely reflects the benefits of higher gold prices on its
GSR1 sliding-scale royalty at the Pipeline Mining Complex in Nevada.

The Company reported net income of $2,950,814 or $0.14 per basic share, on
royalty revenue of $6,020,841 for the three months ended March 31, 2004.  Net
income for the quarter compares to net income of $2,473,159, or $0.12 per basic
share, on royalty revenue of $5,587,567 for third quarter of fiscal 2003. 
Included in the third quarter was a non-cash charge for a deferred tax expense
of $938,646 or $0.05 per basic share.

Net income for the nine-month period ended March 31, 2004 was $6,571,392 or
$0.32 per basic share, on royalty revenue of $15,285,788.  This compares to net
income of $5,131,008, or $0.26 per share, on royalty revenue of $12,083,123 for
the nine-month period ended March 31, 2003.

Free cash flow for the third quarter was approximately $4.6 million, or 77% of
revenues.  For the nine-month period, free cash flow was approximately $11.1
million, or 72% of revenues.  Free cash flow, a non-GAAP financial measure, is
defined as operating income plus depreciation, depletion and amortization, and
any impairment of mining assets (see Schedule A -- Reconciliation).

At March 31, 2004, the Company had a working capital surplus of approximately
$46.2 million.  Current assets were $49,004,777 compared to current liabilities
of $2,804,990 for a current ratio of 17 to 1.

Commenting on third quarter results, Stanley Dempsey, Chairman and CEO, said,
"We are extremely pleased with our strong revenues and cash flow.  These
results demonstrate the effectiveness of our royalty business model and the
leverage it provides at higher gold prices.  We have the financial strength to
fuel growth and believe it is important to remain selective in our acquisitions
in order to achieve transactions that are high-quality and that will contribute
to our long-term success."

  ROYALTY PORTFOLIO REVIEW

  Pipeline Mining Complex, Lander County, Nevada


The Company owns two sliding-scale gross smelter return royalties ("GSR1" and
"GSR2"), a fixed gross royalty ("GSR3"), and a net value royalty ("NVR1") on
the Pipeline Mining Complex.  The GSR1 royalty covers the current mine
footprint, and the GSR2 ("Super") royalty covers any reserves that are
developed on the claim block lying outside the current mine footprint.  The
GSR2 royalty pays out at a rate that is 80% higher than that of GSR1, at all
gold prices.  The GSR3 royalty is a 0.71% fixed rate for the life of the mine.
The 0.39% NVR1 royalty covers production from the GAS Claims, an area of
interest of approximately 4,000 acres including the South Pipeline deposit and
Crossroads area, but not including the Pipeline pit.  The NVR1 is calculated by
deducting processing-related costs, but is not burdened by mining costs.

The Pipeline Mining Complex is owned by the Cortez Joint Venture ("Cortez"), a
joint venture between Placer Cortez Inc. (60%), a subsidiary of Placer Dome
Inc., and Kennecott Explorations (Australia) Ltd. (40%), a subsidiary of Rio
Tinto.

For the third quarter of fiscal 2004, the Pipeline Mining Complex produced
259,821 ounces of gold, providing $5,459,516 of royalty revenue to Royal Gold.
This compares to 326,043 ounces of gold produced, providing $4,933,825 of
royalty revenue to Royal Gold, for the same quarter in fiscal 2003.  For the
third quarter of fiscal 2004, the average gold price was $408 per ounce and
Royal Gold's GSR1 royalty rate was 4.00%, compared to an average gold price of
$352 per ounce and a GSR1 royalty rate of 3.40% for the same quarter of the
previous year.  Current production from the Pipeline Mining Complex is subject
to GSR1, GSR3, and NVR1.

Estimates received from the mine operator indicate that production from the
Pipeline Mining Complex is expected to be about 892,000 ounces of gold for
calendar year 2004.

Leeville Project, Eureka County, Nevada

Royal Gold owns a 1.8% net smelter return royalty ("NSR") covering a portion of
the Leeville project ("Leeville").  Leeville is an underground mine, currently
under development by Newmont Mining Corporation.  Newmont has announced its
intention to initiate production at Leeville in the fourth quarter of 2005. 
Current production on the Leeville royalty land is derived from underground
operations on a portion of the Carlin East deposit.  During the third quarter,
the Carlin East deposit produced 25,785 ounces of gold attributable to Royal
Gold's royalty interest, providing $188,119 in royalty revenue.  This compares
to production of 28,882 ounces of gold, providing $183,520 in royalty revenue,
in the same quarter of the previous year. Estimates received from the mine
operator indicate that production from the Carlin East deposit is expected to
be about 116,000 ounces of gold for calendar year 2004.

SJ Claims (Betze-Post Mine), Eureka County, Nevada

Royal Gold owns a 0.9% NSR royalty covering a portion of the open pit at the
Betze-Post mine, known as the SJ Claims.  The Betze-Post mine, a part of the
larger Goldstrike operation, is operated by Barrick Gold Corporation
("Barrick").  During the third quarter, the SJ Claims produced 79,505 ounces of
gold attributable to Royal Gold's royalty interest, providing $292,357 in
royalty revenue.  This compares to production of 89,528 ounces of gold,
providing $284,361 in royalty revenue, in the same quarter of the previous
year.

Estimates received from the mine operator indicate that production from the SJ
Claims is expected to be about 515,000 ounces of gold for calendar year 2004.

Bald Mountain, White Pine County, Nevada

Royal Gold owns a 1.75% to 3.50% NRS sliding-scale royalty that burdens a
portion of the Bald Mountain Mine, operated by Placer Dome U.S. Inc.  The 1.75%
NSR royalty rate does not increase until the gold price exceeds $500 per ounce.
 During the third quarter, the Bald Mountain mine produced 5,430 ounces of gold
attributable to Royal Gold's royalty interest, providing $39,296 of royalty
revenue.  This compares to production of 24,289 ounces of gold, providing
$149,252 of royalty revenue for the same quarter of the previous year.

Estimates received from the mine operator indicate that production from Bald
Mountain is expected to be about 55,000 ounces of gold for calendar year 2004.

Martha Mine, Santa Cruz Province, Argentina

The Company owns a 2% NSR on the Martha silver mine operated by Coeur d'Alene
Mines Corporation.  The Company received $41,553 in royalty revenue during the
quarter.  This compares to $33,000 in royalty revenues for the same quarter of
the previous year.

Estimates received from the mine operator indicate that production from the
Martha mine is expected to total about 1.3 million ounces of silver for
calendar year 2004.

Corporate Profile

Royal Gold is a dividend paying, precious metals royalty company engaging in
the acquisition and management of precious metals royalty interests.  Royal
Gold is publicly traded on the Nasdaq Market System, under the symbol "RGLD"
and on the Toronto Stock Exchange, under the symbol "RGL."  The Company's web
page is located at http://www.royalgold.com/.

NOTE: Management's conference call reviewing its third quarter results for
fiscal 2004 will be held today, May 6, 2004, at noon Eastern (10:00 a.m.
Mountain; 9:00 a.m. Pacific) time and is available by calling 800-603-2779 or
706-634-7230.  The call will be simultaneously carried on the Company's web
site at http://www.royalgold.com/ under the "Presentations" section.  A replay
of the conference call will be available on the web site approximately two
hours after the call ends.  Audio replays will be available about two hours
after the call and until May 14, 2004, by dialing 800-642-1687 or 706-645-9291,
access number 7141299.

Cautionary "Safe Harbor" Statement Under the Private Securities Litigation
Reform Act of 1995:  With the exception of historical matters, the matters
discussed in this press release are forward-looking statements that involve
risks and uncertainties that could cause actual results to differ materially
from projections or estimates contained herein.  Such forward-looking
statements include statements regarding estimated production levels for
calendar year 2004 at each of our producing royalty properties and estimated
commencement of production at the Leeville mine.  All of this forward-looking
information was provided to us by the operators of the mines.  Other forward
looking statements include the prospects for future acquisitions of royalty
properties.  Factors that could cause actual results to differ materially from
projections include, among others, precious metals prices, decisions and
activities of the operators of our royalty properties, unanticipated permitting
or other delays in connection with commencement of production on the Leeville
mine, unanticipated grade, geological, metallurgical, processing or other
problems the operators of the mining properties may encounter, economic and
market conditions, and our future financial needs or opportunities, as well as
other factors described elsewhere in this press release and in our Annual
Report on Form 10-K, and other filings with the Securities and Exchange
Commission.  Most of these factors are beyond the Company's ability to predict
or control.  The Company disclaims any obligation to update any forward-looking
statement made here.  Readers are cautioned not to put undue reliance on
forward-looking statements.

                 Consolidated Balance Sheets (Unaudited)

                                 ASSETS

                                               March 31,       June 30,
                                                 2004            2003
  Current assets


Cash and equivalents                       $41,667,029    $ 33,485,543

   Royalty receivables                          5,120,922      3,125,437
   Current deferred tax asset                   1,726,122             --
   Prepaid expenses and other                     490,704        190,568

  Total current assets                         49,004,777     36,801,548

  Royalty interests in mineral properties,
   net                                         41,156,015     43,559,743
  Available for sale securities                   742,672        457,584
  Deferred tax asset                              356,211      5,454,500
  Other assets                                    161,533         85,297

  Total assets                                $91,421,208    $86,358,672


            Consolidated Balance Sheets Continued (Unaudited)

                  LIABILITIES AND STOCKHOLDERS' EQUITY

                                                March 31,       June 30,
                                                 2004            2003
   Current liabilities
   Accounts payable                           $1,611,272      $1,126,591
   Dividend payable                              779,377       1,032,735
   Accrued compensation                          100,000         200,000
   Other                                         314,341         146,655

  Total current liabilities                    2,804,990       2,505,981

  Deferred tax liability                       7,583,317       8,746,702
  Other liabilities                               93,689         113,489

  Commitments and contingencies

  Stockholders' equity
   Common stock, $.01 par value, authorized
    40,000,000 shares; and issued 21,012,583
    and 20,883,914 shares, respectively          210,125         208,838

  Additional paid-in capital                 101,348,938     100,612,048

  Accumulated other comprehensive income         260,860          64,963

  Accumulated deficit                        (19,783,839)    (24,796,477)
                                              82,036,084      76,089,372

  Less treasury stock, at cost
   (229,224 shares)                           (1,096,872)     (1,096,872)

  Total stockholders' equity                  80,939,212      74,992,500

  Total liabilities and stockholders'
   equity                                    $91,421,208     $86,358,672


Consolidated Statements of Operations and Comprehensive Income (Unaudited)

                                               For The Three Months Ended
                                               March 31,         March 31,
                                                 2004              2003

  Royalty revenues                           $6,020,841        $5,587,567

  Costs and expenses
   Costs of operations                          418,900           481,983
   General and administrative                   834,031           476,404
   Exploration and business development         150,705           326,373
   Depreciation and depletion                   762,288           776,036
  Total costs and expenses                    2,165,924         2,060,796

  Operating income                            3,854,917         3,526,771

  Interest and other income                     142,018            98,750
  Interest and other expense                     (5,512)          (28,601)

  Income before income taxes                  3,991,423         3,596,920

  Current tax expense                          (101,963)          (71,939)
  Deferred tax expense                         (938,646)       (1,051,822)

  Net income                                  $2,950,814       $2,473,159

  Adjustments to comprehensive income
   Unrealized change in market value of
    available for sale securities                 91,282         (117,307)
  Comprehensive income                        $3,042,096       $2,355,852

  Basic earnings per share                         $0.14            $0.12

  Basic weighted average shares
   outstanding                                20,783,359       20,537,681

  Diluted earnings per share                       $0.14            $0.12

  Diluted weighted average shares
   outstanding                                21,125,284       21,091,023


Consolidated Statements of Operations and Comprehensive Income (Unaudited)

                                               For The Nine Months Ended
                                               March 31,         March 31,
                                                 2004              2003

  Royalty revenues                           $15,285,788       $12,083,123

  Costs and expenses
   Costs of operations                         1,093,357         1,064,096
   General and administrative                  2,198,726         1,470,231
   Exploration and business development          931,653           570,140
   Depreciation and depletion                  2,463,219         1,924,983
  Total costs and expenses                     6,686,955         5,029,450

  Operating income                             8,598,833         7,053,673

  Interest and other income                      331,702           290,426
  Interest and other expense                     (63,791)          (98,418)

  Income before income taxes                   8,866,744         7,245,681

  Current tax expense                           (192,053)         (144,914)
  Deferred tax expense                        (2,103,299)       (1,969,759)

  Net income                                  $6,571,392        $5,131,008

  Adjustments to comprehensive income
   Unrealized change in market value of
    available for sale securities                195,897          (140,127)
  Comprehensive income                        $6,767,289        $4,990,881

  Basic earnings per share                         $0.32             $0.26

  Basic weighted average shares
   outstanding                                20,752,872        19,532,262

  Diluted earnings per share                       $0.31             $0.26

  Diluted weighted average shares
   outstanding                                21,118,405        20,048,206


            Consolidated Statements of Cash Flows (Unaudited)

                                               For The Nine Months Ended
                                               March 31,         March 31,
                                                  2004              2003
  Cash flows from operating activities

  Net income                                  $6,571,392        $5,131,008
  Adjustments to reconcile net income
   to net cash provided by operating
   activities:

    Depreciation and depletion                 2,463,219         1,924,983
    Deferred tax expense                       2,103,299         1,969,759
    Realized gain on sale of available
     for sale securities                         (22,778)               --
    Put option mark to market                         --           208,791
    Other                                          5,642             6,356

    (Increase) decrease in:
      Royalty receivables                     (1,995,485)       (1,748,897)
       Prepaid expenses and other assets        (299,730)            7,643

    Increase (decrease) in:
      Accounts payable and accrued
       liabilities                               504,720           611,525
      Other liabilities                          (19,800)           (5,879)

  Total adjustments                            2,739,087         2,974,281
  Net cash provided by operating activities   $9,310,479        $8,105,289


       Consolidated Statements of Cash Flows Continued (Unaudited)

                                               For The Nine Months Ended
                                               March 31,         March 31,
                                                 2004              2003
  Cash flows from investing activities
   Proceeds from sale of available for
    sale securities                              $38,642               $--
   Acquisition, net of cash acquired
    of $853,480                                       --        (1,597,159)
   Capital expenditures for property
    and equipment                                (93,700)           (7,004)

  Net cash used in investing activities          (55,058)       (1,604,163)

  Cash flows from financing activities:
   Dividends                                  (1,812,112)       (2,377,714)
   Payments of notes payable                          --          (647,649)
   Proceeds from issuance of common stock        738,177        14,524,776

  Net cash provided by (used in) financing
   activities                                 (1,073,935)       11,499,413

  Net increase in cash and equivalents         8,181,486        18,000,539

  Cash and equivalents at beginning of
   period                                     33,485,543        11,104,140

  Cash and equivalents at end of period      $41,667,029       $29,104,679


                       SCHEDULE A - RECONCILIATION

  Non-GAAP Financial Measures


The Company computes and discloses free cash flow and free cash flow as a
percentage of revenues.  Free cash flow is a non-GAAP financial measure.  Free
cash flow is defined by the Company as operating income plus depreciation,
depletion and amortization, non-cash charges, and adding back any impairment of
mining assets. Management believes that free cash flow and free cash flow as a
percentage of revenues are useful measures of performance of our royalty
portfolio.  Free cash flow identifies the cash generated in a given period that
will be available to fund the Company's future operations, growth
opportunities, and shareholder dividends.  Free cash flow, as defined, is most
directly comparable to operating income in the Statements of Operations. Below
is reconciliation to operating income:

                      For The Three Months Ended   For The Nine Months Ended
                       March 31,     March 31,     March 31,     March 31,
                         2003          2002          2003          2002
  Operating income    $3,854,917    $3,526,771    $8,598,833    $7,053,673
  Depreciation and
   depletion             762,288       776,036     2,463,219     1,924,983
  Free cash flow      $4,617,205    $4,302,807   $11,062,052    $8,978,656


DATASOURCE: Royal Gold, Inc.



CONTACT:  Stanley Dempsey, Chairman & Chief Executive Officer, or Karen

Gross, Vice President & Corporate Secretary, both of Royal Gold, Inc.,

[phone]



Web site:  http://www.royalgold.com/

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