Good morning. My name is Jessica, and I will be your conference operator today. At this time, I’d like to welcome everyone to the Royal Gold Fiscal 2012 Second Quarter Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator Instructions) Thank you. Karen Gross, you may begin your conference.

Thank you, operator. Good morning, everyone, and thank you for joining us today. This event is being webcast live. You will be able to access a replay of the call on our website at www.royalgold.com. Participating on the call today are Tony Jensen, President and CEO; Stefan Wenger, CFO and Treasurer; Bill Heissenbuttel, Vice President, Corporate Development; Bill Zisch, Vice President, Operations; Bruce Kirchhoff, Vice President and General Counsel; and Stanley Dempsey, Chairman. After management completes their opening remarks, we’ll open the line for a Q&A session. Before we begin, I want to remind everyone that this discussion falls under the Safe Harbor provision of the Private Securities Litigation Reform Act. A discussion of the company’s current risks and uncertainties is included in the Safe Harbor statement in today’s press release and is presented in greater detail in our filings with the SEC. With that, I’ll turn the call over to Tony.

Good morning and thank you for joining us today. We had a very busy and successful quarter, and I wanted to take some time to highlight those and particularly to highlight some of the management teams. So today, I’d like ask Stefan Wenger and Bill Heissenbuttel and Bill Zisch all to have a part in the call this morning. But before I turn the call over to Stefan, I would like to provide some introductory comments about the quarter. Today, Royal Gold reported record quarterly revenue of $69 million, a 22% increase, and net income, also a record, rose 28% to $23 million or $0.42 per share. Operating cash flow totaled $29 million, up 8% from the comparable year-over-year period. And looking at our first half performance, Royal Gold achieved record finance results in revenue, net income and operating cash flow. Six-month royalty revenue was $133 million. Operating cash flow was $75 million, and net income was $46 million or $0.83 per basic share. In reviewing the composition of our quarterly revenue, Andacollo was again our largest revenue source, contributing approximately $16 million. Voisey’s Bay reported strong production and associated revenue for the quarter, contributing approximately $12 million, while Peñasquito added just over $6 million. Total revenue from these three producing cornerstone properties was approximately half of our revenue for the quarter. Holt was our next biggest contributor, adding over $4 million in revenue. Compared to the September 2011 quarter, we saw volume expansion within the portfolio at Peñasquito, Voisey’s Bay, Holt, Mulatos, Dolores and Las Cruces. This increased production more than offset lower silver and copper prices, a flat gold price and lower production at Cortez and Robinson. Our percentage of revenue from precious metals was 72%. Now I’d like to briefly talk about our current financial status. As you know, we have been very busy during the December quarter with acquisitions involving Mt. Milligan and Tulsequah Chief projects, both in British Columbia. Combined, we committed $330 million to these transactions subject to certain conditions. In early December, we drew down an additional $100 million on a revolver to fund the Mt. Milligan II transaction. And to restructure our balance sheet and position the company for additional opportunities, we sold 4 million shares of common stock in January, resulting in proceeds of approximately $268 million. Now I’d like to turn the call over to Stefan Wenger, our Chief Financial Officer, to give you a bit more detail on DD&A and tax expense during the quarter as well as some of the financial activities after quarter end. Stefan?

Thank you, Tony, and good morning, everyone. DD&A for the second quarter was $21.4 million compared to $16 million for the comparable quarter of fiscal 2011. The increase was due to higher production at the Andacollo, Voisey’s Bay as well as the new production from Canadian Malartic and Holt. DD&A for the quarter was $525 per gold equivalent ounce compared with $388 per ounce in the prior year. This increase per gold equivalent ounce is attributable to higher revenue from Voisey’s Bay and a corresponding decrease in revenue from Cortez or Voisey’s Bay has a higher cost per ounce versus Cortez, which has a very low cost per ounce. For fiscal 2012 as a whole, we expect our DD&A rate per gold equivalent ounce to be in a range of $450 to $500. Moving on to taxes, income tax expense increased to $14.1 million or 36.7% for the quarter compared with $11.4 million or 35.4% in the prior year period. The increase in our effective tax rate was a result of an increase in tax expense on foreign earnings. For the six-month period, our effective tax rate was 34.4% compared with 35.2% for the comparable period in fiscal 2011. For fiscal 2012, we expect our effective tax rate to be at or slightly higher than 35%. As of December 31, we had $170 million outstanding under our revolving credit facility and about $118 million outstanding under our term loan for total debt of approximately $288 million. After the end of the quarter, we paid the debt outstanding on the revolving credit facility. Adjusted for the offering and the repayment of the debt, our December 31 cash balance would have been $194 million. And when coupled with our now undrawn credit facility of $225 million, our current liquidity is over $400 million. Our term loan of $118 million remains in place, and we continue to view this as an attractive low cost component of our capital structure. Our new capital coupled with our strong and growing cash flows and the undrawn credit line gives us additional flexibility as we consider our financial needs going forward. Now to add more detail of our recent development activities, Bill Heissenbuttel, our Vice President of Corporate Development, will give you an overview of these transactions. Bill?

Thank you, Stefan. I’ll start with Mt. Milligan, a long lived copper gold project located in British Columbia. In December, we acquired an additional 15% of the payable gold to be produced from this project for $270 million and cash payments equal to the lesser of $435 per ounce or the prevailing market price for each payable ounce of gold delivered to us. Combined with our original transaction, this gives us the right to purchase 40% of the payable gold for total consideration of $581.5 million and the ongoing $435 per ounce payment. Today, we’ve paid approximately $365 million to Thompson Creek with the remaining $217 million to be paid in scheduled quarterly payments starting on March 1 of this quarter. We’ll make four payments of $45 million in calendar 2012, payments of $12 million in the first two quarters of calendar 2013 and the remainder will be paid in the third quarter of calendar 2013. We’re very pleased about increasing our investment at Mt. Milligan and assisting Thompson Creek with its construction financing needs. In terms of the actual project itself, construction continued during the quarter. And the overall project remains on schedule for completion in the fourth quarter of calendar of 2013. As of the end of December, engineering was 85% complete and construction had progressed to 31%. 50% of the major concrete pores are complete. Construction of the concentrator has commenced with 80% of the steel at site and the power line at the site is complete. Spending as of September 30, 2011, totaled CAD383 million with another CAD336 million committed. Once in production, the mine is projected to produce 194,000 ounces of gold per year on average over a 22-year mine life. Our other transaction during the quarter was the Tulsequah Chief project, a high grade…

Thank you, Bill, and good morning, everyone. Our portfolio of producing assets performed well this quarter. Compared with the prior quarter, we had a 9% increase in royalty gold equivalent ounces resulting in record production. Our explanation of performance this quarter is straightforward with most operations delivering as expected, several significant positive contributions and only a few shortfalls when compared to the prior quarter. Production from operations in Mexico exceeded the prior quarter as cyanide concentrations recovered to plan levels allowing for strong fourth quarter performance. Mulatos recaptured prior quarter shortfalls as output increased by 46%. Crusher throughput during the fourth quarter averaged a record a 16,000 tons of ore per day. Ore that had been modeled as waste was encountered while developing the Escondida zone. And the zone’s average grade during the quarter exceeded the average grade mining during the year. Cyanide concentration levels returned to normal allowing production to improve. Alamos is forecasting 2012 production at between 200,000 ounces and 220,000 ounces of gold. Included in this total is about 57,000 ounces of additional production from the new gravity mill. Dolores also deferred production as the quarter’s total increased by 21%. Repairs of a crushed collection pipe on the west pad and the irrigation of pressure on the east pad provided for their positive results. Production from our AuRico’s El Chanate mine was 5% above the prior quarter. First phase of a five-phase expansion program was completed during the quarter. The second phase of the program has a design stacking and crushing rate of 21,000 tons per day. It is expected to be operational in the first quarter of this year. AuRico has provided production guidance in the range of 78,000 ounces to 88,000 ounces of gold for 2012. At Peñasquito, quarterly production increased by 14% as both…

Thank you for the update, gentlemen. In summary, this was another quarter of solid operational performance and a period of important business development activity. We look forward to substantial, long-term revenue from our interest at Mt. Milligan and are pleased to have added another precious metal interest to our development portfolio with the Tulsequah Chief project. In the second half of fiscal 2012, we expect to see continued production expansion at Andacollo, Peñasquito, Canadian Malartic, Holt, Wolverine, Mulatos and Las Cruces as these projects work towards achieving design capacity. And with a restructured balance sheet and a strong cash flow, we believe Royal Gold is well positioned to continue executing on our business strategy. With that, operator, that concludes our remarks. We’ll be happy to entertain any questions if there were some.

(Operator Instructions) Your first question comes from the line of Lawson Winter with Bank of America Merrill Lynch. Your line is open. Lawson Winter – Bank of America Merrill Lynch: Hello. Tony Jensen – Royal Gold: Hello, Lawson. Lawson Winter – Bank of America Merrill Lynch: Just a question, we’ve seen with prior gold and silver streaming transactions where the operator pays the taxes for the streaming company, so with respect to Mt. Milligan gold stream where you guys are buying 40% and paying $435 an ounce, who in that situation will be paying the difference or the variance between the $435 and spot gold, is it Royal Gold or Thomson Creek? Tony Jensen – Royal Gold: Yeah. There’s about three of us that could answer this question. But I think I’ll turn it to Stefan. Could you explain to Lawson? Stefan Wenger – Royal Gold: Sure. The way the taxes work there, we put a deposit upfront on the property and during the period where we’re paying $435 an ounce, we’ll also be amortizing that deposits or actually during the first – say, the first half of the mine’s life while that deposit is being amortized, we won’t be paying. We’ll be amortizing that whole value of deferred market value and therefore paying no taxes. At the same time, the operator would be getting a deduction for that piece of the deposit. At some point, that flips and we’ll be paying taxes on the difference between the $435 and fair market value as we go forward. Lawson Winter – Bank of America Merrill Lynch: Okay, so when Mt. Milligan first starts up or assuming it was to be running today, what would that do to your tax rate? Would that then decline slightly? Stefan Wenger – Royal Gold: Yeah,…

(Operator Instructions) Your next question comes from the line of Andy Schopick, a private investor. Your line is open. Andy Schopick – Nutmeg Securities: Thank you and good morning. Just want to be sure, the pending deal between Pan American and Minefinders, that will be – that will not have any impact on your current royalty arrangement with the Dolores mine, will it? Stefan Wenger – Royal Gold: No, we don’t have any anticipation of any impact. The rights will continue to burden the property just as they do now, Andy. Andy Schopick – Nutmeg Securities: Okay. And lastly, I just like to ask a question about the other non-principal producing properties, that’s a group that comprises a material amount of current revenue, are you anticipating any change – any material changes in the balance of this fiscal year in terms of contributions from any of those properties? Tony Jensen – Royal Gold: Well, there is a number of assets in the non-principal producing properties, and they move up and down all the time. I don’t think, to answer your question directly on a comprehensive basis, I don’t think there is going to be any significant movements in there that would – we would call out and advise that they have a significant impact on our overall financials. Andy Schopick – Nutmeg Securities: Okay, thank you. Tony Jensen – Royal Gold: Thanks, Andy.

We have no further questions at this time. I’ll turn the call back over to the presenters.

Well, thank you very much for joining us today. We appreciate as always your continued interest in Royal Gold. And we look forward to keeping you informed on our next conference call if not sooner. Thanks again.

This concludes today’s conference call. You may now disconnect.