Gold royalties are financial agreements where a company pays a percentage of its revenue from gold production to a royalty holder. This arrangement allows mining companies to access capital without incurring debt, while royalty holders benefit from a steady income stream as gold is extracted and sold. These royalties can be structured in various ways, including fixed payments or a percentage of sales. Companies like Franco-Nevada and Wheaton Precious Metals are prominent players in the gold royalty sector, providing funding to mining operations in exchange for future revenue from gold production.